KARACHI: National Clearing Company of Pakistan Limited (NCCPL) on Friday announced that it will collect Capital Gain Tax (CGT) on disposal of securities for the month of May on June 28, 2019.
(more…)Author: Mrs. Anjum Shahnawaz
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Owners of undeclared 13,193 luxury vehicles warned of harsh punishment
KARACHI: Federal Board of Revenue (FBR) has warned the owners of luxury motor vehicles of harsh punishment in case they are remained non compliant and failed to declare these vehicles under Asset Declaration Scheme.
In this regard the Regional Tax Office (RTO)-II Karachi has obtained details of 13,193 luxury vehicles from Excise and Taxation department Sindh.
The owners of such vehicles have been living luxurious life without paying due taxes. The break up is under: Hilux/Vigo 9230; Land Cruisers 1605; Prado 1970; Audi 45; Mercedes Benz 272; and BMW 71.
The owners have been informed by the RTO-II regarding the opportunity provided by Assets Declaration Ordinance 2019 to disclose such vehicles and other undeclared or Benami Assets by the June , 2019 to avoid confiscation and imprisonment up to seven years.
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Untaxed money, assets will find no hiding: CCIR RTO-II
KARACHI: People will find no place to conceal their untaxed money from next month as Federal Board of Revenue (FBR) planned a comprehensive plan to bring all taxable income into tax net, Badaruddin Ahmad Qureshi, Chief Commissioner Inland Revenue (CCIR), Regional Tax Office (RTO)-II, Karachi at a press conference on Thursday.
He said that FBR had gathered information of people having taxable income through various sources including transactions of immovable properties, motor vehicle registrations, banking transactions, air travel, education fee etc.
He further said that the information of Pakistanis, having offshore investments on which tax was not paid, had also received.
Further, the Benami law, which was passed by the Parliament in 2017 and the FBR issued rules in February 2019, is also in vogue.
So in this scenario a person will not able to hide his illegal money or assets in future, the chief commissioner added.
Qureshi said that the present Asset Declaration Scheme was introduced in this background as the government wanted to give last chance to people having illegal money and assets to declare at nominal tax rates before launching stern action.
The CCIR said that the declaration scheme would end by June 30 and there would be no further extension.
“This is the last chance. People should avail this opportunity. The FBR will launch drive against tax evaders from July 01,” he added.
He said that the RTO-II Karachi had also collected information from various sources and one of those were details of luxury motor vehicles.
“There are 13,000 motor vehicles of 2400CC engine capacity in the city and their owners are not on the tax roll,” the chief commissioner said, adding that those persons would be served notices from July 01, 2019 and tax authorities would compel them to file their return and pay duty and taxes besides declaring their assets.
To a question about the progress of amnesty scheme, he said that the response was slow but historically people avail opportunity on the last dates, he said and hoped large number of declaration would be received.
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Foreign exchange reserves decline to $14.64 billion
KARACHI: The foreign exchange reserves of the country have declined by $188 million to $14.639 billion by week ended June 14, 2019 as compared with $14.826 billion by June 03, 2019, State Bank of Pakistan (SBP) said on Thursday.
The official reserves of the central bank declined by $203 million to $7.604 billion by week ended June 14, 2019 as compared with $7.807 billion as of June 03, 2019.
The SBP said that the official reserves had been declined due to external debt servicing and other official payments.
The foreign exchange reserves held by commercial banks increased by $15 million to $7.034 billion as compared with previous level of $7.02 billion.
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Prime Minister assures business community of considering sales tax zero rating
KARACHI: Prime Minister Imran Khan has assured business community of considering restoration of sales tax zero rating for export sector.
A delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) met Prime Minister Imran Khan on Thursday in Islamabad to discuss anomalies in the Finance Bill 2019.
On FPCCI demand of restoration of SRO 1125(I)/2011 allowing five export oriented export sectors at zero rate, the prime minister assured to consider it sympathetically, said a statement issued by the FPCCI.
The FPCCI delegation was led by S.M. Muneer, leader of the business community and Former Chief Executive TDAP and Former President, FPCCI and consisting of Aqil Karim Dhedi; Engr. Daroo Khan Achakzai, President, FPCCI and Zubair F. Tufail, Convener of the FPCCI Budget Advisory Council – held a detailed meeting with the Prime Minister Imran Khan and Abdul Hafeez Shaikh, Advisor to the PM on Finance which lasted for 2 hours and discussed / briefed them about the hardships of the business community emanated from some harsh measures of the Finance Bill, 2019 that would give serious blow to trade and industry, especially export sector in the wake of exorbitant policy rate of 12.25 percent coupled with the massive devaluation of Pak-Rupee versus dollar in the last few months withdrawal of zero rated regime from export industrial sectors etc.
The FPCCI delegation particularly emphasized and discussed ten major demands out of which eight proposals have been accepted by the Prime Minister, the major one such as doing away with raid on any premises; reduction in tax rates for service sector; routing taxation and business related policy through Federal Government/Cabinet instead of FBR, as directed by the Supreme Court; lack of personal interaction and minimal possibility of abuse of discretionary powers by the tax officials; conduction of audit once in a three years etc.
Moreover the issues of retailers, wholesalers and real estates were also discussed in details.
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KSE-100 gains 340 points on improved sentiments
KARACHI: The stock market gained 340 points on Thursday on improved sentiments.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,996 points as against 34,656 points showing an increase of 340 points.
Analysts at Arif Habib Limited said that market moved up today after sustaining losses for the past three sessions. E&P sector took cue from rising crude prices and were further helped by Iran’s taking down of US drone.
Besides the positivity in E&P sector, Cement stocks also increased on the back of recent price hikes in cement price / bag. Total volumes hit around 163 million shares, however, most of it came from Summit Bank (19 million), WTL (17 million), JSCL (10 million) and PAEL (10 million).
Technology sector led the volumes table with 29 million shares, followed by Banks (24 million) and Cement (22 million).
Sectors contributing to the performance include Fertilizer (+69 points), Banks (+62 points), E&P (+44 points), Cement (+44 points) and Autos (+25 points).
Volumes increased significantly from 99.4 million shares to 163 million shares (+64 percent DoD). Average traded value also increased by 31 percent to reach US$ 28.8 million as against US$ 21.9 million.
Stocks that contributed significantly to the volumes include SMBL, WTL, JSCL, PAEL and MLCF, which formed 41 percent of total volumes.
Stocks that contributed positively include FFC (+21 points), EFERT (+21 points), ENGRO (+20 points), POL (+20 points) and HUBC (+19 points). Stocks that contributed negatively include NESTLE (-14 points), PAKT (-11 points), NCPL (-3 points), JLICL (-2 points) and KAPCO (-2 points).
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Rupee ends flat against dollar
KARACHI: The Pakistani Rupee held steady against the US Dollar on Thursday, closing at Rs156.96 in the interbank foreign exchange market, a marginal change from the previous day’s close of Rs156.97.
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List of transactions not to attract 100 percent increased withholding tax
KARACHI: The Finance Bill 2019 has proposed a new schedule related to compliance with 100 percent increased withholding tax rates to persons not appearing on Active Taxpayers List (ATL).
Deloitte Yousuf Adil, Chartered Accountants in their budget commentary said that the increased withholding tax rates specified under this schedule are inapplicable with respect to following payments and related withholding tax provisions in the case of Person not appearing in the Active Taxpayer list:
Salary under section 149 of Income Tax Ordinance, 2001
Export under section 154 of Income Tax Ordinance, 2001
Income from Property under section 154 of Income Tax Ordinance, 2001
Withdrawal of Balance under Pension Fund under section 156B of Income Tax Ordinance, 2001
Cash withdrawal from Bank under section 231A of Income Tax Ordinance, 2001
Advance Tax on Transactions in Bank under section 231AA of Income Tax Ordinance, 2001
Collection of Tax by NCCPL under section 233AA of Income Tax Ordinance, 2001
Electricity Consumption under section 235 of Income Tax Ordinance, 2001
Domestic Electricity Consumption under section 235A of Income Tax Ordinance, 2001
Tax on Steel Melters, Re-Rollers etc under section 235B of Income Tax Ordinance, 2001
Advance Tax on Purchase of Air Tickets under section 236B of Income Tax Ordinance, 2001
Advance Tax on Functions and Gatherings under section 236D of Income Tax Ordinance, 2001
Advance Tax on Cable Operators and Other Electronic Media under section 236F of Income Tax Ordinance, 2001
Collection of Advance Tax by Educational Institutions under section 236I of Income Tax Ordinance, 2001
Advance Tax on Dealers, Commission Agents and Arthis etc under section 236J of Income Tax Ordinance, 2001
Advance Tax on Purchase of International Air Tickets under section 236L of Income Tax Ordinance, 2001
Advance Tax on Banking Transactions otherwise than through Cross Cheque under section 236P of Income Tax Ordinance, 2001
Payment to residents for use of machinery and equipment under section 236Q of Income Tax Ordinance, 2001
Collection of advance tax on education related expenses remitted abroad under section 236R of Income Tax Ordinance, 2001
Advance Tax on Insurance Premium under section 236U of Income Tax Ordinance, 2001
Advance Tax on extraction of minerals under section 236V of Income Tax Ordinance, 2001
Advance Tax on Tobacco under section 236X of Income Tax Ordinance, 2001
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Customs duty concessions allowed on 1650 raw materials
KARACHI: The government has allowed customs duty concessions on import of 1650 raw materials through Finance Bill 2019.
According to Deloitte Yousuf Adil, Chartered Accountants, the Finance Bill proposed to introduce concession of Customs Duty on import of 1650 raw materials/industrial inputs.
Major items are listed as follows:
PCT code Description Rate 2710.1911 Kerosene 0 2710.1913 J.P.4 0 2710.1998 Spin finish oil 0 2711.1200 Propane 0 2711.1300 Butanes 0 2711.1400 Ethylene, propylene, butylene and butadiene 0 2711.1910 L.P.G. 0 2711.1990 Other 0 2711.2100 Natural gas 0 2711.2900 Other 0 2805.1200 Calcium 0 2805.1900 Other 0 2805.4000 Mercury 0 2808.0010 Nitric acid 0 2808.0090 Sulphonitric acids 0 2809.1000 Diphosphorus pentaoxide 0 2809.2010 Phosphoric acid 0 2814.1000 Anhydrous ammonia 0 2814.2000 Ammonia in auqeous solution 0 2817.0000 Zinc oxide; zinc peroxide. 0 2818.3000 Aluminium hydroxide 0 2819.1000 Chromium trioxide 0 2819.9010 Chromium oxide 0 2819.9020 Chromium hydroxide 0 2936.2100 Vitamins A and their derivatives 0 2936.2200 Vitamin B1 and its derivatives 0 2936.2300 Vitamin B2 and its derivatives 0 2936.2400 D- or DL-Pantothenic acid (Vitamin B3 or Vitamin B5) and its derivatives 0 2936.2500 Vitamin B6 and its derivatives 0 2936.2600 Vitamin B12 and its derivatives 0 2936.2700 Vitamin C and its derivatives 0 PCT code Description Rate 2936.2800 Vitamin E and its derivatives 0 2937.1200 Insulin and its salts 0 3002.9010 Human blood 0 3002.9020 Animal blood 0 3105.2000 Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium 0 8427.1000 Self- propelled trucks powered by an electric motor 0 8433.6000 Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce 0 8436.8000 Other machinery 0 8444.0000 Machines for extruding, drawing, texturing or cutting man- made textile materials. 0 8530.1000 Equipment for railways or tramways 0 -
Current account deficit narrows by 29 percent in eleven months
KARACHI: The current account deficit narrowed by 29 percent during first eleven months owing to shrinking trade deficit and improved foreign remittances.
The State Bank of Pakistan (SBP) released Balance of Payment (BoP) statistics on Wednesday, which showed the current account deficit shrank to $12.678 billion during July – May 2018/2019 as compared with the deficit of $17.926 billion in the corresponding period of the last fiscal year.
The trade deficit reduced by 13.62 percent to $29.20 billion during first eleven months of current fiscal year as compared with the deficit of $33.81 billion in the same months of the last fiscal year.
The import bill for the period fell by 8.47 percent to $50.47 billion as against $55.142 billion in July – May 2017/2018. The exports, however, are remained flat at $21.26 billion as against $21.33 billion.
Meanwhile, the inflows of remittances sent home by overseas Pakistanis grew by 10.42 percent to $20.19 billion during July – May 2018/2018 as compared with $18.28 billion in the corresponding period of the last fiscal year.