Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Stock market gains 287 points on buying activities

    Stock market gains 287 points on buying activities

    KARACHI: The stock market gained 287 points on Monday as buying activities seen during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,212 points as against 37,926 points showing an increase of 287 points.

    Analysts at Arif Habib Limited said that the market was initially expected to face selling pressure in the wake of roll-over week, however, SBP’s status quo on monetary policy instilled confidence among investors believing that the rate cut may be announced early CY2020.

    Buying activity was observed in Cement (on the back of expectation of posting healthy dispatches).

    Similarly, Food sector also performed well with majority scrips trading at upper circuits.

    E&P, OMCs and Refinery remained in the limelight, among which HASCOL maintained the upward trajectory on upper circuit.

    Cement sector led the volumes with 37.8 million shares, followed by Technology (23.7 million) and Food (20.5 million).

    Among scrips, PAEL registered 19.1 million shares, followed by UNITY (18.6 million) and TRG (15 million).

    Sectors contributing to the performance include Banks (+116 points), Cement (+77 points), Fertilizer (+23 points), Pharma (+20 points) and Technology (+15 points).

    Volumes declined slightly by 0.8 percent DoD to 241.2 million shares as against 243 million shares. Average traded value however, increased by 8 percent to reach US$ 56.4 million as against US$ 52.3 million.

    Stocks that contributed significantly to the volumes include PAEL, UNITY, TRG, FFL and PSX, which formed 32 percent of total volumes.

    Stocks that contributed positively include LUCK (+47 points), MCB (+38 points), HBL (+27 points), UBL (+19 points) and FFC (+18 points). Stocks that contributed negatively include PPL (-26 points), HUBC (-18 points), DAWH (-14 points), SHFA (-7 points), and THALL (-4 points).

  • Rupee recovers early day losses; sheds two paisas

    Rupee recovers early day losses; sheds two paisas

    KARACHI: The Pak Rupee recovered early day losses against dollar and depreciated by two paisas on Monday. The rupee fell owing to higher demand for import payment.

    The rupee ended Rs155.31 to the dollar from last Friday’s closing of Rs155.29 in interbank foreign exchange market.

    The rupee depreciated by 20 paisas during early day trading due to higher demand or import and corporate payments.

    However, inflows of export receipts and workers remittances helped the rupee to narrow the depreciation.

    The foreign currency market was initiated in the range of Rs155.40 and Rs155.55. The market recorded day high of Rs155.49 and low of Rs155.31 and ended at Rs155.31.

    The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of dollar was recorded at Rs155.30/Rs155.60 from last Friday’s closing of Rs155.20/Rs155.40 in cash ready market.

  • US companies reluctant to visit Pakistan: USDA counselor

    US companies reluctant to visit Pakistan: USDA counselor

    KARACHI: Rey Santella, Agricultural Counselor of United States Department of Agriculture (USDA) has said although they were inviting the US business community but many of them were still reluctant to visit Pakistan mainly due to negative perception and also because of legal and Information Technology related hurdles that need to be addressed.

    While speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI), he said that Pakistan had many challenges in the past but the country has been progressing well and the situation was much better now.

    “Good opportunities for US investors exist in Pakistan where they can surely explore trade and investment opportunities in numerous sectors including the agriculture, dairy, food items and animal feeds etc.”

    Rey Santella pointed out that besides exporting meat, soybean and other agricultural products, non-fat dry milk worth US$50 million was also being sent to Pakistan annually.

    “There is a big potential for further expanding trade and investment ties between the two countries but the business communities will have to meet more frequently so that this potential could be realized.

    “Meanwhile, USDA, which is already cooperating in the agriculture sector, is ready to provide technical assistance and training of trainers in the dairy and animal husbandry that would lead to improving the productivity.”

    He sought KCCI’s assistance in identifying numerous trade opportunities so that these could accordingly be focused and disseminated amongst US companies with a view to improve the existing trade ties between the two countries.

    Rey Santella further informed that USDA will be participating in Gulfood Exhibition scheduled to be staged in Dubai in February 2020 where Pakistani companies can visit the stalls of numerous US companies to examine their products and services.

    Earlier, President KCCI Agha Shahab Ahmed Khan, in his welcome address, stated that it was really heartening to see many US companies were taking keen interest in Pakistani market hence, it was the right time to fully facilitate and encourage joint ventures between the business communities of the two countries in numerous sectors.

    He was of the opinion that there was a huge potential to enhance trade and investment cooperation between Pakistan and the United States, particularly in the agriculture, dairy, livestock, fisheries etc.

    “We must promote collaborations in all such sectors with huge trade and investment potential which would certainly prove favorable for both the nations”, he added while acknowledging the support and cooperation being extended by USDA.

    He mentioned that Pakistan, being the 4th largest producer of milk, produces around 54 billion liters of milk per annum hence, this was an area where the business communities of the two countries must look for joint ventures while the USDA must extend technical cooperation so that the dairy yield could be improved further.

    Agha Shahab further noted that as US has an advanced agricultural sector while Pakistan’s economy is also agri-based, it is very crucial to cooperate in this particular sector by focusing on exploring ways and means on how to transfer US technology to Pakistan’s agricultural sector, which was facing several issues including limited cultivatable land, water and fertilizer scarcities and also the energy crises.

    “US can provide assistance in enhancing the yield of cultivatable land and you can also share water conservation and energy saving techniques, besides providing good quality fertilizers at competitive prices to Pakistani farmers”, he added.

    He also underscored that instead of staying confined to just sending the same old traditional items only, the business community must look into the possibility of diversifying the exports by exploring new avenues and they must also effectively market their products and services in order to maximize share in the US markets.

  • OGDCL clarifies shale gas discovery

    OGDCL clarifies shale gas discovery

    The Oil and Gas Development Company Limited (OGDCL) issued a clarification on Monday, refuting media reports that suggested a massive discovery of shale gas in Sindh.

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  • Procedure to check active taxpayer status

    Procedure to check active taxpayer status

    ISLAMABAD: Appearance of a taxpayer in Active Taxpayers List (ATL) has become very important to avail benefit of reduced withholding income tax rate.

    The ATL has become even more important after the inclusion of 10th Schedule to Income Tax Ordinance, 2001 through Finance Act, 2019 under which a person, who is not part of the ATL, is subject to 100 percent additional withholding tax.

    According to Federal Board of Revenue (FBR) a taxpayer can check its active status in three different ways, which included:

    Verification through Online Portal:

    The ATL status check allows you to confirm your Active Taxpayer status.

    Check Active Taxpayer status by SMS:

    Check Individual’s Active Taxpayer status by SMS

    Type “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.

    Check Active Taxpayer status of AOP and Company by SMS

    Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

    To check active status by taxpayers of Azad Jammu and Kashmir by SMS

    For Individual, type AJKATL (space) CNIC (without dashes). Send it to 9966.

    Having NTN AJKATL (space) 11 digit NTN (without dashes). Send it to 9966.

    The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through Finance Act 2018.

    Check Active Taxpayer status by downloading ATL from FBR official website.

    DOWNLOAD LATEST ATL

    The FBR said that a person appearing on the ATL will have following benefits:

    Lower rates of tax deduction at source by banks on both profits and cash withdrawals

    Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles

    Lower rate of tax on buying and selling of property

    Lower withholding tax rate on capital gains on sale of securities

    Charges for tax on dividend will be lower

    Lower rate of withholding tax on prize bond winnings

    Allows you to claim back overpaid tax that has been withheld.

    The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.

    For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017. Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.

    Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.

    However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

    Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:

    Company: Rs20,000

    Association of Persons: Rs10,000

    Individual: Rs1,000

    A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

    Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

    Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

    The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

    The name of late filer will appear on the ATL only after the payment of surcharge, the FBR added.

  • Rupee falls by 16 paisas against dollar in early trade

    Rupee falls by 16 paisas against dollar in early trade

    KARACHI: The Pak Rupee fell 16 paisas against dollar in early trade on Monday owing to demand for import payments as market opened after two day weekly holidays.

    The exchange rate is at Rs155.45 to the dollar in interbank foreign exchange market in the early trade. The market was closed on last Friday at Rs155.29 to the dollar in interbank foreign exchange market.

    Currency experts said that the rise in dollar value would be temporary as inflows of export receipts and remittances would help the rupee in next sessions.

    The inflows of portfolio investment in debt securities reached above $1 billion and it was also helping the rupee to resist against the greenback.

    Currency experts said the rupee was under pressure against the dollar due to past two days weekly holidays.

  • NBP makes progress in regulatory compliance for US operations

    NBP makes progress in regulatory compliance for US operations

    KARACHI: National Bank of Pakistan (NBP) has made significant progress in compliance with regulatory matters in USA operations.

    In its financial report for quarter ended September 30, 2019, the bank said that in 2016 its New York branch entered into a written agreement with the Federal Reserve Bank of New York and New York State Department of Financial Services (US regulators).

    This agreement requires the bank to address certain compliance and risk management matters relating to anti-money laundering and the US bank secrecy law requirements.

    This agreement also requires implementation of the requisite system and controls and allocation of adequate resources to ensure full compliance with such requirements.

    The NBP’s management continues to address the matters highlighted in the written agreement and in the subsequent inspections, and get them independently validated.

    “NBP has made considerable progress and seeks to comply with all applicable laws and regulations.”

    The NBP said that heightened attention to compliance is expected across the bank’s international franchise which will also gain from the development and implementation of an integrated strategy.

    As per quartered ended September 30, 2019, the total assets of the bank amounted to Rs3,025.37 billion which is 8.1 percent higher than Rs2,798.57 billion as at December 31, 2018.

    This represents around 13.8 percent of the banking industry total assets.

    The bank’s market share in deposits, advances and investment is around 14 percent, 12 percent and 15 percent, respectively.

    Strength of the bank’s balance sheet is driven by the wide market outreach and branch banking network where the focus remains on low-cost deposit mobilization.

    The bank said that due to the challenging economic environment the non-performing loans (NPL) of the bank have increased by Rs19.3 billion. As of September 30, 2019 NPL totaled to Rs152.49 billion as against Rs133.36 billion at the end of year 2018.

    “This translates into loan infection ratio of 13.9 percent which is slightly higher than 12.6 percent as of December 31, 2018.”

  • FBR may not extend date for Tax Year 2019 return filing

    FBR may not extend date for Tax Year 2019 return filing

    KARACHI: The Federal Board of Revenue (FBR) has announced that there will be no further extensions for filing income tax returns for the tax year 2019. Taxpayers have six days left to submit their returns, with the final deadline set for November 30, 2019. According to sources within the FBR, this decision comes after multiple extensions were granted to facilitate compliance.

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  • MCC Preventive announces vehicles’ auction on Nov 25

    MCC Preventive announces vehicles’ auction on Nov 25

    KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi announced auction of confiscated vehicles to be held on November 25, 2019 at Ghasbandar East Wharf, Karachi.

    Following vehicles will be presented for auction:

    01. Toyota Lexus Car, Reg. No. UC-868, Model 2006, Chassis No. JTHBG 963905034702

    02. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999cc, Chassis No. MCU-10-0013510

    03. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, Chassis No. JZX110-6000922

    04. Toyota AXIO-X car – White Color, Reg. No. BFE-068, 1496cc, Model 2007, Chassis No. NZE-141-6028039

    05. Toyota Land Cruiser Jeep, Silver Color, Reg. No. BG-1131, Model 1989,3400cc, Chassis No.BJ 60-023765

    06. Mercedes Benz Saloon Car Black, Reg. No. BFF-014, Model 2007, Chassis No. WDD2193222A117436

    07. Toyota Land Cruiser Jeep P. White, Reg. No. LZN-888, Model 1999, 4663cc, Chassis No. UZJ 100-0081129

    08. Toyota Surf Jeep White, Reg. No. BF-9252, Model 1998, Chassis No. RZN185-9019896

    09. Toyota Hilux Surf Jeep, Reg. No. CJ-4242(Sindh), Model 1990, 2446cc, Chassis No. LN130-0026273

    10. Nissan X-Trail 5 Door Jeep – Pearl White, Reg. No. GR-621, Model 2005, Chassis No. NT 30-100374

    11. Toyota Mark X Car Trim, Reg. No. BFB-837, Model No. 2005, 2499cc, Chassis No. GRX 120-3007142

    12. Toyota Land Cruiser Jeep (Petrol) White, Reg. No. BF-5933, Model 1995, 4476cc, Chassis No. FZJ 80-0109507

    13. Honda Civic Hybrid Car, Reg. No. AND-312, Model No 2008, 1339cc, Chassis No. FD 3-1203642

    14. Toyota PASSO car, Reg. No. G5-6996, Model 2006, 996cc, Chassis No. KGC 30-0044392

    15. Toyota AXIO Car, Reg. No. KCH-434, Model 2006, 1496cc, Chassis no. NZE141-6003694

    16. Mercedes Benz Saloon car (AG), Reg. No. AB 1001, Chassis No. WDB1240312B476728

    17. Toyota Hilux Surf Jeep, Reg. No. UU-691, Model 1992, 240cc, Chassis No. LN130-7022502

  • FBR initiates action against concealed amounts in immovable property purchases

    FBR initiates action against concealed amounts in immovable property purchases

    ISLAMABAD: Federal Board of Revenue (FBR) has initiated scrutiny of transactions of immovable properties, especially those where amnesty was availed, sources said.

    The sources said that the FBR had initiated examination of transactions of sales and purchases of immovable properties during past years, in order to find out the quantum of amount concealed or not declared.

    It is believed that huge amount of black money was parked in the real estate business. The buyers and sellers deliberately are not showing actual value of the properties in their agreements.

    The sources said that the FBR obtained data under Section 236C, Section 236K and Section 236W of the Income Tax Ordinance, 2001.

    They said that the investigation of property transactions would be of past five years.

    The seller was required to pay advance tax under Section 236C. Similarly, buyer was required to pay withholding tax under Section 236K. Meanwhile, a buyer is allowed to pay 3 percent income tax to whiten money invested in property purchase. This amnesty was allowed to undisclosed amount that is invested to the extent of values notified by the FBR.

    The sources said that the FBR headquarters had transferred thousands of cases of immovable properties to field formation of Inland Revenue.

    The FBR collected information of buyers and sellers of immovable properties from property registrar offices of the provinces.

    The field formations have been asked to identify those persons who had not filed their income tax returns and wealth statement.

    The field formations would initially send those persons who made transactions but had not filed their returns.
    Under Section 114 of the Income Tax Ordinance, 2001 the following owners of immovable properties are required to file income tax returns:
    — owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    — owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    — owns a flat having covered area of two thousand square feet or more located in a rating area.

    The FBR has also asked the field formations to investigate the payments made for property transactions. The sources said that the FBR collected withholding tax on the notified valuation tables for immovable properties.

    The notified values of the FBR were very low when compared with the open market values. Therefore, there was ample chance of concealment in property transactions.

    The field formation will ask banks to provide details of identified persons, especially the transactions recorded by the banks for the payment of properties.