Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Rupee gains five paisas against dollar on inflows

    Rupee gains five paisas against dollar on inflows

    KARACHI: The Pak Rupee gained five paisas against dollar on Tuesday as market witnessed mixed trend during the day.

    The rupee ended Rs154.23 to the dollar from previous day’s closing of Rs154.28 in interbank foreign exchange market.

    Currency dealers said that the market witnessed depreciation of rupee earlier in the day owing to demand from importers and corporate buyers.

    However, inflows of export earnings and remittances helped the rupee to gain the value.

    The foreign currency market initiated in the range of Rs154.35 and Rs154.38. The market recorded day high of Rs154.35 and low of Rs154.18 and closed at Rs154.23.

    The exchange rate in open market also witnessed depreciation in the rupee value. The buying and selling of the dollar was recorded at Rs154.10/Rs154.40 from previous day’s closing of Rs154.00/Rs154.30 in cash ready market.

  • FBR extends ST, FE return date up to February 26

    FBR extends ST, FE return date up to February 26

    KARACHI: Federal Board of Revenue (FBR) has extended the last date for filing sales tax (ST) and federal excise (FE) return for the month of January 2020 up to February 26, 2020.

    The FBR issued a notification on Tuesday addressing all chief commissioners Inland Revenue of Large Taxpayers Units and Regional Tax Offices to inform about extension in date of submission of sales tax and federal excise return for the tax period of January 2020.

    The FBR said that the date has been extended for submission of sales tax and federal excise return up to February 26, 2020 for the tax period of January 2020, which was due on February 18, 2020.

  • SBP imposes penalty of Rs12.8 million on HBL

    SBP imposes penalty of Rs12.8 million on HBL

    KARACHI: State Bank of Pakistan (SBP) has imposed monetary penalty of Rs12.8 million on Habib Bank Limited (HBL) for procedural violations in the area of Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP on Tuesday said that it had imposed monetary penalty on HBL under significant enforcement actions during January 2020.

    The central bank directed HBL to improve the areas of CDD and KYC.

    The SBP imposed Rs219.138 million as penalty on five banks during the month of December 2019 for violating mainly regulations related to foreign trade operations, Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.

    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions

    With the latest penal action the total amount of penalty during first seven months (July – January) 2019/2020 increased to Rs1,581.8 million.

  • Foreign direct investment increases by 66% in July – January

    Foreign direct investment increases by 66% in July – January

    KARACHI: The inflows of foreign direct investment (FDI) into Pakistan has increased by 66 percent during first seven months (July – January) of 2019/2020, State Bank of Pakistan (SBP) said on Tuesday.

    The inflows of FDI during the period under review increased to $1.56 billion as compared with $944 million in the corresponding period of the last fiscal year.

    The total foreign private investment during July – January 2019/2020 registered 196 percent growth. The foreign private investment increased to $1.58 billion as compared with $535 million in the same period of the last fiscal year.

    The flow of portfolio investment into the capital market increased by 105 percent during the period under review. The capital market witnessed inflows of $21.5 million during July – January 2019/2020 as compared with outflow of $409 million in the corresponding period of the last fiscal year.

    The total inflows of foreign investment has been recorded at $3.42 billion during the period under review. The main source of this investment can be attributed to foreign investment in debt securities.

    The inflow of debt securities during first seven months of current fiscal year was at $1.84 billion.

  • Mobile phone import climbs up by 79.46% in seven months

    Mobile phone import climbs up by 79.46% in seven months

    KARACHI: The import of mobile phones has surged by 79.46 percent during first seven months (July – January) of current fiscal year owing to reduction in tax rate by the government to promote digital economy.

    The import of mobile phones increased to $760.58 million during first seven months of current fiscal year as compared with $423.82 million in the corresponding months of the last fiscal year, according to import data released by Pakistan Bureau of Statistics (PBS).

    The government announced Tax Laws (Second Amendment) Ordinance, 2019 on December 28, 2019 through presidential order.

    Prior to the promulgation of the Tax Laws (Second Amendment) Ordinance,2019 the rate of withholding income tax on the import of mobile phones was Rs.730 in case of a mobile phones having value exceeding 30 UD dollars and up to 100 US Dollars.

    In order to complement the efforts of the government towards promotion of financial inclusion, e-commerce etc, income tax at the import stage in respect of mobile phones having value exceeding 30US dollars and up to 100US dollars has been reduced from Rs.730 to Rs.100 per mobile phone.

  • Import of used cars plunges by 77% in seven months

    Import of used cars plunges by 77% in seven months

    KARACHI: The import of used and old cars plunged by 77 percent during first seven months (July-January) of 2019/2020 due to condition of payment of duty and taxes through foreign exchange imposed by the government.

    The import of used and old cars in Completely Built Unit (CBU) condition fell by 77 percent to $43.64 million during July – January 2019/2020 as compared with $193.43 million in the corresponding period of the last year, according data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The commercial import of used or old cars is not allowed under prevailing laws of the country. However, in order to facilitate expatriate Pakistanis the government allows incentives to bring cars into the country.

    The Federal Board of Revenue (FBR) has allowed Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under these schemes: Personal Baggage; Gift Scheme; and Transfer of Residence.

    The cars not older than three years and other vehicles not older than five years can be imported under these schemes.

    In the past these schemes were grossly misused and bulk of imported cars brought into the country.

    However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

    Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

    However, in November 2019 Economic Coordination Committee (ECC) decided to allow payment for duty and taxes for customs clearance of imported cars through local resources with condition that if foreign exchange becomes short due to currency fluctuations or change in duty and tax rates.

    The overall import of Completely Built Unit (CBU) vehicles during first seven months of current fiscal year fell 71 percent. The import of heavy vehicles including buses and trucks has declined by 59 percent. While import of CBU motorcycles fell by 74 percent.

    On the other hand the import of cars as Completely Knocked Down (CKD) condition also fell by 46.46 percent to $261 million during July – January 2019/2020 as compared with $487.6 million in the same period of the last fiscal year.

    Industry sources said that massive depreciation in the local currency during past couple of years had increased the cost of local car manufacturers.

    Further, the rates of locally assembled cars for end consumers also jumped up sharply.

    These factors have reduced the productions of locally manufactured cars and subsequently reduced the import of cars in CKD condition.
    The overall import of vehicles in CKD fell by 45.58 percent to $417.2 million during first seven months of 2019/2020 as compared with $766.54 million in the corresponding period of the last fiscal year.

  • British deputy high commission delegation visits CDC

    British deputy high commission delegation visits CDC

    KARACHI: A delegation from British Deputy High Commission, Karachi visited the Central Depository Company (CDC), a statement said on Monday.

    The delegation was headed by Mike Nithavrianakis, British Deputy High Commissioner in Karachi. Representatives of leading Pakistani corporate units and UK businesses in Pakistan attended this event.

    British Deputy High Commissioner, Mike Nithavrianakis spoke about the untapped potential Pakistan has to offer and how the landscape of UK Business in Pakistan needs to expand and grow.

    Mike Nithavrianakis said: “Although I am the Deputy High Commissioner with responsibility for Sindh and Balochistan, a more prominent part of my role is being the director of trade.

    “We feel that diplomatically, in a country like Pakistan, where significant improvements in the security situation are changing perceptions, we need to shift the conversation towards mutual prosperity and increased trade investment.”

    He lauded CDC on its achievements in transforming the Pakistani Capital Market and highlighted the improvement of Pakistan’s ranking to 28 places in the area of Ease of Doing Business, according to the World Bank Index.

    Earlier in his welcome address Moin M. Fudda, Chairman CDC Board of Directors spoke briefly about the long term friendly relations between UK and Pakistan while stressing on the need to foster greater ties on economic, business and other fronts.

    Badiuddin Akber, CEO-CDC, gave a presentation on the Pakistan Capital Market landscape and CDC’s key role in its development.

  • FBR drafts rules to make recovery

    FBR drafts rules to make recovery

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for making recovery from persons holding money on behalf of taxpayers.

    (more…)
  • Textile exports increase by 3.68% in seven months

    Textile exports increase by 3.68% in seven months

    KARACHI: The exports of textile products have recorded increase of 3.68 percent during first seven months (July – January) 2019/2020 on the back of improvement in readymade garments and knitwear.

    The exports of textile group were at $8.1 billion during first seven months of current fiscal year as compared with 7.81 billion in the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The textile sector was facing several issues pertaining to fuel prices and payment of tax refunds.

    On the other hand the government allowed many incentives to export sector for encouraging the exporters. The government allowed zero rated of sales tax which is only available to the exporters.

    The exports of readymade garments recorded 11 percent increase during the period under review. The exports readymade garments increased to $1.68 billion during first seven months of the current fiscal year as compared with $1.516 billion in the same period of the last fiscal year.

    The exports of knitwear recorded 6.27 percent increase to $1.83 billion during July – January 2019/2020 as compared with $1.72 billion in the corresponding period of the last fiscal year.

    The exports of bed wear recorded 2.77 percent growth to $1.39 billion during first seven months of the current fiscal year as compared with $1.35 billion in the same period of the last fiscal year.

    However, the exports of cotton cloths fell by 3.62 percent to $1.19 billion during the period under review as compared with $1.23 billion in the corresponding period of the last fiscal year.

    The exports of towels registered nominal decline to $444 million during first seven months of the current fiscal year as compared with $446.45 million in the corresponding period of the last fiscal year.

    The export of cotton yarn was also registered flat growth to $640 million during first seven months of the current fiscal year as compared with $635 million in the same period of the last fiscal year.

  • Poisonous gas incident: KCCI criticizes NDMA

    Poisonous gas incident: KCCI criticizes NDMA

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday criticized the National Disaster Management Authority (NDMA) for not responding to the tragic incident of poisonous gas leakage in Kemari area, which claimed six lives.

    Agha Shahab Ahmed Khan, President, KCCI while expressing deep concerns over the death of six people and hospitalization of dozens of others on Sunday night in Kemari area due to diffusion poisonous gas in the air, stated that it was really unfortunate and worrisome to see that the National Disaster Management Authority (NDMA), which was established with a prime objective to respond to such calamities, neither reached the affected area to rescue and find out the causes nor bothered to give any statement over the tragic incident.

    “Is NDMA responsible for responding only to those disasters in which more than 100 casualties occur”, he asked, adding that life of a single innocent person in such a calamity is also equally important hence, the NDMA and others must respond as quickly as possible.

    Agha Shahab stressed that NDMA should have rapidly responded to this particular incident in Kemari as soon as the first causality was reported but unfortunately, people kept losing their lives and dozens were hospitalized while the disaster management authority was not seen anywhere around and only a handful of the volunteers from Edhi and Chhipa reached the spot to rescue the affectees.

    He further urged that the concerned authorities must thoroughly investigate and find out the exact source of poisonous gas and accordingly take strict measures to avoid such incidents in future. “A Rapid Response Force must be established to deal with such calamities in Karachi as it is not the first time when people lost their lives. People are losing their lives in various incidents including fire eruptions, explosions caused by gas cylinders, buildings’ collapse and fatal road accidents etc. but no dedicated and fully equipped Rapid Response Force exists in the city that always results in raising the number of casualties”, he added.

    He was of the opinion that all such incidents remain confined to just summoning a report by the Chief Minister but no concrete step has ever been taken to minimize the loss of precious lives which is really worrisome for business community and the citizens of Karachi.

    He said that all the financial resources of Karachi are being utilized to run the entire country but a meager amount was hardly being spent on the city’s development. In response to Kemari incident, Federal Minister for Maritime Ali Zaidi stated that KPT has no resources to deal with such tragedies while the Sindh government and Mayor KMC are also complaining about having limited or no resources. It appears that Karachi, which contributes more than 70 percent revenue to the national exchequer is constantly being neglected by all three tiers of the government and continues to receive step motherly treatment, he added.