Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Share of payment to Chinese imports increases 21.42pc

    Share of payment to Chinese imports increases 21.42pc

    KARACHI: The share of import payment to China has increased to 21.42 percent during first four months (July – October) 2019/2020 as compared with share of 18 percent in the corresponding period of the last fiscal year.

    The total payment for import from China was at $3.14 billion during first four months of current fiscal year out of Pakistan’s total import bill of $14.65 billion for the same period, according to statistics released by State Bank of Pakistan.

    The total payment for import from China was at $3.45 billion in first four months of fiscal year 2018/2019 when total import bill for the period was $19.02 billion.

    The payment for total import bill has registered 23 percent decline to $14.656 billion during first four months of current fiscal year as compared with $19.016 billion in the corresponding months of the last fiscal year.

    The payment for import from China, however, also declined but by 9.14 percent to $3.14 billion during first four months of current fiscal year as compared with $3.45 billion in the same period of the last fiscal year.

    China is remained the largest exporting country for Pakistani markets during the first four months of current fiscal year.

    The United Arab Emirates (UAE) is the second largest exporting country for Pakistani markets during the period under review.

    However, the import payment to UAE fell sharply by 30 percent and stood at $2.44 billion during first four months of current fiscal year as compared with $3.5 billion in the corresponding period of the last fiscal year.

    The share of import payment to UAE in total import payment of Pakistan also fell to 16.68 percent during July – October 2019/2020 as compared with share of 18.44 percent in total import bill in July – October 2018/2019.

    Pakistan has taken several measures during the past couple of years to discourage imports of luxury and non-essential items.

    The decline in import bill during the first four months can be attributed to those measures taken by the government.

  • FBR starts air travelers’ monitoring to detect money launderers, drug smugglers

    FBR starts air travelers’ monitoring to detect money launderers, drug smugglers

    ISLAMABAD: Federal Board of Revenue (FBR) has launched passenger profiling system at international airports to curb money laundering and drug smuggling.

    A statement on Thursday said that Pakistan Customs, a wing of the FBR, has launched a specialized Risk Management System for passenger profiling at all major international airports in Pakistan.

    This exercise is part of the Customs Border Management Initiative (BMI) recently approved by the prime minister.

    The Passenger Profiling System, “Global Travelers Assessment System” (GTAS) is now operational at seven major airports of the country for which Customs staff has been adequately trained.

    Moreover, World Customs Organization (WCO) and US Customs and Border Protection (US CBP) have provided Technical assistance for deployment and implementation of the project.

    The system is capable of carrying out passenger profiling and targeting through Advance Passenger Information (API) and Passenger Name Record Information (PNR) for interdiction of suspected travelers, drug smugglers and money-launders etc. while adhering to the requirements of FATF action plan.

    It will also help in creating profiles of passengers travelling to and from Pakistan and generate risk indicators in advance using a proactive methodology for effective border management.

    According to Chairman FBR Syed ShabbarZaidi, the GTAS will also enable Customs to achieve the “Invisible Customs approach” with least presence at airports while facilitating the genuine passengers.

    The Chairman has also directed Member Customs Operations to ensure adequate training sessions for customs officers while initiating data sharing with border agencies which will serve as a targeting portal for all law enforcement agencies at Pakistan Customs National Targeting Centre.

  • Pakistan spends $531mn on vehicle import in 4 months

    Pakistan spends $531mn on vehicle import in 4 months

    KARACHI: Pakistan has spent $531 million on vehicle import in the first four months (July – October) of the current fiscal year, according to official data released on Wednesday.

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  • Stock market falls by 527 points on profit taking

    Stock market falls by 527 points on profit taking

    KARACHI: The stock market fell by 527 points on Wednesday as investors opted for profit taking following the bull run during past few days.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,038 points as against 38,564 points showing a decline of 527 points.

    After managing a bull run that added around 10,000 points from its low, the market finally took corrective stance with index plunging 527 points and closing the session at that note.

    Selling pressure was evident in Cement, E&P, O&GMCs and banking sector stocks.

    Although dust is seemingly settling on political front, investors took cue from T-bill auction that saw yields increasing further and considered it best to book profit prior to announcement of monetary policy on Friday November 22, 2019. Street consensus is for status quo.

    Index is so far maintaining healthy volumes registering 327 million shares as compared with 385 million in the previous session.

    Majority of the volumes were traded in Technology with 50.4 million shares, followed by Engineering (38 million) and Banks (33 million).

    Among scrips, WTL led the volumes with 28.3 million shares, followed by BOP (17.1 million) and PAEL (15.1 million).

    Sectors contributing to the performance include Banks (-203 points), E&P (-113 points), Cement (-49 points), Fertilizer (-30 points) and Chemical (-24 points).

    Volumes declined further from 385.3 million shares to 327.4 million shares.

    Average traded value also declined by 19 percent to reach US$ 73.4 million as against US$ 90.5 million.

    Stocks that contributed significantly to the volumes include WTL, BOP, PAEL, KEL and ISL, which formed 25 percent of total volumes.

    Stocks that contributed positively include FFC (+24 points), NATF (+10 points), THALL (+7 points), ISL (+7 points) and AGP (+5 points).

    Stocks that contributed negatively include HBL (-63 points), ENGRO (-49 points), OGDC (-35 points), UBL (-34 points), and MCB (-33 points).

  • Rupee eases in range bound trading

    Rupee eases in range bound trading

    KARACHI: The Pak Rupee ended down by one paisa against dollar on Wednesday in range bound trading activities.

    The rupee ended Rs155.37 to the dollar from previous day’s closing of Rs155.36 in interbank foreign exchange market.

    Currency dealers said that the market was remained calm as neither major demand seen from importers nor inflows of export receipts.

    The foreign currency market was opened in the range of Rs155.35 and Rs155.40. The market recorded day high of Rs155.37 and low of Rs155.35 and closed at Rs155.37.

    The exchange rate in open market witnessed slight change in rupee value. The buying and selling of dollar was recorded at Rs155.20/Rs155.40 from previous day’s closing of Rs155.20/Rs155.50 in cash ready market.

  • FBR extends date for filing sales tax return

    FBR extends date for filing sales tax return

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday extended the last date for filing sales tax return up to November 25, 2019.

    The FBR issued a circular dated November 20, 2019 and extended the date of submission of sales tax and federal excise return up to November 25, 2019 for the tax period of October 2019, which was due on November 18, 2019.

    The FBR directed all chief commissioners Inland Revenue of Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) to comply with the instructions and disseminate information to taxpayers.

  • Income tax on low cost housing projects reduced by 50 percent

    Income tax on low cost housing projects reduced by 50 percent

    KARACHI: The income tax rate on low cost housing projects shall be reduced by 50 percent, according to income tax law recently updated by the Federal Board of Revenue.

    The FBR updated Income Tax Ordinance, 2001 incorporating changes introduced through Finance Act, 2019.

    As per Second Schedule of the updated Ordinance, the tax payable on profits and gains derived by a person from low cost housing projects shall be reduced by fifty percent.

    The reduction in tax liability under this clause shall apply to such project which is—

    (a) owned and managed by a company formed for operating the said project and registered under the Companies Act, 2017 and having its registered office in Pakistan; and

    (b) not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and

    (c) a low cost housing project under which the maximum sale price of a single housing unit is two and a half million rupees.

  • NCCPL delays CGT collection due to computation process

    NCCPL delays CGT collection due to computation process

    KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Wednesday said that it has delayed the collection of capital gain tax (CGT) for the month of October 2019 due to computation procedures.

    In a notice to Pakistan Stock Exchange (PSX), the NCCPL said that the CGT was to be collected on November 19, 2019 for the month of October 2019.

    However, the NCCPL said that it was in process of finalizing the CGT computation, therefore, revised CGT collection date would be notified to the market participants in due course.

    The NCCPL collects CGT on behalf of Federal Board of Revenue (FBR) on sale and purchase of shares.

    The NCCPL also collected the CGT of previous months of this fiscal year after the scheduled timelines for CGT collection. The delay in collection of CGT was due computation process after the measures announced in the budget 2019/2020.

  • Mobile phone imports sharply increase by 86 percent to Rs61 billion in four months

    Mobile phone imports sharply increase by 86 percent to Rs61 billion in four months

    ISLAMABAD: Pakistan – the country endeavoring to reduce import bill to control external sector challenges – has imported mobile phones amounting Rs61 billion, during first four months (July – October) 2019/2020 which is 86 percent higher than corresponding period of last fiscal year.

    The mobile phone import was Rs61 billion during first four months of current fiscal year as compared with Rs32.7 billion in the corresponding months of the last fiscal year, Pakistan Bureau of Statistics (PBS) said on Tuesday.

    The unprecedented growth in mobile phone can be attributed to significant decline in rupee value during the last year.

    However, in dollar terms the import remained higher by 49 percent. The country spends $388 million on import of mobile phones during July – October 2019/2020 as compared with $260.41 million in the corresponding period of the last fiscal year.

    Sources in Pakistan Customs said that the phenomenal increase in mobile phones was due to anti-smuggling measures taken by the government.

    They said that now a mobile phone would have active network only when it was verified through a system introduced by Pakistan Telecom Authority (PTA).

    The sources said that mobile devices are required to verify their IMEI through phone registration system of the PTA otherwise such phones would not have connections of existing cellular networks in the country.

    The source said that in the past a huge number of mobile phones were brought in the country without paying duty and taxes. But now those mobile that were not offered for registration would not be activated.

    The import of mobile phone witnessed even sharp increase in October 2019 to $118.65 million as compared with $61.19 million in the same month of the last year. Similarly, in terms of rupee the import registered 132 percent to Rs18.5 billion in October 2019 as compared with Rs7.98 billion in the same month of the last year.

  • Cabinet approves gradual reduction in regulatory duty

    Cabinet approves gradual reduction in regulatory duty

    ISLAMABAD: The Federal Cabinet has approved gradual reduction in regulatory duty and additional customs duty under first-ever National Tariff Policy (NTP).

    The federal cabinet, in its meeting chaired by the Prime Minister held on Tuesday November 19, 2019, approved the first-ever National Tariff Policy (NTP).

    The policy guidelines contained in the NTP, as approved by the Cabinet, provide that the tariff slabs will be simplified based on the principle of cascading; tariffs on raw materials, intermediate and capital goods will be gradually reduced; the additional customs duty and regulatory duties will be gradually reduced; the difference in the rates of tariff for the commercial importers and industrial users of raw materials, intermediate and capital goods will be eliminated to provide a level-playing field to the SMEs through competitive access to essential raw materials; the nascent industry will be provided time-bound protection, which will cover the payback period.

    The policy, developed by the commerce division after extensive consultations with the stakeholders, marks a milestone in the national economic policy paradigm by recognizing the importance of employing import tariffs for industrial development and export growth.

    The prime minister, in his remarks during the cabinet meeting, said that the import tariffs have been traditionally employed as a revenue generation tool, which has increased reliance on import tariffs for revenue collection. In accordance with the reform agenda of the government, the economic policy paradigm is now being realigned to leverage tariffs for industrial development.

    The National Tariff Policy aims at removing the anomalies in the tariff structure and making it a reflection of trade policy priorities and enhancement of competitiveness through duty-free access to imported raw materials and promotion of investment into efficient industries through a predictable tariff structure, decided through an institutional mechanism.

    The NTP is based on the principles of (i) employing tariffs as an instrument of trade policy rather than revenue generation, (ii) maintaining vertical consistency through cascading tariff structures (increasing tariff with stages of processing of a product), (iii) providing time-bound ‘strategic protection’ to the domestic industry during the infancy phase, and (iv) promoting competitive import substitution through time-bound protection, which will be phased out to make the industry eventually competitive for export-oriented production.

    The policy will be implemented through a Tariff Policy Board (TPB) chaired by the Commerce Minister/Advisor, with Minister for Industries & Production, Secretary Finance, Secretary Revenue, Chairman FBR, Secretary Commerce, Secretary Board of Investment, and Chairman NTC as its members.

    A Tariff Policy Centre shall be created in the Ministry of Commerce, which will serve as the Secretariat of the TPB.

    Abdul Razak Dawood, Commerce Advisor, stated that the NTP marks a watershed in the country’s economic policy making since it would energize export growth, lead to rapid industrialization, and import substitution through predictability in tariff framework.