KARACHI: The stock market fell by 153 points on Tuesday as the last day of 2019 while trading in narrow range during the day.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,735 points as against 40,888 points showing a decline of 153 points.
Analysts at Arif Habib Limited said that the market traded in a narrow range throughout the session with index swinging +110 points to -199 points.
Similar to yesterday, market maintained a slow pace with continued selling pressure in Banks and Oil chain. Cement sector also faced selling.
Overall, the benchmark index returned 10 percent over the year and managed to close the year above 40,000 level. Power sector led the volumes with 22.5 million shares, followed by Vanaspati (21.5 million) and Banks (19.3 million).
Among scrips, UNITY registered trading volume of 21.5 million, followed by KEL (13.8 million) and FFL (10.2 million).
Sectors contributing to the performance include Banks (-17 points), E&P (-32 points), Inv Banks (-19 points), Autos (-11 points), Power (+17 points), Technology (+10 points).
Volumes increased from 165.8 million shares to 177.1 million shares (+7 percent DoD). Average traded value also increased by 7 percent to reach US$ 45.7 million as against US$ 42.8 million.
Stocks that contributed significantly to the volumes include UNITY, KEL, FFL, SILK and HASCOL, which formed 34 percent of total volumes.
Stocks that contributed positively include FFC (+34 points), KAPCO (+7 points), HUBC (+7 points), INIL (+7 points) and SHEL (+6 points). Stocks that contributed negatively include ENGRO (-44 points), UBL (-36 points), HBL (-32 points), DAWH (-19 points), and PPL (-17 points).
KARACHI: The Pak Rupee gained seven paisas against dollar on Tuesday to close the year 2019. The local currency appreciated despite demand for import and corporate payments, dealers said.
The rupee ended Rs154.85 to the dollar from previous day’s closing of Rs154.92 in interbank foreign exchange market.
Currency dealers said that the rupee witnessed pressure during the day due to demand for import and corporate payments.
However, inflows and positive economic indicators helped the rupee to close the year with gain.
The foreign currency market was initiated in the range of Rs154.90/Rs154.95. The market recorded day high of Rs154.92 and low of Rs154.85 and closed at Rs154.85.
The exchange rate in open market witnessed no change in the local currency. The buying and selling of the dollar was recorded at Rs154.70/Rs155.00, the same previous day’s level, in cash ready market.
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued orders to microfinance banks (MFBs) to ensure verification of customers in order to mitigate various risks arising from money laundering and financing terrorism.
A circular issued by the central bank referred it previous instructions issued through Circular No. 02 dated October 05, 2018 to mitigate various risks arising from money laundering and financing of terrorism.
As stipulated under Regulation M-1, ongoing Customer Due Diligence (CDD) is an essential aspect of effective KYC/CDD procedures and applies to all customers to whom the MFB is offering any type of service(s).
Accordingly, it is reiterated that MFBs must ensure strict observance of all applicable instructions including identification and verification of customers and their beneficial owner(s) and obtain information on the purpose and intended nature of business relationship.
The monitoring mechanism in place at MFBs should be adequately resourced and strengthened to ensure that the transactions being conducted in the accounts are consistent with the MFB’s knowledge of their customer, business, risk profile and the source of funds.
With the objective to know the ultimate beneficial ownership of accounts/ transactions, the MFBs shall enhance their efforts to obtain relevant information and examine background and purpose of all complex, unusual large transactions and unusual patterns of transactions, which do not commensurate with customer profile or have no apparent economic or visible lawful purpose.
MFBs are also advised to refer to the SECP Circular No. 16 of 2018 dated August 29, 2018 (https://www.secp.gov.pk/laws/circulars/) through which the Commission has directed all companies to enhance their efforts to obtain and maintain up-to-date information relating to their ultimate beneficial owners, i.e. natural persons or individuals who ultimately own or control the company.
Therefore, MFBs may also seek such ultimate beneficial ownership information from their relevant customers during the CDD process.
Moreover, with the view to further strengthen the measures already in place and mitigate the money laundering and terrorist financing risks, MFBs are advised to immediately take following steps:
a) Ensure optimal utilization of biometric technology and carry out biometric verification of the existing customers (if already not done) as per following timelines and thresholds:
Priority
Category of Customers
Threshold
Timeline
High Priority
Listed /Public Limited Companies
Account turnover exceeding PKR 1,000 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
31st January, 2020
Private Limited Companies
Account turnover exceeding PKR 500 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
All customers except Public/Private Limited Companies
Account turnover exceeding PKR 250 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
Medium Priority
Listed /Public Limited Companies
Account turnover from PKR 500 million to PKR 1000 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
31st March, 2020
Private Limited Companies
Account turnover from PKR 250 million to PKR 500 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
All customers except Public/Private Limited Companies
Account turnover from PKR 100 million to PKR 250 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
Normal
All other accounts not covered in the above categories
30th June, 2020
Note
Biometric verification of persons authorized to open and operate the account of legal entities or legal arrangements shall be conducted.
In case of customers whose eligible identity documents are other than biometrically verifiable documents, re-validation/ verification of identity shall be done based on documents, data or information obtained from customer and/or from reliable and independent sources having regard to MFB’s own assessment of materiality and risk.
Submit compliance status in respect of biometric verification of their existing/legacy portfolio of customers within 15 days of aforesaid timelines.
Furthermore, MFBs are advised to adhere to the following instructions regarding biometric verification of existing customers presently outside Pakistan:
Type of Customer
Treatment
a)
Non-resident Pakistanis (NRPs)
As defined in Income Tax Ordinance, 2001 – Chapter 5, Division II, Section 82
For customers who fall under the definition of NRP, the MFB may obtain a signed undertaking from the customer invariably containing the following:
• Customer’s NRP status along with proof (i.e. copy of valid passport, visa, exit stamp, resident permit, etc.).
• Copy of valid identity document.
• Account number(s) of the customer’s account(s) maintained with the bank as per customer record.
• Undertaking by the customer to inform the bank of any change in residency status.
The MFB, after verification of the customer’s signature from its record, shall accordingly update/ reflect the NRP status in the customer profile.
For such customers, as an alternative to biometric verification, the MFB may conduct fresh NADRA Verisys using the information provided by the customer.
b)
Resident Pakistanis temporarily outside Pakistan
For customers who do not qualify under the definition of NRP, but are currently/ temporarily outside Pakistan for any reason, the MFB may obtain reasonable evidence/ proof from the customer regarding his/ her absence from the country (i.e. copy of valid passport, visa, exit stamp, resident permit, etc.) and the expected date of return.
For such customers, as an alternate to biometric verification, the MFB may conduct fresh NADRA Verisys using the information provided by the customer.
The MFB may retain the NADRA Verisys in place of biometric verification until the customer returns, subject to reasonable time limit (not more than six months) to be defined by MFB. Biometric verification of such customers shall be done immediately upon the customer’s return to the country.
c)
Joint Accounts where one account holder is outside Pakistan (NRP/ temporarily)
For joint account holders, treatment of biometric verification should be done according to the status of respective individual. Biometric verification should be conducted for the joint account holder who is resident Pakistani, while for other joint account holders, the relevant procedure described at (a) and (b) above should be adopted.
Moreover, MFBs may operate accounts on the basis of NADRA Verisys in genuine cases, in line with Frequently Asked Questions (FAQ No. 8, Annexure – I) on Use of Biometric Technology, provided MFBs are satisfied and proper reason/ proof is recorded/ retained by them.
For such cases in line with Para-7 above, in the absence of biometric verification, MFB may ensure that requisite identification document has been obtained, marked as ‘original seen’ by their staff and verified through NADRA Verisys.
Moreover an undertaking should be obtained from the customer declaring that the particulars provided to the MFB are correct and that their staff has verified the same. The declaration should be endorsed by the Branch Manager and should be available in the bank’s centralized record.
KARACHI: Today i.e. December 31, 2019 is the last date for filing income tax returns for tax year 2019 and Federal Board of Revenue (FBR) may not able to reach 2.74 million returns of tax year 2018.
The income tax return filing for tax year 2018 has increase to a new record level of 2.74 million by December 29, 2019, as shown in the Active Taxpayers List (ATL) issued on December 30, 2019.
The FBR received 1.8 million tax returns for tax year 2019 by December 12, 2019 and it is apparently difficult for the revenue authorities to reach the record level in 18 days.
Tax experts said that the FBR had set a target of 3.5 million returns for tax year 2019. To achieve this number the FBR has to extend the return filing date.
The last date for filing of income tax return other than companies was September 30, 2019 since then the FBR granted four extensions to facilitate taxpayers.
All the taxpayers including companies to file their returns by mid-night December 31, 2019.
It is interesting to note that no tax body or business associations have asked the FBR to further extend the date beyond December 31, 2019.
The income tax return filing reached to a new record high of 2.74 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).
Sources in Federal Board of Revenue (FBR) attributed the record increase in return filing to the amendment to Income Tax Ordinance, 2001 through Finance Act, 2019.
In the last budget 2019/2020 a new Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which persons not appearing on ATL would liable to pay 100 percent more withholding tax on certain transactions.
The ATL for tax year 2018 issued on March 01, 2019 in which 1.59 million names were appeared of those taxpayer, who filed their returns by due date.
However, later the FBR granted extension in date for filing returns due to introduction of a tax amnesty scheme.
The extension for filing income tax returns for tax year 2018 was granted up to August 09, 2019.
The return filing up to August 09, 2019 for tax year 2018 jumped up to 2.5 million from 1.59 million returns, which were part of the first ATL issued March 01, 2019.
The insertion of Tenth Schedule to Income Tax Ordinance, 2001 speed up the return filing by taxpayers in order to avoid higher tax rate on certain transactions.
Previously, people filing their annual income tax returns after due date were not allowed to appear on the ATL. However, another provision was added to the main statute under which persons by paying penalty can include their name to ATL.
KARACHI: In case a person unable to file annual return and wealth statement by due date the he/she has right to get extension in date on various grounds by furnishing an application to Commissioner Inland Revenue.
Section 119 of the Income Tax Ordinance, 2001 provided the procedure to get date extension in filing annual return and wealth statement.
Section 119: Extension of time for furnishing returns and other documents.
(1) A person required to furnish —
(a) a return of income under section 114 or 117;
(c) a statement required under sub-section (4) of section 115; or
(d) a wealth statement under section 116,
may apply, in writing, to the Commissioner for an extension of time to furnish the return, or statement, as the case may be.
(2) An application under sub-section (1) shall be made by the due date for furnishing the return of income, or statement to which the application relates.
(3) Where an application has been made under sub-section (1) and the Commissioner is satisfied that the applicant is unable to furnish the return of income, 3[ ] or 4[ ] statement to which the application relates by the due date because of —
(a) absence from Pakistan;
(b) sickness or other misadventure; or
(c) any other reasonable cause,
the Commissioner may, by order, in writing, grant the applicant an extension of time for furnishing the return, or statement, as the case may be.
(4) An extension of time under sub-section (3) should not exceed fifteen days from the due date for furnishing the return of income, employer’s certificate, or statement, as the case may be, unless there are exceptional circumstances justifying a longer extension of time:
Provided that where the Commissioner has not granted extension for furnishing return under sub-section (3) or sub-section (4), the Chief Commissioner may on an application made by the taxpayer for extension or further extension, as the case may be, grant extension or further extension for a period not exceeding fifteen days unless there are exceptional circumstances justifying a longer extension of time.
(6) An extension of time granted under sub-section (3) shall not, for the purpose of charge of default surcharge under sub-section (1) of section 205, change the due date for payment of income tax under section 137.
ISLAMABAD: Federal Board of Revenue (FBR) on Monday suspended two customs officers of Model Customs Collectorate (MCC) Preventive, Lahore with immediate effect.
The FBR suspended the BS-16 officers including Muzaffar Hussain and Khalid Pervaiz Bhutta for a period of three months.
The revenue body suspended the officers using powers under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973.
KARACHI – The Federal Board of Revenue (FBR) has issued a directive to all field offices of Pakistan Customs and Inland Revenue, emphasizing the urgent need to update employee data.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved duty-free import of cotton.
The ECC took the decision at a meeting held here under the chairmanship of Advisor to Prime Minister on Finance and Revenue, Hafeez Shiekh in the chair.
The meeting also allowed cotton import through the Torkham border.
The ECC was informed that Cotton remained duty-free till the slab of zero percent was abolished in 2014-2015 and Custom Duty of 1 percent was imposed along with 5 percent Sales Tax.
Later on, 1 percent slab was increased to 2 percent and then 3 percent along with 2 percent additional customs duty to make it 5 percent.
Since 2017 the duties are withdrawn from January/February and re-imposed in July-August. It was also discussed that by January 01, 2010 the majority of the cotton would be lifted from the farmers.
Therefore, to further protect the farmers, the meeting allowed duty-free import of cotton with effect from January 15, 2020.
The ECC was also briefed that under Rule 28 of the Plant Quarantine Rules of 1967 / Plant Quarantine Act 1976, cotton is only allowed through sea route.
As trade with India is currently suspended by Pakistan, therefore, Afghanistan and the Central Asian states are the more viable economic sources for the import of cotton.
The ECC allowed import of cotton from Torkham Border subject to fulfillment of all sanitary and phytosanitary (SPS) conditions.
The ECC also desired that a comprehensive briefing may be given by the Ministry of National food Security and Research on matters pertaining to cotton production for next cotton season.
It may be noted that during first five months of current financial year, i.e. July-November 2019-20, the value-added readymade garments have increased by 35 percent, knitwear by 6 percent and bedwear by 14 percent in quantity terms as compared to the corresponding period of the previous year.
ISLAMABAD: A meeting chaired by Dr. Abdul Hafeez Shaikh, adviser to the Prime Minister on Finance and Revenue, discussed proposals related to tax rates on properties, and realization of property valuation tables.
The adviser met a delegation of Association of Builders and Developers of Pakistan (ABAD) in this regard.
The delegation was represented by Hassan Bakhshi, various proposals were presented that could enhance and boost the property business in the country and improve tax collection for the government.
The proposals were regarding taxation rates on property, building height restrictions in Karachi and rationalization of Property valuation tables and some other policy related exemptions that could help in smooth functioning of the property business and further accelerate the economic activity in the country.
The adviser to the Prime Minister discussed the proposals in detail with the delegation and after taking the views of the Chairman FBR, assured the members of the delegation that all possible help will be provided to the sector keeping in view the principles of equity, transparency and fair play.
The adviser said that he realizes the importance of the business and wants to engage more with the sector for better facilitation and understanding.
He directed the delegation to further refine their proposals for a positive outcome and meet again in the second week of January so that the matters could progress ahead.
KARACHI: The Pak Rupee appreciated by 11 paisas against dollar on Monday owing to improved economic indicators.
The rupee ended Rs154.92 to the dollar from last Friday’s closing of Rs155.03 in interbank foreign exchange market.
Currency dealers said that the improved foreign exchange reserves and narrowing current account deficit improved the rupee value.
The foreign currency market was opened in the range of Rs154.85 and Rs154.90. The market recorded day high of Rs155.00 and low of Rs154.90 and closed at Rs154.92.
The exchange rate in open market witnessed slight change in rupee value. The buying and selling of dollar was recorded at Rs154.70/Rs155.00 from last Friday’s closing of Rs154.60/Rs155.00 in cash ready market.
