Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Hafeez Shaikh directs FBR to simplify Form-H within a week, expedite sales tax refund payment

    Hafeez Shaikh directs FBR to simplify Form-H within a week, expedite sales tax refund payment

    ISLAMABAD: Dr. Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue, on Tuesday directed Federal Board of Revenue (FBR) to simplify form-H within a week and expedite payment of sales tax refunds.

    He gave the instruction during a meeting with the office-bearers and members of All Pakistan Textile Mills Association (APTMA).

    Adviser to the Prime Minister on Institutional Reforms & Austerity Dr Ishrat Hussain, Adviser to Prime Minister on Commerce, Textile, Industry and Production Abdul Razak Dawood, Chairman Task Force on Textile Ali Habib, Chairman FBR Syed Shabbar Zaidi, former finance minister Shaukat Tareen and Secretary Finance Naveed Kamran Baloch were also present among others.

    Dr Abdul Hafeez Shaikh told the exporters that the government was not at all interested in keeping their money held up for any length of time and the government was willing to listen to and accommodate any solution or recommendations from the exporters to simplify the H-Form and ensure a prompt payment of sales tax refunds to them.

    He also directed the FBR to expedite the payment of nearly Rs 10 billion worth of customs duty drawback to the exporters.

    FBR Chairman Shabbar Zaidi told the meeting that FBR had so far received claims for sales tax refunds to the tune of Rs 10.14 billion pertaining to the period from July to October 2019 and cases amounting to Rs 8.02 billion had already been processed for payment out of which 1604 cases has been accepted for payment which would be made at the earliest.

    Earlier, the APTMA leaders and members told the Adviser they were happy and satisfied with the documentation drive of the government and wanted to process their claims for sales tax refunds through the newly-introduced Form-H.

    They said they had formulated their recommendations to further simplify the Form-H in view of certain problems being faced by them in filling out the form.

  • Pakistan to get Rs38bn from UK agency in Malik Riaz case

    Pakistan to get Rs38bn from UK agency in Malik Riaz case

    KARACHI: Pakistan will get around Rs38 billion (£190 million) after National Crime Agency (NCA) of the United Kingdom agreed settlement after frozen funds investigation into a case of Malik Riaz Hussain.

    According to a press release issued on Tuesday, the settlement includes a UK property valued at approximately £50 million.

    The National Crime Agency has agreed a settlement figure with a family that owns large property developments in Pakistan and elsewhere.

    The £190 million settlement is the result of an investigation by the NCA into Malik Riaz Hussain, a Pakistani national, whose business is one of the biggest private sector employers in Pakistan.

    In August 2019 eight account freezing orders were secured at Westminster Magistrates’ Court in connection with funds totalling around £120 million.

    These followed an earlier freezing order in December 2018 linked to the same investigation for £20 million. All of the account freezing orders relate to money held in UK bank accounts.

    The NCA has accepted a settlement offer in region of £190 million which includes a UK property, 1 Hyde Park Place, London, W2 2LH, valued at approximately £50 million and all of the funds in the frozen accounts.

    The assets will be returned to the State of Pakistan, the statement said.

  • SBP welcomes Moody’s stable outlook on Pakistan

    SBP welcomes Moody’s stable outlook on Pakistan

    KARACHI: State Bank of Pakistan (SBP) on Tuesday welcomed Moody’s change in outlook on Pakistan from negative to stable.

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  • Stock market ends down by 389 points on profit taking

    Stock market ends down by 389 points on profit taking

    KARACHI: The stock market ended down by 389 points on Tuesday owing to profit taking after the market witnessed massive gains during past days.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,735 points as against 40,124 points showing a decline of 389 points.

    Analysts at Arif Habib Limited said that the market finally took some correction today when the index slid by around 400 points and closed the session at -389 points.

    Selling pressure was mainly observed in Banks, but was otherwise felt in Autos, E&P, Steel and Cement sector as well. Refinery sector performed well with ATRL and NRL hitting upper circuits.

    The main idea behind selling appeared profit booking, where the index crossed psychological barrier of 40,000.

    Cement sector led the trading volumes with 62 million shares, followed by Technology (51.2 million) and Power (50.1 million).

    Among scrips, KEL realized 42.8 million shares I trading volume, followed by TRG (25.3 million) and BOP (19.1 million).

    Sectors contributing to the performance include Banks (-116 points), Cement (-80ps), Fertilizer (-67 points), O&GMCs (-21 points) and Chemical (-21 points).

    Volumes declined slightly from 557.4mn shares to 448.5 million shares (-20 percent DoD). Average traded value also declined by 12 percent to reach US$ 93 million as against 106.1 million.

    Stocks that contributed significantly to the volumes include KEL, TRG, BOP, MLCF and FFL, which formed 27 percent of total volumes.

    Stocks that contributed positively include MCB (+27 points), NESTLE (+16 points), SEARL (+15 points), PKGS (+9 points) and EFERT (+9 points). Stocks that contributed negatively include ENGRO (-59 points), UBL (-40 points), LUCK (-37 points), BAHL (-28 points), and SNGP (-21 points).

  • Rupee gains 10 paisas on inflows of export receipts

    Rupee gains 10 paisas on inflows of export receipts

    KARACHI: The Pak Rupee gained 10 paisas against dollar on Tuesday owing to inflows of exports receipts and workers’ remittances, dealers said.

    The rupee ended at Rs155.19 to the dollar from previous day’s closing of Rs155.29 in interbank foreign exchange market.

    Currency dealers said that the inflows in shape of export receipts and workers’ remittances helped the rupee to appreciate against dollar.

    They said that the sentiments were positive in the market owing to improved rating of Pakistan’s economy by Moody’s. Besides, the numbers also showed reduction in trade deficit for the first five months.

    The foreign exchange market was opened in the range of Rs155.25 and Rs155.30. The market recorded day high of Rs155.25 and low of Rs155.18 and closed at Rs155.19.

    The exchange rate in open market also witnessed appreciation in rupee value. The buying and selling of dollar was recorded at Rs155.20/Rs155.40 from previous day’s closing of Rs155.40/Rs155.70 in cash ready market.

  • OICCI releases key findings of IPR survey 2019

    OICCI releases key findings of IPR survey 2019

    KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) released findings from its 2019 Intellectual Property Rights (IPR) Survey on Tuesday, which shed light on the evolving landscape of intellectual property protection in Pakistan.

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  • Rupee gains four paisas in early trade

    Rupee gains four paisas in early trade

    KARACHI: The Pak Rupee gained four paisas against dollar in early trade on Tuesday owing to improved economic conditions.

    The dollar is being traded at Rs155.25 to the dollar in interbank foreign exchange market.

    The rupee was at Rs155.29 to the dollar in last day closing.

    Currency experts said that latest credit rating by Moody’s to upgrade Pakistan’s economy to positive from negative improved the sentiments of investors.

    The rupee faced massive depreciation against dollar and other foreign currency during past couple of years. However, for the past many days the rupee was remained stable.

    The stability in rupee came after significant decline in import bill and narrowed trade deficit.

    The shrinking trade deficit also helped the country to reduce the current account deficit.

  • FBR chairman warns non-compliant immovable property, motor vehicle owners of penal action

    FBR chairman warns non-compliant immovable property, motor vehicle owners of penal action

    ISLAMABAD: Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) has warned of taking penal action against non-compliant persons own immovable properties and motor vehicles.

    The chairman in a tweet message on Monday urged taxpayers to avail extension in income tax return filing date up to December 16, 2019.

    He said that every person owning a car above 1000CC and house measuring 500 square yards or above is required to file income tax return.

    The FBR on November 29, 2019 granted third extension in date for filing income tax returns for tax year 2019.

    Under Section 114 of Income Tax Ordinance, 2001 following classes of persons and companies are required to file annual income tax returns:

    114. Return of income.

    (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–

    (a) every company;

    (ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year;or

    (ac) any non-profit organization as defined in clause (36) of section 2;

    (ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

    (b) any person not covered by clause (a), (ab), (ac) or (ad) who,—

    (i) has been charged to tax in respect of any of the two preceding tax years;

    (ii) claims a loss carried forward under this Ordinance for a tax year;

    (iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    (iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

    (v) owns a flat having covered area of two thousand square feet or more located in a rating area;

    (vi) owns a motor vehicle having engine capacity above 1000 CC;

    (vii) has obtained National Tax Number; or

    (viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

    (ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or

    (x) every resident person being an individual required to file foreign income and assets statement under section 116A.

    (1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

  • Salary income to include all allowances for tax determination

    Salary income to include all allowances for tax determination

    KARACHI: Federal Board of Revenue (FBR) has said that for determination of tax the salary income shall include the value of all perquisites, allowances and benefits received by employees.

    FBR officials said on Tuesday that the salaried persons should include all such income while filing their annual income tax returns, if their employers had not deducted tax on such prerequisites.

    For the purposes of computing the income chargeable to tax under the head ‘salary’, the value of all perquisites, allowances and benefits provided by the employer to the employee shall be included in the said income.

    The value of accommodation provided by an employer to the employee shall be taken equal to the amount that would have been paid by the employer in case such accommodation was not provided.

    Provided that the value taken for this purpose shall, in any case, not be less than forty five percent of the minimum of the time scale of the basic salary or the basic salary where there is no time scale.

    Provided further that where House Rent Allowance is admissible at the rate of thirty percent, the value taken for the purpose of this rule shall be an amount not less than thirty percent of minimum of the time scale of basic salary or the basic salary where there is no time scale.]

    The value of conveyance provided by the employer to the employee shall be taken equal to an amount as below:- (i)

    Partly for personal and partly for official use

    The tax rate shall be five percent of:

    (a) the cost to the employer for acquiring the motor vehicle; or,

    (b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer;

    For personal use only

    The tax rate shall be 10 percent of:

    (a) the cost to the employer for acquiring the motor vehicle; or,

    (b) the fair market value of the motor vehicle at the commencement of the lease, if the motor vehicle is taken on lease by the employer; and

    For the purpose of this part, “employee” includes a director of a company.

  • Stock market gains sharply on Moody’s positive rating

    Stock market gains sharply on Moody’s positive rating

    KARACHI: The stock exchange has registered significant gain of 837 points on Monday on upgrade of credit rating of Pakistan to stable from negative.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,124 points as against 39,287 points showing an increase of 837 points.

    Analysts at Arif Habib Limited said that the market finally crossed 40,000 level today, which was last seen in February 2019.

    Trading volumes also increased significantly to 557 million shares. International Ratings Agency, Moody’s has reportedly upgraded Pakistan’s outlook from Negative to Stable and affirmed B3 rating.

    This further gave confidence to investors carrying the bull run witnessed from 36,000 level. Banking sector continued upbeat performance on the bourse with volumes crossing 110 million shares, followed by Cement (64.7 million) and Power (47 million). Among scrips, BOP led the volumes with 74.9 million shares, followed by KEL (40.8 million) and UNITY (37.7 million).

    Sectors contributing to the performance include Banks (+516 points), Power (+73 points), O&GMCs (+53 points), Cement (+52 points), Textile (+36 points).

    Volumes increased significantly from 431.8 million shares to 557.3 million shares (+29 percent DoD). Average traded value also increased by 14 percent to reach US$ 106.1 million as against US$ 93.2 million.

    Stocks that contributed significantly to the volumes include BOP, KEL, UNITY, FFL and PAEL, which formed 34 percent of total volumes.

    Stocks that contributed positively include HBL (+119 points), MCB (+92 points), UBL (+89 points), BAHL (+59 points) and HUBC (+51 points). Stocks that contributed negatively include OGDC (-49 points), PPL (-24 points), POL (-19 points), MTL (-8 points), and COLG (-7 points).