Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SECP proposes mandatory filing of monthly statements for securities brokers

    SECP proposes mandatory filing of monthly statements for securities brokers

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) proposed to make it mandatory for securities brokers to file monthly statements of net capital balance and liquid capital.

    The SECP issued draft amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016 issued on Monday. The regulator invited suggestions from the stakeholders within 14 days of draft amendments dated September 25, 2019.

    The SECP proposed amendment in regulation 6, in place of sub-regulation (3), the following shall be substituted, namely:

    “(3) A securities broker shall file monthly statements of net capital balance and liquid capital with the securities exchange and clearing house computed in a manner specified in Schedule II and III respectively, immediately after coming into force of these regulations, and shall also submit an audited statement of net capital balance as on close of second quarter of its year of accounts and shall also disclose the net capital balance in its annual audited financial statements in accordance with regulation 34.”

    In sub-regulation (2) of regulation 34, the following new clause (h) shall be inserted namely:

    “(h) amount of net capital balance and its computation in the manner specified in Schedule II.”

  • Share market gains eight points in mixed trading activity

    Share market gains eight points in mixed trading activity

    KARACHI: The share market gained eight points on Monday in a mixed trading activity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,079 points as against 32,070 points showing an increase of 8 points.

    Analysts at Arif Habib Limited said that the first day of the week coincided with last day of September.

    Activity in the market on close reflected an increase in prices of blue chip stocks, which must have helped institutions maintaining value of their portfolios.

    Overall, market went up by 324 points against a later decline towards -141 points.

    E&P scrips along with MCB and HUBC managed to keep the index float, however, the price gains in these stocks were not significant.

    The 100 Index managed to post decent volumes at 165 million shares as compared to last trading session, most of which came from Power sector (61.6 million) followed by Cement (18.5 million) and Banks (16.3 million).

    KEL emerged top among volume leaders with 55.4 million shares, followed by BOP (10.8 million) and WTL (9.1 million).

    Sectors contributing to the performance include E&P (+42 points), Fertilizer (+14 points), Banks (-26 points), Tobacco (-11 points) and Investment Banks (-11 points).

    Volumes increased from 135.2 million shares to 165.2 million shares (+22 percent DoD).

    Average traded value, on the contrary, witnessed a decline of -0.8 percent DoD from US$ 27.2 million against US$ 27 million.

    Stocks that contributed significantly to the volumes include KEL, BOP, WTL, MLCF and PIBTL, which formed 53 percent of total volumes.

    Stocks that contributed positively include PPL (+29 points), POL (+14 points), BAFL (+10 points), EFUG (+7 points) and EFERT (+6 points). Stocks that contributed negatively include HBL (-23 points), LUCK (-16 points), PMPK (-11 points), DAWH (-11 points), and UBL (-8 points).

  • Rupee falls by 19 paisas on import payment demand

    Rupee falls by 19 paisas on import payment demand

    KARACHI: The Pak Rupee fell by 19 paisas against dollar on Monday owing to higher demand for import and corporate payments, dealers said.

    The rupee ended at Rs156.37 to the dollar from last Friday’s closing of Rs156.18 in interbank foreign exchange market.

    The currency dealers said that the local currency was remained under pressure at the start of market. However, later in the day inflows helped the local currency to recover earlier day losses.

    The foreign currency market was initiated in the range of Rs156.60 and Rs156.70. The market recorded day high of Rs156.60 and low of Rs156.25 and closed at Rs156.37.

    The exchange rate in open market also witnessed decline in local currency value.

    The buying and selling of dollar was recorded at Rs156.00/Rs156.50 from last Friday’s closing of Rs155.80/Rs156.30 in cash ready market.

  • FBR may extend return filing date due to delayed issuance of forms

    FBR may extend return filing date due to delayed issuance of forms

    ISLAMABAD: Federal Board of Revenue (FBR) may extend the date for filing income tax returns and wealth statements for tax year 2019 due to delay in issuance of return forms and considering problems faced by taxpayers in filing returns.

    The last date for filing annual income tax returns is September 30, 2019 for salaried persons, business individuals, Association of Persons (AOPs) and companies having special financial year.

    The FBR uploaded the draft return form for tax year 2019 on August 23, 2019 through SRO 951(I)/2019 and then issue the final notification of Income Tax return 2019 of Individuals, Salaried Individuals & AOPs, September 02, 2019 through SRO 979 of 2019.

    This shows lapse of statuary period of two months (62 days) and it was all due to the negligence of the FBR, Pakistan Tax Bar Association (PTBA) said in a letter sent to FBR chairman on September 27, 2019.

    The PTBA said that on September 27, 2019 FBR issued manual income tax return form vide SRO 1160 of 2019 dated 27th September which is still not available on Excel format, so the small volume taxpayers could file their returns of income for the year 2019 within stipulated time.

    The tax bars in the country have pointed out discrepancies due to which the filing of income tax returns was seriously affected:

    i. Return / Statement of Final Taxation for Individuals, Salaried Individuals and AOPs is forcibly accompanied with Wealth Statement, which is a separate requirement under Section 116 of the Income Tax Ordinance, 2001;

    ii. Non-residents are not able to file their income tax return without Wealth Statement and details of personal expense which is not binding upon them as per statue;

    iii. Tax return of a Salaried Individual still lacking certain details of assets/liabilities in Wealth Statement which is not in accordance with section 116 of the Ordinance;

    iv. There is a single field/ column for foreign income only contrary to the requirements of section 103(8) read with section 104 of the Ordinance that provides computation of foreign income/ loss and adjustment and carry forward of losses;

    v. There is no option to declare foreign income with their respective heads of income and instead only figure sums it all which does not give the fair picture of the foreign income;

    vi. Tax on income from Pensioners Benefit /Behbood Certificates account is not being properly worked out.

    vii. IRIS system is not calculating accurate tax on the income above Rs. 1,200,000/- in certain cases.

    The FBR may also extend the last date for filing the income tax returns as it had received small amount of returns by September 29, 2019 as against last year’s returns of around 2.5 million.

    Tax experts said that if FBR could able to receive around 0.5 million returns by September 30, 2019 even then it would be shortfall of 2 million returns.

    The experts believed that due to steps toward broadening of tax base by the FBR it is expected that more returns would be filed for tax year 2019.

    They said that as per law and statutory time period for filing of income tax return is Ninety (90) days under section 118 of the Income Tax Ordinance, 2001 read with rule 34 of the Income Tax Rules, 2002 while on the contrary only (28) days have been given here between September 02 and September 30, 2019 for online filing and only (1) one working day available for manual filing.

  • Importer to pay KIBOR+3pc on timely payment failure

    Importer to pay KIBOR+3pc on timely payment failure

    KARACHI: An importer in case of failure to pay import duty or other taxes within specified time then the importer shall be liable to pay surcharge at the rate of KIBOR + 3 percent on the due charges.

    According to Customs Act, 1969 updated June 30, 2019 issued by Federal Board of Revenue (FBR), the KIBOR means Karachi Inter Bank Offered Rate prevalent on the first day of each quarter of the financial year.

    According to the Customs Act, 1969, under Section 21A the FBR is allowed to defer collection of customs duty. However, where deferment of customs duties is allowed by the FBR, a surcharge not exceeding KIBOR plus three percent per annum shall also be payable on the deferred amount from such date and in the manner as the FBR may be rules prescribed.

    Similarly, under Section 80 related to clearance of goods for home consumption, the act explained that where the owner fails to pay import duty and other charges within 10 days from the date on which the time same has been assessed under Section 80 or 80, he shall be liable to pay surcharge at the rate of KIBOR plus three percent on import duty and other charges payable on suchg goods.

    Section 86 related to submission of post-dated cheque and indemnity bond, the FBR said:

    When any such application has been made in respect of any goods, the owner of the goods to which it relates shall furnish an indemnity bond and post-dated cheque equivalent to the duty assessed under section 80 or section 81 or reassessed under section 109 on such goods,-

    (a) to observe all the provisions of this Act and the rules in respect of such goods;

    (b) to pay on or before a date specified in a notice of demand all duties, taxes, rent and charges payable in respect of such goods together with surcharge on the same from the date so specified at the rate of KIBOR plus three per cent per annum or such other rate as is for the time being fixed by the Board; and

    (c) to discharge all penalties incurred for violation of the provisions of this Act and the rules in respect of such goods.

    The Section 202A related to levy of surcharge, explained that notwithstanding anything contained in this Act and without prejudice to any other action that may be taken thereunder, if any person fails to pay the arrears within the prescribed time, he shall, in addition to the arrears, be liable to pay surcharge at the rate of KIBOR plus three per cent per annum, of the total amount of arrears.

  • FBR asks people to check transactions details, file income tax returns

    FBR asks people to check transactions details, file income tax returns

    KARACHI: Federal Board of Revenue (FBR) on Sunday urged people to file their annual returns on the basis of information, which is already possessed by the revenue authority.

    The FBR said that it had information of those people who had made transactions and paid withholding taxes. These information are included: bank accounts, assets, foreign travels, payment for utility bills etc.

    The revenue body advised people to check their transactions on information portal of the FBR and file their annual returns by mid-night of September 30, 2019 in order to avoid penal action.

    The FBR officials said that the information had been obtained from withholding agents and fed into the main database of the revenue body.

    They said that several transactions made by persons including immovable property purchase of certain covered area, motor vehicles above 1,000 CC etc are required to file annual income tax returns.

    In case those persons, whose information already with the FBR, have failed to file their returns then the tax officials would initiate legal proceedings and mandatory return filing.

    The FBR said that the persons who want to know their transactions on the FBR portal then they should visit the FBR website and create an account to login and fetch information.

    The FBR warned people to file their income tax returns as the last date for tax year 2019 is September 30, 2019. Otherwise the FBR will take stern action against non-compliant persons.

  • PTBA advises return filing date extension; points out deficiencies

    PTBA advises return filing date extension; points out deficiencies

    KARACHI: Pakistan Tax Bar Association (PTBA) has asked Federal Board of Revenue (FBR) to extend the last date for filing income tax returns up to December 31, 2019 as the return form still has many deficiencies.

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  • FPCCI suggests one month extension in income tax return filing

    FPCCI suggests one month extension in income tax return filing

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the government to extend the last date for filing income tax return up to October 31, 2019.

    Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Advisor to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh, and Chairman of the Federal Board of Revenue (FBR) Syed Shabbar Zaidi to extend the deadline for filing of Income Tax Returns (ITR) from 30th September to 31st October, 2019.

    The FPCCI Chief argued that a large number of business community members could not file their ITR mainly due to a variety of reasons such as uncertainty prevailing in the country because of changes in the taxation provisions of the Income Tax Ordinance 2011 ; slowdown of normal business activities; Election of FPCCI member trade bodies; interruption in on-line system of e-filing of ITR ; protracted rain etc.

    “This will help the tax payers in discharging their tax liability well in time without penalty on the one hand and increase in government exchequer on the other hand”, he added.

  • Container scanning charges abolished: Ali Zaidi

    Container scanning charges abolished: Ali Zaidi

    KARACHI: Syed Ali Haider Zaidi, Minister for Maritime Affairs, on Saturday said the container scanning charges has been abolished in order to reduce the cost of the industry.

    He was addressing the members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

    Zaidi said that the terminal operators had been scanning charging at $5 on each container handling. “The terminal operators were charging this amount from all the containers irrespective of scanning or no scanning,” he added.

    The minister said the terminal had been stopped from charging this on those containers which were not scanned.

    The minister also said that he had opposed to collect fuel freight charges on supplies to Karachi city. He said that all the petroleum products imported at Karachi ports and then supplied to other parts of the country.

    Ali Zaidi said that he had openly opposed to this levy in order to facilitate people and the industry.

    He said that land transfer of Port Qasim and KPT had been stopped till the audit of already allotted lands.

    He disclosed that there was huge corruption in land allotments of port lands.

  • Weekly Review: Market likely to stay in positive territory on narrow trade deficit, stable forex reserves

    Weekly Review: Market likely to stay in positive territory on narrow trade deficit, stable forex reserves

    KARACHI: The stock market may move in positive territory next week owing to narrow trade deficit and stable foreign exchange reserves.

    Analysts at Arif Habib Limited said that the market to be positive during the coming week.

    “With the trade deficit narrowing and foreign reserves stabilizing investor sentiment is likely to be positive,” they added.

    KSE-100 index commenced on a negative note this week, with SBP forecasting the inflation to remain high for the next two years.

    Moreover the ADB projected a slowdown in the economy which kept the sentiment weak. However, the recent improvement on the macro-economic front cushioned the dip and positive news flow from the US regarding the Kashmir issue uplifted sentiments on Friday. The index closed at 32,070 points (-40 points WoW).

    Sector-wise negative contributions came from i) Commercial Banks (122 points), ii) Power Generation & Distribution (24 points), iii) Chemical (21 points), iv) Pharmaceuticals (14 points), and v) Automobile Parts & Accessories (13 points). Scrip-wise negative contributions were led by HBL (67 points), HUBC (56 points), UBL (29 points), SEARL (27 points) and NBP (23 points).

    Foreign selling was witnessed this week clocking-in at USD 8.8 million compared to a net buy of USD 7.8 million last week. Selling was witnessed in Cement (USD 2.4 million) and Commercial Banks (USD 2.2 million).

    On the domestic front, major selling was reported by Banks/DFIs (USD 6.7 million) and Broker Proprietary Trading (USD 6.2mn). Average Volumes settled at 108 million shares (down by 12 percent WoW) while average value traded clocked-in at USD 25 million (down by 24 percent WoW).