Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR issues new withholding sales tax rates on supplies

    FBR issues new withholding sales tax rates on supplies

    ISLAMABAD: Federal Board of Revenue (FBR) has announced new rates of withholding sales tax after abolishing Sales Tax Special Procedure (Withholding) Rules, 2007.

    The FBR said that as Sales Tax Special Procedure (Withholding) Rules, 2007, have been rescinded, the rates of withholding and exclusions for the same have been provided in newly inserted Eleventh Schedule, as provided in amended section 3(7) of Sales Tax Act, 1990, effective from July 01, 2019, as under:

    Table

    S.No.Withholding agentSupplier categoryRate or extent of deduction
    (1)(2)(3)(4)
    1(a) Federal and provincial government departments; autonomous bodies; and public sector organizations

     

    (b) Companies as defined in the Income

    Tax Ordinance, 2001 (XLIX of 2001)

    		Registered personsl/5th of Sales Tax as shown on invoice
    2(a) Federal and provincial government departments; autonomous bodies; and public sector organizations

     

    (b) Companies as defined in the Income

    Tax Ordinance, 2001 (XLIX of 2001)

    		Person registered as a wholesaler, dealer or distributor1/10th of Sales Tax as shown on invoice
    3Federal and provincial government departments; autonomous bodies; and public sector organizationsUnregistered personsWhole of the tax involved or as applicable to

     

    supplies on the basis of gross value of supplies

    4Companies as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)Unregistered persons5% of gross value of supplies
    5Registered persons as recipient of advertisement servicesPerson providing advertisement servicesWhole of sales tax applicable
    6Registered persons purchasing cane molasses.Unregistered personsWhole of sales tax applicable

    The rates for withholding or deduction by the withholding agent shall not be applicable on following goods and supplies:

    (i) Electrical energy;

    (ii) Natural gas;

    (iii) Petroleum products as supplied by petroleum production and exploration companies, oil refineries, oil marketing companies and dealers of motor spirit and high speed diesel;

    (iv) Vegetable ghee and cooking oil;

    (v) Telecommunication services;

    (vi) Goods specified in the Third Schedule to the Sales Tax Act, 1990;

    (vii) Supplies made by importers who paid value addition tax on such goods at the time of import; and

    (viii)  Supplies made by an Active Taxpayer as defined in the Sales Tax Act, 1990 to another registered persons with exception of advertisement services.

  • Weather alert of wind-thunderstorm issued for ports

    Weather alert of wind-thunderstorm issued for ports

    A significant weather alert has been issued for ports and fishermen as the Joint Maritime Information Coordination Center (JMICC) anticipates severe weather conditions on July 29 and 30, 2019. Authorities have been urged to implement precautionary measures to mitigate potential impacts.

    (more…)
  • Weekly Review: PM visit to US may lure foreign investors

    Weekly Review: PM visit to US may lure foreign investors

    KARACHI: PM’s trip to the US could potentially aid ongoing issues with the FATF which may lure further foreign investment in the country, analysts said.

    Moreover, attractive valuations may also revive momentum at the index. In the immediate term, result season could dictate performance of the scrips.

    The domestic equity bourse remained lackluster throughout the outgoing week. While PM Khan’s successful visit to the US could not generate a sustainable rally at the index, foreign policy appears to be in-check. Albeit, we pin commencement of the result season as key reason behind aforementioned index performance, given weaker. outcomes expected in cyclical sectors such as cement, steel, and automobiles. The market closed at 32,103 points, shedding 356 points / 1.10 percent WoW.

    Sector-wise negative contributions were led by i) Power Generation & Distribution (71 points), ii) Food & Personal Care Products (66 points), iii) Oil & Gas Marketing Companies (49 points), iv) Cement (39 points), and v) Tobacco (27 points). Scrip-wise negative contributions came from HUBC (48 points), ENGRO (47 points), NESTLE (31 points), MARI (31 points) and PAKT (27 points).

    Foreign buying was witnessed this week clocking-in at USD 8.4mn compared to a net buy of USD 6.4mn last week. Buying was witnessed in Commercial Banks (USD 5.6mn) and Cement (USD 2.3mn). On the domestic front, major selling was reported by Mutual Funds (USD 13.4mn) and Companies (USD 1.2mn). Average Volumes settled at 75mn shares (down by 29 percent WoW) while average value traded clocked-in at USD 21mn (down by 13 percent WoW).

    Other major news: i) OGDC makes oil and gas discovery in Sindh, ii) ADB approves USD 50m additional contribution for CGIF, iii) Power tariff stays high on increase in capacity payments, iv) No new tax on bike and rickshaw according to FBR, and v) Banks likely to pay higher tax on income from papers.

  • Imported consumer items to be cleared on declared retail prices: FBR

    Imported consumer items to be cleared on declared retail prices: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) has said that the consumers items falling under mandatory retail price print will be assessed at declared retail price at clearance stage instead of determination through customs value.

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  • PIA constitutes five-member committee to review fake degree cases

    PIA constitutes five-member committee to review fake degree cases

    KARACHI: A five-member committee has been constituted by the management of Pakistan International Airlines (PIA) to review, examine and recommend action in the fake degrees cases.

    Air Vice Marshal Noor Abbas, advisor to the Chief Executive Office (CEO) will be chairman of this committee, sources said on Friday. Other four members are included: Agha Dur Muhammad Tarique, GM Legal Services; Col. Zahid Hamid, Chief Instructor PTC; Amir Bashir, GM Flight Services; and Rizwan Ahmed Awan.

    The PIA management formed this committee to review the fake degrees cases and the penalties awarded.

    PIA sources said that the review committee had been formed with the approval of the CEO.

    The PIA management granted dismissal from service to over 400 employees for submitting fake educational degrees. However, around 200 employees moved the superior courts seeking relief against the decision. The court referred back the case to PIA management to review the cases as per law.

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  • Pakistan Customs deploys staff for round the clock operation at Torkham border

    Pakistan Customs deploys staff for round the clock operation at Torkham border

    ISLAMABAD: Pakistan Customs has deployed additional staff at Torkham border to activate round the clock operation to facilitate trade, a statement said on Friday.

    It said that in compliance with the directions of Prime Minister of Pakistan, the Pakistan Customs has deputed additional staff at Torkham border to facilitate trade and expedite clearance of baggage and cargo.

    In this regard, the Advisor to the Prime Minister on Establishment matters Arbab Shezad had convened meetings to address the matter on war footing, accordingly Dr. Jawwad Uwais Agha, Member Customs (Operations), Federal Board of Revenue, Islamabad has deployed a large number of customs personnel to cater to the urgent requirements at Torkham Customs.

    While elaborating FBR’s seriousness, Chairman FBR Syed Shabbar Zaidi said that the exports and Transit to Afghanistan bear much promise for expansion of the customs operations at Torkham and the customs department being the premier agency has put its teams in place to brace upto this situation.

    Chairman further informed that around 12 thousand passengers traverse across this border station daily and their facilitation and baggage clearance is an area being addressed by Customs, besides around 300 empty containers (after offloading their cargo in Afghanistan) are also sent back daily from the Afghan side.

    To implement the directions, 54 customs personnel consisting of Superintendents, Appraisers, Inspectors and other supporting staff have been withdrawn from other formations and deployed at Model Customs Collectorate of Appraisement Peshawar for Torkham.

    Although the customs formations are badly short in strength and request for creation of different posts is under consideration of Finance Department, however in order to give compliance to the directions of Prime Ministers Advisor on Establishment and the urgent need for expansion of the operations at Torkham, the Member (Customs Operations) has made all efforts and withdrawn customs staff for deployment in order to facilitate and expand the trade at Torkham.

    The customs clearance will be managed through three shifts. The day and night customs clearance operations will greatly facilitate the import and export at Torkham leading to significant reduction of transport charges and fast movement of trade.

    As a prelude the customs operations have already been expanded starting from 7.00 A.M. in the morning till 9.00 pm, since the past two months. The senior Customs Operations hierarchy have paid visit to Torkham to ensure launch of these operations in the coming days.

    The connecting requirements for equipments and support apparatus are being placed on ground through the cooperation of Khyber Pakhtunkhwa government.

    The said operations for round the clock are going to be started shortly for which formal ceremony will also take place in the presence of federal government high ups and FBR administration.

  • SBP revises refinance scheme for renewable energy

    SBP revises refinance scheme for renewable energy

    The State Bank of Pakistan (SBP) on Friday announced a revised refinancing scheme aimed at boosting renewable energy projects. The new scheme sets a maximum loan amount of Rs6 billion for individual projects up to 50 megawatts.

    (more…)
  • Share market falls by 343 points trend on continuous selling pressure

    Share market falls by 343 points trend on continuous selling pressure

    KARACHI: The share market continued falling trend on Friday and lost another 343 points on heavy selling.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,103 points as against 32,446 points showing a decline of 343 points.

    Analysts at Arif Habib Limited said that the market continue slide down today, where the index saw erosion of 414 points in total, and ended the session -343 points.

    E&P, Refinery, Cement, Autos, Steel and O&GMCs contributed to selling pressure. Only small and mid cap Banks remained unscathed, where BOP topped the chart with ~24 million shares out of a total of 26.5 million shares in Banking sector.

    Technology Sector followed Banks, in terms of volumes with 11.6 million shares. Cement Sector lagged behind Technology with 8.2 million shares, with DGKC at lower circuit and MLCF trading mostly in red zone.

    Sectors contributing to the performance include Fertilizer (-46 points), Power (-40 points), Cement (-38 points), E&P (-31 points) and O&GMCs (-30 points).

    Volumes increased from 63.8mn shares to 86.6mn shares (+36 percent DoD).

    Average traded value, on the contrary, decline by 18 percent to reach US$ 12.1 million as against US$ 14.6 million.

    Stocks that contributed significantly to the volumes include BOP, WTL, PAEL, MLCF and KEL, which formed 50 percent of total volumes.

    Stocks that contributed positively include HMB (+6 points), BOP (+4 points), FABL (+3 points), SYS (+2 points) and SHEL (+1pt). Stocks that contributed negatively include HUBC (-31 points), PAKT (-27 points), FFC (-20 points), OGDC (-18 points) and NESTLE (-15 points).

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  • Rupee ends down by 14 paisas in interbank market

    Rupee ends down by 14 paisas in interbank market

    KARACHI: The Pak Rupee ended down by 14 paisas against dollar on Friday owing to advance payments ahead of weekly holidays.

    The rupee closed at Rs160.59 to the dollar from previous day’s closing of Rs160.45 in interbank foreign exchange market.

    The foreign currency market was initiated in the range of Rs160.50 and Rs160.60. The market recorded day high of Rs160.60 and low of Rs160.50 and closed at Rs160.59 in interbank foreign exchange market.

    Currency experts said that the rupee was under pressure due to higher demand for import and corporate payments ahead of two weekly holidays.

    The exchange rate in open market, however, witnessed gain in rupee value. The buying and selling of dollar was recorded at Rs160.00/Rs160.50 from previous day’s closing of Rs160.20/Rs160.70 in cash ready market.

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  • FBR notifies transfers, postings of BS-20 IRS officers

    FBR notifies transfers, postings of BS-20 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified transfers and postings of BS-20 officers of Inland Revenue Service (IRS) with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Syed Syedain Raza Zaidi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-III) Karachi from the post of Commissioner, (Zone-V) Corporate Regional Tax Office, Karachi. He will assume charge of post of Commissioner, Appeal-III, Karachi on proceeding of Hyder Ali Dharejo to NMC.

    02. Javaid Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appesls-III) Islamabad from the post of Commissioner, Inland Revenue (Appeals-I), Islamabad.

    03. Sajjad Akbar Khan (Inland Revenue Service/BS-20) is currently posted as Commissioner, Inland Revenue (Appeals-I), Karachi. He will hold additional Charge of post of CIR (Appeals-II), Karachi in addition to his own duties.

    04. Muhammad Javaid Badar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals) Faisalabad from the post of Commissioner, (Rahimyar Khan Zone) Regional Tax Office, Bahawalpur.

    05. Rafique-ur-Rehman Memon (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-IV) Karachi from the post of Director, Directorate of Immovable Property (South), Karachi. He will assume the charge of post of Commissioner Appeals-IV, Karachi on proceeding of Dr. Tauqeer Irtiza to NMC.

    06. Dr. Muhammad Idrees (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals) Sargodha from the post of Commissioner, (Zone-II) Regional Tax Office, Sargodha.

    07. Muhammad Faisal Mushtaq Dar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-I) Islamabad from the post of Commissioner, (WHT Zone) Regional Tax Office, Sargodha.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.