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Author: Mrs. Anjum Shahnawaz

  • FBR issues withholding tax rates on commercial, industrial electricity consumers

    FBR issues withholding tax rates on commercial, industrial electricity consumers

    KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates to be collected from electricity consumers of commercial and industrial.

    According to Withholding Tax Card for tax year 2020 applicable from July 01, 2019, the power utility preparing electricity bills shall collect withholding tax under Section 235 of Income Tax Ordinance, 2001 from commercial and industrial consumers along with payment of electricity consumption on charges.

    The FBR issued following withholding tax rates on electricity consumption by commercial and industrial consumers”

    If monthly bill does not exceeds Rs400 the rate of withholding tax shall be zero.

    Exceeds Rs. 400 but does not exceed Rs. 600 the rate of withholding tax shall be Rs80.

    Exceeds Rs. 600 but does not exceed Rs. 800 the rate of withholding tax shall be Rs100.

    Exceeds Rs. 800 but does not exceed Rs. 1000 the rate of withholding tax shall be Rs160.

    Exceeds Rs. 1000 but does not exceed Rs. 1500 the rate of withholding tax shall be Rs300.

    Exceeds Rs. 1500 but does not exceed Rs. 3000 the rate of withholding tax shall be Rs350.

    Exceeds Rs. 3000 but does not exceed Rs. 4,500 the rate of withholding tax shall be Rs450.

    Exceeds Rs. 4500 but does not exceed Rs. 6000 the rate of withholding tax shall be Rs500.

    Exceeds Rs. 6000 but does not exceed Rs. 10000 the rate of withholding tax shall be Rs650.

    Exceeds Rs. 10000 but does not exceed Rs. 15000 the rate of withholding tax shall be Rs1000.

    Exceeds Rs. 15000 but does not exceed Rs. 20000 the rate of withholding tax shall be Rs1500.

    Exceeds Rs20000:

    (i) The tax shall be at the rate of 12 percent for commercial consumers;

    (ii) The tax shall be at the rate of 5 percent for industrial consumers.

    The FBR said that the tax shall:

    (i) Adjustable In case of company.

    (ii) In case of other than company tax collected on Rs, 360000 amount of annual bill will be minimum tax.

    (iii) in case other than company tax collected on amount over and above Rs 30000/- of monthly bill will be adjustable

    (i) Minimum Tax for CNG Stations.

    The FBR said that power utilities are required to collect adjustable withholding tax under Section 235A from domestic consumers along with payment of electricity consumption on charges.

    The tax shall be collected at 7.5 percent if the amount of monthly bill is Rs75,000 ore more. However, tax shall not be collected if the amount of monthly bill is less than Rs75,000.

  • No tax imposed on motorcycles, auto rickshaws: FBR

    No tax imposed on motorcycles, auto rickshaws: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that it has not imposed any tax on motorcycles and auto rickshaws.

    “The new circulating about imposition of tax on motorcycle and auto rickshaws by FBR is baseless and false, the FBR clarified and strongly refuted this baseless news.

    The FBR clarified that no change or increase in tax has been levied on motor vehicles under section 231B and 234 of Income Tax Ordinance-2001.

    Further, there is no suggestion under consideration to levy tax on Motorcycle and Auto Rickshaws.

    “The tax is levied only on cars as per Income Tax Ordinance-2001,” the FBR said.

    The government is working to provide facilities to the less income segment of the society.

  • FBR establishes FATF cell

    FBR establishes FATF cell

    The Federal Board of Revenue (FBR) has established a dedicated cell to oversee compliance with actions mandated by the Financial Action Task Force (FATF).

    (more…)
  • FBR issues withholding tax rates on registration of motor vehicles

    FBR issues withholding tax rates on registration of motor vehicles

    ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax rates on registration of new motor vehicles effective from July 01, 2019.

    The FBR said that motor vehicle registration authorities are required to collect/deduct advance tax on private motor vehicles under Section 231B of Income Tax Ordinance, 2001 at the time of registration of new motor vehicles from persons getting new locally manufactured motor vehicles in their name.

    Following are the withholding tax rates for registration of new motor vehicles under Section 231B(1):

    Engine capacityTax RatePersons not appearing on ATL*
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs30,000
    1001CC to 1300CCRs25,000Rs50,000
    1301CC to 1600CCRs50,000Rs100,000
    1601CC to 1800CCRs75,000Rs150,000
    1801CC to 2000CCRs100,000Rs200,000
    2001CC to 2500CCRs150,000Rs300,000
    2501CC to 3000CCRs200,000Rs400,000
    Above 3000CCRs250,000Rs500,000

    ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

    The FBR said that under Section 231B(1A) every leasing company, scheduled bank, investment bank, development finance institution, Modarba (Sharia Compliant or under conventional mode) shall collect four percent of the value of motor vehicles at the time of lease from persons not appearing in the ATL.

    The FBR said that under Section 231B(2) the motor vehicle registration authority shall collect withholding tax from person transferring the ownership/registration at the time of transfer:

    Engine capacityTax RatePersons not appearing on ATL*
    Up to 850CCRs0Rs0
    851CC to 1000CCRs5,000Rs10,000
    1001CC to 1300CCRs7,500Rs15,000
    1301CC to 1600CCRs12,500Rs25,000
    1601CC to 1800CCRs18,750Rs37,500
    1801CC to 2000CCRs25,000Rs50,000
    2001CC to 2500CCRs37,500Rs75,000
    2501CC to 3000CCRs50,000Rs100,000
    Above 3000CCRs62,500Rs125,000

    ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

    The FBR said that under Section 231B(3) every manufacturer of motor vehicle shall collect withholding tax from purchaser at the time of sale of vehicle at the following tax rates:

    Engine capacityTax RatePersons not appearing on ATL*
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs30,000
    1001CC to 1300CCRs25,000Rs50,000
    1301CC to 1600CCRs50,000Rs100,000
    1601CC to 1800CCRs75,000Rs150,000
    1801CC to 2000CCRs100,000Rs200,000
    2001CC to 2500CCRs150,000Rs300,000
    2501CC to 3000CCRs200,000Rs400,000
    Above 3000CCRs250,000Rs500,000

    ** Persons not appearing in the Active Taxpayers List: The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule of the Income Tax Ordinance, 2001.

  • FBR transfers 23 inspectors to speed up action against Benami assets

    FBR transfers 23 inspectors to speed up action against Benami assets

    ISLAMABAD: Federal Board of Revenue (FBR) has transferred 23 inspectors of Inland Revenue to newly established Benami zones in three major cities in order to speed up action against Benami assets.

    According to a notification issued on Thursday the FBR transferred and posted following inspectors of BS-16 with immediate effect until further orders:

    01. Muhammad Jahangir has been transferred from LTU Islamabad to Benami Zone, Islamabad.

    02. Muhammad Afzal Khan has been transferred from RTO Islamabad to Benami Zone, Islamabad.

    03. Ms. Tahmina Bibi has been transferred from RTO Islamabad to Benami Zone, Islamabad.

    04. Khawaja Muhammad Zaheer has been transferred from RTO Islamabad to Benami Zone, Islamabad.

    05. Ms. Tabassum Baig has been transferred from RTO Islamabad to Benami Zone, Islamabad.

    06. Osama Idrees has been transferred from RTO Rawalpindi to Benami Zone, Islamabad.

    07. Ms. Sobia Idrees has been transferred from CRTO Lahore to Benami Zone, Lahore.

    08. Syed Muhammad Zulqarnain Shah has been transferred from LTU Lahore to Benami Zone, Lahore.

    09. Muhamamd Usman has been transferred from LTU Lahore to Benami Zone, Lahore.

    10. Shahbaz Amir Ali has been transferred from RTO-II Lahore to Benami Zone, Lahore.

    11. Muhammad Hamza has been transferred from RTO-II Lahore to Benami Zone, Lahore.

    12. Ms. Mah-e-No Mirza has been transferred from RTO-II Lahore to Benami Zone, Lahore.

    13. Muhammad Ahmad Asghar has been transferred from RTO-II Lahore to Benami Zone, Lahore.

    14. Rana Muhammad Awais has been transferred from RTO-II Lahore to Benami Zone, Lahore.

    15. Ms. Nazia Ghazal has been transferred from RTO-II Lahore to Benami Zone, Lahore.

    16. Mehraj Ahamad has been transferred from CRTO Karachi to Benami Zone, Karachi.

    17. Suhail Ahmad has been transferred from CRTO Karachi to Benami Zone, Karachi.

    18. Kamran Taj has been transferred from RTO-II Karachi to Benami Zone, Karachi.

    19. Muhammad Umair Shaikh has been transferred from RTO-II Karachi to Benami Zone, Karachi.

    20. Dileep Kumar has been transferred from LTU Karachi to Benami Zone, Karachi.

    21. Mansoor Farhad has been transferred from RTO-III Karachi to Benami Zone, Karachi.

    22. Muhammad Ilyas has been transferred from CRTO Karachi to Benami Zone, Karachi.

    23. Amit Kumar has been transferred from RTO-II Karachi to Benami Zone, Karachi.

  • Foreign exchange reserves down by $387 million to $14.486 billion

    Foreign exchange reserves down by $387 million to $14.486 billion

    KARACHI: The liquid foreign exchange reserves of the country have declined by $387 million to $14.486 billion by week ended July 19, 2019 as compared with $15.249 billion a week ago, State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by the central bank fell by$389 million to $7.612 billion by week ended July 19, 2019 as compared with $8.001 billion a week ago. The central bank said that its reserves were reduced due to external debt servicing and other official payments.

    The reserves held by commercial banks were flat at $7.250 billion as compared with $7.248 billion.

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  • KSE-100 index ends flat amid selling pressure

    KSE-100 index ends flat amid selling pressure

    KARACHI: The stock market ended with a nominal gain of 45 points on Thursday amid selling pressure during the first half of trading.

    The benchmark KSE-100 of Pakistan Stock Exchange (PSX) closed at 32,446 points as against 32,401 points showing an increase of 45 points.

    Analysts at Arif Habib Limited said that market traded in a narrow range and saw an oscillation of +101 points and -251 points.

    Early part of the session saw bearish trend, with selling pressure in Cement, Banks, Fertilizer stocks. Sectors contributing positively to the index included E&P and Autos. Among banking sector scrips, HBL performed well despite dismal financial results announced yesterday.

    The Bank is scheduled to hold conference call with Analysts to explain the financial performance.

    Cement sector remained muted throughout the day, giving hope to short sellers, whereby MLCF ended the session at lower circuit.

    Overall volumes were still low, and were mainly contributed by Cement sector (10 million shares), followed by Banks (9 million). BOP ranked top amongst the volume leaders with 5.5 million shares, followed by MLCF (5.3 million).

    Sectors contributing to the performance include E&P (+41 points), Fertilizer (+35 points), Power (+25 points), Banks (+24 points), Cement (-31 points) and O&GMCs (-25 points).

    Volumes declined further from 84.4 million shares to 63.1 million shares (-25 percent DoD). Average traded value also declined by 31 percent to reach US$ 14.6 million as against US$ 21 million.

    Stocks that contributed significantly to the volumes include BOP, MLCF, TRG, UNITY and FFL, which formed 36 percent of total volumes.

    Stocks that contributed positively include HUBC (+26 points), OGDC (+22 points), HBL (+18 points), ENGRO (+15 points) and NESTLE (+14 points). Stocks that contributed negatively include PSO (-14 points), HMB (-9 points), LUCK (-7 points), TRG (-7 points) and FCCL (-6 points).

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  • Rupee gains 33 paisas in interbank market

    Rupee gains 33 paisas in interbank market

    KARACHI: The Pak Rupee gained 33 paisas against dollar on Thursday owing to positive sentiments prevailed following successful visit of the US by Prime Minister Imran Khan.

    The rupee ended Rs160.45 to the dollar from previous day’s closing of Rs160.78 in interbank foreign exchange market.

    The foreign currency market was initiated in the range of Rs160.45 and Rs160.75 in interbank foreign exchange market. The market recorded day high of Rs160.70 and low of Rs160.45 in interbank foreign exchange market.

    Currency experts said that the local unit may under pressure in coming days due to higher import and corporate payments.

    The exchange rate in open market also witnessed appreciated in rupee value. The buying and selling of dollar was recorded at Rs160.20/Rs160.70 as compared with previous day’s closing of Rs160.30/Rs160.80 in cash ready market.

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  • Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices

    Pak Suzuki declares huge loss of Rs1.52 billion in first half despite multiple increases in prices

    KARACHI: Pak Suzuki Motors (PSMC) has declared massive loss of Rs1.52 billion for the first half ended June 30, 2019 despite multiple increase in prices of vehicles during the period.

    According to half yearly financial results submitted to Pakistan Stock Exchange (PSX), the company posted net loss of Rs1.525 billion as compared with growth of Rs1.29 billion in the corresponding half of the last fiscal year.

    According to Topline Securities, Pak Suzuki Motors posted loss per share (LPS) of 6.62 against earning per share (EPS) of Rs 4.78 for the quarter April to June 2019 in same period last year.

    Significant decline in earnings was mainly due to massive reduction in gross profit margins by 5ppts.

    During outgoing quarter revenue of the company witnessed a mere 1 percent YoY growth to Rs31 billion despite multiples hikes in prices owing to declining volumetric sales in said period.

    Gross profit margin were down by 5ppts, due to significant PKR depreciation against USD by 14 percent in 2QCY19 coupled with inflationary environment leading to high input costs.

    § Distribution cost has increased by 56 percent YoY due to higher transportation costs (from factory to dealer) which is currently borne by the company.

    The company has booked a tax reversal (higher tax recorded in previous accounts) owing to change in turnover expectations.

    Other Income has witnessed decline of 76 percent YoY mainly due to low income from bank deposits as the company has reduced cash balance in its accounts after decline in advance payments from customers.

    Finance cost has increased by 1.8x YoY due to addition of short term borrowings in the outgoing quarter.

    Key risks to company includes 1) Further PKR depreciation 2) slowdown in economy and 3) Entry of new auto players resulting in stiff competition.

  • OGDCL announces discovery of oil and gas in Sindh

    OGDCL announces discovery of oil and gas in Sindh

    KARACHI: Oil and Gas Development Company Limited (OGDCL) on Wednesday announced discovery of oil and gas in District Sanghar of Sindh province.

    In an information to Pakistan Stock Exchange (PSX) it said that the joint venture of Bitrism Block comprising OGDCL as operator 95 percent and Government Holdings (Pvt.) Limited (five percent carried) has discovered oil and gas from its exploratory well Pandhi # 01, which is located in District Sanghar, Sindh Province.

    It said that the structure of Pandhi # 01 was delineated, drilled and tested using OGDCL’s in house expertise. The well was drilled down to the depth of 3600 meters. The well has tested 9.12 million standard cubic feet per day (MMSCFD) of gas and 520 barrels per day of oil through choke at wellhead flowing pressure of 840 pounds per square inch (Psi) from lower Goru (Basal Sand) Formation.

    The discovery of Pandi # 01 is the result of aggressive exploration strategy adopted by the company in pursuance of the government’s directive to explore and produce local oil and gas. It would add to the hydrocarbon reserves of OGDCL and the country.

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