Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Preventive Quetta announces auction of 88 confiscated vehicles

    Preventive Quetta announces auction of 88 confiscated vehicles

    KARACHI: Model Customs Collectorate (Preventive) Quetta has announced auction of huge number of confiscated vehicles mostly impounded during current year to be held on October 17, 22 & 28, 2019.

    The collectorate has scheduled to auction of 88 vehicles at various places. Following is the list of vehicles:

    1 Toyota Fielder car Chassis No.NZE121-0293306 Engine Type 1NZFE Model 2004 1500CC MTO

    2 Toyota Royal Saloon Crown Car, Reg No. Nil, Engine Type. 3GR-FSE, Chassis No. GRS182-5010431, Model. March 2004 (As per seat belt), Engine Capacity. 2994 ml (V6 Enigne), Color. Pearl White Noshki

    3 Toyota Fielder Car, Chassis No. NZE121-0264920, Engine No. 1NZ-FE, Model. 2003, Color. White, 1500cc Lakpass

    4 Toyota Corolla X Car F/origin, Registration No. ATY-563 (Fake), Chassis No. NZE121-3356759, Eng Type. 1NZ-FE, Horse Power. 1496cc, Model. 2005 (As per seat belt), Color Code. 040 (Pearl White) Darakshan

    5 Toyota Land Cruiser V8, Chassis No. UZJ100-0145566, Engine Type: 2VZ, Model 2003, Colour Pearl White Lakpass

    6 Toyota Land cruiser V8, Chassis No. UZJ100-0135705, Engine Type: 2UZFE, Model 2001, 4663-CC, Colour Pearl White Baleli

    7 BMW Jeep Crossover, Chassis NO. WBAFB32040LN86779, Engine No. NTA, 4400-CC Model 2003, Colour White Lakpass

    8 Toyota X-Corolla Car, Reg No. AXV-791 (Fake), Chassis No. NZE121-3023514, Eng Code. 1NZFE, Model. 2000 as per web, Color. White 1500cc Baleli

    9 Mercedez Benz (Axor) Daimler AG 06 Wheeler, Chassis No. WDB9440331K967730, Engine NO. NTA, Model 2004, Colour White Taftan

    10 Toyota Mark X, Chassis NO. GRX121-1001408, Engine Type: 3GR-FSE, Model 2004, 3000-CC, Colour White Sheela Bagh

    23 Nissan Car (Automatic), Chassis No. QG10-011435, Engine NO. DG18-347228, Model 2000 Sheela Bagh

    24 Kawasaki Motorcycle, Chassis No. 8945A-1, Engine No. ZRT00DEO14545, Model 2007, HP 1000-CC Colour Black FC

    25 DX Corolla Binjo Chassis NO. CE107-0006474, Engine NO. NTA, Model 2000 Colour Silver Manikhawa

    26 Toyota Litace, Chassis No. CM30-0012463, Engine No. 2CT-080945, Model 1987 Lakpass

    27 Car Saracha (RHD), Chassis No. AE100-0197878, Engine No. SHC194187, Model 1996 Colour Trim Dalbandin

    28 Toyota Land Cruiser, Chassis No. HD61-009730, Engine NO. NTA, Model 1986 Chaman

    29 Saracha Car, Chassis No. GT196-0005336, Engine Type: NTA Chaman

    30 Toyota Crona Car Chassis No.TT141-4015451 Model 1983 UNHCR

    31 Toyota Vitz Car Chassis No.SCP13-0042185 Engine Type 2SZFE 1300CC Model 2003 Manikhawa

    32 Honda Civic Reborn Hybrid Chassis No.JHMFD36209s200169 1300cc Model 2009 Lakpass

    33 Toyota Pickup Single Cabin (LHD) Chassis No.YN57-0020059 Model 1984 Taftan

    34 Toyota Corolla Fielder X Chassis No.NZE121-0288952 Engine Type 1NZFE 1500CC Model 2004 Manikhawa

    35 Toyota Corolla Fielder X Chassis No.NZE121-0250807 Engine Type 1NZFE 1500CC Model 2003 Manikhawa

    36 Toyota Corolla X Car, Reg No. BFG-672 sindh(fake), Chassis No. NZE121-0391788, Eng Code.1NZ-FE, Model. 2006 as per web, Color.Pearl White Baleli

    37 Toyota Vitz Car, Reg No. CT-880 (Fake), Chassis No. SCP13-0047978, Eng Code. 2SZFE, Model. 2004 as per web, Color. Pearl White 1300cc Baleli

    38 Toyota Corolla G Car (F/origin), Reg No. ASS-651, Chassis No. NZE121-3327146, Engine No. 1NZ-FE, H/p. 1496cc, Model. 2005 as per seat belt, Color Code. 073 (Pearl White) Darakshan

    39 Toyota Corolla X Car F/origin, Registration No. ACF-474 (Fake), Chassis No. NZE121-3377816, Eng Type. 1NZ-FE, Horse Power. 1496cc, Model. 2006 (As per seat belt), Color Code. 073 (Pearl White) Darakshan

    40 Toyota Corolla X Car (F/origin), Reg No. APL-2018 (Fake), Chassis No. NZE121-3384299, Engine No. 1NZFE, H/p. 1496cc, Model. 2006 as per seat belt, Color Code. 073 (Pearl White) Darakshan

    41 Toyota Indus Corolla Car (F/origin), Reg No. AZV-855 (Fake), Chassis No. AE100-3298914, Engine No. 5A-FE, H/p. 1498cc, Model. 1995 as per seat belt, Color Code. 040 (White) Darakshan

    42 Toyota Premio Car, Reg No. ABH-271 (Fake), Chassis No. ZZT240-0141747, Eng Code. 1ZZFE, Model. 2007 as per web, Color. Pearl White Baleli

    43 Toyota G-Corolla Car, bearing Reg Plate No. BGJ-855, (Sindh) Fake, Chassis No.NZE121-3329102, Engine Code. 1NZFE, Model 2005 as per web, Color White, 1496cc Baleli

    44 Toyota Axio Fielder, Reg No. AFT-454, Chassis No. NZE141-9048261, Eng No. 1NZFE, Model. 2007 as per web, Color. White, 1496cc Baleli

    45 Toyota Hilux Surf F/O Chassis No.TRN215-0018391 Engine No.2TR-FE Model 2007 2700CC Color Black Kolpur

    46 Toyota Mark X, Chassis NO. GRX120-0003526, Engine NO. NTA, Model 2004, Colour White, 2500-CC Kolpur

    47 Toyota X Corolla Car, Reg Plate No. AGK-767 (FAKE), Chassis No. NZE121-3308718, Eng Code. 1NZFE, Model. 2005 as per web, Color. Pearl White, (1496cc) Baleli

    48 Toyota Corolla X Car F/origin, Registration No. ASV-428 (Fake), Chassis No. NZE121-3351500, Eng Type. 1NZ-FE, Horse Power. 1496cc, Model. 2005 (As per seat belt), Color Code. 073 (Pearl White) Darakshan

    49 Toyota Corolla (X) Car, Reg No. Nil, Chassis No. NZE121-3366821, Eng No. 1NZFE, Model. 2006 as per web, Color. Pearl White, 1496cc Baleli

    50 Toyota Fielder Car chassis No.NZE121-3332887 Model 2005 Lakpass

    51 Toyota Premio Car (F/origin), Reg No. QBA-9998 (Fake), Chassis No. ZZT240-0115354, Eng No. 1ZZ-FE, Horse Power. 1794cc, Model. 2006 (As per seat belt), Color Code. 073 (Pearl White) Darakshan

    52 Toyota Premio X Car (F/origin), Reg No. AVY-765 (FAKE), Chassis No. ZZT240-0109563, Engine No. 1ZZ-FE, H/p. 1794cc, Model. 2005 as per seat belt, Color Code. 073 (Pearl White) Darakshan

    53 Toyota X-Corolla Car, Bearing Reg No. ARP-865 (Sindh), Chassis No. NZE121-3332514, Eng No. 1NZ-FE, Model. 2005 as per web, (1498cc), Color. Golden Baleli

    54 Toyota Premio X Car (F/origin), Reg No. Nill, Chassis No. ZZT240-0142249, Engine No. 1ZZ-FE, H/p. 1794cc, Model. 2007cc as per seat belt, Color Code. 073 (Pearl White) Darakshan

    55 Toyota Premio X Car (F/origin), Reg No. AVL-756 (Fake), Chassis No. ZZT240-0126271, Eng No. 1ZZ-FE, Horse Power. 1794cc, Model. 2006 (As per seat belt), Color Code. 073 (Pearl White) Darakshan

    56 Wrangler jeep Chassis No.1J4FY49SXWP712752 MTO

    57 Toyota X Corolla Car, Reg Plate no. BF-9986 (FAKE), Chassis No. NZE121-3369768, Eng Code. 1NZFE, Model. 2006 as per web, Color. Silver, (1496cc) Baleli

    58 Toyota X Fielder Chassis No.NZE121-0321152 1NZ-FE Model 2004 Yaroo

    59 Toyota Corola Axio G Car Chassis No.NZE141-6004738 Model 2007 Engine No.1NZFE 1500 CC Baleli

    60 Toyota X Corolla Chassis No.NZE121-3304599 Engine type 1NZFE 1500CC Model 2005 Lakpass

    61 Toyota Premio G Car, Reg No. KP-461, Chassis No. ZRT261-3012522, Engine No. 3ZR-A419083, Model. 2009, Color. Black, (2000cc) Manikhawa

    62 Toyota X Corolla Chassis No.NZE121-3031239 Model 2001 Engine No.1NZFE 1500 CC Lakpass

    63 Toyota G Corolla Car Chassis No.NZE121-3232925 Model 2003 Engnie No.1ZEFE Manikhawa

    64 Toyota Vitz Car Chassis No.SCP13-0013973 Model 2003 Engine No.2SZFE 1300 CC Manikhawa

    65 Toyota Corolla G Chassis No.NZE121-0199501 Model 2003 1500 CC Baleli

    66 Toyota Premio Chassis No.ZZT240-5047221 Model 2005 Engine No.1ZZFE 1800 CC Baleli

    67 Toyota Corolla G Car (F/origin), Reg No. AVC-334 (Fake), Chassis No. NZE121-3282582, Eng No. 1NZ-FE, Horse Power. 1496cc, Model. 2004 (As per seat belt), Color Code. 073 (Pearl White) Darakshan

    68 Toyota Premio Car Chassis No.ZZT240-0139308 Engine Type 1ZZFE 1797 CC Model 2007 Pearl White Baleli

    69 Toyota Corolla Fielder X Car, Reg No. Nil, Chassis No. NZE121-0375408, Eng No. 1NZFE, Model. 2005, Color. Black, (1500cc) Manikhawa

    70 Toyota X Fielder Chassis No.NZE121-0220554 Model 2003 Engine No.1NZFE 1500CC Manikhawa

    71 Toyota Fielder Car Chassis No.NZE121-3347406 Model 2005 Engine No.1NZFE 1500 CC Baleli

    72 Toyota Vitz Car Chssis No.SCP13-0020230 Model 2003 Engine No.2SZFE 1300 CC Darakshan

    73 Toyota Vitz Chassis No.SCP90-5086229 Model 2008 Engine No.2SZ-FE 1300 CC Lakpass

    74 Toyota Vitz Chassis No.SCP13-0020301 Model 2003 Engine No.2SZ-FE 1300 CC Manikhawa

    75 Toyota Vitz Car (NCP), Reg No. Nil, Chassis No. KSP90-5005349, Eng No. 1KR0292759, Model. 2005 as per seat belt, Color. Silver, H/p. 1000cc as per trim plate Yaroo

    76 Toyota Vitz Chassis No.SCP90-0027236 Model 2006 Engine No.2SZ-FE 1300 CC Yaroo

    77 Toyota Probox Car, Reg No. AZA-229 (FAKE), Chassis No. NCP58-0035251, Eng No. 1RZ8358229, Model. 2004 as per seat belt, Color. Silver, H/p. 1500cc as per trim plate Yaroo

    78 Suzuki Every Chassis No.DA64V-144956 Model 2006 Engine No.K6A 660 CC Lakpass

    79 Toyota Altis Chassis No.MRO53ZEE106113129 Model 2008 Engine No. 3ZZFE 1600 CC Lakpass

    80 Toyota G Corolla, Chassis No. NZE121-3273747, Engine No. 1NZ-FE, Model. 2004, Color. L/Blue, 1500cc Lakpass

    81 Toyota G Corolla, Chassis No. NZE121-3322763, Engine No. 1NZ-FE, Model. 2005, Color. Pearl White, 1500cc Lakpass

    82 Toyota X Corolla, Chassis No. NZE121-0284113, Engine No. 1NZ-FE, Model. 2004, Color. Silver, 1500cc Lakpass

    83 Toyota G Corolla, Chassis No. NZE121-0092964, Engine No. 1NZ-FE, Model. 2001, Color. Silver, 1500cc Lakpass

    84 Toyota Vitz Car Chassis No.NSP130-2015441 Model 2011 Engine No.1NR-FE 1300 CC Lakpass

    85 Toyota Vitz Car Chassis No.SCP13–0030085 Model 2004 Engine No.2SZFE 1300 CC Lakpass

    86 Toyota Hilux Pickup Single Cabin Chassis No.JT731LN8609007959 Model 1995 Engine 3L 2800 CC Yaroo

    87 Toyota Hilux Pickup Single Cabin Chassis No.JT731LN8609002551 Model 1992 Engine 3L 2800 CC Yaroo

    88 Suzuki Alto Car, Reg No. Nil, Chassis No. HA25S-701632, Eng No. K6A, Model. 2009, Color. Silver , 657cc Yaroo

  • Post refund divisions to be set up at RTOs/LTUs to audit claims

    Post refund divisions to be set up at RTOs/LTUs to audit claims

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to audit sales tax refunds by establishing ‘refund division’ at all Regional Tax Offices (RTOs) and Large Taxpayers Units (LTUs).

    According to amended Sales Tax Rules, 2006 issued by the FBR the Rule 27 has been amended to establish Centralized Sales Tax Refund Office (CSTRO), Refund Division and posting of officers.

    The FBR said that a CSTRO would be established under the Board for centralized payment of all refund amounts as due under the Act.

    Further a Refund Division will be established, which will be headed by an officer, not below the rank of Assistant Commissioner, herein after referred to as officer-in-charge, duly supported by audit staff referred to as processing officers, to examine, process and settle the refund claims filed under these rules.

    Further Post Refund Division in each RTO or LTU shall be established, which will be headed by an officer not below the rank of an Assistant Commissioner to audit the refund claims processed and sanctioned by the Refund Division.

    The FBR said that that scrutiny of the refund claims processed or sanctioned after the June 30, 2014 shall be carried out on the basis of risk-based selection through computerized Post Refund Scrutiny (PRS):

    Provided that where the Commissioner Inland Revenue has reasons to believe that a registered person, whose refund claim was processed or sanctioned, has been paid refund which was not admissible to him, he may direct through order in writing to conduct computerized Post Refund Scrutiny (PRS) of such claim.

    Post refund audit of refund claims process through RMS will be the responsibility of the audit Divisions of respective RTO/LTU.

    The registered person claiming refund under these rules shall maintain and keep all the paper documents relating to the refund claim, such as invoices, credit notes, debit notes, goods declarations, bank credit advice, etc. in his office.

  • Pakistan Customs’ travel guide for passengers

    Pakistan Customs’ travel guide for passengers

    KARACHI: Pakistan Customs has issued travel guide for persons departing to or arriving from abroad regarding clearance of goods under prevailing laws.

    GREEN CHANNEL

    Green Channel, as the color signifies, means freely passing without any Customs formalities. This is for the passengers who do not posses articles or goods that are restricted or in excess of the admissible duty-free allowance, if any.

    Customs officials are authorized to randomly request the passengers availing the facility of Green Channel to allow scanning of their luggage and if necessary to allow physical examination by opening the luggage. This is normal custom procedure adopted world wide to counter misuse of Green Channel facility.

    If you are so requested by a custom official, please understand that you have been picked up either randomly or on the basis of certain risk parameters and you are expected to cooperate with the customs officials.

    Passengers passing through the Green channel with articles or goods that are prohibited, restricted or dutiable are liable to prosecution, penalty as well as confiscation of the articles or goods.

    RED CHANNEL

    Red Channel, as the color signifies, means passing after completion of customs formalities. This is for the passengers having restricted or dutiable articles or goods.

    REGULATION ON ARTICLES OR GOODS

    Articles or goods brought in commercial quantities are released only on payment of fine equal to 30% of the value of articles or goods or in addition to the applicable duty and taxes.

    COMMERCIAL QUANTITY

    A quantity of goods imported prima facie for trading or pecuniary gain and not for personal use or gift.

    PROHIBITED ARTICLES OR GOODS

    Are those which cannot be imported in to or exported from Pakistan under any circumstances being prohibited or banned to protect society, health and the environment.

    RESTRICTED ARTICLES OR GOODS

    Are those which can be imported to or exported from Pakistan subject to certain certifications, conditions, licenses, permissions or restrictions.

    Some of the most common prohibited and restricted articles or goods that cannot be imported to or exported from Pakistan, are listed in the baggage rules brochure.

    RE-IMPORT OF ARTICLES OR GOODS

    Re-import of articles or goods earlier taken out of Pakistan can be brought back free of custom duty and other taxes. Passengers intending to re-import articles or goods are advised to obtain export certificate or an endorsement on the passport, as to the exact description of the articles or goods, and distinguishable marks thereof certified by the Assistant Collector of Customs at the time of passenger’s departure from Pakistan.

    Duty free re-import of articles or goods is not allowed in the absence of the export certificate or endorsement on the passport.

    FOREIGN CURRENCY REGULATION

    Bringing in of foreign currencies is permitted without any limit. A passenger can bring any amount of any foreign currency to Pakistan. Taking out foreign currencies is permitted up to US $ 10,000 un-conditionally.

    Taking out Pakistan currency exceeding Rs. 3,000 is not permitted and in case of departing for India a maximum of Rs. 500 is permitted.

    DUTY FREE ALLOWANCE

    Regulations related to duty free allowance for Pakistani nationals are laid out in the baggage rules brochure.

    TRANSFER OF RESIDENCE

    The concept of Transfer of Residence means return of Pakistani national after staying abroad for a period of two (2) years or more. It also includes the transfer of residence by a foreign national coming to Pakistan for a period of not less than two (2) years.

  • FBR grants performance allowance to officials of MCC Preventive Peshawar

    FBR grants performance allowance to officials of MCC Preventive Peshawar

    ISLAMABAD: Federal Board of Revenue (FBR) has granted performance allowance equivalent to 100 percent of minimum of basic pay to Customs officials posted at Model Customs Collectorate (Preventive) Peshawar.

    In a notification issued on Tuesday, the FBR granted following inspectors of BS-16 of MCC Preventive Peshawar, who have been selected through the process of internal job posting, performance allowance equal to 100 percent of minimum of their basic pay (in pay scale 2011) with effect from October 07, 2019:

    01. Ilyas Iqbal

    02. Shahroz Khaliq

    03. Shah Fahad Khan

    04. Zia-ur-Rehman

    Grant of Performance Allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 to be read with Para-10 of Finance Division’s O.M.No.1(3)/Imp/2015-360 dated 07.07.2015. The allowance will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification.

  • Stock market gains 114 points in narrow band trading

    Stock market gains 114 points in narrow band trading

    KARACHI: The stock market gained 114 points on Tuesday while trading in narrow band during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 33,199 points as against 33,085 points showing an increase of 114 points.

    Analysts at Arif Habib Limited said that the market traded largely in a narrow band, oscillating between +155 points and -124 points, and ending the session +114 points.

    Low volumes were witnessed amidst selling pressure in Cement, Steel, Banking sectors. Concerns over activity on Borders with India, political uncertainty due to JUI (F)’s protest and FATF reverberated today.

    Chemical sector led the volumes with 13.4 million shares, followed by Cement (10.9 million) and Technology (7.5 million).

    Among scrips, LOTCHEM garnered 10.8 million shares in trading volume, followed by TRG (4.1 million) and FFC (3.4 million). Market seemed to lack luster, paying little interest in better than expected results announced recently.

    Sectors contributing to the performance include Banks (+38 points), Power (+19 points), E&P (+15 points), Food (+13 points), O&GMCs (+11 points) and Fertilizer (-10 points).

    Volumes declined from 130.3 million shares to 83.6 million shares (-36 percent DoD). Average traded value also declined by 36 percent to reach US$ 20.4 million as against US$ 1.8 million.

    Stocks that contributed significantly to the volumes include LOTCHEM, TRG, FFBL, HASCOL and DGKC, which formed 29 percent of total volumes.

    Stocks that contributed positively include HBL (+22 points), HUBC (+18 points), MCB (+15 points), NESTLE (+15 points) and DAWH (+13 points). Stocks that contributed negatively include ENGRO (-10 points), BAFL (-7 points), DGKC (-6 points), FFBL (-6 points), and JLICL (-6 points).

  • Rupee gains three paisas amid demand for import payment

    Rupee gains three paisas amid demand for import payment

    The Pakistani Rupee experienced a modest gain of three paisas against the US Dollar on Tuesday, reflecting demand pressures for import and corporate payments in the local market.

    (more…)
  • Wealth Statement Form: mandatory for filing along with annual return

    Wealth Statement Form: mandatory for filing along with annual return

    KARACHI: Filing of wealth statement is mandatory for making annual return form valid. Taxpayers are required to file asset declaration under Section 116 of Income Tax Ordinance, 2001.

    (more…)
  • No legal proceeding against customs officials while exercising powers

    No legal proceeding against customs officials while exercising powers

    KARACHI: Customs laws protect officials from legal proceedings in case anything done in good faith while exercising powers.

    The FBR issued Customs Act, 1969 updated till June 30, 2019 incorporating amendment brought through Finance Act, 2019.

    Section 217 of the Customs Act, 1969 provides protection of action taken under the Act.

    Section 217: Protection of action taken under the Act

    Sub-Section (1) :No suit, prosecution or other legal proceeding shall lie against the Federal Government or any public servant for anything which is done or intended to be done in good faith in pursuance of this Act or the rules and notwithstanding anything in any other law for the time being in force no investigation or enquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or directions made or issued thereunder without the prior approval of the Board.
    Sub-Section (2): No suit shall be brought in any civil court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act.

    Section 218: Notice of proceedings

    No proceeding in a court other than a suit shall be commenced against any officer of customs or any other person exercising any powers conferred or discharging any duties imposed by or under this Act for anything purporting to be done in pursuance of the provisions of this Act or the rules without giving to such officer or person a month’s previous notice in writing of the intended proceeding and of the cause thereof; or after the expiration of one year from the accrual of such cause:

    Provided that this section shall not be deemed to apply in the case of the prosecution of an officer of customs or such other person for an offence punishable under this Act.

  • Sale tax refunds to be released on declared stock statement: FBR

    Sale tax refunds to be released on declared stock statement: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday said that refunds will be issued only on stock statement declared by sales tax registered persons.

    The FBR issued Sales Tax Circular No. 04 of 2019 to explain the issuance of refund payment under FASTER refund module.

    The FBR said that refund will be processed on the basis of entries in Annex-H.

    Annexure H is a stock statement declared by a registered taxpayer through his return.

    According to the FBR this annexure is mandatory for refund claimants and they may submit this statement within 120 days from due date of return filing of particular tax period; other registered persons are encouraged to provide these details.

    The system will show and fill the relevant columns of those items whose closing balance will be greater than zero in proceeding return, but the registered person may add the new items and provide their data manually. The column wise filing details are as follows:

    This annexure will be mandatory for refund claimants who will claim any amount of refund at serial 30 of main return and they may submit this statement within 120 days from due date of return filing of particular tax period.

    In the latest circular No. 4, the FBR said that in wake of rescission of SRO 1125(I)/2011, it had committed with the exporters of the export oriented sectors i.e. textiles, leather, carpets, sports goods and surgical goods, that refunds shall be paid within 72 hours of filing of refund claim.

    For this purpose, FASTER refund module has been developed, which will process claims of exporters of five export-oriented sectors for the tax period July, 2019, and onwards.

    FBR has earlier clarified that submission of Annex-H, which is a form in the monthly sales tax return, shall be treated as submission of refund claim.

    It is added that the number of refund claims received is not significant. The exporters are facing some difficulties in filing of their tax refund claims (Annex-H) under FASTER. Many claimants have approached the Board with request that they may be allowed revision of their return on the ground that the entries made in Annex-F do not match with those in Annex-H.

    It is accordingly clarified that refund is processed on the basis of entries in Annex-H. The entries in Annex-F have no bearing on refund claim except that carry forward of value addition tax is excluded from refund amount.

    Accordingly, the claimants are advised not to revise the returns on the ground that entries in Annex-F do not match with those in Annex-H.

    They should submit Annex-H, if not already submitted so that their claims can be processed.

    Further, field formations are advised not to draw an adverse inference if the Annex-F does not match with Annex-H in case of monthly returns already submitted.

  • Asset quality of banking sector weakens on rising NPLs: SBP

    Asset quality of banking sector weakens on rising NPLs: SBP

    KARACHI: State Bank of Pakistan (SBP) on Monday said that the asset quality of banking sector weakened owing to Rs88.3 billion or 13 percent increase in Non-Performing Loans (NPLs).

    In its Mid-Year Performance Review of the Banking Sector (January – June 2019), the SBP said that the asset quality of the banking sector weakened during first half (January – June) 2019 H1CY19, breaking away from the declining trend in recent past.

    “The infection ratio (NPLs to Total Gross Loans) increased to 8.8 percent by the end of H1CY19 (8.0 percent by end H2CY18).”

    This was mainly due to an increase of Rs88.3 billion (or 13.0 percent) in NPLs during H1CY19.

    As a result, the NPLs stood at Rs768 billion by end June 2019. The fresh rise in domestic NPLs was mostly concentrated in few local private banks as well as in a specialized bank, the SBP said.

    Consequently, the infection ratio for local private banks and specialized banks increased to 7.0 percent (6.2 percent by end of H2CY18) and 43.2 percent (32.9 percent by end of H2CY18).

    With the tightening of macroeconomic conditions in CY18 and later, inflow of fresh NPLs have been on the rise.

    However, in terms of economic sectors, the higher defaults during H1CY19 were restricted to the energy and agribusiness sectors.

    Energy sector contributed 52.8 percent to the total increase in NPLs during H1CY19, while agribusiness contributed 18.6 percent. Most of the NPLs in the energy sector (96.8 percent) pertained to the public sector entities associated with electricity generation and transmission that faced constrained cash flows (due to circular debt/low recoveries).

    In case of Agribusiness, however, an element of seasonality exists in the classified loans as they peak around second quarter of each calendar year but then recede in subsequent quarters.

    Besides this seasonal phenomenon, other factors responsible for the rise in NPLs included late start of sugar crushing season, water shortage and drought conditions affecting crop yields, and delay in sale of the newly harvested kharif crops by farmers hindering their repayment capacity (Rice, Cotton and others) etc.

    Furthermore, 20.8 percent contribution to the growth in NPLs came from banks’ overseas operations, largely related to operations in the Middle East.

    In addition to Pak Rupee depreciation, the economic slowdown in some of these countries could be the reason for the higher NPLs.

    The surge in NPLs was mainly driven by the NPLs of public entities in the energy sector, which do not require provisions.

    Resultantly, the provision coverage ratio (78.4 percent in H1CY19 against 83.8 percent in H2CY18) declined.

    As a result, the net NPLs increased and net NPLs to capital ratio jumped to 11.5 percent as of end H1CY19 against 7.8 percent as of end H2CY18.

    However, it may be kept in perspective that in the aftermath of growing NPLs banks made net provisions to the tune of Rs26.40 billion during H1CY19 compared to Rs36.2 billion during CY18.

    The fund-based liquidity of the banking sector remained comfortable, despite continued moderation in liquidity ratios.

    Liquid assets to total assets ratio moderated to 48.0 percent by end June 2019 (48.7 percent by Dec- 18).

    Similarly, liquid assets to total deposits (excluding customer fixed deposits) also moderated to 81.8 percent in H1CY19 (85.0 percent in Dec-18) mainly due to higher proportionate rise in deposits.

    However, due to improved growth in fixed deposits, liquid assets to short term liabilities ratio improved to 95.6 percent (94.9 percent in Dec-18) percent over the comparable period of last year.

    Islamic Banking Institutions (IBIs) continued to augment the overall profitability of the banking sector as it contributed 26.5 percent to the overall after-tax profits during H1CY19, despite 14.4 percent share in total banking sector assets.

    The earnings ratios, which were on downtrend for last few years, improved during the half year under review Return on Equity after-tax inched up to 11.4 percent in Jun-19 from 10.7 percent in Dec- 18, while ROA improved to 0.84 percent from 0.81 percent The turnaround in profitability indicators, after three consecutive years of downturn, was primarily enabled by rising interest rates over the last year or so.