Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Sindh Revenue Board suspends sales tax registration of 18 construction companies

    Sindh Revenue Board suspends sales tax registration of 18 construction companies

    KARACHI: Sindh Revenue Board (SRB) has suspended registration of 18 construction companies for defaulting tax payments and failure to file monthly sales tax returns.

    The SRB has directed the companies to make compliance with the provincial tax laws by March 12, 2020 otherwise their cases would be proceeded for cancellation.

    Following companies have been suspended for non-compliance:

    01. M/S CATALYST ENGINEERING SERVICES

    02. M/S START CONSTRUNCTION COMPANY

    03. M/S. A.H BUILDERS & CONSTRUCTION COMPANY

    04. M/S. ROCCRETE CONSTRUCTION & CO

    05. M/S. GUL MEMON CONSTRUCTION COMPANY (GOVERNMENT CONTRACTOR)

    06. M/S. JD BUILDERS

    07. M/S ABDULLAH RAHOO & COMPANY

    08. M/S MUHAMMAD AYOOB ENTERPRISES

    09. M/S MALIK NAVEED CONSTRUCTION COMPANY

    10. M/S SHOUKAT ALI & COMPANY

    11. M/S MUMTAZ ALI KHUSKH (GOVERNMENT CONTRACTOR)

    12. M/S JUMAN S/O ALLAH BACHAIO SHEEDI

    13. M/S RAMEEZ RAJA CONSTRUCTION COMPANY

    14. M/S A.KAREEM & SONS

    15. M/S MALIK MUHAMMAD SAEED GOVT & CIVIL CONTRACTOR

    16. M/S REMIX CONSTRUCTION

    17. M/S BISMILL CONSTRUCTION CONTRACTING COMPANY

    18. M/S MEHRAJ COMPANY

    During suspension period the companies are unable to deal with registered persons and also not able to get government contracts.

  • Rupee depreciates by Rs1.17 against dollar in early trading

    Rupee depreciates by Rs1.17 against dollar in early trading

    KARACHI: The Pak Rupee witnessed significant decline at the opening of trade on Tuesday. The rupee lost Rs1.17 paisas against dollar in early trade, dealers said.

    The dollar is being traded atRs157.75 to the dollar from last day’s closing of Rs156.58 in interbank foreign exchange market.

    Currency experts said that the massive losses in world stock markets motivated investors to consolidate their funds. Due to these reasons outflows in portfolio investments in debt securities market would had happened.

    The rupee lost Rs3.51 in last two days.

  • Tax collection from profit on banking deposits jumps up by 185%

    Tax collection from profit on banking deposits jumps up by 185%

    KARACHI: The collection of withholding tax from profit on banking deposits surged by 185 percent during first eight months (July – February) 2019/2020 owing to higher interest rates maintained by the central bank.

    The withholding tax collection from profit on debt (banking deposits) increased to Rs43.75 billion during first eight months of current fiscal year as compared with Rs15.32 billion in the same period of the last fiscal year.

    The sources in Regional Tax Office (RTO)-II, Karachi, a revenue collecting arm of the FBR said that that due to prevailing high rate ofinterest attracted bank deposits.

    The State Bank of Pakistan (SBP) has keptpolicy rate unchanged at 13.25 percent. The policy rate was gradually increasing since August 2018 when the rate was 7.5 percent.

    The sources explained that under Section 151(1)(b) withholding tax is collected on profit on debt paid by banking companies or financial institutions on account or deposit maintained.

    Every banking company is required to collect 10 percent of the gross yield/profit paid up to Rs500,000 or 15 percent of the gross yield / profit paid exceeding amount Rs500,000 at the time the profit on debt is credited to the account of the recipient or is actually paid, whichever is earlier.

    The sources said that it is mandatory for the banks to collect double the amount of withholding tax from those persons receiving profit on debt but not on the Active Taxpayers List (ATL).

    The government through Finance Act, 2019 introduced 10th Schedule to the Income Tax Ordinance, 2001 to enhance the rate of withholding tax by 100 percent on certain transactions.

    The measure has been taken to force persons making large transactions and paying withholding tax on such transactions but remained outside the tax net.

    The sources said that after the implementation of the 10th Schedule the pace of return filing for Tax Year 2018 increased in order to avoid paying 100 percent higher rate of withholding tax.

  • SBP to announce monetary policy on March 17

    SBP to announce monetary policy on March 17

    KARACHI: State Bank of Pakistan (SBP) will announce monetary policy statement for next two months on March 17, 2020, a statement said on Monday.

    The monetary policy committee (MPC) will review the existing policy rate along with economic indicators and inflation.

    The SBP kept the policy rate at 13.25 percent during the three policy statement.

    The SBP kept the policy rate unchanged at 13.25 percent since July 2019 on the back of uptick in prices of consumer items.

    Market analysts anticipate 100 basis points cut in policy rate due to sharp decline in world oil prices and improvement in economic indicators.

  • FBR allows tier-1 retailers to integrate POSs by March 30

    FBR allows tier-1 retailers to integrate POSs by March 30

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed big retailers to integrate their point of sale (POS) with FBR’s online system by March 31, 2020 in order to avoid legal action.

    The FBR on Monday extended the date of online integration of Tier-1 retailers.

    The FBR said that it had condoned the time limit as provided in Sales Tax Rules, 2006 up to March 31, 2020, for online integration of tier-1 retailers’ POSs with board’s computerized system for real-time reporting of sales.

    However, this permission is subject to condition that the teir-1 retailers should furnish in writing their willingness to integrated all their POSs in terms of the rules to respective Regional Tax Offices (RTOs)/Large Taxpayers Units (LTUs) by March 15, 2020.

    Previously, the deadline was expired on December 15, 2019 which was given by the FBR to tier-1 retailers to integrate their POSs with the FBR online system.

    All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system.

    Tier-1 retailer is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:

    (a) a retailer operating as a unit of a national or international chain of stores;

    (b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;

    (c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand;

    (d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers”; and

    (e) a retailer, whose shop measures one thousand square feet in area or more.

  • Stock market ends down by 1161 points despite sharp recovery

    Stock market ends down by 1161 points despite sharp recovery

    KARACHI: The stock market made significant comeback after intraday crash on Monday and trimmed the decline 1161 points to close the market.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 37,059 points from last Friday’s closing of 38,220 points showing decline of 1161 points or 3.3 percent.

    The market witnessed decline of 2300 points in intraday trading.

    Analysts at Topline Securities said that KSE 100 index declined by 3.13 percent to close at 37,059 level, taking cue from international markets, where bears dominated following the deepest oil price cut by Saudi Arabia (sharpest decline since 1991) as OPEC failed to strike a deal with its allies regarding production cuts.

    Market witnessed its first ever halt as KSE 30 index made an intraday decline of 1200 (down by -7.4 percent), where rule states that if KSE-30 Index continues to trade 4 percent above or below its opening index value for consecutive 5 minutes, trading in all securities shall be halted for 45 minutes.

    E&P sector which declined by 7 percent in light of decline in oil prices was largely responsible for market halt, as the sector has a significant weight of 19 percent in KSE 30 index.

    Secondly, the expectation of a rate cut gained further momentum consigning banks to the depths with several index heavy banks (HBL,UBL, BAHL, BAFL, MEBL) hitting lower locks.

    As a result the 100 index was down 2,302 points at its lowest ebb.

    Some recovery was witnessed in the market on the back of cyclicals, as investor’s started cherry picking especially in the cement sector given the high leverage status.

    Trading volume and value for the day stood at 308mn shares and Rs.11.4 billion respectively. FCCL was today`s volume leader with 30.7 million shares.

  • Rupee witnesses massive depreciation as stock market crashes

    Rupee witnesses massive depreciation as stock market crashes

    KARACHI: The rupee fell by Rs2.34 against dollar on Monday due to panic prevailed following massive decline in global stock markets.

    The rupee ended Rs156.58 to the dollar from last Friday’s closing of Rs156.24 in interbank foreign exchange market.

    Currency experts said that due to high volatility in the local stock market the currency market followed the suit. The benchmark KSE-100 of Pakistan Stock Exchange (PSX) recorded decline of 1161 points on Monday.

    However, they believed that the falling international oil prices would help the local currency to make gain in coming days.

    The foreign currency market was initiated in the range of Rs154.52 and Rs154.70. The market recorded day high of Rs156.70 and low of Rs154.70 and closed at Rs156.58.

    The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of dollar was recorded at Rs156.70/Rs157.00 from last Friday’s closing of Rs154.00/Rs154.30, in cash ready market.

  • Byco Petroleum announces setting up diesel hydro de-sulphurising unit

    Byco Petroleum announces setting up diesel hydro de-sulphurising unit

    KARACHI: Byco Petroleum Pakistan Limited has announced to set up a diesel hydro de-sulphurising unit and a fluid catalytic cracking unit with the facilitation from Byco Industries Incorporated.

    In an information shared with Pakistan Stock Exchange (PSX) on Monday, the company said that a meeting of the Board of Directors of Byco Petroleum Pakistan Limited was held on Monday, March 09, 2020 and decided in-principal to set up: a diesel hydro de-sulphurising unit; and a fluid catalytic cracking unit.

    These facilities will be set up with the facilitation from Byco Industries Incorporated, being the majority stakeholders of the company.

    Consequently, for such purpose, the board resolved to call an extraordinary general meeting of the shareholders for seeking approval/authorization to enter into transactions/arrangements with the company’s related party, Cnergyico PK Limited (CPL) for: leasing of necessary assets/components by the company from CPL, which will be assembled into refinery units, including (a) a diesel hydro de-sulphurising unit and (b) a fluit catalytic cracking unit; and availing a subordinated loan from CPL, for the purpose of installing, commissioning and making operational the processing units, which shall enable the company to reduce sulphur content in diesel and convert furnace oil into gasoline and diesel for use in its business and ancillary arrangements.

  • US Consul General visits CDC

    US Consul General visits CDC

    KARACHI – May 19, 2025 – In a significant move to strengthen economic cooperation between the United States and Pakistan, US Consul General Rob Silberstein led a high-level delegation from the US Consulate in Karachi to the Central Depository Company of Pakistan Limited (CDC). The visit, held at CDC’s head office, was part of ongoing efforts to bolster trade and investment relations between the two countries.

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  • Massive fall in global oil prices blessing for Pakistan economy: analysts

    Massive fall in global oil prices blessing for Pakistan economy: analysts

    KARACHI: The massive fall in international oil prices are blessing for Pakistan economy, analysts said on Monday.

    At the opening of international markets on Monday, oil prices declined significantly with WTI down by 26.5 percent to USD 30/bbl, Brent Oil down by 25 percent to USD 34/bbl and Arab Light Oil down by 34 percent to USD 34/bbl.

    This resulted as a direct consequence of disintegration of OPEC-Plus alliance while major countries could not agree to cut the oil output to reduce its supply to the global markets.

    “Pakistan is a net importer of oil with petroleum group imports contributing 25 percent to imports. WTI Oil prices averaged USD 57/bbl during past 12 months and have currently nosedived to USD 30/bbl. Pakistan would be able to save USD 5bn per annum on its imports,” analysts said at Arif Habib Limited.

    A decline in oil prices reduces Pakistan’s import bill hence resulting to lower trade and current account deficits and saves foreign currency.

    Consequently, lower oil prices translate to lower inflation demanding monetary easing leading to better consumer purchasing power benefitting other sectors with higher demand.

    Major benefitting sectors include cyclical sectors like cement, steel and automobiles. Major sectors which will bear the brunt of lower oil prices would include E&P, Refineries and OMCs.

    Lower oil prices improve government’s budget balance as it enhances government’s ability to collect taxes and reduces the amount of subsidy the government provides on sale of energy.

    In addition, the government would be able to spend the additional taxation on PSDP, improving growth prospects of the economy.

    The objective of the government should be, in addition to lower inflation, cover tax collection shortfall and implement long-awaited energy sector reforms including gas and electricity.