Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • UBL posts 48 percent increase in after tax profit

    UBL posts 48 percent increase in after tax profit

    KARACHI: United Bank Limited (UBL) has announced 48 percent increase in after tax profit to Rs14.4 billion in nine-month period ended September 30, 2019.

    The net profit of the bank was Rs9.73 billion for the period January – September 2018, according to announcement on Wednesday.

    UBL also announced Rs11.77 earning per shares (EPS) for the period as compared with Rs7.95 EPS in the same period of the last year.

    Net mark-up / interest income of the bank registered increase to Rs45.34 billion during first three quarters of financial year 2019 as compared with Rs41.88 billion in the corresponding quarters of the last year.

    Total mark-up/interest expenses of the bank increased to Rs29.24 billion as against previous year’s Rs28.155 billion.

    UBL allowed provisioning and write-offs to the tune of Rs6.82 billion during the period under review as compared with Rs7.44 billion in the same period of the last year.

    Profit before taxation of the bank was Rs26.3 billion during January – September 2019 as against Rs16.49 billion.

    The bank discharged tax liability to the tune of Rs11.9 billion for nine-month period ended September 2019 as compared with Rs6.76 billion paid in the corresponding period of the last year.

  • Tax officials empowered to recover short payment without notice

    Tax officials empowered to recover short payment without notice

    KARACHI: Tax officials have been authorized to recover short payment of sales tax through freezing bank accounts of taxpayers without serving show cause notice.

    Officials in Federal Board of Revenue (FBR) said that the officers of Inland Revenue had been authorized to make recovery of short payment of sales tax as declared in return of a taxpayer by taking measures including freezing bank account without issuing a show cause notice.

    The officials said that under Section 11A of Sales Tax Act, 1990, the powers of Inland Revenue officers had been explained.

    Section 11A: Short paid amounts recoverable without notice

    Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:

    Provided that no penalty under section 33 of this Act shall be imposed unless a show cause notice is given to such person.

  • Business community demands Pakistan Customs to launch Authorized Economic Operator certification

    Business community demands Pakistan Customs to launch Authorized Economic Operator certification

    KARACHI: The business community has demanded Pakistan Customs of launching Authorized Economic Operators (AEO) certification program, which will enable business and industrial units to become trustworthy member of international supply chain.

    In view of its significance and importance, it is imperative that Pakistan Customs, being member of the World Customs Organizations, should immediately launch the AEO Certification program without further delays to rank among the countries having fully operational AEO program.

    AEO certificate will enable the business and industrial entities to become the trustful member of international supply chains and to comply high security standards.

    This was stated by Muhammad Jawed Bilwani, Focal Person, Authorized Economic Operators’ Stakeholders Group notified by Pakistan Customs & Chairman Pakistan Apparel Forum.

    Exchanging views in the first meeting of Authorized Economic Operators’ Stakeholders Group held on Wednesday at the PHMA House Karachi, he articulated that Pakistan Custom is envisaging a robust taxpayers facilitation program in their supply chain according to International Standards.

    Many countries have successfully introduced such programs under “Authorized Economic Operators (AEOs). Under the anticipated AEO program for Pakistan, eligible businesses will be recognized as credible clients and they will accrue various benefits, nationally and internationally, in accordance with their AEO status. AEO Stakeholders group will seek inputs and recommendations from the business and industrial community of Pakistan to successfully launch the AEO program from Pakistan.

    In a presentation to the AEO Stakeholders’ Group, Saeed Akram, Collector (Customs) briefed that the Pakistan Customs is the member of World Customs Organization which comprise of 182 members divided into six regions and responsible for processing of 98 percent of the international trade.

    The Customs role has been evolved and transformed from the Revenue Collection to Economic Development and Security with focus on Supply Chain.

    One of the pillars of WCO’s Framework of Standards to Secure and Facilitate global trade (SAFE) which is a partnership / cooperation program between customs and trade aiming to secure and facilitate global supply chain security through Mutual Recognition Agreements (MRAs).

    According to the World Customs Organization (WCO), an authorized economic operator (AEO) is a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards.

    Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.

    AEO is a voluntary program wherein any economic actor in the international supply chain having dealing with the Customs can participate. Currently, AEO program is operational in 83 countries while under-developed in 18 countries which includes Pakistan.

    To launch AEO program in Pakistan, the Government has introduced Section 212A of Customs Act, 1969 and also drafted Rules.

    The ECC has also approved summary for introduction of AEO in Pakistan and timeframe for launch of AEO/MRA is communicated to WCO while discussions with Business Community initiated to Finalize Recommendations.

    In another presentation, Sheeraz Ahmed, Additional Collector (Customs) highlighted that Comprehensive AEO Program has been conceived covering all sector directly dealing in international trade, mainly the exporters and importers.

    Proposed Benefits on AEO Certifications are Speedy green channel and high level of facilitation in imports / export consignments, thereby ensuing shorter cargo release time – Priority Placement, Assessment & Examination and Scanning on priority by giving front line of treatment, Facility of Direct Port Delivery (DPD) and/ or Direct Port Entry(DPE): Facility of self -sealing of export goods, Facility of deferred payment of duty/taxes, Automated disbursal of drawback amount within 72 hours of the clearance of export GD, 50 percent reduction in the quantum of required Bank Guarantee,

    Speedy completion of valuation, classification disputes/Investigations – issuance of special rulings, 24/7 clearances on request, if required, at all sea ports and airports, Single point of assistance to AEOs through designated relationship officer in relation to legitimate concerns, Access cards for hassle free entry to Custom Houses, terminals, off-dock terminals and dry ports.

    Benefits under consideration are account-based processing rather than transaction-by-transaction clearance of accounts; Low documentary and data requirements; Choice of location for control/clearance of goods at the premises of the authorized economic operator or another place authorized by customs; Faster clearance at transit points and fewer checks en-route; Prior notification and treatment in case of selection for physical controls; Priority use of non-intrusive inspection techniques when examination is required; Reduction of applicable fees or charges for AEOs; Deferred payment of duties, taxes, fees, and charges or periodic payment of duties/taxes; Tax privileges to be granted by speedier processing of tax refunds, drawback, and other permissions/authorizations; Extended Customs services beyond normal working hours; Priority response to request for rulings from Customs authorities; Eligibility for self-audit or reduced audit programmes etc.

  • New concessional list should be considered under Pakistan, Malaysia FTA

    New concessional list should be considered under Pakistan, Malaysia FTA

    KARACHI: Consul General of Malaysia Khairul Nazran Abd Rahman has said that Malaysia and Pakistan need to agree upon on a new concessional list under the existing Free Trade Agreement (FTA).

    Large number of requests have been received from different segments for addition of numerous items in the FTA list in which Pakistani Basmati rice was also not included hence it was being imported by Malaysia from India and Vietnam.

    Speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI), Malaysian CG said that as Pakistani Basmati rice was not in the FTA list, it was not competitive when compared with other countries exporting this important commodity to Malaysia.

    “Meanwhile, the business communities of both countries must hold regular interactions in order to fully utilize and benefit from the existing FTA which would certainly improve the existing trade ties between the two brotherly countries”, he added.

    General Secretary Businessmen Group & Former President KCCI AQ Khalil, President KCCI Agha Shahab Ahmed Khan, Senior Vice President Arshad Islam, Vice President Shahid Ismail, KCCI Managing Committee members and others also attended the meeting.

    Malaysian Consul General pointed out that the volume of trade improved marginally by 2.5 percent to US$1.47 billion in 2018 as compared to US$1.34 billion in 2017. “Malaysia’s Palm oil is a major product, which alone represents 47 percent of total trade while other traditional products including Pakistani textiles are also being exported to Malaysia. We need to do more and must take advantage of the FTA which was enforced in 2008 and must also focus on non-traditional items as well”, he added.

    He said that Malaysia and Pakistan must not remain confined to improving the political and economic ties only but other areas of strategic importance particularly defense, education and tourism must also get special attention from both sides. “We are now focusing on promoting and cooperating in the tourism sector as our cooperation has remained mostly on trade and investment. The tourism sector, having immense potential, has to be given attention which would prove beneficial for the two nations”, he added.

    Congratulating the newly elected Office Bearers, the Consul General said that KCCI was not a stranger for him as it was his second visit to this Chamber after assuming charge as Consul General in Karachi last year in the month of June 2018. My intention of today’s visit to KCCI is to explore trade and investment opportunities and identify the potential sectors, particularly the non-traditional goods.

    Referring to Malaysian Prime Minister Mahathir Bin Mohamad’s visit to Pakistan and PM Imran Khan’s visit to Malaysia, he said, “Both countries have new governments in place and a lot of discussions have taken place and now we need to see the results. Hence, it is right time for the business communities to focus more on improving trade and investment”, he added.

    Speaking on the occasion, President KCCI Agha Shahab Ahmed Khan said, “Today we are living in the 21st century in which nobody is neither dependent nor independent but everyone of us are inter-dependent. Hence, we all must live in harmony and focus on expanding ties particularly in those sectors where there was a comparative advantage.”

    Commenting on the scenic sites in the northern areas of Pakistan and Malaysia, he said that Pakistanis were keen to visit Malaysia to see its natural beauty but many of them were unaware of the tourism opportunities in Malaysia and same was the case with Malaysians who don’t know much about the mesmerizing landscapes in northern areas of Pakistan. In this regard, both sides will have to make efforts and devise effective strategies to promote the tourism sector.

    To improve the existing trade ties, he opined that Pakistan can exports many of its traditional and non-traditional goods to Malaysia particularly rice, furniture, electric cables, cosmetics, jewelry, food stuff and many other products in which the country has got comparative advantage.

    He further advised the Malaysian CG to arrange visit of a Malaysian delegation to Karachi and after identifying the potential sectors, the Karachi Chamber will also look into the possibility of sending relevant delegations to Malaysia so that the trade and investment ties between the two countries could prosper.

    Agha Shahab also stressed that the existing FTA needs to be revisited and updated with a list of products having good potential for penetrating into the Malaysian market whereas both countries must also look into the possibility of undertaking joint ventures in the Halal food sector.

    He also invited the Malaysian business community to participate in 17th My Karachi – Oasis of Harmony Exhibition scheduled to be organized at the Expo Center from April 17th to April 19th, 2020 which would surely provide a perfect networking platform and help them in identifying the potential products which can be supplied in the Pakistani markets.

  • Stock market gains 198 points in mixed trading

    Stock market gains 198 points in mixed trading

    KARACHI: The stock market gained 198 points on Wednesday in mixed trading sessions.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,281 points as against 34,084 points showing an increase of +198 points.

    Analysts at Arif Habib Limited said that the market made a positive move today with a total increase of 351 points and closed the session at 198 points.

    During the session, UBL announced financial results, however the stock price did not react positively to the results, ending the session a rupee down compared with previous closing.

    Oil & Gas scrips from E&P to OMCs generally fared well, with PPL registering volume of 2.3 million shares. Cement sector saw selling pressure and so did Steel, but managed to close the session in green.

    Technology stocks remained in limelight with traded volumes of 22.9 million shares, followed by Chemical (17.4 million) and Power (14.1 million). Among scrips, KEL registered 11.8 million shares followed by WTL (11.8 million) and UNITY (9.9 million).

    Sectors contributing to the performance include Banks (+49 points), E&P (+46 points), Fertilizer (+36 points), O&GMCs (+30 points) and Food (+19 points).

    Volumes declined slightly from 156.4 million shares to 150.8 million shares (-4 percent DoD). Average traded value also declined by 8 percent to reach US$ 31.3 million as against US$ 34 million.

    Stocks that contributed significantly to the volumes include KEL, WTL, UNITY, LOTCHEM and FCCL, which formed 31 percent of total volumes.

    Stocks that contributed positively include PPL (+40 points), OGDC (+27 points), PSO (+20 points), ENGRO (+19 points) and BAHL (+16 points). Stocks that contributed negatively include UBL (-15 points), HUBC (-13 points), POL (-11 points), MARI (-10 points), and LUCK (-6 points).

  • Rupee gains four paisas on improved economic sentiments

    Rupee gains four paisas on improved economic sentiments

    KARACHI: The Pak Rupee gained four paisas against dollar on Wednesday owing to inflows of export receipts and improved economic sentiments.

    The rupee ended Rs156.02 against dollar from previous day’s closing of Rs156.06 in interbank foreign exchange market.

    Currency dealers said that crackdown launch by tax authorities against exchange companies besides positive response from IMF helped the local currency to gain value.

    The foreign exchange market was initiated in the range of Rs156.05 and Rs156.10. The market recorded day high of Rs156.10 and low of Rs156.01 and closed at Rs156.02.

    The exchange rate in open market was remained unchanged. The buying and selling of dollar was recorded at Rs155.70/Rs156.20, the same previous day’s closing level, in cash ready market.

  • SBP directs banks to verify trade price before approving import, export forms

    SBP directs banks to verify trade price before approving import, export forms

    KARACHI: State Bank of Pakistan (SBP) has directed banks, exchange companies to verify trade prices before approving import or exports forms.

    The central bank issued instructions to the authorized dealers in foreign exchange related to Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing.

    The SBP said that the Authorized Dealers (ADs) shall define clear policies and procedures for price verification, including defining the level of acceptable price variance, escalation procedures and suspicious transaction reporting mechanism when significant differences in prices are identified.

    ii. It shall be the exclusive responsibility of an AD to perform due diligence with respect to various risk factors in a trade transaction. In this regard, ADs shall be specifically required to verify the prices of underlying contracts as declared on EIF/MIF, EFE/MFE, Advance Payment Voucher from reliable sources i.e. chambers of commerce, local business circles, daily newspapers, Internet, historic appraisements, Customs valuation rulings, etc. where prices are available and shall satisfy themselves before approving EIF/MIF, EFE/MFE or disbursing the amount to the exporter as the case may be that the prices declared by their client represent the fair market value of goods.

    The ADs shall institute a mechanism, supported by technology-based solutions, to carry out assessment of prices of underlying contracts on post transaction basis that is after the approval of EIF/MIF, EFE/MFE or disbursing the amount to the exporter, where price checks are not performed at pre-transaction stage, and shall satisfy themselves that the prices declared by their client represent the fair market value of goods.

    This function may be performed by the department other than the front office/centralized trade-processing unit where transaction is taking place. To this end, ADs may assign this function either to their risk management department or compliance department.

    The department to which this function is assigned shall be under obligation to conclude the assessment with thirty days of approving EIF/MIF, EFE/MFE or disbursing the amount to the exporter as the case may be.

    The financial institutions shall require the exporter to submit a copy of underlying sale contract along with Advance Payment Voucher.

    The procedure of price verification/assessment shall be documented by ADs for later review /audit/inspection, the SBP said.

    The significant variance between the prices of goods declared on EIF/MIF, EFE/MFE, Advance Payment Voucher and their fair market value shall serve as one of the prime red flag indicators and all such transactions shall be escalated to the higher management, which shall review the same and consider the option of filing STR with FMU etc. This procedure shall be documented by ADs for later review /audit/inspection.

    The SBP further instructed that Authorized Dealers (ADs) shall ensure compliance of the following instructions while approving EIF/MIF, EFE/MFE:

    a) Full details/exact specification, quality/varieties/sub categories of goods being imported/exported are declared on EIF/MIF, EFE/MFE and declaring the description of goods that is general in nature or represents the generic name of goods should be avoided.

    b) Declaration of unit of measurement such as boxes, cases etc. on EIF/MIF, EFE/MFE, which obscures the actual quantity of goods being imported/exported, shall be avoided. In this respect, unit of measurement, if not required to be declared otherwise, shall be declared in line with relevant Custom Valuation Rulings (if available).

    c) In case, the brand/trade name/trademark of a product is to be declared on EIF/MIF, EFE/MFE, it shall be accompanied by the generic name of such product.

    d) H.S. Code of each product which forms the part of the underlying contract is declared on EIF/MIF, EFE/MFE. Where an H.S. Code includes multiple goods/products, ADs shall ensure that the particulars of each product are written against that H.S. Code.

    e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher. Moreover, it shall be ensured by ADs that in case of advance payment export, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher and name of consignee declared on EFE/MFE is of the same entity from which the advance payment is received.

    ii. The particulars of EIF/MIF, EFE/MFE shall be corroborated with that of Goods Declaration Form, where transaction does not involve a letter of credit, to check the cohesion and in case of significant variation(s), the matter shall be escalated to the higher management, which shall review the same and consider the option of filing STR with FMU etc.

  • Attock Petroleum posts 21 percent decline in after tax profit

    Attock Petroleum posts 21 percent decline in after tax profit

    Attock Petroleum Limited, a leading player in the energy sector, has reported a 21 percent decline in its after-tax profit for the quarter ended September 30, 2019.

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  • Pakistan’s exchange rate reflecting actual economic conditions: IMF

    Pakistan’s exchange rate reflecting actual economic conditions: IMF

    The International Monetary Fund (IMF) affirmed on Wednesday that Pakistan’s exchange rate now better reflects the actual economic conditions of the country.

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  • Open account, advance payments considered as higher risk transactions for trade based money laundering

    Open account, advance payments considered as higher risk transactions for trade based money laundering

    KARACHI: State Bank of Pakistan (SBP) has advised financial institutions dealing foreign exchange to enhance due diligence on higher risk transactions to stop trade based money laundering.

    The SBP on Tuesday issued Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing and said that banks and financial institutions should ensure that high risk transactions in the area of trade business are subject to more extensive due diligence and are escalated, where required, to the higher management.

    ii. In this respect, following transactions may have higher Money Laundering/Terror Financing risks and may be considered for Enhanced Due Diligence (EDD):

    a) Open Account

    b) Advance Payments (Import & Export of Goods)

    c) Import/Export of Services

    d) Import/Export of Free of Cost Goods

    e) Trade transactions with related party

    f) Import of goods that are exempt from import related duties

    g) Import of goods that are subject to over 25% import duties

    h) Export of goods on which export related rebates are allowed by the Government of Pakistan

    i) Where an exporter allows trade discounts to the same importer consistently by the way of deduction of amount of discount from the proceeds of export bills.

    j) Trade transaction of sole proprietorship or partnership concern received by centralized trade processing unit from a different branch of an AD with whom their relationship is not generally associated or frequent switching of branch for trade transactions by such concerns.

    k) Trade transactions with high-risk jurisdictions or jurisdictions with lax AML/CFT regulations and implementations

    l) Outward remittance from personal FCY account of the importer

    m) Unusually relaxed terms for settlement of counter value both for exports as well as imports e.g. no specific timeline for shipment of goods against exports advance payment, extended credit period for payment against import of goods especially between unrelated parties.

    Due weightage shall be given by authorized dealers to the risk rating of the customer while allowing high-risk transactions.

    In this respect, a criteria shall be developed by the ADs whereby transactions falling in high-risk category specifically Advance Payments (Import & Export), where clients have outstanding overdues/poor performance history, shall be escalated to the higher management for taking appropriate decision about the fate of transactions.

    In case of recurrence of non-performance post allowing the transaction, the higher management of financial institutions may subject the customer to enhance/continuous monitoring.

    However, in case of persistent non-performance during the period in which the customer has been subjected to enhance/continuous monitoring, the AD may evaluate the transaction for filing an Suspicious Transaction Report (STR) with Financial Monitoring Unit (FMU) if they have sufficient grounds to form suspicion that the customer is using trade transaction to launder money, finance terrorism etc. ADs, in such circumstance, should also evaluate the risks of continuing relationship with the customer.

    Notwithstanding the above, even if the senior management of ADs on the matter escalated to it does not find sufficient grounds for filing of an STR, they may consider subjecting the customer to enhanced/continuous monitoring.