KARACHI: The dollar depreciated by 34 paisas on Friday, closing at Rs170.53 in the interbank foreign exchange market. This marks a slight improvement for the Pakistani rupee, which had ended the previous trading session at Rs170.87 against the dollar.
(more…)Author: Faisal Shahnawaz
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SBP issues customers exchange rates for October 08
Karachi, October 08, 2021: The State Bank of Pakistan (SBP) has issued the official exchange rates for Friday, October 08, 2021.
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Advance tax on sale or transfer of immovable property
Section 236C of Income Tax Ordinance, 2001 has explained the application of the advance tax on the sale or transfer of immovable properties.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 236C of Income Tax Ordinance, 2001:
236C. Advance Tax on sale or transfer of immovable Property.—(1) Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:
Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns and registrar of properties.
Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service:
Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.
(2) The Advance tax collected under sub-section (1) shall be adjustable:
Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.
(3) Advance tax under sub-section (1) shall not be collected if the immovable property is held for a period exceeding four years.
(4) Sub-section (1) shall not apply to:—
(a) a seller, if the seller is dependent of:
(i) a seller, if the seller is dependent of:
a Shaheed belonging to Pakistan Armed Forces; or
(ii) a person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and
(b) to the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Advance tax on sale through auction
Section 236A of Income Tax Ordinance, 2001 describes the advance tax on sale through auction. The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021.
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NKATI condemns artificial raw material shortage
KARACHI: Manufacturers and exporters have expressed concerns over the severe shortage of industrial raw material that was artificially created by local producers.
In a statement on Thursday President, North Karachi Association of Trade and Industry (NKATI), Faisal Moiz Khan, while expressing deep concern over the artificial scarcity created by local producers of industrial raw materials and the skyrocketing prices, has appealed Abdul Razak Dawood, Advisor to Prime Minister Imran Khan for Commerce and Investment to take action against stockists of raw materials.
He requested the PM advisor to also play his vital role in ensuring an uninterrupted supply of raw materials at reasonable prices as per the demand of local and export-oriented industries.
In a letter to PM advisor, Abdul Razak Dawood, NKATI president pointed out that local producers of industrial raw materials have created an artificial shortage of raw materials by forming cartels, and by massive hoarding, prices have skyrocketed. Which has increased 300 to 400 times, making raw materials unavailable to local industries as per the demand, while the production activities of export-oriented industries were also being severely affected.
He said, “Local producers of industrial raw materials were making huge profits by selling expensive raw materials justifying the rising value of the dollar, which was totally illegal. The government should take immediate notice of this looting and take steps to prevent stockpiling of raw materials.”
Faisal Moiz Khan was of the opinion that the processing industry, especially the chemical industry, was facing the biggest shortage of raw materials, which was hurting the export industries. If the goods cannot be processed, then timely shipment will not be possible. This will definitely lead to an economic crisis in the country.
“The Prices have been increased 300 to 400 times, especially for Formic acid, Acetic acid and Sulfuric acid. Caustic Soda has also become a major problem, as Hydrogen prices have also been increased. The entire wreckage of which is being dumped on the international market. It has not been settled but the prices have been increased many times by including duty and freight etc.”, he said, adding that if the government did not intervene immediately and support exporters, the industrialists would suffer.
Faisal Moiz Khan appealed to Abdul Razak Dawood, Advisor to Prime Minister Imran Khan for Commerce & Investment to break the cartel of local producers of industrial raw materials, and said that the problems of Karachi industrialists should be seriously addressed as industrialists are playing their vital role in Pakistan’s economic development. Therefore, the rulers have to understand the importance of industrialists.
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Advance tax rates on electricity consumption
Section 235 of Income Tax Ordinance, 2001 has explained the advance tax rates on electricity consumption.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 235 of Income Tax Ordinance, 2001:
235. Electricity consumption.- (1) There shall be collected advance tax at the rates specified in Division IV of Part-IV of the First Schedule on the amount of electricity bill of a commercial or industrial or domestic consumer:
Provided that the provisions of sub-section (1) shall not apply to a domestic consumer of electricity if his name appears on the Active Taxpayers’ List.
(2) The person preparing electricity consumption bill shall charge advance tax under sub-section (1) in the manner electricity consumption charges are charged.
Explanation.— For removal of doubt, it is clarified that for the purposes of this section electricity consumption bill referred to in sub-section (2) means electricity bill inclusive of sales tax and all incidental charges.
(3) Advance tax under this section shall not be collected from a person who produces a certificate from the Commissioner that his income during tax year is exempt from tax or that he has discharged advance tax liability under section 147 or whose entire income is subject to final tax regime or minimum tax regime under any provisions of this Ordinance other than this section.
(4) Under this section, —
(a) in the case of a taxpayer other than a company, tax collected upto bill amount of three hundred and sixty thousand Rupees per annum shall be treated as minimum tax on the income of such persons and no refund shall be allowed;
(b) in the case of a taxpayer other than a company, tax collected on monthly bill over and above thirty thousand rupees per month shall be adjustable; and
(c) in the case of a company, tax collected shall be adjustable against tax liability.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Foreign exchange reserves fall to $26 billion
KARACHI: The foreign exchange reserves of the country fell by $151 million to $26 billion by the week ended October 01, 2021 as compared with $26.151 billion a week ago, the State Bank of Pakistan (SBP) said on Thursday.
The foreign exchange reserves of the SBP declined by $126 million to $19.169 billion by the week ended October 01, 2021 as compared with $19.295 billion by the week ended September 24, 2021.
The foreign exchange reserves held by commercial banks also declined by $25 million to $6.831 billion as compared with $6.856 billion a week ago.
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KIBOR rates on October 07, 2021
KARACHI: State Bank of Pakistan (SBP) on Thursday issued the following Karachi Interbank Offered Rates (KIBOR) on October 07, 2021.
Tenor BID OFFER 1 – Week 7.22 7.72 2 – Week 7.26 7.76 1 – Month 7.31 7.81 3 – Month 7.69 7.94 6 – Month 8.08 8.33 9 – Month 8.37 8.87 1 – Year 8.61 9.11 -
Saqib Naseem elected central chairman PYMA
KARACHI: Saqib Naseem has been elected unopposed central chairman of Pakistan Yarn Merchants Association (PYMA) while Javed Asghar elected senior vice chairman for the year 2021-22.
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KCCI expresses grief over human loss in earthquake
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Thursday expressed deep grief and sorrows over loss of human lives in earthquake, which jolted the Baluchistan province last night.
In a joint statement issued, Chairman Businessmen Group and Former President KCCI Zubair Motiwala, Vice Chairmen BMG Tahir Khaliq, Haroon Farooki, Anjum Nisar and Javed Bilwani, General Secretary BMG AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President KCCI Abdul Rehman Naqi and Vice President KCCI Qazi Zahid Hussain noted that 20 people have fallen prey to the earthquake in Baluchistan and more than 300 people including women and kids have been injured whereas hundreds of houses were also damaged in various areas including Quetta, Sibbi, Pishin, Muslim Bagh, Ziarat, Qila Abdullah, Sanjavi, Zhob and Chaman.
They said that our brother and sisters, particularly those inhabiting in far-flung and impoverished areas of Baluchistan province, should not be left alone in this hour of grief and need. It is the duty of everyone to help and support the affectees during the most difficult time of their lives.
BMG leadership and KCCI Office Bearers, while appreciating the quick response of the government and armed forces, said that the government and the military forces were doing a fine job by promptly undertaking rescue operation and immediately dispatching relief goods and medical teams to the quake-hit areas of Baluchistan.
BMG leadership and KCCI Office Bearers, while praying for the wellbeing of people affected by the natural disaster as well as their recovery from the trauma and pain, offered heartfelt condolences to those families who lost their loved ones in this tragic incident.
They also appealed the fellow businessmen and industrialists to donate generously in whatever way they can for supporting the affectees of Baluchistan earthquake.