Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Significant decline in import bill sharply narrows trade deficit by 35 percent in first quarter

    Significant decline in import bill sharply narrows trade deficit by 35 percent in first quarter

    ISLAMABAD: Significant decline in import bill helped to sharply narrow the trade deficit by 35 percent during first quarter of current fiscal year, according to data released Pakistan Bureau of Statistics (PBS) on Friday.

    The trade deficit narrowed by 35 percent to $5.72 billion during July – September 2019 of current fiscal year as compared with deficit of $8.79 billion in the corresponding period of the last fiscal year.

    The total import bill of the country fell by 21 percent to $11.25 billion during first quarter of the current fiscal year as compared with $14.16 billion in the same period of the last fiscal year.

    Meanwhile, the exports have posted 3 percent growth to $5.52 billion during July – September 2019 as compared with $5.37 billion in the same period of the last fiscal year.

  • Ufone, Habib Bank sign agreement for trade financing in Chinese currency

    Ufone, Habib Bank sign agreement for trade financing in Chinese currency

    KARACHI: Pak Telecom Mobile Limited – Ufone and Habib Bank Limited (HBL) have signed a landmark agreement, through which HBL has extended a bilateral Trade Finance in Chinese Yuan (RMB/CNY) for the import of cellular network equipment through Huawei Technologies Co Ltd, a statement said on Friday.

    The Landmark agreement is part of one of the largest RMB/CNY contracts in the history of Pakistan between Ufone and Huawei Technologies Co Ltd., and it would furthermore be a breakthrough in the banking industry of the country.

    The trade deal under this new mode of transaction will set a precedent for different sectors and corporations in both friendly countries—China and Pakistan—which plan to take their working relationship to the next level through this currency swap agreement.

    This transaction would also ease off the pressure of import bills in terms of dollars for Pakistan.

    The business deal being carried out by Ufone, Huawei and HBL will be the first of its kind in the telecom sector, and will also pave the way for various other mobile operators and traders in Pakistan to expand their businesses through this mode of trade finance facility.

    The agreement was signed by Mohammad Nadeem Khan, Chief Financial Officer PTCL & Ufone and Farhan Talib, Head Corporate and Investment Banking, HBL.

    The ceremony was witnessed by Rashid Khan, President and CEO PTCL & Ufone, Muhammad Aurangzeb, President & CEO HBL, Chi Linchun, CEO Huawei Pakistan and Yang Yougui, Regional President Huawei Middle East.

  • Rupee gains 11 paisas on inflows of export receipts

    Rupee gains 11 paisas on inflows of export receipts

    KARACHI: The Pakistani rupee continued its upward trajectory, gaining 11 paisas against the US dollar on Friday, driven by an influx of export receipts. This positive movement saw the rupee closing at Rs156.07 to the dollar in the interbank foreign exchange market, an improvement from the previous day’s closing of Rs156.18.

    (more…)
  • FBR acquires information of motor vehicle purchasers

    FBR acquires information of motor vehicle purchasers

    KARACHI: Federal Board of Revenue (FBR) has asked motor vehicle registration authorities and car manufacturers to provide information of persons, who are registration or purchasing motor vehicles.

    The FBR has advised motor vehicle registration authorities and manufacturers of motor vehicles to provide details of persons whose withholding tax was deducted under Section 231B at the time of motor vehicle registration or purchase of motor vehicles.

    The tax authorities also advised the withholding agents to comply with the changes brought through Finance Act, 2019 under which the submission of withholding statement had been made mandatory twice in a year.

    The FBR asked the motor vehicle registration authority and car manufacturers to provide information in case of both categories i.e. compliant taxpayers or persons not on the Active Taxpayers List (ATL).

    From Tax Year 2020 (July 01, 2019 to June 30, 2020) the persons not appearing on ATL will liable to pay 100 percent higher withholding tax.

    The FBR is acquiring information for broadening of tax base purpose. The tax authorities believed that number of individuals were purchasing cars or registering motor vehicles, who were not on the tax roll or in other case compliant but those were concealing true income.

    Under Section 165 of the Income Tax Ordinance, 2001 the FBR empowered to obtain information from withholding agents.

    While withholding agents are required to provide information of persons making transactions, included:

    (a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or the Tenth Schedule or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

    (b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

    (c) the total amount of tax collected from a person under Division II of this Part 1or Chapter XII or the Tenth Schedule or deducted from payments made to a person under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year; and

    (d) such other particulars as may be prescribed

    Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period.

    Every prescribed person collecting tax under Division II of this Part or Chapter Xll or the Tenth Schedule or deducting tax under Division III of this Part of Chapter Xll or the Tenth Schedule shall furnish statements under sub-section (l) as per the following schedule, namely:-

    (a) in respect of the half-year ending on the 30th June, on or before the 31st day of July; and

    (b) in respect of the half-year ending on the 31st December, on or before the 31st day of January.

  • RTO-III Karachi to examine income of all salary persons of private sector

    RTO-III Karachi to examine income of all salary persons of private sector

    KARACHI: Regional Tax Office (RTO) –III Karachi has been authorized to examine incomes all salary persons in private sector within the jurisdiction of Karachi division.

    The Federal Board of Revenue (FBR) issued revised jurisdiction order for RTO-III Karachi effective from October 03, 2019.

    The Zone-I of the regional tax office will have authority to exercise powers regarding assessment of incomes of all private sector employees falling within the limits of former civil division of Karachi. (All former towns falling under the jurisdiction of RTO-II & RTO-III, Karachi).

    The Zone – I of the RTO also assigned jurisdiction over all classes of cases, persons or classes of persons (corporate and non-corporate) of following sectors other than those specifically assigned to Large Taxpayers Unit (LTU)/LTU-II Karachi, Corporate RTO, Karachi or RTO-II, Karachi or any other zone of RTO-III Karachi whose place of business is situated in the areas falling within the limits of areas falling within the limits of former Bin Qasim Town, Gadap Town, Gulberg Town, Gulshan-e-Iqbal Town, Korangi Town, Landhi Town, Malir Town, New Karachi Town, North Nazimabad Town, including New Nazimabad, Shah Faisal Town and within the limits of Faisal Cantonment, Korangi Cantonment and Malir Cantonment:

    i. Manufacturer, exporter, importer, distributor/wholesaler and retailer of textile and textile products and fabrics including ginning, spinning, sizing, weaving, bleaching, dyeing, printing, calendaring, mercenzing and other allied processing etc, whole names begin with alphabet A t Z.

    ii. Manufacturer, importer, exporter, distributor/wholesaler and retailer of garments, terry towels and other made ups whose names begin with alphabet A to Z.

    iii. Manufacturer, importer, exporter, distributor/wholesaler and retailer of carpets whose names begin with alphabet A to Z.

    iv. Manufacturer, importer, exporter distributor/wholesaler and retailer of surgical goods and sports goods whose names begin with alphabet A to Z.

    v. Manufacturer, importer, exporter distributor/wholesaler and retailer of leather tanneries whose names begin with alphabet A to Z.

  • Ufone, SCO sign bilateral roaming service agreement

    Ufone, SCO sign bilateral roaming service agreement

    ISLAMABAD: Special Communications Organization (SCO), the largest Integrated Telecom Service Provider in Azad Jammu & Kashmir (AJ&K) and Gilgit-Baltistan (GB) and Ufone have signed a Bilateral Roaming Services Agreement at PTCL headquarters, Islamabad.

    The ceremony was attended by Major General Amir Azeem Bajwa (Retired) HI (M), Chairman PTA; Major General Ali Farhan HI (M), Director General SCO; Rashid Khan, President & CEO, PTCL & Ufone and senior officials from both sides.

    With this agreement, Ufone has become the only mobile operator to offer Data service in addition to Voice and SMS services to SCO subscribers in Pakistan and SCO will also offer Roaming Voice & SMS services in AJ&K and GB to Ufone subscribers.

    It is pertinent to note that Ufone and SCO are already in an agreement since 2008, under which, SCO subscribers have been enjoying Voice and SMS Roaming services in Pakistan.

    This development is also seen as stimulating economic activity, as enhanced communication capability improves efficiency and productivity, resulting in cost savings and spurs growth of business.

    “SCO can now proudly claim that it has the most advanced network, providing state-of-the-art mobile services to its valued customers,” said Major General Ali Farhan HI (M), DG SCO.

    “Ufone is a highly innovative company in the field of telecommunications in Pakistan and I am sure that the biggest beneficiaries of this alliance will be the citizens living in Pakistan, AJ&K and GB,” he added.

    “Our strategic alliance is a win-win situation for both partners and even more importantly, for the customers,” said Mr Rashid Khan, President and CEO PTCL & Ufone.

    “This alliance will make sure that resource sharing benefits both organizations and offers superior products and services to the public, improving their quality of life,” he further added.

  • FBR makes mandatory for big retail chains to share real-time sales data from December 01

    FBR makes mandatory for big retail chains to share real-time sales data from December 01

    ISLAMABAD: The big retail chains in the country will share their sales data with the Federal Board of Revenue (FBR) on real-time basis from December 01, 2019.

    In order to implement the decision the FBR issued SRO 1203(I)/2019 on Thursday to make amendments in Sales Tax Rules, 2006.

    The revenue body notified mandatory integration of sales by Tier-I retailers.

    As per notified rules, the FBR said that commencing from December 01, 2019, all Tier-1 retailers shall integrate their retail outlets with FBR’s computerized system for real-time reporting of sale.

    According to the Sales Tax Act, 1990, the Tier-1 retailers have been defined as:

    (a) a retailer operating as a unit of a national or international chain of stores;

    (b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;

    (c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rs600,000;

    (d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers”; and

    (e) a retailer, whose shop measures one thousand square feet in area or more.

    The FBR said that the sales of finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leathers would be entitled to reduced sales tax of 14 percent if sales made through integrated outlets.

    The FBR, however, warned that the integrated suppliers who were found to have tampered with the system would not be entitled to claim input adjustment and also not be eligible for reduced sales tax rate.

    Further, the FBR would initiate legal proceedings against such activities besides imposing penalty and recovery of tax.

    The FBR also amended the rules regarding sales made through social media portals, and said that such sales would have same treatment of sales tax in case reported through point of sale in real-time manner.

  • Financial institutions report 219 suspicious transactions since AML/CFT regulatory framework launch: SECP

    Financial institutions report 219 suspicious transactions since AML/CFT regulatory framework launch: SECP

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said around 219 Suspicious Transactions Reports (STRs) have been generated by financial institutions since launch of its Anti-Money Laundering (AML)/Counter Financing Terrorism (CFT) regulatory framework.

    The SECP in a statement on Thursday said that its risk based approach for effective implementation of AML/CFT regulatory framework ensued significant improvement in filing of Suspicious Transactions Reports (STR) with FMU.

    To align itself with FATF’s standards (40 recommendations), SECP developed a single set of regulations namely SECP AML/CFT Regulations in June 2018.

    SECP also developed a comprehensive guideline to help regulated persons in creating an effective AML/CFT risk assessment and compliance framework.

    Since the promulgation of consolidated AML/CFT regulations, the financial institutions have generated a total of 219 STRs, as compared to only 13 in the last eight years.

    The SECP conducted 167 inspections focusing on AML/CFT compliance in the cases of 72 Securities Brokers, 27 NBFCs, 13 Insurance Companies and 55 High Risk NPOs.

    Significant penalties have been imposed for non-compliances with the said Regulations.

    Financial Institutions have undertaken remedial measures to ensure effective compliance with the said Regulations. Automated screening software has been deployed by many Financial Institutions to screen the proscribed persons.

    The regulated entities now also have access to GoAML system of the FMU for online filing of STR.

    The SECP successfully made transition from one-size fits all to a risk based approach to implement a consolidated AML/CFT regulatory framework in its regulated financial sector comprising of stock and commodity brokers, NBFCs, Modarabas and the Insurers/Takaful operators.

    Further to effectively identify assess and understand the ML/TF risks that Pakistan faces, a National ML/ TF Risk Assessment was undertaken in 2019 to assess ML/TF vulnerabilities that are inherent within the financial sector including banking, NBFC, brokers and insurance.

    NRA aimed to put in place actions and control measures to mitigate those risks. FMU led the task in collaboration with stakeholders including ministries, law enforcement agencies, SBP and SECP.

    The risk assessment and understanding enabled SECP and the regulated entities to implement the much needed control mechanism to check potential abuse by money launderers and terrorist financiers.

    Subsequent to NRA, SECP embarked on a comprehensive awareness raising program to develop the risk understanding and AML Obligations of the regulated sectors and shared the NRA 2019 with its regulated sectors.

    SECP’s continuous efforts have resulted in improvement in compliance level of the regulated entities and effective control measures are now implemented to combat money laundering and terrorist financing.

    The SECP has also revamped its overall risk based supervisory mechanism and works closely with national stakeholder’s inter-alia FMU, SBP etc. for mutual peer review and evaluation of SECP’s regulated financial sector.

    Eversince the Commission has adopted a risk-based approach to supervision and monitoring in the area of AML/CFT, it has completed sector risk assessment and enhanced risk based supervisory activities encompassing all high-risk entities and is spreading the scope of supervision to next tier moderate risk entities.

    Remedial actions and dissuasive sanctions on non-compliance are now part of it’s enforcement regime.

    Recently, the Asia-Pacific Group of Money Laundering (APG) has adopted Pakistan’s Mutual Evaluation Report (MER) in its 22nd Annual Meeting held in Canberra, Australia from 18-23 August 2019, which has now been uploaded on APG’s website as per procedure.

    It is pertinent to mention that Pakistan’s Mutual Evaluation Report (MER) provides a summary of the AML/CFT measures in place in Pakistan as of October 2018.

    A large component of the above reforms were implemented after October 2018 and are not reflected in the MER published now by APG.

  • Pakistan’s foreign exchange reserves at $14.993 billion

    Pakistan’s foreign exchange reserves at $14.993 billion

    KARACHI: The total liquid foreign exchange reserves of Pakistan declined nominally by $11 million to $14.993 billion by week ended October 04, 2019 as compared with $15.003 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by SBP increased by $16 million to $7.757 billion by week ended October 04, 2019 as compared with $7.771 billion a week ago.

    The foreign exchange reserves held by commercial banks declined by 27 million to $7.235 billion as compared with $7.262 billion a week ago.

  • Stock market gains over 500 points on improved trading activities

    Stock market gains over 500 points on improved trading activities

    KARACHI: The stock market gained over 500 points on Thursday on across the board trading activity witnessed in the market.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,028 points as against 33,524 points showing an increase of 504 points.
    Analysts at Arif Habib Limited said that the market rebounded today with a jump of 500 points that took the index above 34,000 level, last seen in early July 2019.

    Activity was observed across the board, but mainly contributed by Banking and Cement sectors. Expectation of further increase in Cement price / bag gave way to optimism in Cements, while improvement in fixed income portfolio for the Banks also engaged Investors.

    Volumes improved over the day to 261 million shares and were mainly contributed by Chemical sector, which performed consecutively to reach a turnover of 49.4 million shares, followed by Cement (30.3 million) and Banks (23.9 million). Among scrips, LOTCHEM realized volume of 26.5 million shares, followed by PIBTL (17.2 million) and KEL (16.4 million).

    Sectors contributing to the performance include Banks (+115 points), E&P (+74 points), Cement (+58 points), Power (+40 points) and Tobacco (+31 points).

    Volumes increased from 237.7 million shares to 261.1 million shares (+10 percent DoD). Average traded value also increased by 32 percent to reach US$ 54 million as against U$ 40.9 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, PIBTL, KEL, UNITY and EPCL, which formed 33 percent of total volumes.

    Stocks that contributed positively include LUCK (+41 points), UBL (+32 points), HBL (+31 points), PAKT (+31 points) and HUBC (+30 points). Stocks that contributed negatively include BAFL (-13 points), EFERT (-7 points), JLICL (-5 points), PPL (-3 points), and IGIHL (-2 points).