KARACHI: The Pak Rupee recovered 22 paisas against dollar in early trade on Thursday.
The dollar is being traded at Rs154.86 in interbank foreign exchange market. The rupee ended at Rs155.08 on Wednesday January 08, 2020.
The rupee was remained pressure with start of the year. The inflows of export receipts and ease in geopolitical tension helped the local currency to recover against the greenback.
KARACHI: Persons registered for sales tax with the provincial revenue authorities are required to pay advance income tax to Federal Board of Revenue (FBR) on the basis turnover declared before the provincial revenue authorities.
According to Section 147A of Income Tax Ordinance, 2001, every provincial sales tax registered person shall be liable to pay adjustable advance tax at the rate of three per cent of the turnover declared before the provincial revenue authority.
The Section 147A is read as:
Advance tax from provincial sales tax registered person.-
Sub-Section (1): Every provincial sales tax registered person shall be liable to pay adjustable advance tax at the rate of three per cent of the turnover declared before the provincial revenue authority.
Sub-Section (2): The advance tax under sub-section (1) shall be paid monthly at the time when sales tax return is to be filed with the provincial revenue authority.
Sub-Section (3): Advance tax paid under this section may be taken into account while working out advance tax payable under section 147.
Sub-Section (4): The provisions of this Ordinance shall apply to any advance tax due under this section as if the amount due were tax due under an assessment order.
Sub-Section (5): A taxpayer who has paid advance tax under this section for a tax year shall be allowed a tax credit for that tax in computing the tax due by the taxpayer on the taxable income of the taxpayer for that year.
Sub-Section (6): A tax credit allowed for advance tax paid under this section shall be applied in accordance with sub-section (3) of section 4.
Sub-Section (7): A tax credit or part of a tax credit allowed under this section for a tax year that is not able to be credited under sub-section (3) of section 4 for the year shall be refunded to the taxpayer in accordance with section 170.
Sub-Section (8): This section shall not apply to a person whose name was appearing in the active taxpayers’ list on the thirtieth day of June of the previous tax year.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the constitution of Price Negotiation Committee (PNC) for TAPI(Turkmenistan-Afghanistan-Pakistan-India) Gas pipeline project.
Adviser to the Prime Minister on Finance, Dr. Abdul Hafeez Shaikh chaired the meeting of the Cabinet here at the Cabinet Division.
The PNC shall negotiate the price with Turkmen gas. The Committee shall consist of the following members; Secretary, Ministry of Energy (Petroleum Division) as chairman. Secretary Finance or his nominee, Joint Secretary, Ministry of Energy (Power Division), Director General (Gas)/ Director (Gas) and Managing Director, SSGCL as members.
The ECC approved the Technical Supplementary Grant of Rs 1.00 billion under demand No.04-Cabinet Division for establishment of Pakistan Tourism Development Endowment Fund under Public account.
The Chair directed Pakistan Tourism Development Corporation to come up with their tourism development and soft image promotion plan in the next meeting.
The ECC also granted approval of allocation of Gas from PGNiG’s RIZQ Gas Field to M/S SSGCL. It was briefed to the ECC that currently 2 wells namely Rizq-1 and Rizq -2 are producing 16 MMFCD gas from Rizq gas field, which are allocated to M/s SSGCL, whereas Rizq -3 which is under drilling, is expected to add another 9 to 10 MMCFD gas to the existing production. Upon completion of this well, the cumulative gas production from this gas field is expected to raise upto 25 MMCFD. The price of the gas shall be according to the applicable Petroleum Policy.
On the Demand moved by the Ministry of Industries and Production for Rs 3.02 billion for the payment of outstanding dues of SSGC Private Limited by Pakistan Steel Mills on account of gas bills, the ECC directed to constitute a three-member Committee under the Chairmanship of Secretary Finance to find out a feasible solution for the issue so that the already allocated budget may not be exceeded and the liabilities of both SSGC and PSM are duly settled.
ECC directed Ministry of Finance to explore the possibilities for improving the liquidity position of Pakistan State Oil as exchange losses of around Rs 28 billion have incurred on FE-25 loans by PSO.
The loans were acquired under the instructions of Ministry of Finance for financing of import operations of PSO.
Finance Ministry assured the ECC of utilization of possible all funding options in the ongoing financial year and any deficiency in the funds shall be entertained in the upcoming budget.
ECC granted extension of Government of Pakistan guarantee against credit facility of National Bank of Pakistan amounting to Rs5 billion in favor of Utility Stores Corporation of Pakistan.
On the request of the Ministry of Water Resources ECC granted approval to WAPDA to raise loan for the settlement of the Financial Facility amounting to Rs17.500 billion with one-year tenure and GoP guarantee.
Clearance under Prudential Regulations R-4(clause 1a and 2) from the State Bank of Pakistan to disburse the facility initially against a letter of comfort was also granted.
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday established help desks at various Regional Tax Offices (RTOs) and Large Taxpayers Units (LTUs) in order to facilitate taxpayers regarding resolving issues pertaining to Fully Automated Sales Tax e-Refund (FASTER).
The FBR nominated officers at RTOs and LTUs in order to resolves queries and issues regarding filing of Annexure-H and issuance of refunds under FASTER system.
The FBR nominated following officers for help desks:
01. Bilal Zamir, Deputy Commissioner – IR, LTU Lahore.
02. Ahmed Faiz, Assistant Commissioner-IR, RTO Faisalabad.
03. Najam- ul -Hassan Sial, Assistant Commissioner –IR, RTO Faisalabad.
04. Hafiz Muhammad Waris, IRAO, RTO-II Lahore.
05. Muhammad Suleman, Senior Auditor, RTO-II Lahore.
06. Malik M Javed Iqbal, Assistant Commissioner-IR, CRTO Lahore.
07. Ms. Sharmeen Qamar, Assistant Commissioner – IR, CRTO Lahore.
08. Aminullah Kakar, Deputy Commissioner-IR, CRTO Karachi.
09. Shahid Rehan, Senior Auditor, CRTO Karachi.
10. Sana Baluch, Deputy Commissioner-IR, RTO-III Karachi.
11. Abdul Sattar Palh, Assistant Director Audit, RTO-III Karachi.
12. Muhammad Imran Ali, Deputy Commissioner-IR, RTO Sialkot.
13. Muhammad Qamar Minhas, Deputy Commissioner-IR, RTO Multan.
14. Nadeem Ahmed, Deputy Commissioner-IR, RTO Multan.
15. Fayyaz Ahmed, Deputy Commissioner-IR, RTO Multan.
16. Ms. Riffat Aziz, Deputy Commissioner-IR, RTO Gujranwala.
17. Muhammad Ali, Assistant Commissioner-IR, RTO Gujranwala.
18. Amjad Ali Moroojo, Inland Revenue Audit Officer, LTU Karachi.
KARACHI: All Pakistan Textile Mills Association (APTMA) on Wednesday said exporters are missing shipment deadline due to transporters’ strike.
The APTMA in a statement said that the recent strike by the transport sector is going to impact exports significantly as there are no empty containers are available in upcountry for exports.
APTMA spokesman said that as a result of unavailability of empty containers in upcountry due to strike of transport sector, exporters are missing shipment deadlines.
One additional factor that is a major cause of the scarcity of containers is the large number of orders that have been received from China after the effectiveness of the Phase II of the Free Trade Agreement between China and Pakistan.
APTMA Spokesman further said that even if the containers were to be dispatched from Karachi today they would take 3 days to reach upcountry where exporters have already have had 2 days without containers; effectively a further week of exports would have been delayed/lost.
Under these circumstances, we request the government to take immediate action for resolving the issue so that no more exporting deadlines are missed.
KARACHI: The stock market fell by 547 points on Wednesday following Iran attack on US bases in Iraq.
The benchmark KSE-100 index closed at 41,358 points as against 41,904 points showing a decline of 547 points.
Analysts at Arif Habib Limited said that market took the toll of early morning Iranian strike on Iraqi Military base housing American soldiers.
Oil price went haywire with an initial surge towards $72/bbl, but gradually came down as Iranian government signaled an end to confrontation for the time being.
Oil & Gas chain bore the brunt of war hysteria and stock prices went down in early trading.
Later, as the nerves calm down, market staged a recovery erasing a loss of some 400 points and went positive 35 points.
Selling pressure built later during the day and market saw losses piling up -731 points.
MoC saw another recovery attempt that ended the session -547 points.
Banking sector led the volumes table with 54.9 million shares, followed by Power (44.8 million) and Cement (26.9 million). Among scrips, KEL traded 39.4 million shares, followed by BOP (38.2 million) and TRG (11.6 million).
Sectors contributing to negatively include Commercial Banks (-148 points), Oil and Gas Exploration Companies (-77 points), Power (-62 points), Fertilizer (-55 points) and O&GMCs (-37 points).
Volumes increased from 207.3 million shares to 280 million shares (+35 percent DoD). Average traded value also increased by 27 percent to reach US$ 75.4 million as against US$ 59.2 million.
Stocks that contributed significantly to the volumes include KEL, BOP, TRG, MLCF and STPL, which formed 40 percent of total volumes.
Stocks that contributed negatively include HBL (-104 points), PPL (-49 points), HUBC (-42 points), FFC (-37 points) and NBP (-19 points). Stocks that contributed positively include DAWH (+37 points), LUCK (+32 points), and NATF (+11 points).
KARACHI: The Pak Rupee further depreciated by seven paisas against dollar on Wednesday owing to higher import and corporate demands, dealers said.
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KARACHI: Members of Pakistan Federation of Chambers and Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) on Wednesday sit together after defeat of SM Muneer led group in the recent elections of FPCCI.
Siraj Kassem Teli, Chairman of Businessmen Group (BMG) along with office bearers of KCCI visited FPCCI on the invitation of newly elected FPCCI president Anjum Nisar.
President FPCCI Anjum Nisar in his welcome address appreciated the role of KCCI in supporting him in the election.
He vowed that business community would evolve a joint strategy for resolution of problems.
Nisar said that the economic conditions were not good and it was difficult for industries to operate in higher interest rates.
BMG chairman Siraq Kassem Teli, who visited the FPCCI after about 20 years, praised the unity of business community.
He said that his group would fully support the FPCCI on economic issues.
ISLAMABAD: The ministry of commerce has issued notification to implement amendment payment procedure for customs clearance of imported motor vehicles.
The ministry issued SRO 1625(I)/2019 dated December 30, 2019 to amend Import Policy Order, 2016.
As per amendment: “Provided that in case the Pak Rupee depreciates or government increases the import duties or taxes after receipt of remittance and before filing of the goods declaration, which results in shortfall of remitted amount against payable duties and taxes, the importer shall be allowed to meet the shortfall through local sources.”
The commerce ministry through SRO 52(I)/2019 dated January 15, 2019 made it mandatory that payment for customs clearance of import motor vehicles shall be made out of foreign exchange.
Further, the proof of payment through banking channel was also made mandatory.
According to the SRO 52:-
“All vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistan Nationals themselves or local recipient supported by bank encashment certificate showing conversion of foreign remittances to local currency, as under:
(a) the remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and
(b) the remittance shall either be received in the account of Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.”
KARACHI: The government has exempted capital gain tax up to 75 percent in case an immovable property sold by government employees of army personnel after completion of three years.
According to BDO Audit Consultancy Firm, Clause (9A) of Part III of Second Schedule provides a 50 percent exemption on capital gain derived on first sale of immovable property acquired or allotted to ex-servicemen and serving personnel of Armed forces or ex-employees or serving personnel of Federal and Provincial Governments, being original allottees of immovable property.
The Tax Laws (Second Amendment) Ordinance, 2019 has further exempted capital gains up to 75 percent in case the property is sold after completion of three years from date of acquisition.