Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SECP warns public against investing in ponzi schemes

    SECP warns public against investing in ponzi schemes

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday warned general public not to invest in fraudulent investment and ponzi schemes that are promising hefty profits and unrealistic incentives to trap innocent people.

    The SECP said that it has come to the regulator knowledge that companies namely M/s. BH Online Jobs (SMCPrivate) Limited, Corporate Automobiles (Private) Limited and Best Day Innovative Solutions (Private) Limited are engaged in unauthorized and dubious business activities.

    The SECP received numerous complaints that these companies are offering investment plans such as leasing/financing of cars, motorcycles, houses etc. and involved in illegal banking business without lawful authority.

    These activities are prohibited and contrary to the object clause of their Memorandum of Association.

    These entities trap people by offering high rates of return with little risk to investors.

    They market their schemes through local newspapers, social media, websites and pamphlets etc.

    The SECP has already initiated legal proceedings for winding up these companies.

    Moreover, the SECP has also received a number of complaints and queries regarding an entity B4U.

    This entity is raising unauthorized deposits from the general public in the name of different investment plans.

    It is clarified that “B4U Trades” is not registered with the SECP.

    The general public is hereby cautioned in their own interest and advised not to be misled by such schemes.

    This warning is being issued to safeguard the interests of all stakeholders, who are presently dealing with these businesses.

    The SECP has time and again clarified that mere registration of a company with it, does not necessarily mean that these companies are allowed to take illegal deposits from general public.

  • Rupee eases against dollar in lackluster trading

    Rupee eases against dollar in lackluster trading

    The Pakistani Rupee experienced a marginal decline against the US Dollar, closing at Rs155.36 in the interbank foreign exchange market, a slight drop from the previous day’s close of Rs155.35.

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  • Income tax shall not exceed 10 percent of profit from saving schemes

    Income tax shall not exceed 10 percent of profit from saving schemes

    KARACHI: Tax laws have granted reduced rate of income tax on profit on investment in saving schemes.

    According to updated Income Tax Ordinance, 2001 up to June 30, 2019 issued by Federal Board of Revenue (FBR) defined reduction in tax liability for various segments of taxpayers.

    The ordinance said that the tax payable under clause (c) of sub-section (1) of section 39, in respect of any amount paid as yield or profit on investment in Bahbood Savings Certificate or Pensioners Benefit Account and Shuhada Family Welfare Account shall not exceed 10 percent of such profit.

    As per Second Schedule of the Ordinance, the income, or classes of income, or person or classes of person, enumerated below, shall be allowed reduction in tax liability to the extent and subject to such conditions as are specified hereunder:-

    (1) (1) Any amount received as-

    (a) flying allowance by flight engineers, navigators of Pakistan Armed Forces, Pakistani Airlines or Civil Aviation Authority, Junior Commissioned Officers or other ranks of Pakistan Armed Forces; and

    (b) submarine allowance by the officers of the Pakistan Navy, shall be taxed at 2.5 percent as a separate block of income:

    Provided that the reduction under this clause shall be available to so much of the flying allowance or the submarine allowance as does not exceed an amount equal to the basic salary.

    (1AA) Total allowances received by pilots of any Pakistani airlines shall be taxed at a rate of 7.5%, provided that the reduction under this clause shall be available to so much of the allowances as exceeds an amount equal to the basic pay.

    The tax payable by a full time teacher or a researcher, employed in a non profit education or research institution duly recognized by Higher Education Commission, a Board of Education or a University recognized by the Higher Education Commission, including government research institution, shall be reduced by an amount equal to 25 percent of tax payable on his income from salary:

    Provided that this clause shall not apply to teacher of medical profession who derive income from private medical practice or who receive share of consideration received from patients.

    The amount of tax payable, in a year in which the rupee is revalued or devalued, by a taxpayer whose profits or gains are computed in accordance with the rules contained in the Fifth Schedule to this Ordinance and who had entered with the Government into an agreement which provides for such reduction, shall be reduced to the amount that would be payable in the absence of the revaluation or devaluation of the rupee.

    In respect of old and used automotive vehicles, tax under section 148 shall not exceed the amount specified in Notification No. S.R.O. 577(I)/2005, dated the 6th June, 2005.

    The amount of tax payable by foreign film-makers from making films in Pakistan shall be reduced by fifty percent on income from film-making in Pakistan.

    The amount of tax payable by resident companies deriving income from film-making shall be reduced by seventy percent on income from film-making.

  • SBP likely to keep policy rate unchanged: analysts

    SBP likely to keep policy rate unchanged: analysts

    KARACHI: State Bank of Pakistan (SBP) likely to keep policy rate unchanged in upcoming monetary policy, analysts said on Tuesday.

    The analysts at Arif Habib Limited said that the monetary policy committee of SBP will convene on Friday (22nd November 2019) to announce the monetary policy for the next two months.

    We expect the SBP to keep policy rates unchanged in the upcoming monetary policy statement. Despite significant reduction in yields of 10-yr PIB, T-Bills, and revision on National Savings Scheme (NSS) rates, we see a status quo stance due to the following reasons:

    i) Inflation is likely to remain elevated in upcoming months and expected to peak out in January 2020 at 12.50 percent which would reduce real interest rates to 75bps (compared to last 10 months average of ~290bps),

    ii) Government is expected to continue attracting foreign investment in T-Bills to increase foreign exchange reserves, and

    iii) Monetary easing might have negative repercussions on the current account and exchange rates.

    To recall, SBP kept policy rate unchanged in last monetary policy statement (held on 16th September 2019) on account of

    i) Inflation forecast which was broadly similar between new and old base (11-12 percent for FY20),

    ii) Higher core inflation, and iii) Regular adjustment in utility prices and increase in food prices could pose upside risk to inflation forecast.

  • SBP facilitates exports against advance payment

    SBP facilitates exports against advance payment

    KARACHI: State Bank of Pakistan (SBP) has amended framework related to trade based money laundering in order to facilitate receiving export payment.

    The SBP on Monday issued amendment to Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing.

    The central bank invited attention of the banks and exchange companies to FE Circular No. 04 dated October 14, 2019 regarding the above subject.

    The SBP said that in order to facilitate export against advance payment, the Para 6(b)(i)(e) of the Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing has been amended as under:

    “e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of exports against advance payment, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher including the name of the consignee. In case advance payment is received from an entity other than the consignee, the ADs shall ensure the same is verified through a swift message or underlying contract and the related risks, including the risk of under/over invoicing are adequately addressed.”

    Prior to amendment the paragraph was read as:

    “e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of advance payment export, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher and name of consignee declared on EFE/MFE is of the same entity from which the advance payment is received.”

    The SBP said that all other terms and conditions on the subject shall remain unchanged.

    Further, the instructions related to advance remittance for export of fresh fruits/vegetables as contained in Para 27, Chapter 12 of Foreign Exchange Manual shall also remain unchanged.

    Authorized Dealers are advised to bring the same to the notice of all their constituents.

  • Tax return filing reaches to new record high of 2.68 million

    Tax return filing reaches to new record high of 2.68 million

    ISLAMABAD: The number of income tax return filings has surged to a record level of 2.68 million for the tax year 2018, according to the latest statistics compiled up to November 17, 2019.

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  • Customs directed to verify seized vehicles carrying smuggled goods

    Customs directed to verify seized vehicles carrying smuggled goods

    ISLAMABAD: Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) has directed customs authorities to launch verification of seized vehicles carrying smuggled goods.

    A statement issued on Monday, the FBR chairman directed the customs field offices to identify smuggled items and take strict action against offenders.

    On the instructions of Syed Shabbar Zaidi, Chairman FBR, Customs Wing has issued instructions to all its field formations to verify the genuineness of all seized conveyances being used to transport smuggled goods through verification from Forensic Science Laboratory, Registration Database of Excise & Taxation Department and Customs Clearance documents.

    The field formations have been further instructed to initiate separate legal proceedings in case such conveyances are found to be smuggled or with tampered chassis number.

    These instructions will greatly help in dismantling the smuggling network being used to transport smuggled goods.

    In line with the recommendations of the Prime Minister’s Steering Committee on Anti-smuggling, Pakistan Customs being the country’s lead Anti-Smuggling Organization has accordingly stepped up enforcement actions in coordination with other Law Enforcement Agencies.

  • Foreign investment increases to $1.1 billion owing to debt securities attraction

    Foreign investment increases to $1.1 billion owing to debt securities attraction

    KARACHI: Pakistan’s total inflow of foreign investment has increased to $1.1 billion during first four months (July – October) 2019/2020 as compared with outflow of $77.5 million in the corresponding months of the last fiscal year, State Bank of Pakistan (SBP) said on Monday.

    The inflows can be attributed to attractive avenue in the debt securities for foreign participants.

    The total portfolio investment has been recorded at $436.7 million during first four months of the current fiscal year as compared to a negligible amount in the same period of the last fiscal year.

    The total inflow of foreign private investment was at $665.7 million during first four months of the current fiscal year as compared with $77.6 million outflow in the corresponding months of the last fiscal year.

    The foreign direct investment also grew by 238.7 percent to $650 million during period under review as compared with $192 million in the same period of the last fiscal year.

    The inflow of portfolio investment in capital market was recorded at $15.6 million as compared with outflow of $269.5 million.

  • Stock market gains 828 points as majority scrips traded in green

    Stock market gains 828 points as majority scrips traded in green

    The stock market witnessed a robust rally on Monday as the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) surged by 828 points, closing at 38,412 points, up from the previous close of 37,584 points.

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