Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SECP, universities sign MoU to promote financial literacy

    SECP, universities sign MoU to promote financial literacy

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has signed Memorandums of Understanding (MOU) with five leading universities to promote financial literacy among youths.

    SECP’s Commissioner Investor Education Department, Shaukat Hussain inked the MoUs, said a statement on Tuesday.

    While universities were represented by their respective Vice Chancellors, Registrars and Directors.

    These HEC recognized universities included University of Balochistan, Mehran University of Engineering and Technology Jamshoro, University of Wah, Forman Christian University Lahore and University of Malakand. Including these five MOUs, SECP’s total number of active MOUs with various institutions under its investor education program ‘Jamapunji’ reached 51, giving it leverage of an ever increasing network of partners for spreading investor awareness.

    Talking at the occasion, Shaukat Hussain emphasized on the importance of collaborative efforts between the regulator and the educational sector to enable a more aware and responsible financial ecosystem in Pakistan.

    He mentioned SECP’s efforts leading to 28 places jump in the World Bank’s Ease of Doing Business Index, making Pakistan among the top 10 countries with the most improved business climate.

    He lauded each of these universities for their established Offices of Research, Innovation and Commercialization (ORICs), which encourage and facilitate aspiring student entrepreneurs.

    The Commissioner apprised participants of SECP’s dedicated Startup Portal and ongoing collaboration with various National Incubation Centers across Pakistan.

    He informed participants that SECP is member of HEC’s National Curriculum Revision Committees (NCRC) and providing due input in improving ‘ Economics’ and ‘ Business Administration’ tertiary level curricula.

    He was of the view that a curricula with components of capital markets, insurance sector and basics of financial literacy would help in producing astute entrepreneurs.

    The representatives appreciated SECP’s efforts for cultivating financial literacy.

    Under the MoU, SECP will be holding regular seminars at universities on a continuing basis to impart knowledge to students on the basics of savings, financial planning, investing and capital markets.

    Visiting university delegates committed to extending their full support through their vast network of colleges and campuses, radio channels, faculty resources, infrastructure and premises, information exchange etc., to make meaningful impact hand in hand with SECP.

  • SBP issues instructions on foreign currency loan by private sector

    SBP issues instructions on foreign currency loan by private sector

    KARACHI: The State Bank of Pakistan (SBP) on Tuesday issued instruction to banks and exchange companies related to foreign currency loan by private sector.

    A circular issued by the central bank said that the chapter 19 of Foreign Exchange Manual 2019 contained that it is required to register all foreign currency (FCY) loans, above USD one (1) million, with Exchange Policy Department, State Bank of Pakistan.

    In this regard, the SBP decided that all FCY loans will be registered by the banks and exchange companies irrespective of the amount. ADs will be responsible to ensure that FCY loans registered by them, are in compliance with all the parameters given against each type of FCY loan, in Chapter 19 of FEM 2019. However, prior permission of SBP will continue to be required for raising following FCY Loans:

    Private sector FCY loans mobilized through securitized instruments, issuance of bonds and financing under Islamic arrangements.

    Long term FCY borrowing by ADs.

    FCY borrowing by other Financial Institutions i.e. NBFIs, DFIs, PSOs, PSPs, Leasing Companies, House Building Finance Companies & Insurance Companies.

    The SBP said that authorized dealers shall also ensure to have independent assessment of each FCY loan proposal/ transaction from money laundering/ terrorism financing risk and foreign exchange risk perspective, by their Compliance or Risk Management Department, prior to its registration. For this purpose, ADs shall conduct appropriate due diligence of the proposal including particulars of lender and shall determine the ultimate beneficial ownership, if it is not a Financial Institution.

    In case, the lending entity is controlled by residents, ADs shall ensure that their investment abroad is in compliance with foreign exchange regulations. Further, ADs shall conduct annual focused Internal Audit of FCY Loan Registration function.

    Further, the minimum tenor of loans raised as PSBA for working capital under Para 7(iii) and FSBA for liquidity management purposes under Para 9(iii) of Chapter 19 of FEM 2019 has been reduced to one month.

    For reporting these foreign private loans (FPL) data on Data Acquisition Portal (DAP), all ADs are required to get Loan Registration Number (LRN) of each loan from Statistics and Data Warehouse Department by 5th of the following month by providing information along with repayment schedule.

    All other terms, conditions and instructions in the matter shall remain unchanged. Accordingly, Chapter 19 of the FEM 2019 has been revised and is attached herewith. ADs are advised to bring the above contents to the notice of all their constituents and ensure meticulous compliance.

  • Foreign investment witnesses massive growth to $2bn in five months

    Foreign investment witnesses massive growth to $2bn in five months

    KARACHI: The inflows of foreign investment registered unprecedented growth to $2 billion during first five months (July – November) of 2019/2020 owing to significant investment in debt securities.

    According to data of foreign investment in Pakistan by State Bank of Pakistan (SBP) on Tuesday, the total investment increased to $2 billion during first five months of current fiscal year as compared with $146.7 million in the same period of the last fiscal year.

    The total foreign private investment registered 493 percent growth to $869.7 million during the period under review as compared with $146.7 million in the same period of the last fiscal year.

    The major component under this head i.e. foreign direct investment grew by 78.1 percent to $850 million during July – November 2019/2020 as compared with $477.3 million in the same period of the last fiscal year.

    The portfolio investment in the equity market registered 106 percent growth to $19.5 million during first five months of current fiscal year as compared with outflow of $330.6 million in the corresponding months of the last fiscal year.

    The debt securities witnessed substantial investment of $1.136 billion during first five months of current fiscal year as compared with nominal amount in the corresponding period of the last fiscal year.

  • Equity market makes gains amid court decision, gas tariff hike

    Equity market makes gains amid court decision, gas tariff hike

    KARACHI: The equity market gained 124 points on Tuesday amid decisions of the apex court and repots of gas tariff hike.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSC) closed at 41,769 points as against 41,645 points showing an increase of 124 points.

    Analysts at Arif Habib Limited said that the market saw wide moves today with an initial increase of 411 points and then sustaining loss of -620 points (a drop of almost 1000 points), which was first caused by gas tariff hike proposed by OGRA followed by Court’s decision against Pervez Musharaf that dented the investor sentiment.

    E&P stocks rallied despite negative triggers and both OGDC and PPL traded on upper circuits. Banking sector followed suit and showed price gains.

    Among volume leaders, O&GMC sector led the table with 71.4 million shares, followed by Food (43.5 million) and Cement (42 million). Scrip wise activity shows FFL on top with 40.5 million shares, followed by HASCOLR1 (35.6 million) and UNITY (26.2 million).

    Sectors contributing to the performance include E&P (+226 points), Banks (+100 points), Inv Banks (+50 points), Power (-45 points), Tobacco (-38 points), Cement (-36 points), Fertilizer (-24 points), Textile (-20 points).

    Volumes increased further from 358.1 million shares to 412.3 million shares (+15 percent DOD). Average traded value also increased by 26 percent to reach US$ 113.6 million as against US$ 90.3 million.

    Stocks that contributed significantly to the volumes include FFL, HASCOLR1, UNITY, JSCL and TRG, which formed 34 percent of total volumes.

    Stocks that contributed positively include PPL (+102 points), OGDC (+100 points), HBL (+81 points), DAWH (+53 points) and ENGRO (+36 points). Stocks that contributed negatively include FFC (-48 points), PAKT (-37 points), HUBC (-37 points), PSO (-21 points), and LUCK (-21 points).

  • Rupee recovers six paisas on inflows of export receipts

    Rupee recovers six paisas on inflows of export receipts

    KARACHI: The Pak Rupee recovered six paisas against dollar on Tuesday owing to inflows of exports and remittances, dealers said.

    The rupee ended Rs154.95 against dollar from previous day’s closing of Rs155.01 in interbank foreign exchange market.

    The dealers said that the rupee was under pressure earlier in the day due to demand for import and corporate payments. However, the rupee managed to recover on inflows of exports and remittances.

    The foreign currency market was initiated in the range of Rs155.00 and Rs155.05. The market recorded day high of Rs155.05 and low of Rs154.95 and closed at Rs154.95.

    The exchange rate in open marked witnessed no change in rupee value. The buying and selling of dollar was recorded at Rs154.40/Rs154.70, same as the previous day’s closing, in cash ready market.

  • SRB suspends sales tax registration of Pak Tractors

    SRB suspends sales tax registration of Pak Tractors

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s Pak Tractors for defaulting tax payment and failure to comply with return filing.

    In a notice for suspension of registration, the SRB said that M/s. Pak Tractors failed to make the payment of Sindh Sales Tax on Service to the tune of Rs3.45 million for the period of February 2016 to October 2019.

    Similarly, the company also failed to file monthly sales tax returns for the period of February 2016 to October 2019.

    The provincial tax authority directed the company to take remedial actions by December 20, 2019 in order to revoke the suspension.

    In case of non-satisfactory response or failure to take remedial measures as suggested on or above before December 20, 2019, the case would be further proceeded for cancellation of the registration, the SRB said.

  • Amnesty declarants can pay tax at 20pc default surcharge by Dec 31

    Amnesty declarants can pay tax at 20pc default surcharge by Dec 31

    KARACHI: Persons / companies can avail amnesty scheme 2019 by paying 20 percent default surcharge by December 31, 2019 subject to declaration filed by due date.

    Officials at Federal Board of Revenue (FBR) said that the scheme was promulgated through presidential ordinance on May 14, 2019 to allow the non-documented economy’s inclusion in the taxation system and serve the purpose of economic revival and growth by encouraging a tax compliant economy.

    The amnesty was granted till on or before June 30, 2019 for a declaration only in respect of any –

    (a) undisclosed assets, held in Pakistan and abroad, acquired up to June 30, 2018;

    (b) undisclosed sales made up to June 30, 2018;

    (c) undisclosed expenditure incurred up to June 30, 2018; or

    (d) benami assets acquired or held on or before the date of declaration.

    As per the time of payment, the scheme allowed the due date for payment of tax on or before June 30, 2019. However after the due date, the tax shall be paid on or before June 30, 2020 along with default surcharges.

    If person fails to pay tax and default surcharge, the declaration made would be void and would be deemed to have never been made under the scheme.

    The rate of tax for the amnesty scheme was:

    01. All assets except domestic immovable properties at 4 percent

    02. Domestic immovable properties at 1.5 percent

    03. Foreign liquid assets not repatriated at 6 percent

    04. Unexplained expenditure at 4 percent

    05. Undisclosed sales at 2 percent.

    The rate of default surcharge under the scheme has been set to increase by a default surcharge by amount percentage as specified following:

    01. If the tax is paid after the June 30, 2019 and on or before September 30, 2019, the rate of default surcharge shall be 10 percent of the tax amount.

    02. If the tax is paid after September 30, 2019 and on or before December 31, 2019, the rate of default surcharge shall be 20 percent of the tax amount.

    03. If the tax is paid after December 31, 2019 and on or before March 31, 2020, the rate of default surcharge shall be 30 percent of the tax amount.

    04. If the tax is paid after March 31, 2020 and on or before June 30, 2020, the rate of default surcharge shall be 40 percent of the tax amount.

  • Procedure to get registered as informer with tax authority

    Procedure to get registered as informer with tax authority

    ISLAMABAD: The income tax rules has described the procedure for a person to get registered as an informer with Federal Board of Revenue (FBR) in order to provide information of tax evasion and get reward as per law.

    The tax officials said that Income Tax Rules, 2002 has explained the criteria for a person to become informer.

    According to the rules, a person, other than a lunatic or idiot, may be registered as informer, if he fulfills the criteria of whistleblower as defined in the tax laws.

    A registered informer shall be liable to de-registration on such condition to be recorded in writing and as may be deemed fit by Chief Commissioner, member or Director General, as the case may be.

    Registration of informer

    (1) Subject to section 227B of the Income Tax Ordinance 2001 (XLIX of 2001), section 72D of the Sales Tax Act, 1990 and section 42D of the Federal Excise Act, 2005, as the case may be, any person desirous of getting himself registered as an informer may make an application to the Chief Commissioner for registration under this rule.

    (2) The application under sun-rule (1) shall be in the prescribed form and shall be verified in the prescribed manner.

    (3) The application shall be accompanied by the following documents, namely.-

    (a) copy of the Computerized National Identity Card of the applicant;

    (b) copy of national tax number (NTN) certificate; and

    (c) a duly sworn in affidavit stating therein that the information being provided is correct and nothing has been concealed there from and that in case any incorrect information is provided or any information is concealed he shall be liable to penal action under the laws for the time being in force.

    Submission of information and further action thereupon

    (1) An informer shall submit any information regarding concealment or evasion of tax leading to detection or collection of taxes, fraud, corruption or misconduct that is in his possession to the Chief Commissioner giving precise details of the alleged act along with all supporting evidences that are in his possession:

    Provided that no information shall be entertained unless it gives precise details of the alleged act and is accompanied with the supporting evidences.

    (2) On receipt of the information, the Chief Commissioner shall scrutinize the information and forward it to the concerned Commissioner.

    (3) On receipt of the information from the Chief Commissioner, the concerned Commissioner shall conduct such further enquiry as he may deem fit and submit his report to the Chief Commissioner.

    (4) On completion of the enquiry, the concerned Commissioner shall take such further action as may be required under the tax laws or any other law for the time being in force, as may be necessary on the basis of the facts of the case, and furnish his report to the Chief Commissioner.

    (5) Notwithstanding anything contained in these rules, an informer, who −

    (a) has knowingly provided false information under these rules; or

    (b) has provided the information under these rules with the intention to intimidate or blackmail a person, or to bring him into disrepute, or to otherwise cause him financial loss, shall be liable to punishment and fine under the tax laws and other laws for the time being in force.

  • FBR grants fourth extension to file returns for tax year 2019

    FBR grants fourth extension to file returns for tax year 2019

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday granted fourth extension for filing annual income tax returns for tax year 2019 up to December 31, 2019.

    The FBR issued Income Tax Circular No. 17/2019, to extend the date of filing of income tax returns/statements for tax year 2019.

    The date of filing of total income/statements of final taxation for individuals and associations of persons for the tax year 2019 which were due on September 30, 2019 and extended up to December 16, 2019 has been further extended up to December 31, 2019.

    The FBR further said that the date of filing of total income / statements of final taxation for companies for the tax year 2019, which were due on September 30, 2019 and extended up to December 16, 2019, in respect of those companies who have paid ninety five percent of the admitted tax liability on or before September 30, 2019, extended up to December 31, 2019.

  • Border markets, warehouses to be established to contain smuggling: Member Customs

    Border markets, warehouses to be established to contain smuggling: Member Customs

    KARACHI: Pakistan Customs to set up border markets and border warehouses all border crossing of the country to contain smuggling, a top official of Pakistan Customs said.

    A statement released by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday quoted Jawwad Agha, Member Customs (Operations) as saying that on the instructions of the Prime Minister Imran Khan is being prepared under which border markets and border warehouse would be established at all border crossing of the country to contain the smuggling.

    Jawwad Agha in response to the FPCCI president suggestion regarding restoration of 20 days period for clearance of imported or exported goods from 15 days said that the period was reduced to 15 days due to avoid port terminal congestion.

    However, in case of default particularly for the LCL he agreed to consider downward revision of heavy penalty which at present Rs. 5000/- per day. Regarding reduction in utilization period from 24 monthsof input acquired for manufacture and export of output goods under DTRE, he informed that the time was reduced to boost the manufacturing and exports of goods and advised the importers to complete the cycle of manufacturing of goods within the stipulated time.

    In response to a suggestion for data exchange between Pakistani and Chinese customs agencies to curb under-invoicing, the Member Customs (Operations), FBR informed that during the Prime Minister’s visit to China the agreement has been signed and would be initiated soon.

    Engr. Daroo Khan Achakzai, FPCCI President in his recommendations said that in order to facilitate the exports, the government should introduce a new scheme for imports-cum-exports of packing material whereby a notified percentage of inputs may be allowed to be imported at zero rate duties against FOB value of exports of Previous year with flexibility to import any product among the notified list in any quantity within the overall entitlement of the exporter.

    Similarly Garment and Home Textile industry be facilitated by allowing duty free import of Accessories up to 10 percent of last year export performance, which should be added automatically in WeBOC of Manufacturer Cum Exporter ID after closing of 30th June every year on the basis of record available in WeBoc.

    Exporter should be allowed to use it in exports without the condition of mentioning these goods in Export goods declaration.

    However, if an Exporter is required to imports accessories/packing material in excess of 10% then he may use (SRO-492), (SRO 327-Export oriented unit) and (SRO 450-Manufacturing Bond). New Exporter may also use SRO 492(I)/2009 dated June 13, 2009 in first year to make their performance.