Pkrevenue.com

Author: Faisal Shahnawaz

  • PTBA highlights taxation problem of NPOs, Trust

    PTBA highlights taxation problem of NPOs, Trust

    KARACHI: Pakistan Tax Bar Association (PTBA) has highlighted problems faced by Non-Profit Organizations (NPOs) and Trust in changing their status as envisaged under Income Tax Ordinance, 2001.

    The PTBA said on Saturday it has sent a letter to the chairman of the Federal Board of Revenue (FBR) in this regard.

    The tax bar pointed out an important aspect, which needs a prompt response from the FBR regarding the change in the definition of ‘company’ vide amendment made in section 80(2)(va) and (vb) through Finance Act, 2013:

    “(va) a non-profit organization;

    (vb)  a trust, an entity or body of persons established or constituted by or under any law for the time being in force”

    Earlier to this amendment, such organizations were assigned the status of “AOP” by the FBR.

    After the said amendment the status of all such organizations should be changed from AOP to Company. But due to systemic error existing in IRIS; a number of such organizations still have the status of AOP in the IRIS system.

    A number of such organizations have applied for approval under section(s) 2(36)/100C of the Income Tax Ordinance, 2001 but these have not been processed due to the reason that these organizations are not appearing in the folder of the relevant Commissioner of Corporate Tax Offices (CTOs), who has been assigned the power of approval under section 2(36)/100C of the Income Tax Ordinance, 2001.

    In the light of the above-stated facts, the PTBA urged the FBR chairman to issue necessary instructions to PRAL to change the status of all such organizations from AOP to Company, so that the concerned commissioners can process the applications filed under section(s) 2(36)/100C of the Income Tax Ordinance, 2001.

    PTBA declares implementing digital payment not practical
  • Weekly Review: market likely to stay rang-bound

    Weekly Review: market likely to stay rang-bound

    KARACHI: The stock market is likely to stay range-bound during the next week owing to the upcoming monetary policy decision and large trade deficit.

    Analysts at Arif Habib Limited said that with the Saudi Funds expected to arrive anytime soon, the market can rebound and the Pak Rupee slide will be contained.

    Keeping in view macro-economic concerns investors are expected to have a cautious approach.

    Albeit, it is expected the market to be range-bound in the upcoming week.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.6x (2022) compared to the Asia Pac regional average of 14.7x while offering a dividend yield of 8.8 versus 2.2 per cent offered by the region.

    The market commenced on a positive note given the fall in the international oil prices amid an outbreak of the new COVID-19 variant ‘Omicron’, subsiding concerns over inflation.

    Moreover, approval of the Saudi fund of $3 billion and expectation of it arriving soon kept the sentiment high. Furthermore, the government paid Rs135 billion as a second installment to the IPPs under the 1994 policy, which further boosted the momentum. In addition to this, the market was reclassified to Frontier Market during the week, which was expected to bring in foreign inflows.

    However, the trade numbers released by the PBS for the month of November 2021 posted a massive jump in the imports to $8 billion (up by 94 per cent MoM) during the month, taking the trade deficit to an all-time high of $5.1 billion (up by 3x MoM) causing a bloodbath in the index (marking worst single-day fall after 20 months).

    This along with a more-than-anticipated CPI figure of 11.53 per cent YoY (November 2021), created panic in the market as concerns over a massive hike started brewing up in upcoming monetary policy in December 2021.

    Alongside this, Pak Rupee depreciated to an all-time low of Rs176.77, which further fueled the bearish sentiment. Albeit, the market closed at 43,233 points, losing 881 points (down by 2 per cent WoW).

    Sector-wise negative contributions came from i) Technology and Communication (198 points), ii) Cement (165 points), iii) Oil & Gas Exploration Companies (101 points), iv) Textile Composite (68 points), and v) Food & Personal Care Products (67 points). Whereas, sectors which contributed positively were i) Commercial Banks (59 points), and ii) Oil & Gas Marketing Companies (20 points). Scrip-wise negative contributors were LUCK (124 points), TRG (107 points), SYS (65 points), MARI (62 points) and POL (44 points). Meanwhile, scrip-wise positive contributions came from HBL (67 points), PSO (52 points) and UBL (40 points).

    Foreign selling continued this week, clocking in at USD 62.8 million compared to a net sell of USD 39.2 million last week. Major selling was witnessed in Commercial Banks (USD 27.2 million) and Cement (USD 14.8 million). On the local front, buying was reported by Companies (USD 25.7 million) followed by Individuals (USD 16.0 million). Average volumes clocked in at 319 million shares (up by 21 per cent WoW) while average value traded settled at USD 90 million (up by 51 per cent WoW).

    Stocks end flat amid bears rule over bulls
  • Stocks end flat amid bears rule over bulls

    Stocks end flat amid bears rule over bulls

    KARACHI: Stocks ended flat and on Friday as bears rule over the bulls during the day due to alarming current account deficit.

    The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 43,233 points as against the previous day’s close of 43,234 points.

    Analysts at Arif Habib Limited said that the bears ruled over the bulls today due to concerns over an alarming number of current account deficit, devaluation of Pak rupee, and a big jump in cut-off yields of treasury bills indicating a hawkish stance in the upcoming monetary policy.

    Yesterday, a sharp downfall in the market occurred due to a sell-off by mutual funds which eventually created an attractive opportunity for value hunters.

    The market opened on a positive note as value hunters did aggressive buying in the first session.

    In the second session, across the board selling was witnessed as PKR closed at an all-time low of 176.77, down 0.2 per cent DoD.

    Moving forward, the analysts expect the market to remain volatile and recommend a cautious approach.

    Sectors contributing to the performance include Cement (-180 points), Technology (-63 points), Engineering (-35 points), Textile Composite (-31 points) and Refinery (-25 points).

    Volumes decreased from 386.8 million shares to 287.7 million shares (25.6 per cent DoD). Traded value also decreased by 26.9 per cent to reach US$ 58.1 million as against US$ 79.6 million.

    Stocks that contributed significantly to the volumes include WTL, TPLP, BYCO, UNITY and TRG.

    Pakistan stock exchange crashes; ends down 4.71%
  • Dollar makes new high of Rs176.77 at interbank closing

    Dollar makes new high of Rs176.77 at interbank closing

    KARACHI: The US dollar recorded a new high at Rs176.77 against the Pak Rupee (PKR) at the closing of the Interbank foreign exchange market on Friday.

    The dollar gained 35 paisas against the previous day’s closing of Rs176.42 in the interbank foreign exchange market. The dollar made a new peak just after a day reaching the historic high.

    Currency experts said that the high trade deficit and decline in foreign exchange reserves were major reasons behind the massive fall in rupee value.

    The official reserves of the State Bank fell by $244 million to $16.01 billion by the week ended November 26, 2021 as compared with $16.254 billion a week ago.

    The import bill of the country surged by 69.17 per cent to $33 billion during the first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.

    The exports of the country also grew at 27 per cent but much lower than the pace in the growth of the import bill during the period under review. The exports of the country increased to $12.34 billion during July – November 2021/2022 as compared with $9.74 billion in the same period of the last fiscal year.

    Earlier in the day the US dollar has breached the level of Rs177 to make a new record high during intraday trading. The exchange rate reached at Rs177.30 to the dollar during midday trading in the interbank foreign exchange market.

    Dollar makes new record high of Rs176.42 to Pak Rupee
  • Customers’ exchange rates on December 03, 2021

    Customers’ exchange rates on December 03, 2021

    Karachi, Pakistan – The State Bank of Pakistan (SBP) has unveiled the exchange rates for December 03, 2021, providing a snapshot of the current market values.

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  • FBR notifies promotion of senior IRS officers to BS-21

    FBR notifies promotion of senior IRS officers to BS-21

    The Federal Board of Revenue (FBR) has issued a notification (No. 2863-IR-I/2021) on Friday, officially announcing the promotion of several senior officers from the Inland Revenue Service (IRS) to BS-21 from their previous BS-20 positions.

    (more…)
  • Inland Revenue officers promoted to BS-20

    Inland Revenue officers promoted to BS-20

    In a significant move aimed at recognizing and rewarding the dedication and service of officers within the Inland Revenue Service (IRS), the Federal Board of Revenue (FBR) issued Notification No. 2864-IR-I/2021 on Friday, announcing the promotion of several officers from BS-19 to BS-20.

    (more…)
  • FBR notifies promotion of Customs officers to BS-20

    FBR notifies promotion of Customs officers to BS-20

    In a move to recognize and reward the dedicated service of officers within the Pakistan Customs Service (PCS), the Federal Board of Revenue (FBR) issued Notification on Friday, announcing the promotion of several officers from BS-19 to BS-20 on a regular basis with immediate effect.

    (more…)
  • Promotion of senior Customs officers to BS-21

    Promotion of senior Customs officers to BS-21

    In a significant development, the Federal Board of Revenue (FBR) announced on Friday the promotion of distinguished officers from the Pakistan Customs Service (PCS) from BS-20 to BS-21 on a regular basis, effective immediately.

    (more…)
  • Pakistan’s import cover reduces to two months

    Pakistan’s import cover reduces to two months

    KARACHI: Pakistan’s import cover has been reduced to two months with a reduction in official foreign exchange reserves of the State Bank of Pakistan (SBP) to $16.01 billion.

    The import cover was 3.3 months in August 2021, according to analysts at Topline Securities.

    According to the data released by the SBP, its official reserves were declined by $244 million to $16.01 billion by the week ended November 26, 2021, as compared with $16.254 billion a week ago.

    The foreign exchange reserves of the country reduced by $275 million to $22.499 billion by the week ended November 26, 2021, as compared with $22.774 billion by the week ended November 19, 2021.

    The foreign exchange reserves held by commercial banks also declined by $31 million to $6.489 billion by the week ended November 26, 2021 as compared with $6.52 billion a week ago.

    Pakistan’s foreign exchange reserves slip to $23.55 bn