Author: Mrs. Anjum Shahnawaz

FBR establishes help desks for resolving issues in automated sales tax refunds

ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday established help desks at various Regional Tax Offices (RTOs) and Large Taxpayers Units (LTUs) in order to facilitate taxpayers regarding resolving issues pertaining to Fully Automated Sales Tax e-Refund (FASTER).

The FBR nominated officers at RTOs and LTUs in order to resolves queries and issues regarding filing of Annexure-H and issuance of refunds under FASTER system.

The FBR nominated following officers for help desks:

01. Bilal Zamir, Deputy Commissioner – IR, LTU Lahore.

02. Ahmed Faiz, Assistant Commissioner-IR, RTO Faisalabad.

03. Najam- ul -Hassan Sial, Assistant Commissioner –IR, RTO Faisalabad.

04. Hafiz Muhammad Waris, IRAO, RTO-II Lahore.

05. Muhammad Suleman, Senior Auditor, RTO-II Lahore.

06. Malik M Javed Iqbal, Assistant Commissioner-IR, CRTO Lahore.

07. Ms. Sharmeen Qamar, Assistant Commissioner – IR, CRTO Lahore.

08. Aminullah Kakar, Deputy Commissioner-IR, CRTO Karachi.

09. Shahid Rehan, Senior Auditor, CRTO Karachi.

10. Sana Baluch, Deputy Commissioner-IR, RTO-III Karachi.

11. Abdul Sattar Palh, Assistant Director Audit, RTO-III Karachi.

12. Muhammad Imran Ali, Deputy Commissioner-IR, RTO Sialkot.

13. Muhammad Qamar Minhas, Deputy Commissioner-IR, RTO Multan.

14. Nadeem Ahmed, Deputy Commissioner-IR, RTO Multan.

15. Fayyaz Ahmed, Deputy Commissioner-IR, RTO Multan.

16. Ms. Riffat Aziz, Deputy Commissioner-IR, RTO Gujranwala.

17. Muhammad Ali, Assistant Commissioner-IR, RTO Gujranwala.

18. Amjad Ali Moroojo, Inland Revenue Audit Officer, LTU Karachi.

January 8, 2020
Exporters missing shipping deadline due to strike

KARACHI: All Pakistan Textile Mills Association (APTMA) on Wednesday said exporters are missing shipment deadline due to transporters’ strike.

The APTMA in a statement said that the recent strike by the transport sector is going to impact exports significantly as there are no empty containers are available in upcountry for exports.

APTMA spokesman said that as a result of unavailability of empty containers in upcountry due to strike of transport sector, exporters are missing shipment deadlines.

One additional factor that is a major cause of the scarcity of containers is the large number of orders that have been received from China after the effectiveness of the Phase II of the Free Trade Agreement between China and Pakistan.

APTMA Spokesman further said that even if the containers were to be dispatched from Karachi today they would take 3 days to reach upcountry where exporters have already have had 2 days without containers; effectively a further week of exports would have been delayed/lost.

Under these circumstances, we request the government to take immediate action for resolving the issue so that no more exporting deadlines are missed.

January 8, 2020
Stock market declines by 547 pts on Iran attack on US bases

KARACHI: The stock market fell by 547 points on Wednesday following Iran attack on US bases in Iraq.

The benchmark KSE-100 index closed at 41,358 points as against 41,904 points showing a decline of 547 points.

Analysts at Arif Habib Limited said that market took the toll of early morning Iranian strike on Iraqi Military base housing American soldiers.

Oil price went haywire with an initial surge towards $72/bbl, but gradually came down as Iranian government signaled an end to confrontation for the time being.

Oil & Gas chain bore the brunt of war hysteria and stock prices went down in early trading.

Later, as the nerves calm down, market staged a recovery erasing a loss of some 400 points and went positive 35 points.

Selling pressure built later during the day and market saw losses piling up -731 points.

MoC saw another recovery attempt that ended the session -547 points.

Banking sector led the volumes table with 54.9 million shares, followed by Power (44.8 million) and Cement (26.9 million). Among scrips, KEL traded 39.4 million shares, followed by BOP (38.2 million) and TRG (11.6 million).

Sectors contributing to negatively include Commercial Banks (-148 points), Oil and Gas Exploration Companies (-77 points), Power (-62 points), Fertilizer (-55 points) and O&GMCs (-37 points).

Volumes increased from 207.3 million shares to 280 million shares (+35 percent DoD). Average traded value also increased by 27 percent to reach US$ 75.4 million as against US$ 59.2 million.

Stocks that contributed significantly to the volumes include KEL, BOP, TRG, MLCF and STPL, which formed 40 percent of total volumes.

Stocks that contributed negatively include HBL (-104 points), PPL (-49 points), HUBC (-42 points), FFC (-37 points) and NBP (-19 points). Stocks that contributed positively include DAWH (+37 points), LUCK (+32 points), and NATF (+11 points).

January 8, 2020
Rupee falls by seven paisas on import, corporate demand

KARACHI: The Pak Rupee further depreciated by seven paisas against dollar on Wednesday owing to higher import and corporate demands, dealers said.

The rupee ended Rs155.08 to the dollar as compared with last day’s closing of Rs155.01 in interbank foreign exchange market.

The rupee depreciated around 18 paisas in three trading days of the current week.

The dealers said that due to quarter ended December 31, 2019 the demand for the greenback was remained higher from import and corporate buyers.

They said that the exchange rates might witnessed and adverse affect of ongoing US-Iran conflict.

The foreign currency market was initiated in the range of Rs155.00 and Rs155.05. The market recorded day high of Rs155.15 and low of Rs155.05 and closed at Rs155.08.

The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of the dollar was recorded at Rs155.40/Rs155.80 from previous day’s closing of Rs155.00/Rs155.30 in cash ready market.

January 8, 2020
FPCCI, KCCI sit together after long time

KARACHI: Members of Pakistan Federation of Chambers and Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) on Wednesday sit together after defeat of SM Muneer led group in the recent elections of FPCCI.

Siraj Kassem Teli, Chairman of Businessmen Group (BMG) along with office bearers of KCCI visited FPCCI on the invitation of newly elected FPCCI president Anjum Nisar.

President FPCCI Anjum Nisar in his welcome address appreciated the role of KCCI in supporting him in the election.

He vowed that business community would evolve a joint strategy for resolution of problems.

Nisar said that the economic conditions were not good and it was difficult for industries to operate in higher interest rates.

BMG chairman Siraq Kassem Teli, who visited the FPCCI after about 20 years, praised the unity of business community.

He said that his group would fully support the FPCCI on economic issues.

January 8, 2020
Amended payment procedure for imported vehicles issued

ISLAMABAD: The ministry of commerce has issued notification to implement amendment payment procedure for customs clearance of imported motor vehicles.

The ministry issued SRO 1625(I)/2019 dated December 30, 2019 to amend Import Policy Order, 2016.

As per amendment: “Provided that in case the Pak Rupee depreciates or government increases the import duties or taxes after receipt of remittance and before filing of the goods declaration, which results in shortfall of remitted amount against payable duties and taxes, the importer shall be allowed to meet the shortfall through local sources.”

The commerce ministry through SRO 52(I)/2019 dated January 15, 2019 made it mandatory that payment for customs clearance of import motor vehicles shall be made out of foreign exchange.

Further, the proof of payment through banking channel was also made mandatory.

According to the SRO 52:-

“All vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistan Nationals themselves or local recipient supported by bank encashment certificate showing conversion of foreign remittances to local currency, as under:

(a) the remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and

(b) the remittance shall either be received in the account of Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.”

January 8, 2020
Up to 75% capital gain tax exempt on immovable property sale

KARACHI: The government has exempted capital gain tax up to 75 percent in case an immovable property sold by government employees of army personnel after completion of three years.

According to BDO Audit Consultancy Firm, Clause (9A) of Part III of Second Schedule provides a 50 percent exemption on capital gain derived on first sale of immovable property acquired or allotted to ex-servicemen and serving personnel of Armed forces or ex-employees or serving personnel of Federal and Provincial Governments, being original allottees of immovable property.

The Tax Laws (Second Amendment) Ordinance, 2019 has further exempted capital gains up to 75 percent in case the property is sold after completion of three years from date of acquisition.

January 8, 2020
Federal budget 2020/2021 tentative schedule issued for May

ISLAMABAD: The government is planning to present federal budget 2020/2021 in the cabinet and the parliament in the month of May this year.

The finance ministry on Wednesday issued budget call circular for the schedule of budget making process and its presentation in the parliament.

The finance ministry has given tentative schedule of presenting the budget 2020/2021 in May 2020 before the cabinet and the parliament.

The circular further said that the completion of all budget documents, schedules and summaries for the cabinet shall be completed by last week of April 2020.

On April 10, 2020 the principal account office shall submit BO/NIS forms, already entered into SAP system by respective PAOs, for development expenditure to the Budget Wing, Finance Division. Fair copies of the NISs for Development / Capital budget may be sent to Budget Implementation-II Section of Budget Wing, Finance Division after the same have been countersigned by the relevant Technical Section / Programming Section of the Planning, Development and Special Initiatives Division.

On the same date the office shall submit BO/NIS forms, already entered into SAP system by respective PAOs, for current expenditure to the Budget Wing, Finance Division.

January 8, 2020
100% tax exemption allowed on inter-corporate dividend

KARACHI: The government has allowed 100 percent exemption on inter-corporate dividend to companies entitled to group relief.

Analysts at Topline Securities on Tuesday said that as per the Tax Laws (Second Amendment) Ordinance 2019 issued on Dec 28th, the government has allowed 100% tax exemption on inter-corporate dividends, to companies entitled to group relief.

To avail group relief, one of the company in the group has to be a public company listed on a registered stock exchange in Pakistan, and the holding company has to directly hold 51 percent or more of the share capital of the subsidiary company.

Where none of the companies in the group is a listed company, the holding company shall hold directly 75 percent or more of the share capital of the subsidiary company.

To recall, the Finance Act 2016 excluded entities entitled to group relief from the exemption on inter-corporate dividend entirely.

The Finance Supplementary (Second Amendment) Act, 2019 addressed the issue, however allowed relief on tax liability up to the percentage of shareholding in the subsidiary, given that the company has registered itself for group relief.

Tax Laws (Second Amendment) Ordinance 2019, has now allowed 100 percent relief on tax liability on dividends received from a subsidiary given that the company has registered itself for group relief.

Our checks on few holding companies suggest following potential impacts on unconsolidated accounts based on last full year financials, the analysts said.

January 7, 2020
Equity market recovers 608 points

KARACHI: The equity market recovered 608 points on Tuesday in the aftermath of US-Iran confrontation and developing geopolitical situation.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 41,904 points as against 41,296 points showing an increase of 608 points.

Analysts at Arif Habib Limited said that in the aftermath of US-Iran confrontation and developing geo-political situation, world markets staged a recovery with an understandable decline in international crude prices.

The KSE-100 index also partially recovered the points lost yesterday with an increase of 649 points by the end of session.

Banks, OMCs, Refineries and Cement sectors remained in the limelight, with LUCK, PSO, ATRL and NRL hitting upper circuits by the end of session. Overall, OMCs saw largest volumes of 31.1 million shares, followed by Technology (21.9 million) and Cement (20.9 million).

Among scrips, HASCOL led the table with 19 million shares, followed by KEL (16 million) and STPL (12.3 million).

Sectors contributing to the performance include Banks (+205 points), Fertilizer (+83 points), Cement (+68 points), O&GMCs (+66 points) and Inv Banks (+61 points).

Volumes declined from 266.7 million shares to 206.9 million shares (-23 percent DoD). Average traded value also declined by 14 percent to reach US$ 59.2 million as against US$ 67.5 million.

Stocks that contributed significantly to the volumes include HASCOL, KEL, STPL, TRG and UNITY, which formed 34 percent of total volumes.

Stocks that contributed positively include HBL (+93 points), LUCK (+60 points), DAWH (+56 points), PSO (+44 points) and ENGRO (+42 points). Stocks that contributed negatively include INDU (-16 points), NESTLE (-9 points), IGIHL (-5 points), MLCF (-3 points), and POL (-3 points).

January 7, 2020