Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Rupee ends unchanged in lackluster trading

    Rupee ends unchanged in lackluster trading

    KARACHI: The Pak Rupee ended unchanged against dollar on Friday owing to lackluster trading activities, dealers said.

    The rupee ended at Rs154.90, the same previous day’s closing, in interbank foreign exchange market.

    The currency dealers said that due to political uncertainty and expected appreciation of rupee value after approval of second tranche by IMF, the importers were cautious in opening letter of credit.

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

    The exchange rate in open market witnessed decline in rupee value. The buying and selling of the dollar was recorded at Rs154.50/Rs154.90 as compared with last day’s closing of Rs154.40/Rs154.70 in cash ready market.

  • Company registration increases to 108,433: SECP

    Company registration increases to 108,433: SECP

    ISLAMABAD: The total number of registered companies increased to 108,433 by end of November 2019, said a statement issued by Securities and Exchange Commission of Pakistan (SECP).

    The regulator registered 1,389 new companies in the month of November 2019.

    The substantial increase is result of SECP’s recent reforms to simplify the registration processes and reduce incorporation and regulatory forms tariffs.

    Among new incorporations, around 72 percent companies were registered as private limited companies, while around 25 percent were registered as single member companies.

    Three percent were registered as public unlisted companies, not for profit associations, foreign companies and Limited Liability Partnership (LLP) whereas 96 percent companies were registered online. During the month 130 foreign users completed registration process from overseas.

    The trading sector took the lead with the incorporation of 237, services with 165, I.T. with 159, construction with 151, tourism with 77, real estate development with 66, education with 65, food and beverages with 51, corporate agricultural farming with 39, engineering, and pharmaceutical with 35 each, marketing & development with 33, textile with 27, transport with 25, chemical with 24, auto and allied 21, healthcare with 19, mining and quarrying with 16, electric goods, and logging with 12 each, broadcasting and telecasting, and fuel and energy with 11 each, and 96 companies were registered in other sectors.

    Foreign investment has been reported in 61 new companies. These companies have foreign investors from, Bahrain, China, Czech Republic, Egypt, Germany, Korea South, Malaysia, Philippines, Russia, Saudi Arabia, Spain, Sweden, Switzerland, Taiwan, Tajikistan, the UK and the US.

    The highest numbers of companies, i.e. 477 were registered in Islamabad, followed by 358 and 282 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Gilgit-Baltistan, Faisalabad, Quetta, and Sukkur registered, 106, 64, 48, 42, 7 and 3 companies respectively.

  • FBR asks professionals to declare annual income, assets

    FBR asks professionals to declare annual income, assets

    ISLAMABAD: Federal Board of Revenue (FBR) has asked professional bodies of doctors, lawyers, engineers etc. to pursue their members for file mandatory declarations of income and assets.

    In a tweet message the FBR said that members of all professional bodies are liable to declare their income and assets during a year through electronic return filing.

    Sources in the FBR said that the authorities had decided to take harsh action against unreported income. They said that professionals of certain bodies were engaged in cash based transactions and avoid declaring true income or file declaration with nominal income.

    The last date for filing income tax returns is December 31, 2019, which was already extended four times as the actual last date for filing income tax returns was September 30, 2019.

    The sources said that the professionals were taking huge amount in term of fee from their clients / patients but mostly in cash bases.

    The sources further said that the FBR would obtain third-party information of such unreported incomes besides assistance would be taken from withholding statements and returns filed by other taxpayers, who made payments.

    They said that Income Tax Rules, 2002 prescribed record keeping by professional in order to verify their declarations.

    The professionals (like medical practitioners, legal practitioners, accountants, auditors, architects, engineers etc.) are required to keep following records:-

    (a) Serially numbered and dated patient-slip/ invoice/ receipt for each transaction of sale or receipt containing the following:-

    (i) taxpayer’s name or the name of his business or profession, address national tax number or CNIC and sales tax registration number, if any;

    (ii) the description, quantity and value of medicines supplied or details of treatment /case/ services rendered (confidential details are not required) and amount charged; and

    (iii) the name and address of the patient/client:

    Provided that the condition of recording address of the patient on the patient slip under this clause shall not apply to general medical practitioners;

    (b) Daily appointment and engagement diary in respect of clients and patients:

    Provided that this clause-shall not apply to general medical practitioners;

    (c) Daily record of receipts, sales, payments, purchases and expenses; a single entry in respect of daily receipts, sales, purchases and different heads of expenses will suffice; and

    (d) Vouchers of purchases and expenses.

  • IMF board approves $452.4 million as second tranche for Pakistan

    IMF board approves $452.4 million as second tranche for Pakistan

    KARACHI: International Monetary Fund (IMF) in its board meeting held on December 19, 2019 approved second tranche of about $452.4 million under its total $6 billion loan program for Pakistan.

    The Executive Board of the IMF on December 19, 2019 completed the first review of Pakistan’s economic performance under the Extended Fund Facility (EFF).

    The completion of the review will allow the authorities to draw SDR 328 million (about US$ 452.4 million), bringing total disbursements to SDR 1,044 million (about US$ 1,440 million), said a press release issued by the IMF.

    The Fund observed that Pakistan’s economic reform program is on track. Decisive policy implementation by the Pakistani authorities is helping to preserve economic stability aiming to put the economy on the path of sustainable growth.

    Transition to a market-determined exchange rate has been orderly; inflation has started to stabilize, mitigating the impact on the most vulnerable groups of the population.

    The Pakistani authorities remain committed to expanding the social safety nets, reducing poverty, and narrowing the gender gap, the IMF said.

    The Executive Board approved the 39-month, SDR 4,268 million (about $6 billion at the time of approval of the arrangement, or 210 percent of quota) EFF for Pakistan on July 3, 2019.

    Following the Executive Board’s decision, David Lipton, First Deputy Managing Director and Acting Chair, issued the following statement:

    “Pakistan’s program is on track and has started to bear fruit. However, risks remain elevated. Strong ownership and steadfast reform implementation are critical to entrench macroeconomic stability and support robust and balanced growth.

    “The authorities are committed to sustaining the progress on fiscal adjustment to place debt on a downward path. The planned reforms include strengthening tax revenue mobilization, including the elimination of tax exemptions and loopholes, and prudent expenditure policies. Preparations for a comprehensive tax policy reform should start early to ensure timely implementation. Enhanced social safety nets will help alleviate social costs and build support for reforms.

    “The flexible, market-determined exchange rate remains essential to cushion the economy against external shocks and rebuild reserve buffers. The current monetary stance is appropriately tight and should only be eased once disinflation is firmly entrenched. Strengthening the State Bank of Pakistan’s autonomy and governance will support these efforts.

    “Faster progress is needed to improve the AML/CFT framework, supported by technical assistance from the IMF and other capacity development providers. Swift adoption of all the necessary measures is needed to exit the FATF’s list of jurisdictions with AML/CFT deficiencies.

    “The authorities have adopted a comprehensive plan to address the accumulation of arrears in the power sector. Its full implementation is key to improve collection, reduce losses, and enhance governance. Timely and regular adjustment of energy tariffs will bring the sector in line with cost recovery.

    “Efforts are ongoing to further improve the business environment, strengthen governance, and foster private sector investment. Reform of the state-owned enterprise sector will help put Pakistan’s public finances on a sustainable path and have positive spillovers by leveling the playing field and improving the provision of services.”

  • Law drafted to examine national saving schemes investments for money laundering, terror financing

    Law drafted to examine national saving schemes investments for money laundering, terror financing

    ISLAMABAD: The government has draft law to examine involvement of money laundering and terror financing in investment made in national saving schemes.

    The ministry of finance on Thursday issued draft rules namely National Saving Schemes (AML and CFT) Rules, 2019.

    Under the draft rules, the Central Directorate of National Savings (CDNS) would conduct customers due diligence (CDD) of all the customers / investors.

    “Every customer, whether permanent or occasional and whether natural or legal person or legal arrangement, shall be identified for establishing business relationship and for the purpose following information shall be obtained, verified using reliable, independent source documents, data or information and recorded namely: –

    (a) full name as per identity or registration documents;
    (b) national identity card, passport, national identity card for overseas pakistanis, Pakistan origin card or alien registration card number, etc.
    (c) registration or incorporation number of business, if applicable;

    (d) residential address, telephone numbers and e-mail, if available;

    (e) business address, telephone numbers and e-mail, if available;

    (f) date of birth;

    (g) date and place of registration or incorporation of business, if applicable;

    (h) nationality

    (i) place of birth;

    (j) national tax number (NTN), if applicable;

    (k) nature of business and location, if applicable;

    (l) sources of earnings;

    (m) customer’s net worth in respect of legal persons, legal arrangements and high risk customers; and

    (n) annual income

    The minimum set of documents to be obtained by the office of issue or third party in case of each category of customers shall be as follows:-

    (a) In respect of individuals, a photocopy of any one of the following valid identity documents namely:-

    (i) computerized national identity card (CNIC) issued by NADRA; or

    (ii) national identity card for overseas Pakistani (NICOP) issued by NADRA; or

    (iii) Pakistan origin card (POC) issued by NADRA; or

    (iv) alien registration card (ARC) issued by NADRA; or

    (v) passport having valid visa on it or any other proof of legal stay along with passport in respect of foreign national individuals only.

    (b) In respect of limited corporations and companies.-

    (i) certified copies of-

    (A) resolution of board of directors for opening of account specifying the persons authorized to open and operate the account (not applicable for single member company);

    (B) memorandum of association;

    (C) articles of association, wherever applicable;

    (D) certificate of incorporation;
    (E) Securities and Exchange Commission of Pakistan (SECP) registered declaration for commencement of business as required under the Companies Act, 2017 (XIX of 2017); and

    (F) list of directors required to be filed under the Companies Act, 2017 (XIX of 2017), as applicable;

    (ii). photocopies of identity documents as per sub-clause (b) of all the ` directors and persons authorized to open and operate the account;

    (c) In respect of trust clubs, societies and associations, etc.-

    (i) Certified copies of-

    (A) certificate of registration or instrument of trust; and

    (B) by-laws, rules and regulations;

    (ii) resolution of the governing body, board of trustees or executive committee, if it is ultimate governing body, for opening of account authorizing the person to operate the account;

    (iii). photocopy of identity document as per sub-clause (i) of clause (c) of the following:

    (A) authorized persons;

    (B) members of governing body, board of trustees or executive committee, if it is ultimate governing body; and

    (C) settlor, the trustees, the protector if any, the beneficiaries or class of beneficiaries

    (d) In respect of NGOs, NPOs and charities,-

    (i) certified copies of –

    (A) registration documents and certificates; and

    (B) by-laws, rules and regulations;

    (ii) resolution of the governing body, board of trustees or executive committee, if it is ultimate governing body, for opening of account authorizing the persons to operate the account;

    (iii) photocopy of identity document as per sub clause (i) of clause (d) above of the authorized persons and of the members of governing body, board of trustees or executive committee, if it is ultimate governing body; and

    (iv) any other documents as deemed necessary including its annual accounts and financial statements or disclosures in any form which may help to ascertain the detail of its activities, sources and usage of funds in order to assess the risk profile of the prospective customer;

    (e) In respect of minor accounts,-

    (i) photocopy of Form-B or birth certificate of the minor; and

    (ii) photocopy of identity document as per sub-clause (i) above of the guardian of the minor;

    (f) In respect of government institutions and entities not covered herein above.-

    (i) CNICs of the authorized persons; and

    (ii) letter of authorization from the concerned authority.

    the office of issue or third party shall verify identity documents of the customers from relevant authorities and bodies, including through NADRA’s verification system or biometric identification system and, where necessary, use other reliable, independent sources and retain copies of all reference documents used for identification and verification.
    The office of issue or third party shall be responsible for verification of the identity documents and the customer shall neither be obligated nor the cost of verification be charged to the customer.

    Where the customer is represented by an authorized agent or representative, or where customer is a legal person, the Office of issue or third party shall identify the natural persons who act on behalf of the customer and verify the identity of such persons and the authority of such natural persons shall be verified through documentary evidence, including specimen signature of the persons so authorized.

    Where beneficial owner is different from the customer, the office of issue or third party shall identify and take reasonable measures to verify identity of the beneficial owners using relevant information or data obtained from a reliable source, to the satisfaction of the office of issue.

    The verification of the identity of customers and beneficial owners, if any, shall be completed before business relations are established.

    The office of issue shall conduct ongoing due diligence on the business relationship, including;-

    (a) scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the office of issue’s knowledge of the customer, their business and risk profile, including where necessary, the source of funds; and

    (b) ensuring that documents, data or information collected under the CDD process is kept up-to-date and relevant, by undertaking reviews of existing records, particularly for higher risk categories of customers.

    The office of issue or third party shall maintain a list of all such customers and accounts where the business relationship needed to be closed on account of negative verification that includes all type of customer identity verification such as NADRA, UNSCR or any other document or information etc.

  • SRB extends sales tax return filing up to December 28

    SRB extends sales tax return filing up to December 28

    KARACHI: Sindh Revenue Board (SRB) has extended the last date for filing sales tax return for the month of November 2019 up to December 28, 2019 in order to facilitate taxpayers.

    A circular issued by the SRB on Thursday extended the last date for e-filing of tax return for the tax period of November 2019.

    The provincial tax authority said that in order to facilitate registered persons in adopting the newly introduced STRIVe system, the SRB allowed the registered persons, including the withholding agents covered by the provisions of the Sindh Sales Tax Special Procedure (Withholding) Rules, 2014, to e-file their tax returns for the tax period November 2019, on or before Saturday December 28, 2019.

    However, the due date for e-deposit of the amount of Sindh sales tax for the tax period November 2019 would remain unchanged.

  • Pakistan’s forex reserves increase to $17.655 billion

    Pakistan’s forex reserves increase to $17.655 billion

    KARACHI: The liquid foreign exchange reserves of the country have increased by $1.607 billion, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves increased to $17.655 billion by week ended on December 13, 2019 as compared with $16.048 billion a week ago.

    The foreign exchange reserves of the central bank increased $1.659 billion to $10.892 billion by week ended December 13, 2019 as compared with $9.233 billion a week ago.

    The reserves held by the commercial banks declined nominally to $6.762 billion by December 13, 2019 as compared with $6.814 billion a week ago.

  • Equity market plunges by 948 points on detailed judgment in treason case

    Equity market plunges by 948 points on detailed judgment in treason case

    KARACHI: The equity market plunged by 948 points on Thursday following detailed judgment release by a special court in high treason case.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,655 points as against 41,604 points showing a decline of 948 points.

    Analysts at Arif Habib Limited said that the market take a major plunge today upon release of detailed judgment of Pervez Musharraf that caused panic among investors and raised concern about the ongoing spat between the State Institutions.

    Besides, start of roll-over week is also close which along with situation at border cautioned investors to better book profits than hold positions. The index dropped 1189 points during the session, besides an increase of 193 points, earlier in the session.

    Buying activity was observed in MoC that helped recovery of ~250 points, closing the index at -948 points. O&GMCs garnered most volume with 30.9 million shares followed by Vanaspati (26.4 million) and Cement (25.9 million). Among scrips, UNITY realized trading volume of 26.4 million shares, followed by HASCOLR1 (13.2 million) and FFL (12.6 million).

    Sectors contributing to the performance include Banks (-212 points), E&P (-172 points), Fertilizer (-94 points), Power (-68 points) and Cement (-63 points).

    Volumes declined from 276.3 million shares to 260.1 million shares (-6 percent DOD). Average traded value also declined by 7 percent to reach US$ 73.2 million as against US$ 78.5 million.

    Stocks that contributed significantly to the volumes include UNITY, HASCOLR1, FFL, EPCL and TRG, which formed 28 percent of total volumes.

    Stocks that contributed positively include SHFA (+10 points), MTL (+2 points), SPWL (+0 points), DCR (+0 points). Stocks that contributed negatively include HBL (-71 points), OGDC(-60 points), PPL (-57 points), HUBC (-54 points), and DAWH (-52 points).

  • Rupee gains four paisas amid lackluster payment demand

    Rupee gains four paisas amid lackluster payment demand

    KARACHI: The Pak Rupee made four paisas against dollar on Thursday owing to lackluster demand for import and corporate payments, dealers said.

    The rupee ended Rs154.90 to the dollar from previous day’s closing of Rs154.95 in interbank foreign exchange market.

    The dealers said that the foreign currency demand for import and corporate payments was remained lackluster.

    The foreign currency market was initiated in the range of Rs154.91 and Rs154.95. The marked witnessed day high of Rs154.91 and low of Rs154.90 and closed at Rs154.90.

    The exchange rate in open market was remained unchanged. The buying and selling of dollar was recorded at Rs154.40/Rs154.70, the same previous day’s closing, in cash ready market.