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Author: Mrs. Anjum Shahnawaz

  • Rupee falls by two paisas on higher import

    Rupee falls by two paisas on higher import

    KARACHI: The Pak Rupee ended down by two paisas against dollar on Friday owing to payment demand from importers and corporate buyers.

    The rupee ended Rs154.90 to the dollar from previous day’s closing of Rs154.88 in interbank foreign exchange market.

    Currency dealers said that the demand for the greenback was higher during the day for import and corporate payment.

    However, the inflows helped the rupee for further depreciation.

    The foreign currency market was initiated in the range of Rs154.90 and Rs154.95. The market recorded day high of Rs154.95 and low of Rs154.89 and closed at Rs154.90.

    The exchange rate in open market witnessed slight change in rupee value. The buying and selling of the dollar was recorded at Rs154.80/Rs155.10 from previous day’s closing of Rs154.70 and Rs155.00.

  • Equity market ends down 158 points on profit taking

    Equity market ends down 158 points on profit taking

    KARACHI: The equity market fell by 158 points on Friday owing to profit taking on the last trading day of the week.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,323 points as against 42,481 points showing a decline of 158 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today with +334 points and 3.34 million volume traded. Oil chain reacted to the jump in international oil prices which went up on the news of US attack on Iranian military commander.

    POL reacted the most to hike in oil prices. Similarly, among OMCs, PSO made a rapid ascent.

    Majority of the stocks remained red by the end of session due to profit booking and concerns over regional security.

    Among Banks, HBL and UBL remained under pressure. Technology sector led the volumes table with 43 million shares, followed by Banks (34.5 million) and Cement (33.2 million).

    Among scrips, TRG topped the chart with 23.7 million shares, followed by UNITY (20.8M) and KEL (20.2 million).

    Sectors contributing to the performance include E&P (+63 points), Fertilizer (-87 points), Banks (-77 points), Pharma (-18 points), Autos (-12 points).

    Volumes declined over the day from 412.3 million shares to 322.9 million shares (-22 percent DoD). Average traded value also declined by 14 percent to reach US$ 94.8 million as against US$ 110.1 million.

    Stocks that contributed significantly to the volumes include TRG, UNITY, KEL, PAEL and FFL, which formed 30 percent of total volumes.

    Stocks that contributed positively include POL (+34 points), OGDC (+33 points), MCB (+24 points), HUBC (+18 points) and BAHL (+16 points). Stocks that contributed negatively include HBL (-78 points), ENGRO (-74 points), UBL (-29 points), SEARL (-10 points), and MARI (-10 points).

  • Withholding agent condition withdrawn on individuals with turnover up to Rs100 million

    Withholding agent condition withdrawn on individuals with turnover up to Rs100 million

    ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn the condition on individuals to act as withholding agent in case the business turnover is up to Rs100 million.

    The government through Tax Laws (Second Amendment) Ordinance, 2019 introduced major change to Income Tax Ordinance, 2001.

    Under section 153 of the Ordinance, individuals having turnover of Rs50 Million or above in any of the preceding Tax Years are obliged to act as withholding tax agents whilst making payments for supply of goods, rendering of services or for execution of contracts.

    “Henceforth traders, being individuals and having turnover up to Rs100 million shall not be required to act as a withholding agent under section 153 of the Ordinance,” according to the FBR.

    Tax experts explained that individual having turnover of Rs50 million or more in any of the preceding tax years is liable to deduct tax under section 153 while making payments against supply of goods, services and contracts.

    Through the Second Amendment Ordinance, traders being individuals having turnover up to Rs100 million have been exempted from deducting tax under section 153 while making payment against supply of goods, services and contracts.

    However, the FBR may clarify the year with respect to which turnover of Rs100 million will be calculated by the trader.

  • KCCI demands terminal operators to publicize container charges

    KCCI demands terminal operators to publicize container charges

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has demanded the terminal operators to make public the container charges.

    Agha Shahab Ahmed Khan, President, KCCI while referring to numerous complaints submitted at the Chamber by the importers, urged the Terminal Operators and Shipping Agents to publicize Full Container Load (FCL) and Less Than Container Load (LCL) charges on their websites in order to facilitate trade and industry.

    It has been observed that terminal operators and shipping agents do not share the breakup of charges even on demand and seek aggregate amount decided whimsically which was highly unfair as the relevant traders are totally unaware of what exactly was being charged under what label.

    “Access to such information is the fundamental right and a fair demand of the importers who are carrying out legitimate businesses and timely paying all their taxes”, he said, adding that the Ministry of Maritime Affairs must look into this issue and order the Terminal Operators and Shipping Agents to share breakup of charges with importers which would certainly be appreciated by the business community.

    Agha Shahab was of the opinion that Pakistan’s sea port charges were one of the highest in the South Asian region which discourage cost efficient shipping lines from taking cargo to and from Pakistan resulting in a demand/supply gap and higher transportation costs for the traders.

    “As per studies conducted earlier, Karachi’s two ports have charges which are estimated to be three times that of Sri Lanka’s, and seven times that of Singapore. Such problems should be addressed at the earliest, if we want to see Pakistan rapidly become a hub of regional trade”, he added.

    He said that the business community faces inconsistency in the charges of shipping companies, thus making costing and forecasting difficult for businessmen.

    Shipping lines are charging exorbitant charges in the name of free competitive rates and loose cargo landing delivery orders.

    “In addition, high port charges are being charged as there is no fixed policy in this regard. This is adversely affecting the business in terms of flow thus creating a negative impact for the business community,” he added.

    He stressed that the charges of KICT, PICT and QICT are too high in comparison with global standards and need to be reduced.

    “There is a need to increase the time of free days of delivery order and detention charges of containers to 21 days and detention slab of not more than $5 per day after 21 days by the shipping companies. The number of demurrage free days should also be increased to around 10 days,” he added.

  • Exemption on electricity bills for commercial, industrial consumers withdrawn

    Exemption on electricity bills for commercial, industrial consumers withdrawn

    ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn the exemption of advance income tax on electricity bills to industrial and commercial consumers.

    The exemption has been withdrawn through Tax Laws (Second Amendment) Ordinance, 2019.

    The FBR said that in terms of clause (66) of Part-IV of the Income Tax Ordinance, 2001 exemption from collection of advance tax under section 235 of the Ordinance on the electricity bills of commercial and industrial consumers was available to the five export oriented sectors who fulfill the twin conditions of falling under the zero rated regime of sales tax and being registered in sales tax as exporters or manufacturers.

    The zero rating regime for the five export–oriented sectors has now been abolished, therefore, consequent amendment in clause (66) of Part-IV of the Second Schedule has been made to remove the legal anomaly.

  • Telecom services to pay 19.5 percent as per SRB working tariff

    Telecom services to pay 19.5 percent as per SRB working tariff

    KARACHI: Sindh Revenue Board (SRB) issued working tariff updated up to December 31, 2019 under which the sales tax on services will be 19.5 percent on telecommunication services. (more…)

  • Pakistan’s foreign exchange reserves increase to $18.081 billion

    Pakistan’s foreign exchange reserves increase to $18.081 billion

    KARACHI: The liquid foreign exchange reserves of the country increased by $486 million to $18.081 by week ended December 27, 2019 as compared with $17.595 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves held by the central bank increased by $582 million to $11.489 billion by week ended December 27, 2019 as compared with $10.907 billion a week ago.

    The SBP attributed the increase to bilateral and multilateral inflows including proceeds of US$ 452.4 million received from IMF under EFF program.

    The foreign exchange reserves held by commercial banks however declined by $95 million to $6.592 billion by week ended December 27, 2019 as compared with $6.687 billion a week ago.

  • Rupee eases on import, corporate demand

    Rupee eases on import, corporate demand

    KARACHI: The Pak Rupee eased by three paisas on Thursday owing to higher import and corporate payments, dealers said.

    The rupee ended Rs154.88 to the dollar from Tuesday’s closing of Rs154.85 in interbank foreign exchange market.

    The dealers said that last day the market was remained closed due to bank holiday. Therefore, the demand was higher today for import and corporate payments.

    They said that improved economic indicators would help the rupee against the foreign currency in coming days.

    The exchange rate in open market also witnessed slight change in rupee value. The buying and selling of dollar was recorded at Rs154.70/Rs155.10 from Tuesday’s closing of Rs154.70/Rs155.00 in cash ready market.

  • Stock market gains 1,081 points on tax incentives

    Stock market gains 1,081 points on tax incentives

    KARACHI: The stock market gained 1,081 points on Thursday owing to positive outcome of tax amendment ordinance promulgated a day earlier.

    The benchmark KSE-100 of Pakistan Stock Exchange (PSX) closed at 42,481 points as against 41,400 points showing an increase of 1081 points.

    The sentiments of the market was positive on tax incentives granted to foreign investors in domestic debt securities.

    Analysts at Arif Habib Limited said that second trading day of 2020 took the index to an even higher number with an increase of 1144 points and closing the session 1081 points.

    Reasons that contributed to the performance of index were rumour of downward adjustment in NSS rates by a significant margin and buying activity from Banks and Foreign Fund, in addition to the recent release of a host of high index targets from various brokerage houses.

    Buying activity was mainly observed in Banks, E&P and Cement Sectors.

    Power sector led the volumes with 58.8 million shares, followed by Banks (58.1 million) and Cement (36.3 million).

    Among scrips, KEL traded 46.8 million shares, followed by BOP (27.7 million) and FFL (21.4 million).

    Sectors contributing to the performance include Banks (+332 points), E&P (+133 points), Power (+107 points), Cement (+95 points) and Fertilizer (+91 points).

    Volumes increased from 330.7 million shares to 412.4 million shares (+24 percent DoD). Average traded value also increased by 111 percent to reach US$ 110.2 million as against US$ 52.1 million.

    Stocks that contributed significantly to the volumes include KEL, BOP, FFL, UNITY and PAEL, which formed 33 percent of total volumes.

    Stocks that contributed positively include HUBC (+101 points), HBL (+85 points), ENGRO (+83 points), UBL (+73 points) and PPL (+67 points). Stocks that contributed negatively include KTML (-2 points), SHEL (-1 points), GSKCH (-1 points), POL (-1 points), and FHAM (-1 points).

  • Commissioner empowered to cancel business license

    Commissioner empowered to cancel business license

    ISLAMABAD: The commissioner of Inland Revenue has been empowered to cancel business license of person on violation of tax laws.

    An amendment has been made to Section 181D of Income Tax Ordinance, 2001 through Tax Laws (Second Amendment) Ordinance, 2019 to empower commissioner to impose fine and penalty and cancel business license.

    Federal Board of Revenue (FBR) in salient features to tax amendment ordinance said that in order to document business activity section 181D of the Ordinance was inserted through the Finance Act, 2019 whereby it was made mandatory for every person engaged in any business, profession or vocation to obtain and display a business license as prescribed by the board.

    In order to complement efforts towards implementation of this scheme the Commissioner is being empowered to impose a fine of Rs.20,000/- in the case of a taxpayer deriving income chargeable to tax under the Ordinance and Rs.5,000/- in all other cases.

    Moreover, the Commissioner shall also be empowered to cancel a business license after providing an opportunity of being heard if a person fails to notify any change in particulars within 30 days of such change or if a person is convicted of any offence under any Federal Tax Law.