Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • PTBA estimates one million income tax returns shortfall in case no date extension

    PTBA estimates one million income tax returns shortfall in case no date extension

    LAHORE: The apex tax bar of the country on Tuesday said that the shortfall in income tax return filing may exceed above one million in case no further extension in date is granted.

    Pakistan Tax Bar Association (PTBA) in a communication sent to the chairman of Federal Board of Revenue (FBR) said that the taxpayers have filed 1.6 million returns electronically whereas the returns filed for tax year 2018 were 2.65 million till to date. “… means shortfall of 40 percent or 1,056,476 returns are still pending even after extension of date till November 30, 2019.”

    The PTBA urged the FBR that the date of filing income tax returns of individuals, salaried individuals, Association of Persons (AOP) for the tax year 2019 should be extended up to December 31, 2019 in order to facilitate the genuine taxpayers in the country, who are regularly contributing in the national exchequer as their moral and legal obligation.

    The tax bar previously through different communications on September 27, 2019 and October 28, 2019 already advised the FBR to extend the date for filing Tax Year 2019 returns up to December 31, 2019.

    The FBR chairman has been informed that the draft return Form 2019 for individuals, salaried individuals and AOPs was uploaded on August 23, 2019 through SRO 951 and final return 2019 was uploaded on IRIS on September 02, 2019 through SRO 979 of 2019 which shows laps of statutory period of two months and all burden shifts on FBR.

    Further, the manual return of income form for tax year 2019 was issued on September 27, 2019 FBR through SRO 1160 of 2019, so the small volume taxpayers could file their returns of income for the year 2019 within the stipulated time.

    Furthermore, as per law and statutory time period for filing of income tax return is 90 days under Section 118 of the Income Tax Ordinance, 2001 read with rule 34 of the Income Tax Rules, 2002.

    The PTBA said that the date for filing income tax returns was extended up to August 09, 2019 for tax year 2018. This shows the FBR allowed 11 months for the filing for last year returns and for current year it is allowing only two months, which is injustice with the bar members and taxpayers as well.

    The tax bar also pointed out towards the political uncertainty due to sit-in at Islamabad, which was remained continue from start of November 2019 to mid of this month.

  • PPL plans to spud 20 exploratory, developmental wells

    PPL plans to spud 20 exploratory, developmental wells

    KARACHI: Pakistan Petroleum Limited (PPL) has planned to spud 20 wells during fiscal year 2019/2020 out of which half of wells are exploratory and remaining are developmental.

    The management of PPL recent held a Corporate Briefing to discuss FY19’s financial performance and future outlook, analysts at Arif Habib Limited said on Tuesday.

    In Adhi field, first Nodal compressor is being commissioned and is expected to come online in 2HFY20.

    Due to structural problems at Dhok Sultan, the company had to side track which led to delay in production. The production has commenced from this well of 550 bopd and 0.7 mmcfd.

    The company plans to drill more from this well and expects higher production.

    The company expects gas production from Benari to commence in July 2020.

    The company has commenced oil production from Adhi South between 700-800 bopd.

    For Bolan, Mining and Zinc Project a Mineral Deposit Retention License has been has been issued by authorities. Application for Mineral License and EPCC contract is on the cards.

    Other than this, the company is also embarking upon other mineral mining projects since the company has expertise in mining business.

    Aiming for big discoveries, the company is concentrating on frontier areas, where three wells were spud.

    To recall, the company posted a profit after tax of Rs61,632 million (EPS: Rs27.18) in FY19 against Rs45,688 million (EPS: Rs20.15) in FY18, up by 35 percent YoY.

    As of Jun 30, 2019, the company’s portfolio consists of 18 producing fields (7 from operated and 11 from partner operated) and 47 exploratory blocks (28 from operated and 19 from partner operated).

    Operated exploratory blocks include Block-8 in Iraq. While partner operated blocks consist of 3 offshore blocks in Pakistan and one onshore block in Yemen.

    During FY19, the company witnessed discoveries of 11 exploratory wells.

    PPL became the first Pakistani E&P Company to drill a well outside the country, spudding Madain-1, Block-8 in Iraq in FY19.

    The company won 2 exploratory blocks in bid round in 2018 (Musakhel & Sorah). In July 2019, the company was provisionally granted Punjab Block.

    Furthermore, Pezu Block operated by OGDC was farm-in by the company. Keeping view of risks and higher costs, the company farmed-out Bela West partially.

    In Gambat South, GPF-IV plant phase I was successfully completed which started producing 25mmcfd of gas. At present, phase II of GPF-IV plant is being commissioned, which upon completion in a few months’ time will increase production to 45 mmcfd.

    The company in FY19 witnessed record mining of 228,000 baryte. The company sees mining business of the company a stepping stone for diversification.

    In order to deal with natural decline, the company undertook drilling of 7 developmental wells in its operated areas during FY19.

    In FY19, the company produced 16,077 bop of oil and 870 mmcfd of gas. In oil production, major contribution came from TAL block contributing 37 percent, followed by Nashpa Block 35 percent and Adhi 22 percent.

    In gas production, Sui was the major contributor adding 44 percent to total gas production, tagged with 24 percent from Kandhkot and 23 percent from partner operated and others.

    The company has been hit hard by the mounting circular debt. Due to this, company’s future plans for development and dividend were affected.

    In FY19, company’s trade debt reached a historic high level of PKR 227 billion. accordingly, the company anticipates preferential allocation of funds from the government for settlement of this issue.

    For FY20, the company is targeting production of around 1 BCFDe.

  • Stock market plunges by 417 points on top court verdict

    Stock market plunges by 417 points on top court verdict

    KARACHI: The stock market plunged by 417 points on Tuesday following decision of the top court regarding extension of Chief of the Army Staff’s tenure.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,795 points as against 38,212 points showing a decline of 417 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today and went up by 356 points in initial trading.

    As the news of Supreme Court’s notice on extension of COAS’s tenure caused panic among investors. The market took a nose dive of 676 points and although staged recovery a couple of times, but failed to manage the selling pressure. The session ended with negative 417 points.

    As a result of confusion amongst investors, apparently those who booked positions earlier in the session resorted to selling to stem losses, trading volumes increased to 488 million shares.

    Selling pressure was observed in Cement sector, particularly DGKC and LUCK, where a rumour of an increase in Cement price caused investors to take positions.

    Similarly, banking sector faced selling pressure, with MCB taking a major toll. Cement sector led the volumes with 69.4 million shares, followed by Vanaspati (58.1 million) and Banks (50.4 million).

    Among scrips, UNITY registered trading volume of 58.1 million shares, followed by FFL (33.9 million) and PAEL (29.6 million).

    Sectors contributing to the performance include E&P (-101 points), Banks (-95 points), Power (-92 points), Cement (-56 points) and O&GMCs (-49 points).

    Volumes increased significantly from 241.5 million shares to 488.1 million shares (+102 percent DoD). Average traded value also increased by 110 percent to reach US$ 118.3 million as against 56.5 million.

    Stocks that contributed significantly to the volumes include UNITY, FFL, PAEL, BOP and DGKC, which formed 34 percent of total volumes.

    Stocks that contributed positively include ENGRO (+46 points), AICL (+8 points), SYS (+8 points), EFUG (+7 points) and COLG (+6 points). Stocks that contributed negatively include HUBC (-74 points), OGDC (-61 points), MCB (-45 points), PSO (-34 points), and LUCK (-31 points).

  • TPL Trakker plans IPO to raise Rs1.4 billion for vehicle, container tracking business growth

    TPL Trakker plans IPO to raise Rs1.4 billion for vehicle, container tracking business growth

    KARACHI: TPL Trakker is planning for an Initial Public Offering (IPO) to raise Rs1.4 billion in order to grow vehicle and container tracking business, analysts said on Tuesday.

    TPLCorp Limited (TPL) held a Corporate Briefing on November 18, 2019 to discuss the financial results of FY19 and future outlook of the company, said analysts at Arifh Habib Limited.

    In order to further grow in the vehicle and container tracking business, IoT Business as well as expand into markets abroad, TPL Trakker will file for an IPO, aiming to raise PKR 1.4 billion.

    Moreover, the company is in talks with two foreign strategic investment partners for equity injection.

    TPL Group includes TPL Trakker Limited, TPL Insurance, TPL Properties, TPL Life, TPL Maps, TPL Security Services Private and TPL Rupiya.

    Despite decline in sale of vehicles, TPL Trakker business reported revenue growth of 7 percent YoY led by Container Tracking and new IoT Business.

    During the year, the company launched four IoT businesses (video telematics, fuel management solution, water management solution and smart warehousing and inventory management) and usage based insurance.

    Moreover, the company is also venturing into software-as-a service platforms, such as Pay-How-You-Drive Insurance and Predicative Maintenance.

    Though, investment in new business initiatives and higher interest rates led to decline in Bottom-line of the business by 63 percent YoY in FY19, the analysts said.

    TPL Maps and TPL Rupiya are now merged with TPL Trakker Limited since these companies will benefit from TPL Trakker’s large customer base along with TPL Trakker benefiting from technical expertise of TPL Maps.

    TPL Maps during the year has developed four new solutions; i) goconnect (location based advertising service), ii) LEAP (solution with respect to demographics, based on location), iii) TPL Maps Service (serving clients such as Bykea, Ufone, Telenor, Cheetay and Eat Mubarak) and DART (solution related to workforce and supply chain monitoring, currently serving KFC and Dominos).

    Furthermore, TPL Maps Solution will be making its way in Middle East market in 2020, partnering with HERE Technologies.

    In order to further grow in the vehicle and container tracking business, IoT Business as well as expand into markets abroad, TPL Trakker will file for an IPO, aiming to raise PKR 1.4bn.

    Moreover, the company is in talks with two foreign strategic investment partners for equity injection.

    TPL Insurance has entered into the company’s first livestock insurance covering 2000 cattle’s in Thar District.

    Furthermore, Afghan Transit Trade Guarantee was also initiated in July 2019. Other than this, TPL has also entered into partnerships with nine companies in Pakistan.

    The company has also launched a mobile app which can instantly start insurance plans without many formalities and documentations.

    In the TPL Properties Business, the revenue has climbed up by 8 percent YoY in FY19, on account of growth in rental income.

    Furthermore, the company has ventured into providing real estate development services to corporates.

    However, due to cessation of commercialization in Karachi land acquisition of Project Alpha has been delayed.

    Whereas, for Project Beta a new real estate commercial land is being acquired, which will be used for mixed purposes such as Hotels and offices.

    Furthermore, One Hoshang Project, which will be a residential apartment tower and showroom, is slated to be completed in 2023.

    Moreover, the company is underway to enter into REIT management business. With this, Centre point building will be included in REIT Scheme. Along with this the company also plans to setup Logistics Park.

    In TPL Life Business, the topline has seen 31% YoY in FY19, amid time based life insurance via mobile. The company offers usage based life insurance for individuals through mobile app.

    Also TPL Sahulat, health solution via mobile app, is also successful. The app offers doctors at home, delivery of medicines at home, lab tests at home and settlement of claims. Furthermore, in order to target low income earners the company offers Life Insurance through scratch cards, available at as low as Rs375. For the purpose of growth, the company seeks funding of PKR 400-500 million.

    The company is currently working on developing a social and corporate messaging platform (Tello Talk) which will enable the users to transfer payments and manage transactions with businesses.

    Furthermore, its rider service app will provide a delivery platform to e-tailers (online retailers).

    Overall, consolidated profit after tax of TPL Corp plummeted by 74 percent YoY, settling at Rs172 million in FY19 against PKR 670 million in the FY18.

    This massive decline is attributable to Pak Rupee devaluation against USD, and interest rate hikes.

  • Rupee falls three paisas on import, corporate payment

    Rupee falls three paisas on import, corporate payment

    KARACHI: The Pak Rupee fell by three paisas against dollar on Tuesday owing to demand for import and corporate payments.

    The rupee ended Rs155.34 to the dollar from previous day’s closing of Rs155.31 in interbank foreign exchange market.

    Currency dealers said that the rupee came under pressure during the day due to dollar demand from importers and corporate buyers.

    The foreign currency market initiated in the range of Rs155.33 and Rs155.36. The market recorded day high of Rs155.35 and low of Rs155.31 and closed at Rs155.34.

    The exchange rate in open market witnessed stable rupee value.

    The buying and selling of dollar was recorded at Rs155.20/Rs155.50, the same previous day’s level, in cash ready market.

  • Remitting up to $50,000 allowed for medical treatment abroad

    Remitting up to $50,000 allowed for medical treatment abroad

    KARACHI: Authorized dealers have been allowed to remit foreign exchange up to $50,000 on account of medical treatment abroad of resident Pakistanis only.

    According to Foreign Exchange Manual updated up to March 14, 2019 issued by State Bank of Pakistan (SBP), authorized dealers may remit foreign exchange up to $50,000/- or equivalent in other foreign currencies on account of medical treatment of resident Pakistanis only after satisfying themselves about bona fides of the transaction. Remittances should be sent directly to the account of concerned reputable foreign Hospital via SWIFT, telegraphic transfer or demand draft after obtaining the following documents:

    a. Appendix V-72 duly filled in by the patient/next of kin/sponsor.

    b. Invoice/estimate of the foreign hospital.

    c. A ‘self-declaration’ from the patient, his/her next of kin or from sponsor declaring amount of foreign exchange essentially required for treatment abroad.

    According to the foreign exchange manual, in addition, authorized dealers may also release cash foreign exchange equivalent to US$ 5,000/- each to the patient and one attendant which should be duly endorsed on his/her/their passport(s).

    In case of foreign exchange requirements for medical treatment abroad in excess of the above limit, the concerned authorized dealer will forward the case to the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation, Head Office, Karachi along with justification and documentary evidence for consideration.

    The authorized dealers will retain all related record including the documents submitted by the applicant as mentioned in this paragraph for on-site inspection by the State Bank’s Inspection Team.

    In order to facilitate and guide their individual customers desirous of availing above services, authorized dealers are advised to ensure the following:

    a) Information regarding provision of FX services for medical treatment abroad should be displayed at prominent place at each authorized branch of the authorized dealer.

    b) Adequate stock of major foreign currencies should be maintained at all authorized branches to meet cash related requirements for such facility.

    c) Brochures containing information regarding services related to medical treatment abroad may be made available at all branches. However, such information must be placed at official websites of the authorized dealers alongwith list of branches providing such services.

    Further, such list should also be available at all branches of the Authorized Dealer for guidance of customers.

    d) The officials dealing with such services should be trained/ made acquainted with the existing foreign exchange rules and regulations governing individual FX needs.

  • Income tax return filing hits new record high of 2.7 million

    Income tax return filing hits new record high of 2.7 million

    ISLAMABAD: Measures to increase tax burden on non-compliant persons have resulted into record income tax return filing of 2.7 million for tax year 2018.

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  • Prevailing Customs tariff for fiscal year 2019/2020

    Prevailing Customs tariff for fiscal year 2019/2020

    KARACHI: Federal Board of Revenue (FBR) has issued updated Customs tariff for fiscal year 2019/2020, which have been imposed from July 01, 2019.

    According to the FBR the following documents to ascertain the prevailing customs tariff:

    Fifth Schedule to Customs Act w.e.f July 01 2019

    First Schedule Customs Act w.e.f July 01 2019

    Pakistan Customs follow the HS Code (Harmonized System Codes) or PCT Codes ( Pakistan Customs Tariff Codes) for Classification of Goods, these code consist of eight digits where first two represent Chapter and second two represent Sub- chapter and after decimal place four digit represent code of item.

    Find PCT Code or HS code by Description of Goods

    Find Description of Goods by PCT Code or HS code

    International Classification of Goods in Harmonized System

  • SBP enhances limit to $5,000 for pension transactions under home remittance services

    SBP enhances limit to $5,000 for pension transactions under home remittance services

    KARACHI: State Bank of Pakistan (SBP) on Monday enhanced the limit of pension transactions up to $5,000 per month under home remittance services.

    According to a circular issued by the SBP the transactions limits by individuals under various categories had been enhanced to $5,000 per month from $1,500 per month.

    The limits have been enhanced to facilitate overseas Pakistanis.

    The central bank on October 22, 2018 allowed banks and exchange companies to effect Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities under their existing/new home remittance agency arrangements subject to inclusion of respective ceilings along with terms and conditions.

    The limits defined under circular issued on October 11, 2019 were $1,500 for: freelance of computer and information system services; other freelance services; and pension transactions.

    In the latest circular, the SBP said that ll other instructions on the subject shall remain unchanged.

    The SBP said that before finalization, exchange companies are required to forward draft of all addendum/new agency agreements.

    The SBP will provide its input, if any, on the draft addendum/new agreement but the ultimate responsibility to adequately safeguard their interest would remain on the exchange companies.

    Furthermore, the AD’s failure to comply with the above mentioned instructions may attract regulatory penalty under Section 23K of the Foreign Exchange Regulation Act, 1947.

  • FBR further extends sales tax return filing up to Nov 29

    FBR further extends sales tax return filing up to Nov 29

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday further extended the last date for filing sales tax return for the month of October up to November 29, 2019.

    The FBR issued a notification for extension in date of submission of sales tax and federal excise return for the tax period of October 2019.

    The FBR extended the date of submission of sales tax and federal excise return for the tax period of October, 2019 which was due on November 18, 2019 and extended up to November 25, 2019 and now further extended up to November 29, 2019.

    It may be worth mentioning here that the last date for filing income tax returns for tax year 2019 is November 30, 2019. The extension in date for sales tax return filing will burden the tax practitioners and lawyers in return filing and taxpayers will have an excuse for demanding further extension in income tax return filing date.