Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • NBP declares 11.12pc decline in after tax profit to Rs11.1 billion

    NBP declares 11.12pc decline in after tax profit to Rs11.1 billion

    KARACHI: National Bank of Pakistan (NBP) on Wednesday declared decline in net profit by 11.12 percent to Rs11.1 billion for the first half ended June 30, 2019.

    According to financial results for the half yearly ended June 30, 2019 submitted to Pakistan Stock Exchange (PSX), the bank declared after tax profit of Rs11.101 billion as compared with Rs12.49 billion for the corresponding period of the last year.

    The public sector bank declared Rs5.22 earnings per share for the half year as compared with Rs5.87 EPs for the same period of the last year.

    The earning of the bank declined owing to higher amount of tax payment for the period under review. The bank discharged tax liability of Rs9.28 billion for the period January – June 2019 as compared with Rs4.66 billion in the corresponding period of the last year.

    Total income of the bank for the period under review increased by 18.45 percent to Rs53.76 billion as compared with Rs45.39 billion for the period ended June 30, 2018.

    Net mark-up/interest income of the bank increased to Rs35.56 billion for the period ended June 30, 2019 as compared with Rs30.14 billion in the same period of the last year.

    While total non-mark up / interest income of the banks increased to Rs18.2 billion as compared with Rs15.25 billion.

    Operating expenses of the bank increased to Rs27.8 billion from Rs25.41 billion.

    The provisions and write offs of the banks also increased to Rs5.49 billion for the first half ended June 30, 2019 as compared with Rs2.82 billion in the corresponding period of the last year.

    The profit before taxation of the bank came at Rs20.38 billion by June 30, 2019 as compared with Rs17.16 billion in the corresponding period of the last year.

  • CNIC condition on purchases remain part of law, deferred till September: FBR chairman

    CNIC condition on purchases remain part of law, deferred till September: FBR chairman

    KARACHI: The chairman of Federal Board of Revenue (FBR), Shabbar Ziaid on Wednesday said that condition of providing Computerized National Identity Card (CNIC) on purchase of above Rs50,000 is remain part of law.

    “However, its application has been deferred till September 30,” he said at an event organized by Management Association of Pakistan (MAP).

    He categorically said that the condition would not be withdrawn and he termed that it would result in massive compliance by persons having taxable income but not on the tax roll.

    The FBR chairman said that due to measures taken by the revenue body the number of return filers had increased beyond 2.5 million.

    He said that the tax authorities were making all out efforts to make procedure easy for return filing to further increase the number of return filers in the country.

    The chairman said that much of work against benami assets had been done. “The FBR is further accelerating actions against benami assets holders,” he added.

    He said that the prime minister had also issued instructions to take action against holders of Benami assets.

    Besides, he said, banks were also asked to provide details of benami bank account holders.

    The chairman said that the FBR had launched monitoring sales and purchases in sales tax and federal excise regimes.

    Shabbar Zaidi said that in order to resolve the issues of small traders, two different schemes had been proposed.

    He said that that efforts had been made to bring people in all sectors of economy into tax net. In this regard notices have been issued to educational institutions, doctors, engineers and lawyers.

  • Access to information made free for citizens

    Access to information made free for citizens

    In a significant move aimed at enhancing transparency and facilitating citizens’ access to information, the federal government has declared the first 10 pages of requested information under the Access to Information Act, 2017 to be provided free of cost.

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  • FBR launches software to monitor sales tax returns

    FBR launches software to monitor sales tax returns

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday launched a software to monitor sales tax returns.

    Chairman Federal Board of Revenue Syed Muhammad Shabbar Zaidi has inaugurated the new software called Centralized Sales Tax & FED Assessment & Processing (CSTAP) to effectively monitor the sales tax returns.

    This software is inaugurated at FBR Headquarters which is developed by IR-Operations Wing of FBR.

    The purpose of the software is to identify the tax gaps and to determine actual Sales Tax/ FED liabilities of all taxpayers.

    The Chairman FBR was given live demonstration on the working and application of the new software by Ms. Seema Shakeel, Member IR-Operations.

    This software will also be used for the purpose of expeditious processing of refund claims.

    The Chairman FBR was also informed that first batch of 25 officers from field formations are given task to test run this project form 11th September 2019.

    However, after successful test run of this project, the same shall be made available to all field formations throughout the country.

  • Fiscal deficit balloons to record 8.9 percent in 2018/2019

    Fiscal deficit balloons to record 8.9 percent in 2018/2019

    Pakistan’s fiscal deficit surged to an unprecedented level of 8.9 percent of Gross Domestic Product (GDP) during the fiscal year 2018-2019, as per the latest data released by the federal finance ministry on Tuesday.

    (more…)
  • Yarn merchants demand restoration of 1pc withholding tax for textile value chain

    Yarn merchants demand restoration of 1pc withholding tax for textile value chain

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded the Federal Board of Revenue (FBR) to restore one percent advance income tax for textile value chain.

    In a statement on Tuesday, Muhammad Saqib Goodluck Chairman, PYMA (Sind & Baluchistan Zone) strongly protested over imposition of 4 percent withholding tax instead of 1 percent requested to withdraw recent clarification of FBR.

    He said that during different meetings with FBR, imposition of 1 percent withholding Tax was agreed over Textile Value Chain (Doubling, Twisting, Knitting, and Weaving) but clarification from FBR says imposition of 4 percent withholding Tax instead of 1 percent on whole Textile Chain, is not acceptable at any cost.

    Saqib Goodluck in his letter to Chairman FBR, Shabbar Zaidi has clearly refused to accept imposition of 4 percent withholding tax instead of 1 percent and declared this step of FBR as highly disastrous said that on total amount of every receipt, 4 percent advance income tax could not collected which will increase the cost.

    On purchase of cotton from Ginners, deduction of 4 percent from invoice will increase pressure on Ginners to reduce cost of cotton.

    In fact, they must be responsible for ginning charges which is 35 percent of ginned cotton. Similarly, from manufacturing of yarn up to manufacturing of cloth, imposition of every tax will develop highly negative impacts on cost and local raw material.

    He further said that local manufacturers spinning units and commercial importers of yarn works at low margins but large volume, when it reach up to retails stage with reference to polyester chain, it comprises four to five stages.

    If upon fourth or fifth stage, 4 percent tax deducted, then cost of raw material will increase and ultimately withholding tax will increase from total margin and cases of income tax.

    Refund will increase, which takes a long time to receive. It will be more difficult than GST because deduction of withholding tax on input carries no subsidy.

    A large number of production units are engaged in exports as well as sales in local market.

    FBR while examining audited balance sheets of public listed companies and other companies that withholding tax received over lesser margin is how much excessive. Therefore, for the survival of whole textile value chain 1 percent withholding tax must be implemented.

  • KSE-100 gains 64 points amid mixed trading

    KSE-100 gains 64 points amid mixed trading

    KARACHI: The KSE-100 index ended with gain of 64 points on Tuesday after mixed trading activities on Pakistan Stock Exchange (PSX).

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  • Rupee gains 10 paisas on improved inflows

    Rupee gains 10 paisas on improved inflows

    KARACHI: The Pak Rupee gained 10 paisas against dollar on Tuesday owing to improved inflows of export receipts and workers remittances.

    The rupee ended Rs157.26 to the dollar from previous day’s closing of Rs157.36 in interbank foreign exchange market.

    Currency experts said that the inflows from export receipts and worker remittances kept the market sentiments high. They also said that the demand for import payment was also low due to higher duty and tax regime.

    The foreign currency market was initiated in the range of Rs157.30 and Rs157.35. The market recorded day high of Rs157.45 and low of Rs157.24 and closed at Rs157.26.

    The exchange rate in open market also witnessed appreciation in the rupee value. The buying and selling of dollar was recorded at Rs157.00/Rs157.50 from previous day’s closing of Rs157.10/Rs157.60 in cash ready market.

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  • OGDCL discovers huge gas reserves in Khyber PakhtoonKhwa

    OGDCL discovers huge gas reserves in Khyber PakhtoonKhwa

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Tuesday announced huge amount of gas discovery and condensate from exploratory well at Kohat, Khyber PakhtoonKhwa.

    In a notification to Pakistan Stock Exchange (PSX) and London Stock Exchange Plc., the company said that the joint venture of Kohat E.L. comprising OGDCL as operator (50 percent), Mari Petroleum Company Limited (MPCL) (33.33 percent) and Saif Energy Limited (SEL) (16.67) percent, has discovered gas and condensate from its exploratory efforts at Well Togh-01, which is located in district Kohat, Khyber PakhtoonKhwa Province.

    Togh Well#01 was drilled and tested using OGDCL’s in house expertise in consultation with Kohat Joint Ventures MPCL and Saif Energy. “The well was drilled down to the depth of 3200 meters. The well was tested at the rate of 12.7 million standard cubic feet per day (MMSCFD) gas, 240BPD condensate through choke size 32/64” at well head flowing pressure 2478 Pounds per Squre Inch (Psi) from Lumshiwal formation.

    The company said that the discovery of Togh Well # 01 is the result of aggressive exploration strategy adopted by Kohat the Joint Venture. It has opened a new avenue and would add to the hydrocarbon reserves base of the OGDCL, Joint Venture partners and of the country.

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  • FBR to launch audit of withholding agents

    FBR to launch audit of withholding agents

    KARACHI: Federal Board of Revenue (FBR) on Monday initiated a program of skill development of its officials to conduct system audit of withholding agents.

    A statement said that under the dynamic leadership of Syed Shabbar Zaidi, Chairman, FBR, a new initiative had been taken up by Faheem-ul-Haq, Director General (Withholding) and launched by Dr. Aftab Imam, Chief Commissioner, Corporate Regional Tax Office, Karachi.

    This initiative comprises the skill development of officers for system audit of withholding agents to monitor and improve the collection and deposition of withholding tax.

    The field officers of all eight field formations of Sindh and Balochistan i.e. Corporate RTO Karachi, Large Taxpayers Units I & II, RTO II & III Karachi, RTO Hyderabad, Quetta and Sukkur; are being trained into the system audit of withholding agents by a renowned chartered accountant.