KARACHI: Federal Board of Revenue (FBR) has issued updated rules for the computation of profits and gains of the insurance business under Income Tax Ordinance, 2001.
(more…)Author: Mrs. Anjum Shahnawaz
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FBR receives information of car buyers from withholding agents
ISLAMABAD: Federal Board of Revenue (FBR) has received information of persons who purchased motor vehicles during tax year 2019.
The tax authorities will cross check the sale or purchase of motor vehicles through income tax returns for tax year 2019, which can be filed by November 30, 2019.
The FBR sources said that the tax authorities had received information of persons who purchased motor vehicles 1,000 CC and above.
A person is required to file income tax returns if he purchases a motor car in a tax year irrespective of his taxable income falls below or above the threshold.
The sources told PkRevenue.com that the FBR received the information car manufacturers, dealers of motor vehicle, registration authorities, bank and leasing companies.
They said that these withholding agents are required to furnish withholding statements, which must contain information of sales or lease of motor vehicles.
The withholding agents have provided details of persons included: name, NTN/CNIC, registration number of the motor vehicle, motor vehicle make/model/engine capacity/year of manufacture, date of first registration of vehicle in Pakistan, registered capacity/laden weight of the vehicle, ex-factory price of motor vehicle.
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EOBI pension to increase Rs15,000 per month
KARACHI: The government is aiming to increase the pension amount to Rs15,000 per month from existing Rs6,500 in order to provide relief to elder pensioners and their survivors, a statement said on Sunday.
Addressing at the first ever Annual Pension Day organized by Employees Old-Age Benefits Institution (EOBI) has organized, Syed Zulfiqar Abbas Bukhari, Special Assistant to Prime Minister for Ministry of Overseas Pakistanis and Human Resource Development, as the chief guest of the ceremony said that currently, the minimum EOBI Pension is Rs6,500 per month but “I am determined to increase the amount to Rs. 15,000 pm, during the term of our government so that the elder pensioners and their survivors would get a little breather.”
Bukhari said that in September 2018, he had announced 23 percent increase in Pension due to which the Pension was increased to Rs 6,500.
“However, still it is a nominal amount and needs to be increased. We will make the EOBI a viable and profitable Institution and protect the rights of pensioners,” he said.
Bukhari further said that more than Rs20 billion have been collected as EOBI Contribution from registered Employers across the country and disbursed 33 billion among the Pensioners.
“It is not possible to deny the importance of Social Protection for the elderly, disabled employees and widows of the mother land,” he added.
Earlier, Secretary OP&HRD Engr. Aamir Hassan has welcomed the Chief Guest and briefed the objective of celebration of 1st Annual Pension Day by EOBI.
On this occasion, Chairman EOBI, Azhar Hameed also expressed his views and highlighted the EOBI services and performance towards registered Employers, Insured persons and Pensioners.
He said that we are transforming EOBI into a state-of-the-art Institution. We have already started some important projects to achieve our goals.
One of them is EOBI Transformation Initiative (ETI). Our vision for the future is on being the “Best Technology Driven Service-Oriented Institution” in the country to enable Pension disbursement on timely, prompt and Service basis with the utmost convenience for the contributors. We have also focused on social media and created our twitter handle @EOBIPakistan.
EOBI Board of Trustees member from KPK Dr. Muhammad Yousuf Sarwar (Employer’s representative) & Muhammad Iqbal (Employees’ representative) also addressed the ceremony.
Meanwhile, EOBI has selected 132 top and prominent Employers/Companies throughout Pakistan sector-wise i.e. Textile, Sugar, Cement, Coal Mining, IT, Security Companies, Education, Banking, Micro Finance Banking, Insurance, Pharmaceutical, Hospitals, Automobile, Engineering, Human Resource, Beverages, Hotel Industry, Food, Courier Services, Telecommunication, Tobacco, Construction, Media and Power Sector on the basis of highest paid EOBI Contribution on current rate for their employees.
The chief guest awarded Gold Medals, shields and Appreciation certificates among the following top and prominent Employers/Companies of the country, which included:
1. PTCL, Islamabad (Total contribution paid Rs. 1,936,432,580, Total pensioners 1,303 and Total pensioner disbursed Rs. 216,822,225)
2. K-Electric, Karachi (Total contribution paid Rs. 1,343,087,088, Total pensioners 9,546 and Total pensioner disbursed Rs. 3,057,430,302)
3. HRSG Outsourcing Pvt. Ltd., Karachi (Total contribution paid Rs. 1,282,679,010, Total pensioners 247 and Total pensioner disbursed Rs. 50,942,812)
4. Oil & Gas Development Company Ltd., Islamabad (Total contribution paid Rs. 1,020,352,522, Total pensioners 4,147 and Total pensioner disbursed Rs. 1,096,759,647)
5. Sui Northern Gas Pipeline Ltd., Lahore (Total contribution paid Rs. 874,902,306, Total pensioners 3,698 and Total pensioner disbursed Rs. 1,190,798,741)
6. The Aga Khan Hospital Medical College Foundation, Karachi (Total contribution paid Rs. 851,357,226, Total pensioners 813 and Total pensioner disbursed Rs. 223,709,796)
7. Utility Stores Corp Ltd., Islamabad (Total contribution paid Rs. 742,159,088, Total pensioners 1,048 and Total pensioner disbursed Rs. 293,062,537)
8. The Citizen Foundation, Karachi (Total contribution paid Rs. 726,093,214, Total pensioners 313 and Total pensioner disbursed Rs. 58,324,928)
9. Interloop Ltd., Faisalabad (Total contribution paid Rs. 698,254,092, Total pensioners 213 and Total pensioner disbursed Rs. 51,143,537)
10. Educational Services Pvt. Ltd. Lahore¬ (Total contribution paid Rs. 662,192,355, Total pensioners 916 and Total pensioner disbursed Rs. 295,556,050)
The following prominent Employers/ Companies were also honored with Shields and Appreciation certificates for their valuable EOBI Contribution towards their employee’s welfare.
- Islamabad Hotel,
- Abbott Laboratories Pakistan Limited,
- Adamjee Insurance Company Limited,
- The Aga Khan Hospital Medical College Foundation,
- Airport Hotel (The Inn),
- Al-Abbas Sugar Mills Limited,
- Al-Karam Textile Mills Pvt. Ltd.,
- ANC Foods, Ashraf, Sugar Mills,
- Askari Cement Ltd.,
- Askari Guards (Pvt.) Ltd.,
- Attock Refinery Limited,
- B.L. Harbert International Pvt. Ltd.,
- Bahria Town Pvt. Ltd.,
- Bata Pakistan Ltd.,
- Bosch Pharmaceutical Pvt. Ltd.,
- Byco Petroleum Pakistan Limited,
- Chenab Management Liaison,
- The Citizen Foundation,
- The City Schools Pvt. Ltd.,
- Coca Cola Beverages Pakistan Ltd.,
- Credit Commerce Consultants Pvt. Ltd.,
- D.G. Khan Cement Co. Ltd.,
- Daily Business Recorder,
- Daily Jang Rawalpindi,
- Design Engg. Services Construction Ltd.,
- Dr. Ziauddin Hospital.,
- E F U General Insurance Ltd.,
- Educational Excellence Ltd.,
- Educational Services (Pvt.) Ltd.,
- Educational Services (Pvt.) Ltd. (Regional Office),
- EFU Life Assurance Ltd.,
- ENI Pakistan Limited,
- Express Publications Pvt. Ltd.,
- Fauji Cement Company Limited,
- Fauji Security Services,
- Finca Microfinance Bank Ltd.,
- Fouji Foundation Hospital,
- Gul Ahmed Textile Mills Ltd.,
- Hafiz Tannery, Hamza Sugar Mills Ltd.,
- Hascol Petrolum Limited,
- Heavy Mechanical Complex Limited,
- Hillcrest Solutions Pvt. Ltd.,
- Hinopak Motors Ltd.,
- HRSG Outsourcing Private Ltd.,
- Hub Pak Salt Refinery,
- i2c Pakistan,
- Independent Media Corporation (Pvt.) Ltd. (Geo),
- Information Technology Services, Interloop Limited,
- Islamabad Marriott Hotel,
- Izhar Construction Ltd.,
- Jaag Broadcasting Systems (Pvt.) Ltd.,
- JDW Sugar Mills Limited,
- Jubilee Life Insurance Company Limited,
- K- Electric,
- Karachi Shipyard & Engineering Works Ltd.,
- Katha Collieries Pak. Ltd.,
- Khyber-Pakhtunkhwa Oil & Gas Company,
- Khyber Tobacco Company Limited,
- Lahore Grammar School,
- Leather Field (Pvt.) Limited,
- Leopard Courier Service,
- Lucky Cement Limited,
- M A Food Industries Pvt. Ltd.,
- M Fazal Haq & Co. Ltd.,
- H. Sadar Ali Akhtar Ali Pvt., Ltd.,
- Super Coal Mines,
- Maple Leaf Cement Factory Ltd.,
- Masood Textile Mills Ltd.,
- MCC Resources Development Co (Pvt.) Ltd.,
- Meezan Bank Limited,
- Memon Motor Private Limited,
- Mezan Beverages Pvt.,
- Limited, Muller &Phipps Pakistan Ltd.,
- Mushtaq Ali Khan Contractor,
- Muslim Contractor Company (Pvt.) Ltd.,
- National Communication Services,
- National Engineering Services Pvt. Ltd.,
- National Insurance Corporation Ltd.,
- National Radio Telecommunication Corp.,
- National Refinery Ltd.,
- Nextbridge Private Ltd.,
- Nishat Mills Ltd.,
- NRSP Microfinance Bank Limited,
- Oil & Gas Development Company Ltd.,
- Orient Petroleum Pty Limited,
- Pak Arab Refinery Ltd.,
- Pak Elektron Ltd.,
- Pak Suzuki Motor Company Limited,
- Pakistan Herald Publications Ltd.,
- Pakistan Mineral Development Corp,
- Pakistan Petroleum Limited,
- Pakistan Refinery Ltd.,
- Pakistan State Oil Company Limited,
- Pakistan Telecommunication Co Ltd.,
- Pakistan Television Corporation Limited,
- Pakistan Tobacco Company Limited Karachi,
- Pearl Continental Hotel,
- Philip Morris (Pakistan) Ltd.,
- Phoenix Armour Pvt.,
- Limited, Phoenix Security Service Pvt. Ltd.,
- People’s Primary Healthcare Initiative (PPHI Sindh),
- Professional Employers Private Limited,
- Punjab Beverages Co. (Pvt.,) Ltd.,
- Quality Contracto,
- Ravi Auto Sundar Pvt. Ltd.,
- S S Foot Marks Pvt.,
- Limited, Sami Pharmaceuticals Ltd.,
- Searle (Pakistan) Limited,
- Serena Hotel,
- Shaukat Khanum Memorial Cancer Hospital,
- Shell Pakistan Ltd.,
- Skills Hub Private Limited,
- Souvenir Tobacco Company Limited,
- Style Textile (Pvt.) Ltd.,
- Sui Northern Gas Pipelines Ltd.,
- Systems Limited,
- TCS Courier Co.,
- Tameer Micro Finance Bank Limited,
- Tandlianwala Sugar Mills Ltd.,
- Tech Access Pakistan Pvt. Ltd.,
- The Aga Khan Shia Ismailia Education Society,
- The Indus Hospital,
- The News International Lahore,
- Total Parco Marketing Limited,
- Microfinance Bank Limited,
- United Energy Pakistan Limited,
- United Refrigeration Industries Ltd.,
- Utility Stores Corp Ltd.,
- ZIMS Security Pvt. Ltd.
The Chief Guest Zulfiqar Abbas Bukhari also awarded EOBI Pension Books & souvenirs to the following EOBI Pensioners.
- Ch. Ameer Khan (PTCL),
- Tanveer Kaukab (Islamabad Serena Hotel),
- Saleem Raza Shah (Hotel Holiday Inn),
- Mst. Nomita Ali Tarar (Pensioner’s widow),
- Khursheed Begum Arain (Pensioner’s widow),
- Shahid Hameed (PTC),
- Maqbool-ur-Rehman Khan (SNGPL),
- Abdul Rasheed (OPF Girls College),
- Mst. Ghulam Kubra (OGDCL),
- Javed Masih (Total Service Centre).
Th 1st Annual Pension Day program was organized by Aqeel Ahmad Siddiqui, Director General (Operations) EOBI and his team comprising Sr. officials of Sindh & Baluchistan, Punjab & Islamabad, KPK & Gilgit Baltistan’s Benefits & Contribution Departments and 39 Regional Offices throughout Pakistan.
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Policy recommends import of used electric vehicles
KARACHI: The import of used electric vehicles has been proposed under ‘National Electric Policy’ for at least two years for giving time to local auto manufacturers to prepare development plans.
According to recently introduced ‘National Electric Policy’ it is proposed:
For the first two years i.e. 2019-2021 up to 3 years old ‘used’ all-electric vehicles will be allowed for import.
This time will give local auto manufacturers to prepare their EV development plans and will also help acclimatize local consumers with a lower upfront cost and will help in establishing charging infrastructure.
If locally manufactured EVs are available by 2021, then this import allowance can be withdrawn
However, if there are no locally manufactured EVs by year 2021 the decision to extend this allowance may be pondered upon.
According to the policy the category of EVs include passenger and commercial cars, jeeps, SUVs, vans and small delivery vehicles of up to one ton cargo hauling i.e. Categories M1 and N1 of UNECE Vehicle Classification.
Although the car market has developed in Pakistan, there is virtually no EV penetration in the country.
Therefore, some aggressive steps are required to create an EV market and then reap its benefits.
The capital cost of electric cars is still high for masses and many countries provide tax breaks, incentives and trade-ins to encourage purchase of electric cars.
While the cost is high at this time, it is expected to go down steadily and by 2023-24 the cost of electric cars is projected to be at par with their Fossil Fuel Vehicle (FFV) counterparts.
For Pakistan to create an EV market some good incentives are needed to bring the cost of purchase of EVs down.
In view of the above the Government of Pakistan, in collaboration with relevant entities shall take the following measures:
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1. All existing incentives of the Auto Development Policy 2016-2021 are to remain intact. However, government will give the following further incentives to jump start EV manufacturing in Pakistan only for local manufacturing units:
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a. All EVs manufactured in Pakistan will be sold at less than one percent General Sales Tax (GST) for the next seven years to bring the purchase price of EVs down.
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b. Pakistan manufactured EVs will be exempted from registration fees and annual token tax to encourage prospective buyers. Imported EV’s shall receive the same benefit for next 5 years.
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2. EV specific parts and components, not being manufactured locally compliant to UNECE 1958 Agreement ‘WP.29’ standards as well as equivalent international standard applied by the United States, European Union and other major EV manufacturers, will be allowed import at one percent custom duty for the next two years until 2021.
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3. Registration number plates of EVs will have a distinct color/design to create EV specific zones in high density areas and to introduce distinct incentives for EVs.
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4. The State Bank of Pakistan may initially allow new EVs to be purchased under Green Banking Guidelines and may further evolve an incentive scheme push down the price of local EV manufacturing through a better financing scheme. Again this will encourage EV penetration in the country and will reduce upfront cost of EVs.
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MCC Gwadar announces auction of vehicles on Nov 12
KARACHI: Model Customs Collectorate (MCC) Gwadar has announced auction of used vehicles on November 12, 2019 to be held at Custom House Gaddani.
Following is the list of vehicles of auction:
01. BMW Car 4320CC, Model 2002, Chassis No. WBAGL42020DD-78677
02. Scrap of dismantled Toyota Hilux Surf (SSR) 3000CC, Model 1992, Chassis No. LN13072026160
03. Toyota Land Cruiser 3400CC, Model 1998, Chassis No. BJ-60-020679
04. Toyota Land Cruiser 4500CC, Model 1991, Chassis No. HZJ-770002489
05. Toyota Land Cruiser 2446CC, Model 1985, Chassis No. BJ-61-003506
06. Mitsubishi Pajero 3446CC, Model 1985, Chassis No. LO48G-3005856
07. Land Cruiser 3400CC, Model 1989, Chassis No. HJ61-013994
08. Toyota Hilux Surf SSR-X 2693CC, Model 2000, Chassis No. RZN185-9036661
09. Toyota Land Cruiser Jeep 3400CC, Model 1989, Chassis No. SJ40-371932
10. Toyota Premio Car 1500CC, Model 2005, Chassis No. NZT240-5032376
11. Toyota Mark – X Corolla 2500CC, Model 2005, Chassis No. GRX120-0016870
12. Toyota X Corolla Car 1492CC, Model 2007, Chassis No. NZE121-0009339
13. Toyota X Corolla Car 1492CC, Model 2005, Chassis No. NZE-120-3008546
14. Suzuki Swift Car 1242CC, Model 2007, Chassis No. ZC71S-405758
15. Toyota Passo Car 1297CC, Model 2005, Chassis No. QNC10-0027802
16. Toyota Mark-X Corolla 2994CC, Model 2007, Chassis No. GRX121-3001923
17. Toyota Land Cruiser 2000CC, Model 1993, Chassis No. LJ78-0039971
18. Toyota Vitz Car 1300CC, Model 2007, Chassis No. SCP90-5080195
19. Toyota Passo Car 1000CC, Model 2004, Chassis No. M300S-0001146
20. Toyota ProBox Car 1400CC, Model 2004, Chassis No. NLP51-0006233
21. Toyota Passo Car 1300CC, Model 2005, Chassis No. QNC10-0025058
22. Honda Civic Car 1800CC, Model 2002, Chassis No. ESI-1600827
23. BMW Car 4476CC, Model 2002, Chassis No. WBAGL62090DJ92594
24. Toyota Axio Car 1496CC, Model 2006, Chassis No. NZE141-6012790
25. Toyota Prado 3400CC, Model 2000, Chassis No. VZJ90-0004977
26. Suzuki Super Carry 660CC, Model 1996, Chassis No. DC51T-426256
27. Toyota Land Cruiser 4500CC, Model 1996, Chassis No. FZJ-800102056
28. Toyota Land Cruiser 3400CC, Model 1992, Chassis No. PZJ-70-0002960
29. Toyota Surf 2446CC, Model 1993, Chassis No. KZN130-9032504
30. Toyota Premio Car 1794CC, Model 2002, Chassis No. ZZT2400040257
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FBR issues guidelines to facilitate issuance of sales tax refunds in 72 hours
ISLAMABAD: Federal Board of Revenue (FBR) has issued guidelines to facilitate taxpayers in issuance of sales tax refunds within 72 hours.
The FBR issued user guidelines for filing Annexure – H i.e. details of stock position of sales tax registered persons. This annexure is mandatory for refund claimants and they may submit statement within 120 days from due date of return filing of particular tax period; other registered persons are encouraged to provide these details, the FBR said.
The FBR advised the sales tax registered persons to use Annexure – H to upload transactions for the month i.e. purchase, import and consumption only.
Opening and closing balances are derived/calculated automatically. Same is with Excel uploading otherwise objection of duplicate value will arise.
The FBR said that opening and closing balance in sales tax return must match with Annexure – H.
It is further advised to sales tax registered persons to use Annexure – H column consumed / exported during the month (domestic zero rated / export for amount of refund on export mentioned in return (minus tax on local supplies).
The FBR advised the sales tax registered persons to use column consumed / sold during the month (domestic taxable supplies) for consumption against domestic supplies in relation to output tax declared in return.
Mark invoice wise inadmissible input tax in Annexure – A relating to SRO 490. Do not attach / claim GD of imports or/and exports that have already been claimed or not relevant.
The FBR said that credit brought forward from previous claim will automatically be available in Annexure – H.
The FBR added new items in list of items: sizing, yarn dyeing, yarn doubling, weaving, knitting, processing (bleaching, dyeing and printing), stitching, embroidery.
The FBR said that RCPC for refund preparation system has been replaced with Annexure – H for all types of sales tax refund claims from July 2019 onward.
Properly filled Annexure – H without objections and anomalies of data will ensure processing in 72 hours.
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FBR starts consultation with IR field formation on proposed restructuring
ISLAMABAD: Federal Board of Revenue (FBR) has started consultation with tax officials on proposed reform program following resentment of senior officers on proposed plan of setting up Pakistan Revenue Authority (PRA) and other reforms.
The FBR through an official memorandum invited proposals from all field formation of Inland Revenue on the restructuring of FBR.
In order to address the concerns of the officers and officials of FBR and to make ‘restructuring of FBR’ a more inclusive exercise, the FBR chairman has been pleased to approve the formation of three committees.
The three committees have been formed at Karachi, Lahore and Rawalpindi/Islamabad and these committees are comprised of senior officers of IRS.
The committees formed as:
01. Karachi Committee
Faiz Illahi Memon, Chief Commissioner of Inland Revenue, Large Taxpayers Unit (LTU) Karachi (Head of Committee)
Amir Ali Khan Talpur, CCIR, RTO-III, Karachi
Dr. Aftab Imam, CCIR, CRTO Karachi.
Shahid Iqbal Baloch, CCIR, LTU-II, Karachi.
Badaruddin Ahmed Qureshi, CCIR, RTO-II, Karachi.
Lahore Committee:
Syed Nadeem Hussain Rizvi, CCIR, CRTO Lahore (Head of Committee).
Asim Majeed Khan, CCIR, LTU Lahore.
Ahmed Shuja Khan, CCIR, RTO-II, Lahore.
Rawalpindi/Islamabad Committee:
Asim Ahmad, Director General, Intelligence and Investigation, IR, Islamabad (Head of the Committee).
Bashirullah Khan, CCIR, RTO Rawalpindi
Shamsul Hadi, CCIR, RTO Islamabad
Muhammad Naseer Butt, CCIR, LTU Islamabad.
The FBR chairman advised the Chief Commissioners of remaining RTOs can also frame their recommendations by co-opting officers from BS-17 to BS-20 and BS-16 and below.
The FBR chairman also approved the following Term of References (TORs):
01. Future status of Tax Authority.
a. Under Federal Government as an attached department (as present)
b. Under Federal Government as a Semi-Autonomous Body.
c. Completely autonomous.
02. Human Resource issues such as recruitment, retention, capacity, remuneration etc.
03. Financial Autonomy – its extent and nature.
04. Organizational structure (Qualifications/growth/career path).
05. Work processes.
The FBR chairman advised the committee to ensure engaging officials falling in BS-16 and below and other cadres falling under their jurisdictions so that their input can also be obtained and incorporated in the recommendations framed by the committees.
The FBR has asked the committees to finalize their recommendations by November 18, 2019.
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Weekly Review: Stabilizing macro-economic continue to fuel bullish trend
KARACHI: The upswing in the market may be met with some profit-taking next week. The continuation of the sit-in in the federal capital may create some apprehensions which we expect to create some short-lived jitters in the market, analysts said.
“We expect the stabilizing macro-economy to continue fueling the bullish trend over the medium to long term,” analysts at Arif Habib Limited said.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.2x (2020) compared to Asia Pac regional average of 13.6x and while offering DY of ~8.8 percent versus ~2.5 percent offered by the region.
The jubilance in the KSE-100 index continued from last week and provided an 11-week high return of 4.7 percent WoW. Expectation of a rate cut in the near future on the back of continuous decline in government securities’ yields was further cemented with the government slashing National Savings Scheme profit rates by 170-228bps across the different schemes.
However, inflation reading for October 2019 settled at 11.04 percent YoY which was higher than expectations, but failed to deter the positive momentum. Moreover, SBP reserves increased to USD 8.4 billion which is the highest level since April.
Furthermore, external account position continued to improve with the trade deficit declining 34 percent YoY during 4MFY20. The index closed at 35,978 points – a 6 month high (124 trading sessions), and up by 1601 points WoW.
Foreign buying was witnessed this week clocking-in at USD 4.5 million compared to a net sell of USD 3.1 million last week. Buying was witnessed in Fertilizer (USD 6.7 million) and OGMCs (USD 3.2 million).
On the domestic front, major selling was reported by Banks / DFIs (USD 6.0 million) and Insurance Companies (USD 4.6 million). Average Volumes settled at 258 million shares (up by 55 percent WoW) while average value traded clocked-in at USD 54 million (up by 52 percent WoW).
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Jewelers, real estate agents to maintain register, report suspicious transactions: draft rules issued
ISLAMABAD: Federal Board of Revenue (FBR) has proposed to make mandatory for jewelers and real estate agents to report suspicious transactions. In this regard the FBR issued draft rules through SRO 1320(I)/2019 to make amendments in Income Tax Rules, 2002.
As per the draft rules, the designated persons as jewelers and real estate agents should maintain documents and records, where the value of transaction exceeds Rs2 million in case of immovable properties and Rs one million in other cases.
The FBR said that the designated persons would require to obtain and maintain the following relating to its buyers and sellers, namely:
In case of an individual any of the following documents should be obtained by jewelers and real estate agents:
i. copy of computerized National Identity Card (CNIC) issued by National Database and Registration Authority (NADRA).
ii. copy of National Identity Card for Overseas Pakistanis (NICOP) issued by NADRA.
iii. copy of Pakistan Origin Card (POC) issued by NADRA.
iv. copy of Alien Registration Card (ARC) issued by NADRA, and
v. copy of passport, having valid visa on it or any other proof of legal stay along with the passport (foreign nationals only).
The jewelers and real estate agents also required to keep a list of all such customers where the business transaction was refused or needed to be closed either on account of failure of the customer to provide the relevant documents or the original documents for viewing as required.
Regarding furnishing of information, according to the draft rules, the sale and purchase register for the immediately preceding calendar month shall be uploaded by the designated persons on the IRIS online system within 15 days of the end of the preceding calendar month for transactions.
The draft rules said that the designated persons would mark a transaction as suspicious in the IRIS online system if the person has reason to believe that the transaction or a pattern of transactions of which the transaction is a part:
(a) involves funds derived otherwise than from the business activity or assets declared to the income tax authorities;
(b) is designed to evade any requirement of the Income Tax Ordinance, 2001 or to conceal the beneficial owner or his activity.
(c) has no apparent economic or lawful purpose after examining the available facts, including the background and possible purpose of the transaction; or
(d) involves financing of terrorism, including fund collected, provided, used or meant for, or otherwise linked or related to, terrorism, terrorist acts or organization and individual concerned with terrorism.
According to the draft rules, the designated persons have also been asked to mark as suspicious transaction if the buyer or seller –
(a) frequently changes bank accounts;
(b) uses a bank account other than an account maintained in the name of beneficial owner;
(c) makes or receives payment in cash or primarily in cash; or
(d) maintains a creditor or debtor account with the designated person and instructs the designated person to adjust the balance of his account against a creditor debtor account of another buyer or seller.
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Stock market gains 220 points amid mixed impact of MSCI review
KARACHI: The stock market gained 220 points on Friday after mixed trading activities to respond MSCI review.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,978 points as against 35,759 points showing an increase of +220 points.
Analysts at Arif Habib Limited said that the market on a positive note today with +20 points. The Index went uni-directional and gained 230 points by the end of first session, while reaching a high of +290 points, and finally closed the day with +220 points.
Following past couple of sessions, Cement and Steel continued trading in red and kept the index under pressure. MSCI review, announced last evening, proved to be a sigh of relief for institutional funds which were expecting an exclusion from the Index and resultant deluge of selling activity in outgoing stocks.
On the contrary, MSCI review proved largely to be a non-event, which gave confidence to investors in large cap Banks and E&P companies, particularly MCB, HBL, OGDC and PPL. Major activity (volume wise) was observed in PIAA, WTL, KEL and HUMNL.
Sector wise, most volumes were registered in Technology (43.5 million), followed by Cement (25.6 million) and Inv Banks (18.3 million).
Sectors contributing to the performance include Banks (+93 points), E&P (+64 points), Fertilizer (+47 points), Inv Banks (+31 points), O&GMCs (+13 points).
Volumes continued declining trend and went down from 265.9 million shares to 209.4 million shares (+21 percent DoD). Average traded value also declined by 19 percent to reach US$ 41.9 million as against US$ 51.6 million.
Stocks that contributed significantly to the volumes include WTL, HUMNL, KEL, PIAA and BOP, which formed 29 percent of total volumes.
Stocks that contributed positively include MCB (+33 points), UBL (+30 points), DAWH (+30 points), OGDC (+27 points) and ENGRO (+27 points). Stocks that contributed negatively include HUBC (-27 points), COLG (-13 points), DGKC (-10 points), PMPK (-8 points), and FCCL (-7 points).