Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Highlights of tax relief announced by Khyber Pakhtunkhwa for 2020/2021

    Highlights of tax relief announced by Khyber Pakhtunkhwa for 2020/2021

    PESHAWAR: The Khyber Pakhtunkhwa government announced tax relief package in order to mitigate the adverse impact of coronavirus.

    Key points of the tax incentives to be granted during the next fiscal year.

    i. Sales tax on services (STS) will be reduced for over 27 categories. This will be an allencompassing reduction for sectors where the economic activity has dampened and directly impacted cash flow and liquidity. These sectors include business support services, construction sector, oil and gas exploratory services, hospitality sector, bargain centers etc.

    ii. Entertainment and Hotel Tax will be removed from Excise and Taxation department’s portfolio, to encourage recreation and entertainment during these testing times for the economy.

    iii. Professional Tax will be phased out to Khyber Pakhtunkhwa Revenue Authority dovetailed with tax breaks and concessions for a year to remove duplicity of taxes and provide relief for more than 15 professions involved including Doctors, Lawyers, Retailers etc.

    iv. To promote and incentivize the tourism sector, a special concession will be introduced for the hotels and restaurants located in hilly areas. Coupled with a reduced rate, a clause of tax hypothecation will be included to ensure that the tax collected from this sector is invested into the same regions’ growth and prosperity.

    v. Rates for the Urban Immovable Property Tax will be rationalized, and compliant taxpayers will be offered a rebate of 35%. This is directly intended to promote compliance, provide direct relief, encourage construction and comfort the taxpayers during this economic slump.

    vi. Urban Immovable Property Tax under the Excise and Taxation Department will be introducing special discounts or pending arrears. Under this scheme, special concessions will be introduced for those who volunteer to clear arrears, intention is to lend a helping hand to the construction sector during this liquidity crises.

    vii. Board of Revenue will reduce both Capital Value Tax and Stamp duty for the construction sector, under the Federal Amnesty Scheme. This concession will be amalgamated with a complete digitization of the system with reduced discrepancies.

  • Khyber Pakhtunkhwa presents Rs923 billion tax free budget for 2020/2021

    Khyber Pakhtunkhwa presents Rs923 billion tax free budget for 2020/2021

    PESHAWAR: The Khyber Pakhtunkhwa Government on Friday presented budget 2020/2021 with total outlay of Rs 923billion. The budget is a tax free and with an amount of Rs104 billion allocated for Annual Development Plan (ADP) for the next fiscal year.

    (more…)
  • So far 30 FBR officials die of coronavirus

    So far 30 FBR officials die of coronavirus

    ISLAMABAD: So far 30 officials of Federal Board of Revenue (FBR) have died of coronavirus, including a BS-22 officer of customs service.

    This was disclosed by FBR in a statement issued on Friday.

    It said that the FBR arranged a eulogy in remembrance of martyred officers and staff due to coronavirus / Covid-19.

    On this occasion, Secretary Finance Naveed Kamran Baloch, Chairperson FBR Nausheen Javaid Amjad and other senior officers and officials of FBR participated in the eulogy.

    Prayers were offered for the departed Muhammad Zahid Khokhar, a Pakistan Customs grade-22 officer and other officers and officials of FBR.

    A special tribute was also paid by the participants on the services of the martyred officers and staff for the organization and country, who continued to work for the collection of revenue despite outbreak of corona virus throughout the country.

    “So far, 30 employees of FBR have embraced martyrdom due to Covid-19. These officers and officials worked at FBR HQ and its Field Offices,” it said.

  • Banks directed to observe extended working hours on June 30 to facilitate tax payment

    Banks directed to observe extended working hours on June 30 to facilitate tax payment

    The State Bank of Pakistan (SBP) has instructed commercial banks to observe extended working hours on June 30, 2020. This decision aims to facilitate the timely payment of duties and taxes as the fiscal year concludes.

    (more…)
  • KCCI submits recommendations to rectify anomalies in Finance Bill 2020

    KCCI submits recommendations to rectify anomalies in Finance Bill 2020

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has submitted its recommendations to rectify anomalies in the Finance Bill 2020, highlighting concerns over several taxation measures impacting trade and industry.

    (more…)
  • FBR exempts sales tax on import of 61 medical equipments

    FBR exempts sales tax on import of 61 medical equipments

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday announced sales tax exemption on import of 61 medical equipments, which are important to fight against COVID-19.

    The FBR issued SRO 555(I)/2020 to grant exemption on the medical equipments for a period of three months. Previously, the FBR granted exemption on various medical equipments through SRO 237(I)/2020 dated March 20, 2020.

    Following goods are exempted from whole of sales tax at import stage:

    01. Real-time PCR system (standard 96-well plate and

    0.2ml tubes format, 5 channel)

    02. Biosafety Cabinet

    03. Auto Clave 50 Liter Capacity

    04. Multi channel pipette (0.5-10 pi)

    05. Single channel pipette a) 2 pi b) 10 pi c) 200 pi d) 1000 pi

    06. Muti channel pipette 20-200 ml

    07. Vacuum fold

    08. Micro Centrifuge (Non-refrigerated, Rotor capacity: 12 x 1.5 / 2.0 ml vessels, 2 x PCR strip, Max. speed: 12,100 x g (13,400 rpm))

    09. PCR Cabinet (FIEPA filter system, UV and white light)

    10. Real-time PCR kit for the detection of Coronavifus (SARS-CoV2)

    11. Viral RNA Extraction Kit and machine (Automatic Extractors)

    12. VTM (Viral Transport Medium)

    13. Dr Oligo Synthesizer

    14. Refrigerator/freezer (-20 °C)

    15. Vortex Machine

    16. Refrigerated Centrifuge Machine (Rotor capacity 1.5ml x 24 max. speed 14000 rpm)

    17. UPS (6 KVA)

    18. Tyvek Suits

    19. N-95

    20. Biohazard Bags (18 Liters)

    21. PARR (Powdered Air Purifying respirators)

    22. Multimode ventilator with air compressor

    23. Vital sign monitor with 2IBPand ETco2 two Temp.

    24. ICU motorized patient bed with side cabinet and over bed table

    25. Syringe infusion pump

    26. Infusion pump

    27. Electric suction machine

    28. Defibrillator

    29. X-Ray Mobile Machine

    30. Simple Nebulizer

    31. Ultrasound machine

    32. Noninvasive BIPAP

    33. ECG Machine

    34. Pulse Oximeters

    35. Ripple mattress

    36. Blood gas analyzer

    37. AMBU Bag

    38. Nitrile Gloves

    39. Latex Gloves

    40. Goggles

    41. Face Shields

    42. Gum Boots

    43. Mackintosh bed sheets

    44. Surgical Masks

    45. Air Ways

    46. Diaflow

    47. Disposible Nebulizer Mask Kit

    48. EGG Electrodes

    49. ETT Tube (Endotracheal Tubes) All sizes

    50. Humidifier Disposable Flexible

    51. IV Cannula all sizes

    52. IV Chambers

    53. Oxygen Recovery Kit

    54. Padded Sheets

    55. Stomach Tube

    56. Stylet for Endotracheal Tube

    57. Suction Tube control valve

    58. Tracheostomy Tube 7, 7.5, 8

    59. Ventilator Circuit

    60. Ventury Masks

    61. Disposable shoes cover (water proof)

    This notification shall take effect from the June 20, 2020 and shall remain effective for a period of three months.

  • No date extension for sales tax payment, return filing: FBR

    No date extension for sales tax payment, return filing: FBR

    The Federal Board of Revenue (FBR) issued a clear and unequivocal statement on Friday, dispelling any rumors of an extension in the filing of sales tax and federal excise returns.

    (more…)
  • Stock market falls by 101 points on re-imposition of lockdown

    Stock market falls by 101 points on re-imposition of lockdown

    KARACHI: The stock market fell by 101 points on Friday as re-imposition of lockdown dimmed prospects of quick economic recovery.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,439 points as against 33,540 points showing a decline of 101 points.

    Analysts at Arif Habib Limited said that the market remained range bound throughout the session, trading between +160 points and -170 points, closing the session -101 points.

    Re-imposition of lock down has dimmed the prospects of quick economic recovery / stabilization.

    Expectation of rate cut renewed in the early part of the session with the possibility of an emergent meeting at SBP taking place anytime next week.

    International crude prices also realized an increase of US$1 / bbl, but oil stocks barely moved on the spike.

    FTSE rebalancing also created some excitement, but against expectation didn’t affect the banking sector much.

    Brisk buying was observed in both MCB and BAFL. Banking sector led the volumes with 12.7 million shares, followed by Technology (10.4 million) and Power (10.2 million).

    Among scrips, KEL posted 9.1 million shares, followed by UNITY (7.2 million) and BAFL (5.7 million).

    Sectors contributing to the performance include E&P (+39 points), Banks (+15 points), Inv Banks (-25 points), Cement (-24 points), Fertilizer (-21 points), O&GMCs (-21 points) and Pharma (-16 points).

    Volumes dropped from 216.2 million shares to 105.9 million shares (-51 percent DOD). Average traded value also declined by 49 percent to reach US$ 20 million as against US$ 38.9 million.

    Stocks that contributed significantly to the volumes include KEL, UNITY, BAFL, PRLR 1, BGL, which formed 30 percent of total volumes.

    Stocks that contributed positively to the index include MCB (+39 points), BAFL (+13 points), PPL (+12 points), POL (+11 points) and OGDC (+10 points).

    Stocks that contributed negatively include DAWH (-25 points), UBL (-17 points), LUCK (-16 points), EFERT (-15 points), and MEBL (-13 points).

  • Rupee weakens by 29 paisas on foreign payment

    Rupee weakens by 29 paisas on foreign payment

    KARACHI: The Pak Rupee depreciated by further 29 paisas to the dollar on Friday owing to higher demand of the foreign currency for import and corporate payments.

    The rupee ended at Rs166.64 to the dollar from previous day’s closing of Rs166.35 in interbank foreign exchange market.

    Currency dealers said that the market witnessed demand for the foreign currency from importers and corporate buyers.

    They said that the market was also under pressure due to repayment of external debt.

    The currency experts said that due to close of financial year many foreign companies were remitting their profits.

    The foreign exchange reserves of the country have increased by $70 million to $16.775 billion by week ended June 12, 2020.

    The foreign exchange reserves were at $16.705 billion by week ended on June 05, 2020.

    The foreign exchange reserves held by the central bank increased by $11 million to $10.107 billion by week ended June 12, 2020 as compared with $10.096 billion a week ago.

  • Pakistan spends Rs179 billion for mobile phone import

    Pakistan spends Rs179 billion for mobile phone import

    ISLAMABAD: Pakistan has spent over Rs179 billion for import of mobile phones during July – May 2019/2020, which is 90 percent higher than the same period of the last fiscal year.

    According to Pakistan Bureau of Statistics (PBS), the country imported mobile phones worth Rs179 billion during first eleven months of the current fiscal year, which was Rs93.78 billion in the corresponding period of the last fiscal year.

    Market sources said that reduction in duty and taxes and restriction of registration with the Pakistan Telecommunication Authority (PTA) has increased the import of mobile phones through legal channels.

    The import of mobile phones in terms of US Dollars also increased to $1.14 billion during the period under review as compared with $698 million in the corresponding period of the last fiscal year.

    Despite imposition of lockdown in the country to prevent coronavirus, the country imported mobile phones worth Rs17.78 billion in May 2020, which is 127 percent higher when compared with Rs7.83 billion in April 2020.

    The market sources said that due to lockdown the importance of digital economy had increased. They said that financial transactions were being done through mobile phones, which were the easiest way.