KARACHI: The import of motor cars in completely built unit (CBU) condition fell by 80 percent due to deterrence created against misuse of facility.
(more…)Author: Mrs. Anjum Shahnawaz
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Biometric verification of all saving scheme investors to be conducted under FATF recommendations
ISLAMABAD: The government will conduct biometric verification of all investors of National Saving Schemes in order to make compliance with recommendations of Financial Action Task Force (FATF), a statement issued by Finance Division said on Saturday.
Asia Pacific Group in its recently published Mutual Evaluation Report (MER 2019), has pointed out number of deficiencies on the part of Central Directorate of National Savings (CDNS) in terms of compliance to FATF recommendations, which has negatively affected the overall grading of different recommendations specially the recommendation 10, 11, 12 and 15.
In this context, CDNS is committed to mitigating the deficiency to improve customer service delivery and to comply the FATF recommendation to safeguard the interest of the investors, it said.
Banks under the supervision of SBP have already put in place all the required systems and KYC processes to comply the FATF recommendation.
Finance Division through promulgation of National Savings Schemes (AML-CFT) Rules, 2019 has decided to engage an AML-CFT compliant bank, through competitive bidding, to put in place the requirement as well as the necessary training of employees of Central Directorate of National Savings (CDNS).
Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC (Know Your Customer) and other requirement of new as well as existing client of CDNS.
This will include the biometric verification and screening of potential clients in UN Proscribed Person List.
All these screenings are meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investor from the menace of Money Laundering and Terrorist Financing.
Central Directorate of National Savings (CDNS) as it stands today is one of the longstanding institutions in the country with a legacy of more than 140 years.
The institution has always been a symbol of unshakable trust of the public.
National Savings is playing its pivotal role to inculcate the Culture of Savings, facilitate Financial Inclusion and extending Social Security Net to the deserving sections of the society.
Around 33 percent of CDNS deposits are in Welfare Schemes which attribute around 2 percent incremental rate of profit over and above other regular savings schemes.
Currently, CDNS manages portfolio of Rs. 4,038 billion (November 2019) of more than 7 million investors.
National Savings Schemes (“NSS”) provide risk free and competitive avenue to all segments of society specially the most vulnerable i.e. senior citizens, pensioners, widows, physically challenged persons and family members of Shuhada.
On the other hand, it provides a non-inflationary and cost effective borrowing to the government to bridge the overall fiscal deficit which ultimately reduces dependency on external borrowing.
About 19 percent of domestic debt consists of NSS while these deposits are equal to 28 percent of total deposit of scheduled bank.
One of the main challenges to CDNS was its manual operations and lack IT, therefore, CDNS has started its journey of automation in 2009 and successfully completed PSDP funded Automation Project Phase I & II in 2013 and 2017.
Through these project 223 National Savings Centre (“NSC”) i.e. (60 percent out of total 376) have been successfully automated.
Automation of remaining 153 is in active process with support of Department for International Development (DFID), UK.
Meanwhile, CDNS has upgraded its core business solution from decentralized to centralized architecture.
Around 144 branches have already been shifted to upgraded solution where customer transaction time has significantly reduced.
Also, the provision of Alternate Delivery Channels (ATM) is in final stages which will further improve the service delivery. Introduction of technology has provided CDNS the opportunity to modernize its process which include swift data reporting, reconciliation with other departments, budgeting and forecasting, customer data base etc.
Due to IT progress CDNS is now capable to implement number of initiatives which was not possible due to manual operation.
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Customs announces auction of used vehicles on Jan 20
KARACHI: Pakistan Customs has announced auction of used vehicles to be held on January 20, 2020 at Anti-Smuggling Organization (ASO) Headquarters, NMB Wharf, Ghas Bandar, East Wharf, Karachi.
Following used vehicles to be presented for auction:
01. Toyota Lexus Car – Reg No. UC-868 -Model-2006-(As per seat Belt) Chassis: JTHBG 963905034702 / Engine EMH-3 GR-FE158467 – 3485 cc.
02. Toyota Harrier Jeep – Reg.No-JAA-454 – Model-1998 – 2999cc – Chassis No-MCU-10-0013510 – Engine No- IMZ-FE6688090.
03. Toyota Mark-II Saloon Car / Reg. No-BBL-708 / Model-2000 / 1800 HP Chassis No-JZX110-6000922 / Engine No-1JZ-075010
04. Toyota AXIO-X car – White Colour – Reg.No.BFE-068 – 1496 cc – Model-2007 Chassis : NZE-141-6028039 / Engine : INZ-C0360547
05. Toyota Land Cruiser Jeep – Silver Colour Reg. No. BG-1131 – Model-1989 – 3400 cc. Chassis : BJ 60-023765 – Engine : 3B-1098887(As per Reg.Book). DIESEL
06. Mercedes Benz Saloon Car – Black Reg. No- BFF-014 / – Model- 2007 Chassis No. WDD2193222A117436 / Engine No. 64292040471958 / 3200 CC
07. Toyota Land Cruiser Jeep – P.White Reg.No. LZN-888 – Model – 1999 – 4663 CC Chassis No-UZJ 100-0081129 / Engine No- 2 UZ-0132269.
08. Toyota Surf Jeep – White Reg.No.BF-9252 – Model-1998 Chassis No. RZN185-9019896 / Engine No. 3RZ-FE.
09. Toyota Hilux Surf Jeep – Reg. No. CJ-4242 (Sindh) – Model-1990 – 2446 CC Chassis No LN130-0026273 / Engine No. 2L-2264058
10. Nissan X-Trail 5 Door Jeep – Pearl White Reg. No. GR-621 – Model-2005 ( As per seat Belt Model-2000 ) Chassis No. NT 30-100374 – Engine No. QR 20 (DE)
11. Toyota Land Cruiser Jeep – ( Petrol ) White Reg. No. BF-5933 – Model-1995 – 4476 CC Chassis No. FZJ 80-0109507 / Engine No.
12. Honda Civic Hybird Car Reg. No. AND-312 – Model-2008 – 1339 CC Chassis No. FD 3-1203642 / Engine No. DAA-1984158
13. Toyota PASSO car Reg. No. GS-6996 – Model-2010 – 996 CC Chassis No. KGC 30-0044392 / Engine No. IKR 1144091
14. Toyota AIXO Car Re.No. KCH-434 – Model-2006 – 1496 CC Chassis No. NZE141-6003694
15. Mercedes Benz Saloon Car (AG) – Reg.No. # AB 1001 Chassis No-WDB1240312B476728
16. Toyota Hilux Surf Heep – Reg,No. UU-691 – Modle – 1992 – 240CC. Chassis – LN130-7022502 – Engine No-3244904
17. Toyota Mark-X Car Reg.No. BGD-647 (Karachi) – Model – 2005 – 2499 CC Chassis No. GRX120-004523 Engine No. 4 GR-0119104
18. Toyota RURIO Saloon Car Reg. No. BFA – 954 (Karachi) – Model – 2006 – 1496 CC – Colour Sky Blue. Chassis No. NCZ20-0051360 Engine No. 1NZB-240903
19. Honda Civic Hybird Car Reg. No. AXC – 614 – Model-2012 Chassis No – JHMFD-36208S205131 –
20. Toyota Surf Jeep – Reg.No. AFR-2019 – Model – 2000 – 2693 CC. Chassis No-RZN185-0040063 Engine No. 3RZ-FE
21. Toyota VITZ Car Reg. No. AKV – 219 (Sindh) – Model – 2006 – 1296 CC. Chassis No. SCP90-5081452
22. Toyota AXIO Saloon Car – Reg.No. AWB-204 – Model – 2008 – 1496 CC Chassis No. NZE141-6088775 Engine No. INZ – C837894
23. VITZ Car Rsg. No. BFB-648 (karachi) – Model – 2003 – 997 CC – White. Chassis No. SCP10-0432762 – Engine No. 1107800
24. Toyota Premio Car Reg. No. BFL-098 – Model – 2005 Chassis No. ZZT – 240-0096078 Engine No. IZZ-FE
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FBR to meet for addressing small traders’ concerns
ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch a series of meetings with representatives of traders associations to address concerns of small traders, sources said on Saturday.
In this regard a combined meeting of traders’ representatives and senior officers of FBR will be held on January 22, at FBR House Islamabad.
In the meeting, the chairperson and other senior officers of FBR will brief the traders about the progress on the agreement with the traders and will take them into confidence.
It is worth mentioning that the FBR and traders associations signed an agreement on October 30, 2019 in which 11-point was agreed by the both sides to bring small traders and shopkeepers into the tax net through introduction of fixed tax and simple income tax return form.
The sources said that representatives of traders and the FBR officers would hold a combined meeting on January 24, 2020 at Regional Office Islamabad/Rawalpindi, January 27, 2020 at Karachi, January 29, 2020 at Multan, January 30, 2020 at Faisalabad and January 31, 2020 at Lahore Regional Office.
The sources said that an important meeting between representatives of Trade Associations and Senior officers of Federal Board of Revenue was held last week at FBR House Islamabad.
The traders’ representatives included Kashif Chaudhry, Naeem Mir and Ajmal Baloch whereas FBR Team was led by Acting Chairperson FBR Nausheen Amjad and included Member IR Policy Dr. Hamid Ateeq Sarwar and DG Retail Hameed Memon.
It was agreed in the meeting that committees established throughout Pakistan will be completed in coming two days.
The meeting had discussed issues arising due to turnover tax and decided the issue would be analyzed afresh in the future meeting with the tyre, mobile, ghee, sugar, pulses etc, cement, fertilizer, electronics, yarn, iron steel, paper, automobile and other sectors.
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Weekly Review: Positive sentiments likely prevail
KARACHI: Positive sentiments likely prevail in the equity market during next week owing to inflows in debt market and stable exchange rate, analysts said.
Analysts at Arif Habib Limited said expect that the market to be positive in the upcoming weeks as sentiments should reflect improvement in foreign exchange reserves of the State Bank of Pakistan (SBP) and stable Pak Rupee/USD parity amid inflows in T-bills and narrowing Current Account Deficit (CAD).
Albeit, commencement of the financial result season in the coming week will keep certain scrips under limelight.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.6x (2020) compared to Asia Pac regional average of 12.5x and while offering DY of around 6.3 percent versus 2.7 percent offered by the region.
The market commenced on a negative note this week with investors resorting to profit-taking.
With coalition partners showing dissatisfaction over policies of the PTI-led government, lackluster momentum prevailed.
Furthermore, concerns over rising inflation kept the sentiment weak. Whereas, overwhelming response to the Treasury Bill Auction (bids over Rs1.1 trillion), cushioned the dip. Albeit, the market closed at 43,168 points, (down by 0.1 percent / 39 points WoW).
Sector-wise positive contributions came from i) Commercial Banks (109 points), ii) Automobile Parts & Accessories (29 points), iii) Automobile Assembler (20 points), iv) Refinery (20 points), and v) Textile Weaving (12 points). Whereas, negative sector-wise contribution came from Oil & Gas Exploration Companies (96 points) and Power Generation & Distribution (55 points). Scrip-wise positive contributions were led by MEBL (31 points), HBL (28 points), THALL (25 points), BYCO (21 points) and HMB (18 points).
Foreign buying continued this week clocking-in at USD 2.8 million compared to a net buy of USD 7.0 million last week. Buying was witnessed in E&Ps (USD 1.4 million) and Fertilizer (USD 1.3 million).
On the domestic front, major selling was reported by Insurance Companies (USD 2.8 million) and Individuals (USD 2.2 million). Average Volumes settled at 246 million shares (down by 19 percent WoW) while average value traded clocked-in at USD 49 million (down by 38 percent WoW).
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Rate of sales tax on banking services
KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 which showed banks to pay 13 percent on sales tax regarding various services provided to customers.
According to working tariff the sales tax shall be charged at 13 percent on services provided or rendered by banking companies in relations:
Guarantee including bank guarantee
Brokerage
Letter of credit
Issuance of cheque books, pay order and demand draft
Bill of exchange
Transfer of money including telegraphic transfer, mail transfer and electronic transfer
Commission including bill discounting commission
Safe deposit lockers and safe vaults
Other services not elsewhere specified
Issuance, processing and operation of credit and debit cards
Commission and brokerage of foreign exchange dealings
Automated Teller Machine operations, maintenance and management
Service provided as banker to an issue
Others, including the services provided or rendered by non banking, finance companies, modaraba and musharika companies and other financial institutions.
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PIA stops persons travelling on fake Canadian visas
KARACHI: The task force of Pakistan International Airlines (PIA) on Friday intercepted two passengers from Canada-bound flight following discovery of travelling on fake electronic visa.
The PIA taskforce at Lahore Airport took timely action and denied the passengers travelling through national carrier to Canada. The passengers later handed over to Federal Investigation Agency (FIA) for further legal process.
According to details, when these two passengers reached PIA counter for boarding pass for their journey to Toronto, Canada, the taskforce examined the electronic visa presented by them.
The examination revealed that those visas were fake. A PIA spokesman said that the timely action prevented huge monetary penalty on the national flag carrier.
The spokesman said that in case those visas found fake at Canadian soil then huge penal amount had to be borne by the PIA.
The FIA will further investigate the fake visa scam to find out persons involved in such crime.
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Sales tax exemption allowed to certain personal care services
KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020, which showed certain sales tax exemptions are available on personal care services.
According to the working tariff, services provided or rendered for personal care by beauty parlors, beauty clinics, slimming clinics or centers and other are subject to sales tax at 13 percent.
However, such services are available at reduced rate of 10 percent but with condition that input tax adjustment shall nto be allowed.
The provincial revenue authority, however, allowed exemption with conditions:
01. Persons providing the services of hair cutting, hair dressing and hair dyeing and shaving provided that they do not provide any other beauty treatment, beauty care, beauty parlour or beauty clinic service.
2. Services provided or rendered by beauty parlors/clinics and slimming clinics whose turn over does not exceed Rs2.5 million in a financial year:
Provided that the exemption shall not apply in case of the beauty parlour/clinics and sliming centers:-
(i) which are located within the building premises or precincts of a hotel, motel, guest house or club whose services are liable to tax;
(ii) which are franchisers or franchisees;
(iii) which have any branch or have more than one outlet in Sindh; and
(iv) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.
Provided that the exemption shall not apply in case of the beauty parlor/clinics and sliming centers:-
(v) which are located within the building premises or precincts of a hotel, motel, guest house or club whose services are liable to tax;
(vi) which are franchisers or franchisees;
(vii) which have any branch or have more than one outlet in Sindh; and
(viii) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.
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Three new slabs added for taxation on income from property
ISLAMABAD: Three additional slabs have been added to income from property in order to generate more revenue under this head, sources in Federal Board of Revenue (FBR) said on Friday.
They said that in the last budget 2019/2020, effective from July 01, 2019, three additional slabs have been added to income from property in order to generate more revenue.
Prior to the amendment there were five taxable slabs of income from property with the highest slab’s rate being Rs. 200,000/- plus 20 percent of income exceeding Rs2000,000.
After the amendment said slab has been limited from Rs 2000,000/- to 4,000,000/- and thereafter three additional brackets of income between four to six million, six to eight million and exceeding eight million have been added.
The updated table of tax on income from property is as under:
S.No. Gross amount of rent Rate of tax (1) (2) (3) 1. Where the gross amount of rent does not exceed Rs.200,000. Nil 2. Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs.600,000. 5 per cent of the gross amount exceeding Rs.200,000. 3. Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.1,000,000. Rs.20,000 plus 10 per cent of the gross amount exceeding Rs.600,000. 4. Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs.2,000,000. Rs.60,000 plus 15 per cent of the gross amount exceeding Rs.1,000,000. 5. Where the gross amount of rent exceeds Rs.2,000,000 but not exceed Rs. 4000,000 Rs.210,000 plus 20 per cent of the gross amount exceeding Rs.2,000,000” 6. Where the gross amount of rent exceeds Rs.4,000,000 but does not exceed Rs.6,000,000. Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000. 7. Where the gross amount of rent exceeds Rs.6,000,000 but does not exceed Rs.8,000,000. Rs.1,110,000 plus 30 per cent of the gross amount exceeding Rs.6,000,000. 8. Where the gross amount of rent exceeds Rs.8,000,000. Rs.1,710,000 plus 35 per cent of the gross amou (b) The rate of tax to be deducted under section 155, in the case of company shall be 15 percent of the gross amount of rent.
The chargeability of tax on income from property has been explained in Section 155 of Income Tax Ordinance, 2001.
Section 155. Income from property.— (1) Every prescribed person making a payment in full or part (including a payment by way of advance) to any person on account of rent of immovable property (including rent of furniture and fixtures, and amounts for services relating to such property) shall deduct tax from the gross amount of rent paid at the rate specified in Division V of Part III of the First Schedule.
Explanation.- “gross amount of rent” includes the amount referred to in sub-section (1) or (3) of section 16, if any.
(3) In this section, “prescribed person” means –
(i) the Federal Government;
(ii) a Provincial Government;
(iii) Local Government;
(iv) a company;
(v) a non-profit organization or a charitable institution;
(vi) a diplomatic mission of a foreign state;
(via) a private educational institution, a boutique, a beauty parlour, a hospital, a clinic or a maternity home;
(vib) individuals or association of persons paying gross rent of rupees one and a half million and above in a year; or
(vii) any other person notified by the Board for the purpose of this section.
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PSX appoints FU Hao as non-executive director
KARACHI: Pakistan Stock Exchange (PSX) has appointed FU Hao, a representative of Shanghai Stock Exchange, as non-executive member on the board.
In a communication the stock exchange informed that FU Hao, a representative of Shanghai Stock Exchange, has been appointed as Non-Executive Director on the Board of Pakistan Stock Exchange Limited (PSX) with immediate effect.
The appointment has been made by the Board of PSX at its meeting held on Friday January 17, 2020, in order to fill the casual vacancy created due to resignation of QUE Bo on the Board, as communicated earlier.