Pkrevenue.com

Author: Faisal Shahnawaz

  • Carrefour, McDonald’s introduce new retail experience

    Carrefour, McDonald’s introduce new retail experience

    KARACHI: Carrefour, owned and operated by Majid Al Futtaim in Pakistan, signed an MoU with McDonald’s Pakistan to introduce a new retail experience to its customers, according to a statement issued on Tuesday.

    Both entities have agreed to host each other’s retail spaces at suitable locations, offering both their customers a dual shopping and out-of-home dining experience at the same location.

    Carrefour Pakistan plans to expand its retail network by opening a standalone store, which will host a McDonald’s restaurant at its premises.

    This exciting partnership will introduce customers to a new experience where they can shop for their groceries and instantly purchase a McDonald’s meal all in one place.

    The collaboration will benefit both entities as they work towards expanding their customer outreach and retail offering through modern retail infrastructure.

    Speaking about the initiative, Umer Lodhi, Country Manager of Carrefour Pakistan at Majid Futtaim Retail, said: “As a leading retail brand in Pakistan, we are committed to modernizing the country’s retail infrastructure by introducing unique customer experiences for all our customers. The latest partnership with McDonald’s reflects our vision to constantly deliver exceptional value to all our shoppers by creating a unique experience and great moments for them.”

    Jamil Ahmed Mughal, the Chief Operating Officer of McDonald’s in Pakistan, also added: “We are pleased to join hands with Carrefour Pakistan as this collaboration will play a strong role in stimulating customer experience, giving them an added benefit of shopping for their grocery needs and satisfying their hunger.”

    Both Carrefour and McDonald’s in Pakistan will manage and represent their identities independently at these shared ventures while exploring further collaborative opportunities with each other that will upgrade the shopping experience for a broader group of customers.

    Foodpanda to deliver medicines through pandago
  • Prize Bonds (Bearer) not to be encashed after Sept 30

    Prize Bonds (Bearer) not to be encashed after Sept 30

    KARACHI: The last date to exchange or encash the unregistered of bearer prize bonds with denominations of Rs40,000, Rs25,000, and Rs15,000 is September 30, 2021.

    According to a circular issued by the State Bank of Pakistan (SBP), the Finance Division, Government of Pakistan has allowed to exchange/replace or convert Rs40,000, Rs25,000, and Rs15,000 denomination prize bonds (bearer) up to September 30, 2021.

    The SBP directed the banks that branch/region wise consolidated data of cited denomination prize bonds held by them on the last date i.e. September 30, 2021, shall be shared latest by October 01, 2021.

    The government on June 24, 2019, announced to discontinue the circulation of Rs40,000 denomination national prize bonds.

    Similarly, on December 10, 2020, the government announced to discontinue the circulation of Rs25,000 denomination prize bonds.

    In April 2021, the finance ministry announced that national prize bonds of denominations Rs7,500 and Rs15,000 shall not be sold.

    The finance divisions also issued the procedure for the redemption/conversion of bonds.

    The bonds can be converted to premium prize bonds (registered) of denomination of Rs25,000 and Rs40,000 (subject to the adjustment of differential amount) through 16 field offices of State Bank of Pakistan (SBP) Banking Services Corporation, and branches of six commercial banks i.e. National Bank of Pakistan, Habib Bank Limited, United Bank Limited, MCB Bank Limited, Allied Bank Limited, and Bank Alfalah Limited.

    The bonds can be replaced with Special Saving Certificates/Defence Saving Certificates through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks, and the National Savings Center.

    The bonds will only be encashed by transferring the proceeds to the bonds holder’s bank account through the 16 field offices of SBP Banking services corporation well as the authorized commercial bank branches and to the Saving Accounts at National Savings Centers.

    Date extended for encashment of bearer prize bonds
  • Employers to deduct tax on salary income

    Employers to deduct tax on salary income

    Section 149 of Income Tax Ordinance, 2001 described that employers shall deduct tax at the time paying salary to their employees.

    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 149 of Income Tax Ordinance, 2001:

    149. Salary. — (1) Every person responsible for paying salary to an employee shall, at the time of payment, deduct tax from the amount paid at the employee’s average rate of tax computed at the rates specified in Division I of Part I of the First Schedule on the estimated income of the employee chargeable under the head “Salary” for the tax year in which the payment is made after making adjustment of tax withheld from employee under other heads and tax credit admissible under section 61, 62, 63 and 64 during the tax year after obtaining documentary evidence, as may be necessary, for:

    (i) tax withheld from the employee under this Ordinance during the tax year;

    (ii) any excess deduction or deficiency arising out of any previous deduction; or

    (iii) failure to make deduction during the year;

    (2) The average rate of tax of an employee for a tax year for the purposes of sub-section (1) shall be computed in accordance with the following formula, namely:–

    A/B

    where –

    A is the tax that would be payable if the amount referred to in component B of the formula were the employee’s taxable income for that year; and

    B is the employee’s estimated income under the head “Salary” for that year.

    (3) Notwithstanding anything contained in sub-sections (1) and (2), every person responsible for making payment for directorship fee or fee for attending board meeting or such fee by whatever name called, shall at the time of payment, deduct tax at the rate of twenty percent of the gross amount payable.

    (4) Tax deductible under sub-section (3) shall be adjustable.

    (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.)

    Withholding tax rates on salary income for 2021-2022
  • Advance tax on imports to be collected by Customs

    Advance tax on imports to be collected by Customs

    Section 148 of Income Tax Ordinance, 2001 provides that Pakistan Customs will collect the advance tax from every importer.

    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 148 of Income Tax Ordinance, 2001:

    148. Imports.— (1) The Collector of Customs shall collect advance tax from every importer of goods on the value of the goods at the rate specified in Part II of the First Schedule in respect of goods classified in Parts I to III of the Twelfth Schedule:

    Provided that the Board may, by a notification in the official Gazette, add in the Twelfth Schedule any entry thereto or omit any entry therefrom or amend any entry therein:

    Provided further that in case of goods classified under Part III of the Twelfth Schedule which are used both as raw material and finished goods, the Board may, by notification in the official Gazette, specify that goods imported by a person or class of persons as raw material for its own use shall be treated as classified under Part II of the Twelfth Schedule, subject to such conditions and procedure as may be prescribed.

    “(2A) Notwithstanding omission of sub-section (2), any notification issued under the said sub-section and for the time being in force, shall continue to remain in force, unless amended or rescinded by the Board through notification in the official Gazette.”

    (5) Advance tax shall be collected in the same manner and at the same time as the customs-duty payable in respect of the import or, if the goods are exempt from customs-duty, at the time customs-duty would be payable if the goods were dutiable.

    (6) The provisions of the Customs Act, 1969 (IV of 1969), in so far as relevant, shall apply to the collection of tax under this section.

    (7) The tax required to be collected under this section shall be minimum tax on the income of the importer arising from the imports subject to sub-section (1) and this sub-section shall not apply in the case of import of goods on which tax is required to be collected under this section at the rate of 1% or 2% by an industrial undertaking for its own use.

    (9) In this section –

    “Collector of Customs” means the person appointed as Collector of Customs under section 3 of the Customs Act, 1969 (IV of 1969), and includes a Deputy Collector of Customs, an Additional Collector of Customs, or an officer of customs appointed as such under the aforesaid section;

    “Value of goods means—

    (a) in case of goods chargeable to tax at retail price under the Third Schedule of the Sales Tax Act, 1990, the retail price of such goods increased by sales tax payable in respect of the import and taxable supply of the goods; and (b) in case of all other goods; the value of the goods as determined under the Customs Act, 1969 (IV of 1969), as if the goods were subject to ad valorem duty increased by the custom-duty, federal excise duty and sales tax, if any, payable in respect of the import of the goods.”;and

    (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.)

  • Advance tax from provincial registered taxpayers

    Advance tax from provincial registered taxpayers

    Section 147A of Income Tax Ordinance, 2001 tells about the advance tax from provincial registered taxpayers.

    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 147A of Income Tax Ordinance, 2001:

    147A. Advance tax from provincial sales tax registered person.– (1) Every provincial sales tax registered person shall be liable to pay adjustable advance tax at the rate of three per cent of the turnover declared before the provincial revenue authority.

    (2) The advance tax under sub-section (1) shall be paid monthly at the time when sales tax return is to be filed with the provincial revenue authority.

    (3) Advance tax paid under this section may be taken into account while working out advance tax payable under section 147.

    (4) The provisions of this Ordinance shall apply to any advance tax due under this section as if the amount due were tax due under an assessment order.

    (5) A taxpayer who has paid advance tax under this section for a tax year shall be allowed a tax credit for that tax in computing the tax due by the taxpayer on the taxable income of the taxpayer for that year.

    (6) A tax credit allowed for advance tax paid under this section shall be applied in accordance with sub-section (3) of section 4.

    (7) A tax credit or part of a tax credit allowed under this section for a tax year that is not able to be credited under sub-section (3) of section 4 for the year shall be refunded to the taxpayer in accordance with section 170.

    (8) This section shall not apply to a person whose name was appearing in the active taxpayers’ list on the thirtieth day of June of the previous tax year.

    (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.)

  • Taxpayers liable to pay advance tax

    Taxpayers liable to pay advance tax

    Section 147 of Income Tax Ordinance, 2001 explains the taxpayers liable to pay advance tax. 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.

    (more…)
  • Shares come down on MSCI reclassification

    Shares come down on MSCI reclassification

    KARACHI: The share market fell by 188 points on Tuesday a brink of an important MSCI decision regarding reclassification of Pakistan from Emerging Market Index to Frontier markets Index.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 46,730 points as against the previous day’s close of 46,919 points, showing a decline of 188 points.

    Analysts at Arif Habib Limited said that at the brink of an important MSCI decision regarding reclassification of Pakistan from Emerging Market Index to Frontier markets Index, the KSE-100 benchmark index lost 300 points in total and closed the session -188 points.

    Vibes were negative due to continuous selling from foreign counters in cement and banking sector stocks due to MSCI reclassification and otherwise depreciating rupee against USD that makes holding PK stocks a costly affair.

    Local investors have lately been absorbing negative foreign flows in a gradual and cautious manner. TPL topped the volumes today with 41.8 million shares, followed by KOSM (33.7 million) and PIAA (29.8 million).

    Sectors contributing to the performance include Cement (-75 points), E&P (-39 points), Autos (-29 points), O&GMCs (-23 points) and Chemical (-21 points).

    Volumes increased slightly from 417.8 million shares to 423.8 million shares (+1 percent DoD). The average traded value declined by 6 percent to reach US$ 67.3 million as against US$ 71.7 million.

    Stocks that contributed significantly to the volumes include TPL, KOSM, PIAA, WTL, and BYCO, which formed 37 percent of total volumes.

    Stocks that contributed positively to the index include NESTLE (+23 points), HMB (+17 points), MEBL (+14 points), PKGS (+12 points) and IGIHL (+10 points). Stocks that contributed negatively include LUCK (-39 points), TRG (-19 points), HBL (-15 points), OGDC (-14 points) and PSO (-13 points).

  • KIBOR rates on September 07, 2021

    KIBOR rates on September 07, 2021

    KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the following Karachi Interbank Offered Rates (KIBOR) on September 07, 2021.

     TenorBIDOFFER
    1 – Week6.917.41
    2 – Week6.957.45
    1 – Month7.007.50
    3 – Month7.137.38
    6 – Month7.297.54
    9 – Month7.387.88
    1 – Year7.497.99
    KIBOR rates on September 06, 2021
  • PYMA demands cotton import through land routes

    PYMA demands cotton import through land routes

    KARACHI: Pakistan Yarn Merchants Association (PYMA) on Tuesday demanded the government to allow duty free import of cotton and cotton yarn through land routes, including India.

    The PYMA appealed to Prime Minister Imran Khan to take steps to reduce the cost of production of the value-added textile industry, in view of the shortage of cotton, cotton yarn and the skyrocketing prices and allow duty-free import of cotton and cotton yarn from Turkey, India and Uzbekistan by land. So that exporters can compete in the ongoing price race in international markets.

    In the appeal to Prime Minister, Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association (PYMA), Farhan Ashrafi, Vice Chairman PYMA and convener FPCCI’s Central Standing Committee on Yarn Trading, said that the value-added sector in the country is facing immense difficulties due to shortage and price of cotton and cotton yarn reaching record levels, as cotton yarn is not available to these export industries even at high prices as per the production demand.

    “If this situation continues, not only will it be difficult to fulfil export orders, but Pakistani exporters will also lose the ability to compete in global markets. Which could have a negative impact on the country’s exports, so the government should seriously consider PYMA’s proposal in the best interest of the country’s economy”, they feared.

    PYMA office-bearers added that the exporters in the value-added sector are reluctant to accept new orders due to difficulties in procuring basic raw materials. Due to which these orders can be transferred to other countries.

    Hanif Lakhany, Farhan Ashrafi appealed to Prime Minister Imran Khan to assist exporters in fulfilling old export orders in time and taking new orders, while also issue directives to allow duty-free import of cotton, cotton yarn from Turkey, India, and Uzbekistan by land. This will not only reduce the import period of raw materials but will also help in reducing the cost of freight charges.

    Yarn traders demand restoring turnover tax rate at 0.1pc
  • Return filing by non-resident ship owner

    Return filing by non-resident ship owner

    Section 143 of the Income Tax Ordinance, 2001 tells about the return filing by the non-resident ship owner.

    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 143 of Income Tax Ordinance, 2001:

    143. Non-resident ship owner or charterer.— (1) Before the departure of a ship owned or chartered by a non-resident person from any port in Pakistan, the master of the ship shall furnish to the Commissioner a return showing the gross amount specified in sub-section (1) of section 7 in respect of the ship.

    (2) Where the master of a ship has furnished a return under sub-section (1), the Commissioner shall, after calling for such particulars, accounts or documents as he may require, determine the amount of tax due under section 7 in respect of the ship and, as soon as possible, notify the master, in writing, of the amount payable.

    (3) The master of a ship shall be liable for the tax notified under sub-section (2) and the provisions of this Ordinance shall apply to such tax as if it were tax due under an assessment order.

    (4) Where the Commissioner is satisfied that the master of a ship or non-resident owner or charterer of the ship is unable to furnish the return required under sub-section (1) before the departure of the ship from a port in Pakistan, the Commissioner may allow the return to be furnished within thirty days of departure of the ship provided the non-resident owner or charterer has made satisfactory arrangements for the payment of the tax due under section 7 in respect of the ship.

    (5) The Collector of Customs or other authorised officer shall not grant a port clearance for a ship owned or chartered by a non-resident person until the Collector or officer is satisfied that any tax due under section 7 in respect of the ship has been paid or that arrangements for its payment have been made to the satisfaction of the Commissioner.

    (6) This section shall not relieve the non-resident owner or charterer of the ship from liability to pay any tax due under this section that is not paid by the master of the ship.

    (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.)