Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Equity market sharply gains as US-Iran war concerns

    Equity market sharply gains as US-Iran war concerns

    KARACHI: The equity market sharply increased by 1166 points or 2.8 percent on Thursday as concerns over war subsided after US president address.

    The benchmark KSE-100 index closed at 42,523 points as against 41,358 points showing an increase of 1166 points.

    Analysts at Arif Habib Limited said that Post Trump address, most of the World stock markets performed well, as the concerns over war subsided.

    Oil prices, which tanked overnight due to dampening war prospects, also gained foothold above $60/bbl, helping oil & gas chain to perform as well.

    KSE-100 index went up around 1200 points during the session and closed up 1166 points. Around 306 stocks were in advance whereas 48 stocks were in decline.

    At the opening bell, index went up by 636 points and kept going up throughout the session. Banking sector took the lion’s share with 81.2 million shares, followed by Technology (44.6 million) and Power (39.3 million).

    Among scrips, BOP led the volumes with 53 million shares, followed by KEL (33.5 million) and UNITY (24.2 million).

    Sectors contributing to the performance include Banks (+335 points), E&P (+135 points), Fertilizer (+129 points), Cement (+115 points) and Power (+108 points).

    Volumes increased from 280mn shares to 362.5 million shares (+29 percent DoD). Average traded value also increased by 18 percent to reach US$ 88.8 million as against US$ 75.4 million.

    Stocks that contributed significantly to the volumes include BOP, KEL, UNITY, TRG and MLCF, which formed 37 percent of total volumes.

    Stocks that contributed positively include HBL (+123 points), HUBC (+79 points), PPL (+62 points), LUCK (+62 points) and ENGRO (+48 points). Stocks that contributed negatively include DAWH (-13 points), PMPK (-5 points), SHFA (-3 points), JLICL (-2 points), and SCBPL (-1 points).

  • FBR allows filing Annexure H for July-August 2019 to claim sales tax refund

    FBR allows filing Annexure H for July-August 2019 to claim sales tax refund

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed taxpayers to submit their stock position for the period July – August 2019 up to February 15, 2020 in order to claim sales tax refunds under newly only verification and issuance system.

    In an official memorandum issued on Thursday, the FBR condoned the time limit for filing of Annexure – H for the tax period July – August 2019 up to February 15, 2020.

    Annexure-H is a statement for providing stock position by taxpayers along with monthly sales tax return.

    The FBR from July 01, 2019 introduced expeditious payment of sales tax refunds within 72 hours subject to the true filing of Annexure – H.

    Recently, Karachi Tax Bar Association (KTBA) highlighted this issue and urged the tax authorities to resolve for facilitating exporters and manufacturers.

    The KTBA pointed out that as per the amendments made in Sales Tax Rules, 2006 vide SRO no. 918(I)/2019 dated August 7, 2019, mechanism for expeditious processing of refund claim has been devised only for manufacturers-cum- exporters.

    As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.

    However, the rules are silent about the mechanism for processing of Sales Tax refunds incase Annexure H has not been filed by manufacturer-cum-exporter for any reason. Considering the legal and legitimate right of the taxpayer to claim adjustment / refund of the input tax, either of the following two option be considered by the FBR for facilitation of exporters:

    Allow filing of Annexure H without any time limit [present time limit of 4 months be abolished and taxpayer be allowed to claim refund as and when required] ii. Incase present limit of 4 months cannot be abolished, registered persons be allowed at least to alternatively file refund on annual basis after the end of the tax year.

    Apart from the above, Annexure H is only being allowed to be filed to taxpayers who have filed the said Annexure from sales tax returns of July 2019 and onwards. Instead of claiming refund, some taxpayers have reported sales tax carried forward balance in their sales tax returns from July 2019 onwards. In case they now intend to file Annexure H from the current month,

    FBR’s online portal does not allow such taxpayers to enter opening balance of inventory / raw materials as the said field in blocked for editing. This limitation should be removed and taxpayers should be allowed to file Annexure H for any specific month, for which they intend to claim refund.

    From apparent mechanism being followed by the system, it appears that those taxpayers who have not filed Annexure H for the month of July 2019 will never be allowed to file Annexure H for any subsequent month. This apparent anomaly should be resolved at earliest.

  • Rupee makes gain on improved inflows

    Rupee makes gain on improved inflows

    KARACHI: The Pak Rupee ended with significant gain against dollar on Thursday after witnessing decline for three consecutive days.

    The rupee ended with gain of 19 paisas to Rs154.89 to the dollar from previous day’s closing of Rs155.08 in interbank foreign exchange market.

    Currency dealers said that the ease in US-Iran conflict and inflows of export receipts and foreign remittances helped the rupee to gain against the greenback.

    The foreign currency market was initiated in the range of Rs154.85 and Rs154.90. The market recorded day high of Rs154.92 and low of Rs154.88 and closed at Rs154.89.

    The exchange rate in open market also witnessed appreciation in rupee value. The buying and selling of dollar was recorded at Rs155.30/Rs155.70 from previous day’s closing of Rs155.40/Rs155.80 in cash ready market.

  • Foreign exchange reserves flat at $18.084 billion

    Foreign exchange reserves flat at $18.084 billion

    KARACHI: The liquid foreign exchange reserves of the country was flat at $18.084 billion by week ended January 03, 2020 as compared with $18.081 billion a week ago, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves held by the central bank increased by $14.3 million to $11.503 billion by week ended January 03, 2020 as compared with $11.489 billion by week ended December 27, 2019.

    The reserves held by commercial banks however declined by $10.9 million to$6.581 billion by week ended January 03, 2020 as compared with $6.592 billion a week ago.

  • FTO takes Suo moto notice in pending 11,000 tax amnesty cases

    FTO takes Suo moto notice in pending 11,000 tax amnesty cases

    KARACHI: Federal Tax Ombudsman (FTO) has taken suo moto notice in 11,000 cases related to tax amnesty scheme for tax year 2018, a tax bar said on Thursday.

    The Karachi Tax Bar Association (KTBA) in a notification circulated to its members stated that the office of the FTO had taken a Suo Moto Notice on the inordinate pendency in submission of 11,000 cases of Amnesties for the Tax Year 2018.

    The Motion Number is reported as No. 11/2020.

    The Suo Moto Notice has been taken on the representation made by the Pakistan Tax Bar Association (PTBA).

    A one paged complaint form has been shared to the members in this regard.

  • Advertisement published in Sindh exempted from sales tax

    Advertisement published in Sindh exempted from sales tax

    KARACHI: The Sindh Revenue Board (SRB) has announced an exemption on the 13 percent sales tax applicable to advertisement services rendered in Sindh, as per the working tariff for 2020.

    (more…)
  • Committee working on providing protection to smart phone manufacturers: FBR

    Committee working on providing protection to smart phone manufacturers: FBR

    In a significant move towards fostering the digital landscape and supporting local smartphone manufacturing, the Federal Board of Revenue (FBR) announced on Thursday a drastic reduction in taxes on imported smartphones.

    (more…)
  • Rupee recovers 22 paisas in early trading

    Rupee recovers 22 paisas in early trading

    KARACHI: The Pak Rupee recovered 22 paisas against dollar in early trade on Thursday.

    The dollar is being traded at Rs154.86 in interbank foreign exchange market. The rupee ended at Rs155.08 on Wednesday January 08, 2020.

    The rupee was remained pressure with start of the year. The inflows of export receipts and ease in geopolitical tension helped the local currency to recover against the greenback.

  • Provincial registered taxpayers require to pay advance income tax

    Provincial registered taxpayers require to pay advance income tax

    KARACHI: Persons registered for sales tax with the provincial revenue authorities are required to pay advance income tax to Federal Board of Revenue (FBR) on the basis turnover declared before the provincial revenue authorities.

    According to Section 147A of Income Tax Ordinance, 2001, every provincial sales tax registered person shall be liable to pay adjustable advance tax at the rate of three per cent of the turnover declared before the provincial revenue authority.

    The Section 147A is read as:

    Advance tax from provincial sales tax registered person.-

    Sub-Section (1): Every provincial sales tax registered person shall be liable to pay adjustable advance tax at the rate of three per cent of the turnover declared before the provincial revenue authority.

    Sub-Section (2): The advance tax under sub-section (1) shall be paid monthly at the time when sales tax return is to be filed with the provincial revenue authority.

    Sub-Section (3): Advance tax paid under this section may be taken into account while working out advance tax payable under section 147.

    Sub-Section (4): The provisions of this Ordinance shall apply to any advance tax due under this section as if the amount due were tax due under an assessment order.

    Sub-Section (5): A taxpayer who has paid advance tax under this section for a tax year shall be allowed a tax credit for that tax in computing the tax due by the taxpayer on the taxable income of the taxpayer for that year.

    Sub-Section (6): A tax credit allowed for advance tax paid under this section shall be applied in accordance with sub-section (3) of section 4.

    Sub-Section (7): A tax credit or part of a tax credit allowed under this section for a tax year that is not able to be credited under sub-section (3) of section 4 for the year shall be refunded to the taxpayer in accordance with section 170.

    Sub-Section (8): This section shall not apply to a person whose name was appearing in the active taxpayers’ list on the thirtieth day of June of the previous tax year.

  • ECC constitutes price negotiation committee for TAPI gas pipeline project

    ECC constitutes price negotiation committee for TAPI gas pipeline project

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the constitution of Price Negotiation Committee (PNC) for TAPI(Turkmenistan-Afghanistan-Pakistan-India) Gas pipeline project.

    Adviser to the Prime Minister on Finance, Dr. Abdul Hafeez Shaikh chaired the meeting of the Cabinet here at the Cabinet Division.

    The PNC shall negotiate the price with Turkmen gas. The Committee shall consist of the following members; Secretary, Ministry of Energy (Petroleum Division) as chairman. Secretary Finance or his nominee, Joint Secretary, Ministry of Energy (Power Division), Director General (Gas)/ Director (Gas) and Managing Director, SSGCL as members.

    The ECC approved the Technical Supplementary Grant of Rs 1.00 billion under demand No.04-Cabinet Division for establishment of Pakistan Tourism Development Endowment Fund under Public account.

    The Chair directed Pakistan Tourism Development Corporation to come up with their tourism development and soft image promotion plan in the next meeting.

    The ECC also granted approval of allocation of Gas from PGNiG’s RIZQ Gas Field to M/S SSGCL. It was briefed to the ECC that currently 2 wells namely Rizq-1 and Rizq -2 are producing 16 MMFCD gas from Rizq gas field, which are allocated to M/s SSGCL, whereas Rizq -3 which is under drilling, is expected to add another 9 to 10 MMCFD gas to the existing production. Upon completion of this well, the cumulative gas production from this gas field is expected to raise upto 25 MMCFD. The price of the gas shall be according to the applicable Petroleum Policy.

    On the Demand moved by the Ministry of Industries and Production for Rs 3.02 billion for the payment of outstanding dues of SSGC Private Limited by Pakistan Steel Mills on account of gas bills, the ECC directed to constitute a three-member Committee under the Chairmanship of Secretary Finance to find out a feasible solution for the issue so that the already allocated budget may not be exceeded and the liabilities of both SSGC and PSM are duly settled.

    ECC directed Ministry of Finance to explore the possibilities for improving the liquidity position of Pakistan State Oil as exchange losses of around Rs 28 billion have incurred on FE-25 loans by PSO.

    The loans were acquired under the instructions of Ministry of Finance for financing of import operations of PSO.

    Finance Ministry assured the ECC of utilization of possible all funding options in the ongoing financial year and any deficiency in the funds shall be entertained in the upcoming budget.

    ECC granted extension of Government of Pakistan guarantee against credit facility of National Bank of Pakistan amounting to Rs5 billion in favor of Utility Stores Corporation of Pakistan.

    On the request of the Ministry of Water Resources ECC granted approval to WAPDA to raise loan for the settlement of the Financial Facility amounting to Rs17.500 billion with one-year tenure and GoP guarantee.

    Clearance under Prudential Regulations R-4(clause 1a and 2) from the State Bank of Pakistan to disburse the facility initially against a letter of comfort was also granted.