Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Pakistan’s forex reserves increase to $18.644 billion

    Pakistan’s forex reserves increase to $18.644 billion

    KARACHI: Pakistan’s liquid foreign exchange reserves increased by $282 million on a weekly basis to $18.644 billion by week ended January 31, 2020, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were at $18.362 billion a week ago on January 24, 2020.

    The official reserves of SBP increased by $359 million to $12.274 billion by week ended January 31, 2020 as compared with $11.915 billion a week ago.

    The reserves held by commercial banks witnessed decline by $76 million to $6.37 billion as compared with $6.447 billion a week ago.

  • Equity market ends down by 160 pts on selling pressure

    Equity market ends down by 160 pts on selling pressure

    KARACHI: The equity market fell by 160 points on Thursday owing to selling pressure was seen during the day. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,724 points as against 40,884 points showing a decline of 160 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note and went up by 278 points during the session, which was mainly contributed by Oil and Gas sector scrips, E&P and OMCs.

    International crude prices prompted investors to build positions in oil and gas chain, however, selling pressure brought prices down and index moved downwards by 200 points.

    Chemical sector, on the other hand, performed well on the bourse, with LOTCHEM hitting upper circuit earlier in the session (on the back of better product margins) and maintained that position throughout.

    Similarly, EPCL, DOL and other chemical sector stocks gained traction from renewed interest by investors. Chemical sector led the volumes table with 18.5 million shares followed by Banks (17.8 million) and Cement (17 million).

    Among scrips, HASCOL led the volumes with 11.2 million, followed by LOTCHEM (8.9 million) and BOP (8.3 million).

    Sectors contributing to the performance include Power (-65 points), E&P (-42 points), O&GMCs (-40 points) and Inv Banks (-13 points) and Cement (-6 points).

    Volumes declined from 146.2 million shares to 127.8 million shares (-13 percent DoD). Average traded value also declined by 4 percent to reach US$ 38.0 million as against US$ 39.6 million.

    Stocks that contributed significantly to the volumes include HASCOL, LOTCHEM, BOP, UNITY and MLCF, which formed 32 percent of total volumes.

    Stocks that contributed positively include HBL (+43 points), BAFL (+16 points), POL (+14 points), PAKT (+11 points) and SYS (+11 points). Stocks that contributed negatively include HUBC (-61 points), MCB (-38 points), OGDC (-30 points), PPL (-24 points), and PSO (-22 points).

  • Rupee falls by 8 paisas on import demand

    Rupee falls by 8 paisas on import demand

    KARACHI: The Pak Rupee depreciated by eight paisas against dollar on Thursday owing to higher demand for import payments as market opened after a public holiday.

    The rupee ended Rs154.49 to the dollar from the closing of February 04, 2020 at Rs154.41 in interbank foreign exchange market.

    Currency dealers said that the demand was higher during the day as the market was remained closed on February 05, 2020 on account of Kashmir Day.

    The foreign currency market was initiated in the range of Rs154.48 and Rs154.50. The market recorded day high of Rs154.50 and low of Rs154.36 and closed at Rs154.49.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of the dollar was recorded at Rs154.30/Rs154.60, the same closing level in February 04, 2020, in cash ready market.

  • Foreign investors show willingness on new FDI in Pakistan: OICCI survey

    Foreign investors show willingness on new FDI in Pakistan: OICCI survey

    KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) has conducted bi-annual survey 2019 which revealed around 75 percent of its members show willingness to recommend new foreign direct investment in Pakistan to their parent companies.

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  • Anti-Benami transactions rules notified as per law: FBR

    Anti-Benami transactions rules notified as per law: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Benami Transactions (Prohibition) Rules, 2019 has been issued in accordance with the law.

    The FBR issued a rebuttal on a news item published in a daily on February 5, 2020 about the issuance of Benami Transactions (Prohibition) Rules, 2019.

    FBR has explained that Benami Transactions (Prohibition) Rules, 2019 under Benami Transactions (Prohibition), Act, 2017 were notified through SRO. 326(l)/2019 dated 11th March, 2019 by Dr. Hamid Ateeq Sarwar, Additional Secretary (IRS/BS-21 Officer).

    He is also holding the charge of Member (IR-Policy), FBR (HQ) since 4th December, 2018 vide FBR’s Notification No. 2236-IR-I/2018.

    It is further clarified that all the Members of FBR hold the ex-officio rank of Additional Secretary as per Establishment Division’s Notification dated March 18, 1987.

    It is pertinent to mention at the time of issuance of instant SRO Mohammad Jehanzeb Khan (BS-22 officer of PAS) was holding the charge of Chairman, FBR / Secretary Revenue Division.

    After final vetting of Benami Transactions (Prohibition), Rules 2019 by Law & Justice Division and approval of the same by Cabinet Committee for Disposal of Legislative Cases (CCLC), the Summary containing the Benami Transactions (Prohibition) Rules, 2019 was moved by Mohammad Jehanzeb Khan Chairman, FBR / Secretary Revenue Division for the approval of Federal Cabinet.

    The whole process of issuance of SRO and initiation of Summary for approval of Federal Cabinet is in legal conformity.

  • Shabbar Zaidi still chairman, to resume charge after leave: FBR

    Shabbar Zaidi still chairman, to resume charge after leave: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday said that Syed Shabbar Zaidi is still Chairman of the FBR but he is on leave.

    While clarifying new reports about the vacancy of office of Chairman, FBR, Dr. Hamid Ateeq Sarwar, Spokesperson for the FBR / Member (IR-Policy) clarified that Syed Muhammad Shabbar Zaidi, Chairman, FBR is on medical leave and he will assume the charge of Chairman, FBR as soon as he gets medically fit.

    However, the position of Chairman, FBR during the leave period of Syed Muhammad Shabbar Zaidi is not lying vacant and Ms. Nausheen Javaid Amjad (IRS/BS-22 Officer) is holding the Look After Charge of the Chairperson, FBR as notified by FBR’s Notification No. 0184-IR-I/2020 dated January 31, 2020.

  • Hapag Lloyd revises requirement of NTN for Pakistan imports

    Hapag Lloyd revises requirement of NTN for Pakistan imports

    KARACHI: Hapag Lloyd has revised its announcement and now requirement of National Tax Number (NTN) of Pakistani importers is not mandatory any more, according an official memorandum of Karachi Customs Agents Association (KCAA).

    According to the official memorandum, the KCAA informed its members that in the previous announcement by the Hapag Lloyd regarding mandatory requirement of NTN of importer on Import Bill of Lading.

    KCAA initiated immediate action and approached the Competent Authority of MCC-Preventive and concerned Shipping Association i.e. PSAA and APSA.

    “Due to efforts of KCAA, the Hapag Lloyd has revised the announcement on their website and the requirement of NTN of importer is not mandatory anymore,” it said.

    Since only Container Ownership NTN field is appearing in the Pakistan Customs online system hence only Container Ownership NTN is required.

    Hapag Lloyd has updated the mandatory requirement for bills of lading to Pakistan.

    As per our previous announcement related to Pakistan Customs advisement of the required Importer National Tax Number (NTN), we understand that only Container Ownership NTN field is appearing in the Pakistan Customs online system and there is no field added related to Importer NTN.

    Therefore, only Shipper Own Container, SOC, unit NTN and Tariff for local charges, free time and detention tariff on the bill of lading will be implemented at this time.

    Once we receive notification that Pakistan Customs is ready for the Importers NTN, we will keep you updated accordingly.

    Presently, following two requirements of import bills of lading are implemented for Pakistan.

    1) Mandatory requirement to update Container Ownership NTN # (National Tax Number) on Bill of Lading for Shipper Own Container, SOC, units effective January 15, 2020.

    According to Pakistan Customs, all Carriers are bound to file Customs manifest including Container Ownership NTN# for Carrier Own Container and SOC units for each shipment.

    The Consignee NTN number is to be updated on the Bill of Lading which is released by origin office for SOC unit.

    All customers are requested to please provide your local importer NTN number along with the importer name and address while submitting the SI (Shipping Instructions) for SOC units.

    Pakistan Customs will not accept the manifest if the NTN number is missing.

    As per Customs rule, a non-manifested unit is not allowed to discharge at Pakistan and will remain on board at customer’s risk, cost and responsibility.

    2) Publication of Tariff on Bill of Lading Related to Local Charges / Free Time / Detention Tariff

    Effective immediately, according to Pakistan Customs Rules 2001 amended in Responsibilities of Licensee for imports into Pakistan, the Carrier is to update all local collect charges other than freight on the Bill of Lading itself. The Carrier must also state on the Bill of Lading the agreed free days and detention tariff per container.

    All shipments which will be discharged in Pakistan for clearance or in transit to Afghanistan, must reflect the required charges details.”

  • KTBA members asked to report privately hired persons by tax officials

    KTBA members asked to report privately hired persons by tax officials

    Karachi: The Karachi Tax Bar Association (KTBA) has issued an urgent call to its members to report any instances of tax officials hiring privately employed individuals for assistance. This move follows a strict condemnation from the Federal Board of Revenue (FBR) against the practice, warning that it could result in disciplinary action for the officers involved.

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  • Shabbar Zaidi urged to continue as FBR chairman

    Shabbar Zaidi urged to continue as FBR chairman

    KARACHI: A tax bar has urged Shabbar Zaidi to continue as chairman of Federal Board of Revenue (FBR) for betterment of Pakistan’s tax system.

    “Truly speaking there are hundreds of other growth signals which should not be disregarded but to convey my message as well as discharging my basic responsibility precisely, I just need to request you that our country needs a sincere and bright person like you to continue striving hard for betterment and a sustainable tax system for growth of the economy,” said Ahmed Nasir KK, Advocate and President of Mirpur Khas Tax Bar Association (MTBA).

    The tax bar said that with due respect on behalf of my bar members and common taxpayers being represented through Learned Advocates, Tax Consultants including myself, I would like to convey you the true and lasting desire and hope of the business as well legal fraternity, that whatever the circumstances may be, this tax system needs complete reformation as well as a True, Wise, Eligible and sincere Leadership like your kind honor.

    It said that under the chairmanship of FBR, Shabbar Zaidi has achieved unprecedented targets, including significant growth in number of fillers, and revenue collection.

    Moreover, the tax bar said that the number of taxpayers had been increased just due to sincere efforts of Shabbar Zaidi.

    Previously lasting corrupt practices inside FBR like frequent bank account attachments without merit, which badly affected and almost ruined the confidence of business community as well the thoughts and trust of new possible filers were put to an end by your good self.

  • FBR urged to withdraw date extension notification for audit completion

    FBR urged to withdraw date extension notification for audit completion

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to withdraw a notification issued allowing tax offices to complete audit related to past year.

    In a letter to FBR Chairperson, the KTBA pointed out selection of audit through Section 214C of Income Tax Ordinance, 2001 and said that courts had ordered the tax authorities to complete audit of selected cases within the year for which year a case was selected.

    The tax bar said that tax offices had intimated taxpayers that the audit wing of the FBR condoned the time limit for completing audit in 459 cases related to tax year 2014 up to June 30, 2020.

    The tax bar pointed out that as per Audit Policy 2015 which governed audit cases selected for tax year 2014 had clearly mentioned: “the cases selected during a financial year would be disposed of during the same year.”

    It is further stated that the audit policy 2015 was challenged in the Lahore High Court in 2017 and the court allowed the completion of audit time limit up to June 30, 2019. An intra court appeal was filed against the judgment, where a division bench extended the cut-off date to December 31, 2019.

    The KTBA further highlighted a reported judgment Supreme Court of Pakistan in which the apex court observed: “… while an extension could be granted by the FBR for conducting and audit, the same should be supported by application of mind, appropriate reasoning and could not be granted casually, repeatedly or as a matter of routine.”

    The tax bar said: “FBR has allowed the time period for completing the audit, all by itself, till June 30, 2020, through its latest circular … The extension, which has been issued completely on its own motion by the FBR, has been give to all the pending 459 cases audits of tax offices in Karachi.”

    It said that the extension is in total contravention of the findings and directions of the Supreme Court, which laid down the principles.

    It further said that extension granted in the 459 cases will open the floodgate of litigations against the State.

    The KTBA said that the tax bar associations in the country should be taken into the folds before any decision of the sort are taken, which are prone to become contentious and consequently subject of litigation.