Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • SBP extends date for implementing machine authenticated Rs50 banknotes

    SBP extends date for implementing machine authenticated Rs50 banknotes

    KARACHI: State Bank of Pakistan (SBP) has extended the date for banks regarding issuance of machine authenticated Rs50 banknotes.

    In a notification issued on Thursday, the central bank said that considering the difficulties faced by banks in machine processing of lower denomination banknotes under the Currency Management Strategy (CMS), it had been decided to extend the effective date for issuance of machine authenticate Rs50 banknotes until January 4, 2021.

    The banks are however encouraged to gradually adopt machine processing and authentication of Rs50 banknotes.

    Earlier, the banks were required to process lower denomination banknotes under the CMS from January 02, 2020.

    The SBP on August 31, 2017 issued Currency Management System, which is as follow:

    Considering the various aspects of implementation and feedback of the stakeholders, the following changes have been made in the strategy:

    I. Sealed Cassettes based feeding of ATMs:

    The instructions contained at section C (iii) of FD Circular No.03/2015 dated August 26, 2015 regarding use of standardized purpose built cassettes for feeding of ATMs shall stand amended as under:

    a) The requirement of cassette based feeding of ATMs has been made optional for the time being. The banks are however encouraged to plan for gradual movement towards cassette based feeding to comply with our instructions. SBP will continue to monitor the situation on periodic basis for a policy decision.

    b) The banks may alternatively use sealed bags or trays for feeding of ATMs. However the banks shall ensure that sealing and unsealing of bags/trays and replenishment of ATMs is carried out under proper CCTV controlled environment.

    c) The on-site ATMs can be fed by their respective branches provided that the end to end process from cash processing to ATM feeding is covered by CCTV cameras.

    d) Other requirements as advised under section C of FD Circular No.03/2015 dated August 26, 2015 shall remain applicable.

    II. Application of Strategy on lower banknote denominations:

    The instructions contained at section-I of FD Circular No.01/2016 dated January 25, 2016 regarding implementation of phase-II of strategy for all denomination of banknotes w.e.f. 2nd January 2018 shall stand amended as under:

    a) The banks will start disbursing machine authenticated banknotes of Rs 100 w.e.f. 2nd January 2018 and Rs 50 w.e.f. 2nd January 2019 respectively.

    b) The lower banknote denominations of Rs 20 and Rs 10 have been excluded from Currency Management Strategy.

    III. Banknote Packing Instructions (BPI)

    The Banknote Packing Instructions issued vide FD Circular No.02/2017 dated March 10, 2017 shall stand amended as under:

    a) The effective date of instructions contained at section 1.2 and 1.3 of BPI has been extended from 3rd July 2017 to 1st December 2017.

    The banks may deposit the cash processed and packed by other bank(s) with SBP BSC or offer the same in IEC. The earlier requirement that the cash processed and packed by the depositing bank can only be deposited with SBP BSC or offered for exchange in IEC shall stand withdrawn. However, in case of any discrepancy, the bank which has processed and packed the cash shall be responsible.

  • Taxpayers’ bill of rights must be introduced to ensure equality of treatment

    Taxpayers’ bill of rights must be introduced to ensure equality of treatment

    Taxpayers in Pakistan face significant challenges, including highhandedness, inefficiency, and corruption by tax officials. To address these issues and rebuild trust between taxpayers and the government, it is imperative to introduce a Taxpayers’ Bill of Rights. This initiative would protect citizens from exploitation and harassment while fostering a sense of confidence in the state’s tax collection mechanisms.

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  • Customs Intelligence Lahore announces auction of heavy bikes, cars on Dec 30

    Customs Intelligence Lahore announces auction of heavy bikes, cars on Dec 30

    ISLAMABAD: Directorate of Intelligence and Investigation (Customs), Lahore has announced auction of cars and heavy motor bikes on December 30, 2019 at State Warehouse of the directorate.

    The directorate will auction following motor vehicles:

    01. Heavy Motor Cycle Yamaha Brand 1000CC, Made in Japan, Model, RI 2000, Chassis No. JYARN041000003182

    02. Honda Heavy Motor Cycle, Model 1992, Chassis No. 2073695

    03. Heavy Bike Yamaha Motorcycle 500CC, Model 2006, Chassis No. JYASJ03100003295

    04. BMW Car 745Li, Model 2002, Chassis No. WBAGN62040DE55989

    05. Toyota Corolla (G) Car, Model 2002, Chassis No. NZE121-0212361

    06. Mercedes Benz E230, Model 1996, Chassis No. WDB2100372A206137

    07. Toyota Crown Car, Model 2004, Chassis No. GRS182-0008221

    08. Mercedes Benz S500, Model 2001, Chassis No. WDB2201652A182102

    09. Toyota Hilux Surf, Model 1998, Chassis No. VZN185-0210838

    10. Toyota Land Cruiser Prado TZ, Model 2003, Chassis No. VZ121-0007432

  • Valuation of concealed assets for income tax recovery

    Valuation of concealed assets for income tax recovery

    KARACHI: Federal Board of Revenue (FBR) shall conduct valuation for the purpose of income tax recovery on those assets which were identified as concealed.

    According to Income Tax Rules, 2002, the valuation of concealed assets as under Section 111 of Income Tax Ordinance, 2001 would be taken as:

    (1) The valuation of immovable property for the purposes of section 111 shall be taken to be-

    (a) the fair market value of immovable property shall be the value notified by the Board under sub-section (4) of section 68 of the Income Tax Ordinance, 2001, in respect of area or areas specified in the said notifications;

    (b) if the fair market value of any immovable property of any area or areas has not been determined by the Board in the notification referred to in sub-section (4) of section 68, the fair market value of such immovable property shall be deemed to be the value fixed by the District Officer (Revenue) or provincial or any other authority authorized in this behalf for the purposes of stamp duty; and

    (c) in the case of agricultural land, the value shall be equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is situated for the relevant period or time;

    (d) if in a case sale price recorded in the instrument of sale of any property is higher than the fair market value as determined under clauses (a), (b) and (c), the applicable price shall be higher of the two; and

    (e) in the case of sale price of any auctioned property or the fair market value as determined under clauses (a), (b) and (c), the higher price shall be applicable.

    (2) For the purposes of section 111 and subject to sub-rule (2), the value of motor cars and jeeps shall be determined in the following manner, namely:-

    (a) the value of the new imported car or jeep shall be the C.I.F. value of such car or the jeep, as the case may be, plus the amount of all charges, customs-duty, sales tax, levies, octroi fees and other duties and taxes leviable thereon and the costs incurred till its registration;

    (b) the value of a new car or jeep purchased from the manufacturer or assembler or dealer in Pakistan, shall be the price paid by the purchaser, including the amount of all charges, customs-duty, sales tax and other taxes, levies, octroi, fees and all other duties and taxes leviable thereon and the costs incurred till its registration;

    (c) the value of used car or jeep imported into Pakistan shall be the import price adopted by the customs authorities for the purposes of levy of customs-duty plus freight, insurance and all other charges, sales tax, levies octroi, fees and other duties and taxes leviable thereon and the costs incurred till its registration.

  • SECP notifies conditions for lending securities by asset management companies

    SECP notifies conditions for lending securities by asset management companies

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has prescribed conditions for lending of securities by Asset Management Companies on behalf of Collective Investment Schemes.

    The SECP issued Circular No. 18 of 2019 dated December 20, 2019 and prescribed the following conditions for lending of securities by Asset Management Companies on behalf of Collective Investment Schemes:

    I. An Asset Management Company on behalf of Collective Investment Schemes namely equity, asset allocation, balanced and index schemes may lend equity securities maximum up to 10 percent of net assets of such collective investment schemes out of its equity portfolio.

    II. An asset management company on behalf of Collective Investment Scheme shall lend securities only through platform provided by an authorized intermediary for the purpose of securities lending and borrowing as per the Securities (Leveraged Markets and Pledging) Rules, 2011.

    III. An asset management company shall make necessary amendments in offering document of respective Collective Investment Scheme and given necessary notice to the unit holders as per the requirements 44(7) of Non-Banking Finance Companies (NBFC) Regulations 2008.

  • Concentration of banks’ shareholding to few families against good governance practices: SBP governor

    Concentration of banks’ shareholding to few families against good governance practices: SBP governor

    KARACHI: Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP) has said that concentration of banks’ shareholding to a few families and their nominees on the boards is against the good governance practices.

    Dr. Reza Baqir, Governor, State Bank of Pakistan during his inaugural address in a seminar on “Emerging Trends in Good Governance of Banking Sector” in SAARC countries highlighted the importance of efficient and robust governance structure in the banking industry for sustainable economic growth of a country, said a statement issued by the central bank on Tuesday.

    He said that concentration of banks’ shareholding to a few families and their nominees on the Boards is against the good governance practices and may adversely impact the effectiveness of the Board.

    Besides Pakistan, the seminar was attended by delegates from Afghanistan, Bangladesh, Bhutan, Sri Lanka and Nepal.

    While addressing to the participants from SAARC member countries at National Institute of Banking and Finance (NIBAF), Islamabad, Dr. Baqir said that corporate governance is corner stone for the success of any business entity.

    However, for financial institutions, the importance of corporate governance becomes even more critical as banks are highly leveraged entities facing a wide range of risks in their day-to-day operations.

    Therefore, the scope and approach to banks’ corporate governance requires a different and specific regulatory framework not only because of their leveraged business model but also due to diverse ownership and group structure.

    Dr. Baqir emphasized that boards of the banks with more gender diversity or female representatives and diversified experience in the fields of IT, risk management, finance and economics can play a more effective role in achieving the organization’s overall strategic objectives.

    Dr. Baqir further added that independent directors play an important role in banks by exercising their independent judgement and protect the interest of minority shareholders. He also mentioned that corporate governance practices in public sector banks are generally weak and less transparent due to likely political intervention in the affairs of these banks.

    Therefore, there is a need to rationalize the shareholding structure of these banks to minimize the undesirable role of governments in their affairs. Remuneration practices of Board members and compliance of AML/ CFT regime are also significantly important areas where the Boards need to assume enhanced responsibilities to meet the international best practices.

    He also cited few of SBP’s efforts such as Guidelines on Performance Evaluation of Board of Directors, Enterprise Technology Governance & Risk Management Framework, Governance Framework for Banks’ Overseas Operations, Compliance Risk Management and Internal Audit Function Guidelines and Streamlining the existing regulatory requirements on remuneration of Boards and management.

    In his closing remarks, he suggested that Terms of reference (ToRs) of SAARCFINANCE network may be revisited to align the same with emerging challenges being faced by central banks in the region. He further added that expanding business arenas, globalization of financial activities, emergence of new financial products and increased level of competition have not only opened up opportunities but also increased the potential risks from such developments.

    Therefore, such regional forums are very helpful in facilitating knowledge exchange and ongoing collaboration for resolution of region specific issues posing potential risks to the banking sectors in SAARC countries.

    The event was also attended by Dr. Ishrat Husain, Adviser to Prime Minister on Institutional reforms and Austerity and Ms. Tania Adruis, Head of Digital Pakistan Initiative. Both the keynote speakers emphasized upon further strengthening the culture of good corporate governance to achieve the desired strategic objectives.

    The second day of the seminar largely focused on governance practices in the SAARC region wherein foreign delegates and SBP presented their respective country practices in the subject area.

  • FBR’s helpline receives 24,270 complaints in December

    FBR’s helpline receives 24,270 complaints in December

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that its helpline received 24,270 complaints so far in December 2019.

    “Out of these complaints, most of the complaints were disposed without any delay. Only some complaints of technical nature took a little time in disposal,” the FBR said.

    Likewise, the number of complaints sent through E-mail was 11447. Out of these, 7126 complaints were addressed immediately, the rest 4321 were resolved after seeking assistance from concerned Wings, the FBR added.

    The FBR said its helpline is a free, fast & reliable service that is committed to provide the very best service to the public.

    FBR’s Helpline not only educates the public but also provides them a forum through which the public can put forward their queries and seek resolution to most of their issues via phone, email or website.

    Helpline team has been at the forefront in resolving issues that come up from time to time such as payment of Surcharge for ATL, guidance for newly launched Online Sales Tax Registration application, guidance for newly launched Biannual Income Tax Withholding Statement, guidance for ST Returns launched for the new financial year.

    The Helpline is providing services to the public in two shifts. Furthermore, the Helpline representatives are providing all possible support to the Taxpayers in ensuring that they are easily able to navigate various Transactional portals such as Income Tax portal (Iris) etc.

    FBR Helpline utilizes international standard Customer Relationship Management (CRM) System, which ensures availability of three (3) tier support lines ensuring that FBR Helpline promptly resolves Taxpayer issues.

    The FBR said that taxpayers are provided a case number for each complaint lodged and resolution of the case is ensured within 24 hours of the complaint lodged.

    Cases of complex nature which require legal and technological modification in the system are resolved within 3 days of the lodged complaint.

    The FBR is committed towards bringing about a Service Oriented Culture– geared towards resolving challenges faced by investors and taxpayers, helping to improve the Ease of Doing Business (EoDB).

    “FBR understands its responsibilities as a Partner in Progress- where its sole responsibility isn’t just to collect taxes but also ensure that it provides the very best service; ushering in a tax compliant culture while providing the necessary tools for economic growth,” the statement said.

    FBR Helpline can be reached through phone (051-111-772-772) and email ([email protected]), plus complaints can also be lodged through the website (www.fbr.gov.pk).

  • FBR constitutes market committees at 17 RTOs

    FBR constitutes market committees at 17 RTOs

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted market committees within the jurisdiction of 17 Regional Tax Offices (RTOs) to resolve the issues of small traders and retailers.

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  • Rupee ends flat in lackluster trading

    Rupee ends flat in lackluster trading

    KARACHI: The Pak Rupee ended flat against dollar on Tuesday in lackluster trading activities, dealers said.

    The rupee ended Rs154.90 to the dollar from previous day’s closing of Rs154.91 in interbank foreign exchange market.

    The currency dealers said that importers and corporate buyers were cautious in purchasing dollars.

    They said that reduction in current account deficit on back of falling imports had improved the sentiments in the currency market.

    The exchange rate in open market witnessed appreciation in rupee value. The buying and selling of the dollar was recorded at Rs154.60/Rs154.90 from previous day’s closing of Rs154.70/Rs155.00 in cash ready market.

  • Stock market gains 320 points amid cautious buying

    Stock market gains 320 points amid cautious buying

    KARACHI: The stock market gained 320 points on Tuesday in mixed trading activities as buyers adopted cautious stance.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,328 points as against 40,008 points showing an increase of 320 points.

    Analysts at Arif Habib Limited said that the market oscillated between -553 points and +480 points today and closed the session +320 points.

    The market opened on a negative note with -51 points and extended the losses later. Investors remained cautious in buying in oil chain, but gradually gained momentum by session end, which saw OGDC trading near upper circuit.

    Food sector led the volumes with 28.6 million shares, followed by Technology (28.1 million) and Banks (27.9 million). Among scrips, FFL traded 25.9 million shares, followed by UNITY (13.4 million) and BOP (11.8 million).

    Sectors contributing to the performance include E&P (+91 points), O&GMCs (+36 points), Power (+35 points), Cement (+32 points) and Fertilizer (+26 points).

    Volumes increased from 179.1 million shares to 236.2 million shares (+32 percent DoD). Average traded value also increased by 25 percent to reach US$ 56.5 million as against US$ 44.9 million.

    Stocks that contributed significantly to the volumes include FFL, UNITY, BOP, TRG and WTL, which formed 31 percent of total volumes.

    Stocks that contributed positively include OGDC (+51 points), HUBC (+28 points), PPL (+23 points), LUCK (+22 points) and SNGP (+18 points). Stocks that contributed negatively include BAHL (-20 points), UBL (-10 points), SHFA (-8 points), BAFL (-5 points), and EFUG (-4 points).