Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Stock market gains 476 points on falling PIB yields

    Stock market gains 476 points on falling PIB yields

    KARACHI: The stock market gained 476 points on Thursday owing to positive sentiments prevailed after decline in cut-off yield of government papers.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,382 points as against 38,906 points showing an increase of 476 points.

    Analysts at Topline Securities said that in line with the international and regional markets, KSE 100 index marked decent comeback, as the index gained +1.2 percent to close at 39,382 level.

    Decline in PIB yields in the range of 15-46 basis points in yesterday’s auction also provided stimulus to the market.

    Despite positivity in the market, banking sector declined by 1 percent as speculations over the decline in policy rate in upcoming monetary policy committee meeting are doing rounds.

    Investor confidence improved as traded volume and value went up by 82 percent and 80 percent respectively compared to last day. FCCL was today`s volume leader with 30 million shares.

  • Foreign exchange reserves increase by $126 million

    Foreign exchange reserves increase by $126 million

    KARACHI: February 28, 2020 – Pakistan’s total liquid foreign exchange reserves posted a notable increase of $126 million during the week ended February 28, 2020, according to data released by the State Bank of Pakistan (SBP) on Thursday.

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  • Rupee ends down by five paisas against dollar

    Rupee ends down by five paisas against dollar

    KARACHI: The Pak Rupee ended five paisas down against dollar on Thursday owing to demand for import payment, dealers said.

    The rupee ended Rs154.27 to the dollar from previous day’s closing of Rs154.22 in interbank foreign exchange market.

    The dealers said that earlier in the date the rupee gained value owing to inflows of workers remittances and export receipts. However, later import payment demand deteriorated value of the local currency.

    The rupee gained values during the past few days owing to lower demand for import payment after coronavirus spread in many countries.

    The exchange rate in open market witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.00/Rs154.30, the same previous day’s level, in cash ready market.

  • Standard Chartered Pakistan announces 42.5% growth in after tax profit

    Standard Chartered Pakistan announces 42.5% growth in after tax profit

    KARACHI: Standard Chartered Bank Pakistan has declared massive growth of 42.5 percent in after tax profit for the year ended December 31, 2019.

    The bank declared Rs16.017 billion profit after tax for the year 2019 as compared with Rs11.239 billion in the last year.

    The bank also declared earnings per share at Rs4.14 as compared with Rs2.9 billion in the last year.

    The profit before tax was recorded at Rs27.199 billion for the year 2019.

    The bank in its annual report said that a record performance in 2019 by the bank enabled it to deliver a profit before tax of Rs27.2 billion. “This is 47 percent higher than the corresponding period last year and the highest profit since incorporation.”

    Overall revenue growth was 37 percent, whereas client revenue increased by 31 percent year on year with positive contributions from transaction banking, financial markets and retail products.

    Operating expenses increased by only 2 percent year on year on account of spending mainly on the bank’s products, services and people to grow the franchise.

    All businesses have positive momentum in client income with strong growth in underlying drivers.

    Momentum in advances (net) continues with 29 percent growth since the start of the year. This was the result of a targeted strategy to build profitable, high quality and sustainable portfolios.

    With diversified product base, the Bank is well positioned to cater for the needs of its clients. On the liabilities side, the Bank’s total deposits grew by 10 percent, whereas current and saving accounts grew by 8 percent since the start of this year and are now 93 percent of the deposits base.

    The optimal funding structure of the balance sheet continues to support the Bank’s performance. During 2019, the bank contributed around Rs18.6 billion to the national exchequer in lieu of direct income taxes, as an agent of Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes.

    The bank continues to invest in its digital capabilities and infrastructure to enhance our clients’ banking experience through the introduction of innovative solutions.

    “We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture and systems. We are fully committed to sustained growth by consistently focusing on our clients and product suite along with a prudent approach to building the balance sheet while bringing the best in class services to our customers.”

  • People can file their returns after due date for appearance in ATL: FBR

    People can file their returns after due date for appearance in ATL: FBR

    KARACHI: People can still file their annual income tax returns after due date for appearing on the Active Taxpayers List (ATL) after paying default surcharge.

    The last date for filing income tax returns for tax year 2019 was February 28, 2020 and FBR issued ATL – 2019 of March 01, 2020. With the issuance of new ATL the ATL-2018 was no more applicable. Thus, those persons filed income tax returns for tax year 2018 and availing reduced rate of withholding tax rates on the basis of ATL 2018.

    However, those persons filed their returns for tax year 2019 will avail the reduced rate of withholding tax rates and their names appeared on the ATL 2019 till the next ATL issued on March 01, 2021.

    The FBR issued a clarification on the news items relating to actual number of tax returns filed in Tax Year 2019 and Tax Year 2018 published in the newspapers. FBR has clarified that number of tax returns filed in Tax Year 2018 till 28th February 2019 were 16,95,560 whereas the number of tax returns filed in Tax Year 2019 till 28th February, 2020 were 24,72,609 which showed an increase of 45 % compared to corresponding month in the last Tax Year.

    FBR has further stated that date for filing tax returns were extended in Tax Year 2018 and the last date for filing tax returns was set as 9th August, 2019. The news items depicted the comparison of tax returns filed till the last date of Tax Year 2018 with last date of Tax Year 2019 which gave the perception that the actual tax returns filed in Tax Year 2019 have decreased compared to Tax Year 2018.

    FBR has further added that the total period from the last date of Tax Year 2018 till last date of Tax Year 2019 consists of almost six months. This period of six months for Tax Year 2019 is comparably very short with that of Tax Year 2018. The number of Tax Returns 24,72,609 filed in six months for Tax Year 2019 shows great achievement of FBR.

    The people continue to file tax returns to come on Active Taxpayers List even after last date but the returns can only be filed by paying surcharge after the set last date.

  • FBR launched crackdown against 300,000 non-filers

    FBR launched crackdown against 300,000 non-filers

    ISLAMABAD: Federal Board of Revenue (FBR) has launched crackdown action against around 300,000 non-filers of annual returns for tax year 2019.

    The tax authorities have started sending notices to individuals and companies who filed their returns and declaration of assets for tax year 2018 but failed to comply this obligation in the subsequent year.

    The FBR issued Active Taxpayers List (ATL) on March 01, 2020 for tax year on the basis of return filed up to February 29, 2020.

    The ATL revealed that around 2.53 million individuals/companies filed annual returns for tax year 2019. Meanwhile, the estimated return filing for tax year 2018 was increased to record high of over 2.83 million, showing a gap of around 300,000 returns.

    However, the return filing has increased by 60 percent when compared with 1.6 million returns filed till February 28, 2019.

    Under Section 114 of Income Tax Ordinance, 2001, the FBR explained the mandatory requirement of return filing on certain classes of individuals and companies.

    As per the law every company registered with Securities and Exchange Commission (SECP) is required to file returns. But in contrast the FBR received around 40,988 corporate returns for tax year 2019.

    On the other hand the SECP had registered around 100,000 companies till June 30, 2019. This shows that around 59 percent corporate entities had failed to comply with mandatory requirement.

    A statement issued by the FBR on February 29 revealed that it had received 2.34 million returns from salary and business individuals. While another 62,403 returns were filed by Association of Persons (AOPs).

    Tax officials said that the tax authorities had started issuing notices giving opportunity to non-filers to ensure compliance along with payment of late filing.

    The sources said that the action had been initiated after expiry of due date for filing tax returns, which was February 28, 2020.

    In case persons/company deliberately default then penal provisions may be invoked.

    According to tax ordinance, in case a person fails to file return of income by due date than such person is required to pay a penalty equal to 0.1 percent of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50 percent of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees.

    In case a person deliberately not comply with the notice for filing return then such person would be liable to fine or imprisonment for one year.

  • Officials directed to ensure recovery of motor vehicle tax

    Officials directed to ensure recovery of motor vehicle tax

    KARACHI: The officials of Sindh excise and taxation have been directed to ensure recovery of motor vehicle tax from government authorities.

    Sindh Minister for Excise and Taxation & Narcotics Control and Parliamentary Affairs Mukesh Kumar Chawla has asked the officers to boost-up their efforts for the recovery of Government’s dues regarding motor vehicle tax from Government, Semi-Government, Autonomous Bodies and Organizations and no lethargic attitude will be tolerated in this regard.

    This he said while presiding over a meeting here in his office today. Secretary Excise and Taxation & Narcotics Control Abdul Halim Shaikh, Director General ET & NC Shoaib Ahmed Siddiqui, Additional Director Admn/MVR Nasir Effandi and other officers also attended the meeting.

    In the meeting overall performance of the Deputy Directors/Excise and Taxation Officers of Motor Registration Wing was reviewed in detail.

    He directed the Assistant Director Computer-I MRW to cooperate with all Deputy Directors/ETOs in providing requisite computerized data. Provincial minister for ET & NC & Parliamentary Affairs Mukesh Kumar Chawla also directed to launch Road Checking Campaign to nab the tax defaulting vehicles.

    He added, ‘Recovery of the taxes is very important and it shows the performance of the officers as well and we must come upto the expectations of the people’.

    Mukesh Kumar Chawla said that during last fiscal year Sindh Excise Department recovered more than 100% tax recovery and hopefully this year too we would also achieve more than our tax targets, he concluded.

  • Trade deficit narrows by 26.52% in July – February

    Trade deficit narrows by 26.52% in July – February

    ISLAMABAD: The trade deficit has narrowed by 26.52 percent in first eight months (July – February) 2019/2020 owing to fall in import bill.

    The trade deficit reduced to $15.773 billion during first eight months of current fiscal year as compared with the deficit of $21.467 billion in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Wednesday.

    The import bill significantly reduced by 14.06 percent during the period. The import bill of the country was at $31.42 billion during July – February 2019/2020 as compared with $36.563 billion in the corresponding period of the last fiscal year.

    The exports of the country also increased by 3.65 percent during the period under review. The exports grew to $15.648 billion during first eight months of current fiscal year as compared with $15.097 billion in the same period of the last fiscal year.

    The exports however increased by 13.82 percent to $2.14 billion in February 2020 as compared with $1.88 billion in the same month of the last year.

    The imports in February 2020 fell by 1.71 percent to $4.073 billion as compared with $4.144 billion in the same month of the last year.

    The trade deficit for the month of February 2020 was at reduced by 14.61 percent to $1.93 billion as compared with the deficit of $2.263 billion in the same month of the last year.

  • Engro wins eight awards at GDIB 2020

    Engro wins eight awards at GDIB 2020

    KARACHI: Engro Fertilizers Limited and Engro Energy, two subsidiaries of Engro Corporation, have won eight awards at this year’s Diversity Hub Pakistan’s 2020 GDIB Awards, hosted by HR Metrics, a statement said on Wednesday.

    Engro Fertilizers was recognized with six awards, the highest number for any company, at the event.

    The company won three awards for Best Practices in diversity and inclusion (D&I) Vision and Strategy, Leadership and Accountability, and Job Design and Compensation.

    In the Progressive category, it was awarded for practices related to Recruitment and Development, Benefits and Work-life Balance, and Assessment and Measurement of its initiatives.

    Further, Engro Energy secured two awards for Best Practices in the categories of D&I Learning and Education, and Community, Government Relations and Social Responsibility.

    This recognition demonstrates Engro Energy’s best in class efforts and initiatives in using GDIB standards to align diversity and inclusion with organizational policies.

    The winners were presented the awards by Guest of Honor Shamshad Akhtar, former State Bank of Pakistan (SBP) Governor, and US Consul General Robert Silberstein, in a ceremony held at a local hotel in Karachi.

    A five-member jury panel reviewed award submissions and declared 19 organizations as winners.

    Ghias Khan, the President and CEO of Engro Corporation, commented that “diversity and inclusion has played a pivotal role in driving our business forward.

    “By creating a culture of inclusion, implementing flexible processes and systems, and forging community partnerships, we continue to deliver on the spirit of Engro. We see diversity and inclusion as an ongoing commitment that is reflected in our business operations to fuel sustainable growth of the company and the world around us”.

    Global Diversity & Inclusion Benchmarks (Standards for Organizations around the World) support organizations globally in the development and implementation of Diversity and Inclusion (D&I) best practices.

    The GDIB awards recognize and encourage progressive organizations, who use GDIB standards to align D&I with organizational policies and process for sustainable financial and social performance.

  • ECC approves withholding tax exemption on remittances transfer to bank accounts

    ECC approves withholding tax exemption on remittances transfer to bank accounts

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved exemption from withholding tax on transfer of remittances into bank accounts.

    The ECC approved at the meeting on Wednesday chaired by Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh.

    The ECC approved that the amount of the remittances transferred into bank accounts will be exempted from withholding tax with effect from July 1, 2020.

    The ECC approved a host of measures to encourage and facilitate the overseas Pakistanis to send their remittances through official banking channels.

    Under the decision, following measures for the enhancement of home remittances through banking channels were approved:

    i. The rebate of reimbursement of T.T. Charges transactions between USD 100 and USD 200 will be increased from SAR- 10/- to SAR-20/-.

    ii. Continuation of the New Scheme of incentives launched in 2018-19 for banks and exchange companies during the current calendar year from January 2020. As per Scheme financial institutions would be incentivized Rs. 0.50 per 1 USD on 5 percent growth, Rs. 0.75 per 1USD on 10 percent growth and Rs. 1/- per 1USD on 15 percent growth.

    iii. The amount of the remittances transferred into bank accounts will be exempted from withholding tax with effect from July 1, 2020.

    iv. A “National Remittance Loyalty Program” will be launched from September 1, 2020 with collaboration of major commercial banks and government agencies through which various incentives will be given to remitters through mobile apps and cards.

    ECC approved a technical supplementary grant of Rs.9.6 billion during the current financial year to finance the above mentioned initiatives.

    Taking up other agenda items, the ECC approved a proposal by the Ministry of Federal Education & Professional Training for a technical supplementary grant of Rs 5 billion in favour of the Higher Education Commission (HEC) for the current Financial Year 2019-20 with instruction for a judicious and need-based distribution of funds among the universities.

    The ECC also approved a proposal by the National Security Division for a technical supplementary grant amounting to Rs 15 million for the Strategic Policy Planning Cell (SPPC) created in the National Security Division with the approval of the Prime Minister to act as an intellectual hub for evidence-based policy input on key national security issues.

    On a proposal by the Ministry of Defence, the ECC okayed a proposal for a technical supplementary grant amounting to Rs 34.528 million for Internal Security Duty Allowance to the Pakistan Air Force.

    On a proposal by the Petroleum Division, the ECC approved allocation of gas to SSGC and Provisional Tight Gas Incentive for Rehman-4 Well in Kirthar Block subject to the finalization and approval of requisite third-party certifications for Tight Gas for the same well.

    The ECC also discussed a proposal regarding quarterly adjustments of the K-Eectric Limited for the period from July 2016 to March 2019 and in the light of input and discussion by the members, set up a committee including Minister for Power Omar Ayub Khan, Minister for Economic Affairs Muhammad Hammad Azhar, Deputy Chairman Planning Commission, Secretary Finance and a representative from the K-Electric to examine the issue in detail and recommend to ECC within a week a solution and roadmap for resolving the issue.

    The ECC also deliberated upon a proposal by the Ministry of Energy to further extend till June 2020 the grant of subsidy to agricultural tubewell consumers in Balochistan.

    Earlier, the ECC was briefed that nearly 30,000 agri consumers in Balochistan had been given subsidy since 01.01.2015 with 40 percent of the burden of subsidy born by the Government of Pakistan and the remaining 60% picked up the Balochistan government.

    However, the recovery of dues from the farmers for the electricity consumed over and above the limit of subsidy had been negligible and attempts to recover these dues from defaulters in the past had not been successful.

    The ECC discussed the issue in detail and set up a Committee, including the Minister for Power, to discuss the issue with the Government of Balochistan to ensure a credible solution to the problems impeding a judicious execution of the scheme for which the federal government alone was contributing Rs 9 billion annually, and also allowed the extension of subsidy until a solution to the issue was found by the Committee and put in place.

    On a proposal by the Ministry of Industries and Production for revival of M/s Tuwairqi Steel Mills Limited (TSML) – A Direct Reduced Iron (DRI) Unit, the ECC discussed the issue and asked the Ministry of Industries and Production to resubmit the proposal in the light of recent and ongoing development on different issues among stakeholders on the proposal.