Analysts at Arif Habib Limited said that bullish momentum was witnessed just after the opening bell of the market mainly led by the power sector as the Economic Coordination Committee (ECC) of the Cabinet approved Rs134.783 billion for payment to independent Power Producers (IPPs) on second installment (60 percent) as per payment mechanism.
Appreciation of Pak rupee against dollar and PM decision not to increase the prices of petroleum products till November 30th gave investor confidence to the market.
Cement and E&P stocks contributed the most in the bull run. In the last trading hour, the technology sector made the journey to the north as TRG hit the upper circuit due to a rumor of a buy-back of shares.
On the institutional front, buying activity was witnessed across the board from the mutual funds.
Sectors contributing to the performance include Cement (+189.3 points), Technology (121.3 points), E&Ps (+104.0 points), Power (+78.5 points), and Banks (63.0 points).
Volumes increased from 172.9 million shares to 243.2 million shares (+40.7 per cent DoD). Traded value also increased by 103.1 per cent to reach US$ 59.7 million as against US$ 29.4 million.
Stocks that contributed significantly to the volumes include GGL, TPLP, WAVES, TELE and SERF.
KARACHI: The State Bank of Pakistan (SBP) has altered its monetary policy announcement date, advancing it to November 19, 2021, from the initially scheduled date of November 26, 2021.
The SBP said the data is compiled and disseminated for information only. These exchange rates are estimates that quoted by various commercial banks to their clients.
The SBP last Saturday decided to increase the average CRR from 5 percent to 6 percent and minimum CRR to be maintained each day from 3 percent to 4 percent.
The SBP has decided the measure following the rupee hit all-time low at Rs175.73 against the dollar on November 12, 2021.
The large imports are continuously increasing the dollar demand. The import bill registered a growth of 65.15 per cent to $25.06 billion during July – October 2021 as compared with $15.17 billion in the same period of the last fiscal year.
Fourteenth Schedule of Income Tax Ordinance, 2001 has described the rules for computation of income tax on profit and gains for Small and Medium Enterprises (SMEs).
1. Application.- These rules shall apply to small and medium enterprises as defined in Clause (59A) of Section 2 of the Ordinance.
2. Registration.- Small and medium enterprise shall be required to register with FBR on its Iris web portal or Small and Medium Enterprises Development Authority on its SME registration portal (SMERP).
3. Categories and tax rates.- There shall be following two categories of small and medium enterprises and tax on their taxable income shall be computed at the tax rates given in the table below, namely:-
Sr. No.
Category
Turnover
Rates
(1)
(2)
(3)
(4)
1.
Category-1
Where annual business turnover does not exceed Rupees 100 million
7.5% of taxable income
2.
Category-2
Where annual turnover exceeds Rupees 100 Million but does not exceed Rupees 250 Million
15% of taxable income
4. Option for Final Tax Regime.- (1) The small and medium enterprises may opt for taxation under final tax regime at the rates given in the table below:
Sr. No.
Category
Turnover
Rates
(1)
(2)
(3)
(4)
1.
Category-1
Where annual business turnover does not exceed Rupees 100 million
0.25% of gross turnover
2.
Category-2
Where annual business turnover exceeds Rupees 100 million but does not exceed Rupees 250 million
0.5% of gross turnover
(2) Option under sub-rule (1) of this rule shall be exercised at the time of filing of return of income and option once exercised shall be irrevocable for three tax years.
(3) The provisions of section 177 and 214C shall not apply to SME who opts for taxation under sub-rule (1) of this rule.
5. Audit.- (1) SMEs who opt for taxation under normal law under rule 3 may be selected for tax audit through risk based parametric computer ballot under section 214C of the Ordinance if its tax to turnover ratio is below tax rates given in rule 4 of these rules.
(2) The cases selected under sub-rule (1) of this rule shall not exceed 5% of the total population of SMEs whose tax to turnover ratio is below tax rates given in rule 4 of these rules.
6. Exports.- The export proceeds of SMEs shall be subject to tax as per rates prescribed in Rule (4) under final tax regime.”;
7. Exclusion from Minimum Tax on Turnover.- The provisions of section 113 of the Ordinance shall not apply to SMEs.
8. Tax on Supply of Goods.-The tax deductible under clause (a) of sub-section (1) of section 153 shall not be minimum tax where payments are received on sale or supply of goods by SMEs.
9. Provisions of Ordinance to apply.- The other provisions of the Ordinance shall apply mutatis mutandis to the SMEs.
(Disclaimer: The text of 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.)
KARACHI: The State Bank of Pakistan (SBP) on Monday launched an end-to-end digital regulatory approval process known as the Regulatory Approval System (RAS).
The central bank now achieved another milestone by launching a module pertaining to banking policy and regulations.
With the launch of this module in RAS, banks, Development Finance Institutions (DFIs) and Microfinance Banks (MFBs) can now submit their request letters/ proposals on a dedicated online portal to SBP’s Banking Policy and Regulations Department whereby SBP, after digitally processing them, would also be in a position to disseminate the regulatory decisions to them through the same portal.
Earlier in October 2020, Governor SBP Dr. Reza Baqir had launched the SBP FX RAS for end-to-end digitization of Foreign Exchange (FX) related case submission process.
The system turned out to be a huge success as it enabled the customers to lodge their FX-related requests from the location of their convenience thereby sparing their valuable time previously spent in navigating the paper-based processes. It also enabled banks to submit FX-related cases electronically for regulatory approval of SBP and SBP-Banking Services Corporation (BSC).
Implementation of RAS for Banking Policy and Regulation-related issues will be effective from November 24, 2021. It will enable banks, DFIs and MFBs to digitally submit their requests and receive regulatory decisions through a single window. Nevertheless, in addition to online submission, banks, DFIs and MFBs shall also continue with the manual submission of their cases that will cease after a brief transitory period till December 31, 2021.
Implementation of SBP’s RAS is expected to conserve precious resources, contribute towards SBP’s Green Banking initiative and bring efficiency in the communication between the banking sector and SBP. Moreover, this arrangement will also replace paper-based submissions that are prone to logistic and storage issues, and cause inadvertent and unnecessary delays for relevant stakeholders.
RAS is a regulatory initiative under SBP’s Vision 2020 aiming at the digital flow of information amongst the stakeholders to improve the service standards through leveraging upon digital techniques.
The index closed at 45,736 points as against last Friday’s closing of 45,749 points. showing a decrease of 12.9 points.
Analysts at Arif Habib Limited said that the market remained dull today as a battle between the bull and bear was boxed in the range-bound area.
Inflationary concerns feared the investors as weekly inflation witnessed the highest increase in three months and further weakening of Pak rupee against the dollar.
The expectation of interest rate hike by SBP in the upcoming monetary policy caused profit booking in cyclical stocks and accumulation in banking stocks. On the flip side, activity from institutional investors remained lackluster.
Sectors contributing to the performance include Cement (-29.8 points), Vanaspati & Allied (-19.2 points), Inv. Banks (-18 points), OMC’s (-17.5 points) and Power (-10.8 points).
Volumes decreased from 192.5 million shares to 172.9 million shares (-10.2 per cent DoD). Traded value also decreased by 33.0 per cent to reach US$ 29.3 million as against US$ 43.72 million.
Stocks that contributed significantly to the volumes include HASCOL, GGL, WTL, UNITY and FFLR1.
The State Bank of Pakistan (SBP) has unveiled the latest Karachi Interbank Offered Rates (KIBOR) on November 15, 2021, providing insights into the prevailing interest rates in the interbank market.
