Pkrevenue.com

Author: Faisal Shahnawaz

  • Rupee makes sharp gains of Rs1.35 against dollar

    Rupee makes sharp gains of Rs1.35 against dollar

    KARACHI: The Pak Rupee made significant recovery of Rs1.35 against dollar on Thursday owing to measures taken by the government to check illegal outflows of the foreign currency.

    The rupee ended Rs148.40 to the dollar from previous day’s closing of Rs149.75 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs149.75 and Rs150.00.

    The market recorded day high of Rs149.75 and low of Rs148.25 and closed at Rs148.40.

    Currency experts said that the availability of the foreign currency was also improved as expatriates are sending amount to their relatives for Eid related expenses.

    The exchange rate also witnessed improvement in the value of local currency.

    The buying and selling of dollar was recorded at Rs148.75/Rs149.50 from previous day’s closing of Rs149.00/Rs150.00 in cash ready market.

  • SRB suspends sales tax registration of Multinet Pakistan

    SRB suspends sales tax registration of Multinet Pakistan

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Multinet Pakistan (Pvt.) Limited for defaulting tax payment and non-compliance in filing monthly sales tax return.

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  • PTBA suggests reducing record retention time to five years under Sindh tax laws

    PTBA suggests reducing record retention time to five years under Sindh tax laws

    KARACHI: Pakistan Tax Bar Association (PTBA) has submitted budget proposals 2019/2020 to Sindh Revenue Board (SRB) suggesting to reduce time limit for retaining records to 5 years from 10 years.

    The apex tax bar said that under present legislation a taxpayer is required to retain records for a period of 10 years and show-cause notices may be issued within a period of 8 years from the date of relevant tax period.

    This is in excess of the statute of limitation provided under the Sales Tax Act and Income Tax Ordinance. It will not only put excess burden on the taxpayer, but also disincentivizes the tax authorities from taking timely action.

    It is therefore recommended that the time period for retention of records and assessment of tax should be reduced to five years.

    This would save taxpayers from practical difficulties and unnecessary burden while pushing the tax authorities to take more timely action.

    The PTBA also highlighted the issue that no input tax is allowed to be claimed on goods or services acquired prior to six months preceding the date of commencement of the provision of taxable services by a taxpayer.

    Therefore it is recommended that such restriction should be eliminated.

    Giving rationale to the suggestions, the PTBA said that any bar on admissibility of input tax borne by the taxpayer prior to six months preceding the commencement of provision of taxable services is against the basic principal of VAT. It is also not justifiable in case of a long term projects.

    Regarding assessment order, the apex tad bar said that it can be amended by a tax officer on the basis of any subsequent information, etc.

    “Such powers are arbitrary and unjust and may open the doors for harassment and corruption.”

    The PTBA suggested that the taxpayer should first be confronted with a show-cause notice with substantial reasons and definite information/evidence(s) that warrant reopening or amending the assessment order.

    “Further, the powers to amend any assessment order should only be vest with the Commissioner or Board only.”

    This recommendation would introduce transparency in the tax system for revision of shut and close transactions and provide justice to the taxpayer.

    The PTBA further pointed out that the tax officer is empowered to ask for any information from a taxpayer without specifying the reason or nature of the case being investigated by him.

    Scope of Section 52(1) should be restricted to specific parties and transactions which are within the jurisdiction of Sindh and are specifically identified by the tax officer instead of fishing and roving enquiries.

    This promotes equity and natural justice and avoids harassment and unnecessary proceedings.

  • National Economic Council approves GDP target at 4pc for 2019/2020

    National Economic Council approves GDP target at 4pc for 2019/2020

    ISLAMABAD: The National Economic Council (NEC) in its meeting held on Wednesday approved GDP target at 4 percent for fiscal year 2019/2020.

    Prime Minister Imran Khan chaired the NEC meeting at the PM Office.

    The meeting reviewed Annual Plan 2018/2019 and the proposed Annual Plan 2019/2020.

    The meeting approved GDP growth target of 4 percent along with sectoral growth of agriculture (3.5 percent) industry (2.2 percent) and services sector (4.8 percent) for financial year 2019/2020.

    The meeting reviewed draft 12th Five Year Plan (2018-2023). It was informed that main themes of the 12th Five Year Plan include balanced and equitable regional development; sustainable, inclusive, job-creating export-led growth; resource mobilization and improving governance; improving social protection; ensuring food and water security, enhancing connectivity, promoting knowledge economy and Clean and Green Pakistan.

    The NEC approved 12th Five Year Plan (2018-2023), in principle. It was decided that the plan will be further fine-tuned, especially its implementation mechanism, in consultation with all stakeholders.

    The meeting reviewed Public Sector Development Programme (PSDP) 2018-2019 and the proposed PSDP 2019-2020.

    It was informed that PSDP 2019-2020 focuses on new initiatives in the field of agriculture, information technology, higher education, science and technology and technical education and training.

    The meeting was informed that targeted interventions will be made in the less developed districts of the country to bring them at par with other parts of the country for regional equalization.

    Ten billion Tsunami Program, Prime Minister’s Youth Skill Development Initiative, rehabilitation of affected population residing along Line of Control, construction of Gilgit-Shandur-Chitral Road and improvement of sewerage and sanitation system of Gilgit, and development of merged districts of Khyber Pakhtunkhwa are some of the major priority areas of Public Sector Development Programme (PSDP) 2019-2020.

    The meeting approved National Development Outlay 2019-2020 amounting to Rs1.837 trillion including Federal PSDP and Provincial ADPs.

    Progress Report of CDWP and ECNEC from 1st April 2018 to March 31, 2019 was laid before the National Economic Council. The NEC confirmed extension in powers of Special Forum for Rehabilitation and Reconstruction in FATA (erstwhile) till December 2019.

    The Special Forum, under the Chairmanship of Commander 11 Corps, was established by the NEC on May 30, 2016 for a period of two years for fast track implementation mechanism for Rehabilitation and Reconstruction in erstwhile FATA.

    The meeting approved establishment of Islamabad Development Working Party headed by the Chief Commissioner ICT including representatives from Ministries of Finance, Planning and other concerned offices.

    The IDWP will be allowed to approve development project up to Rs60 million. The NEC approved procedure for approval of Program for Results (PforR), Development Policy Credits (DPCs) and Financial Intermediation Programs (FIPs).

    The Prime Minister during the meeting said that the country was facing unprecedented economic crisis. He said that joint efforts of the Federal Government and the Provincial Governments were needed to overcome the present economic crisis.

    The Prime Minister said that the Government has introduced Local Government systems in Punjab and Khyber Pkahtunkhwa to ensure empowerment of the people at grass root level and to afford them an opportunity to play their part in their developmental process.

    The Prime Minister reiterated his call to the provinces to allocate necessary financial resources, as per the commitments made earlier, for the development of erstwhile FATA.

    The meeting was attended by Adviser Finance Dr. Abdul Hafeez Sheikh, Planning Minister Makhdoom Khusru Bakhtiar, Adviser Commerce Abdul Razzak Dawood, Governor KP Shah Farman, Chief Minister Punjab Sardar Usman Buzdar, CM Sindh Syed Murad Ali Shah, CM Khyber Pakhtunkhwa Mehmood Khan, CM Balochistan Jam Kamal Khan, Finance Minister Punjab Makhdoom Hashim Jawan Bakht, Nisar Ahmed Khuhro, Ms. Naheed S. Durrani, Finance Minister KP Taimur Saleem Khagra, Jan Muhammad Jamali, PM Azad Jammu & Kashmir Raja Farooq Haider, Chief Minister Gilgit-Baltistan Hafiz Hafiz-ur-Rehman and others.

  • Monitoring of Withholding Tax: FBR launches mega operation against textile, sugar companies for tax evasion

    Monitoring of Withholding Tax: FBR launches mega operation against textile, sugar companies for tax evasion

    ISLAMABAD: Federal Board of Revenue (FBR) has launched mega crackdown against textile and sugar sectors for suppressing sales and evading tax by issuing fake and flying invoices.

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  • Bank holidays for Eid-ul-Fitr

    Bank holidays for Eid-ul-Fitr

    The State Bank of Pakistan (SBP) announced on Wednesday that banks will be closed from June 4 to 7, 2019, in observance of Eid-ul-Fitr. This extended holiday period will allow employees and customers to celebrate the festive occasion without interruption.

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  • CDC reduces tariff to support stock market

    CDC reduces tariff to support stock market

    KARACHI: Central Depository Company of Pakistan Limited (CDC) has reduced tariff structure to facilitate public and to support the stock market.

    As the infrastructure backbone of Pakistan Capital Market, CDC’s main objective is to provide efficient and cost effective services to all its customers and promote ease of doing business.

    In line to this resolve, CDC has continued to pass on the benefits to market participants and general investors without compromising on its services.

    As part of the recent reduction, CDC has provided 100 percent waiver on Maintenance fee for such Sub-Account holders who also have Investor Accounts.

    Taking this initiative further in order to promote the growth of Pakistan’s corporate debt market, CDC has significantly reduced its annual fee for long-term redeemable securities by approximately 65 percent.

    Additionally, CDC has rationalized its tariff structure for next five years which also includes reduction in custody fee for the year 2019-20 and 2020-21 by 14 percent and 16 percent respectively.

    Commenting on this market supporting endeavor, Badiuddin Akber, CEO-CDC said: “This initiative was taken by CDC to give much needed relief and support to the market, especially the investing public. While CDC continues to reduce its tariff since its inception, we are targeting our efforts towards helping reduce the cost of doing business for market participants. This is our ongoing contribution towards the development of Pakistan Capital Market.”

  • SBP facilitates three million people with fresh currency notes on Eid-ul-Fitr

    SBP facilitates three million people with fresh currency notes on Eid-ul-Fitr

    The State Bank of Pakistan (SBP) has successfully facilitated three million customers in obtaining fresh currency notes for Eid-ul-Fitr through its e-branches of commercial banks, according to a statement released on Wednesday.

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  • IR offices directed to observed extended working hours to facilitate taxpayers

    IR offices directed to observed extended working hours to facilitate taxpayers

    The Federal Board of Revenue (FBR) has taken a proactive step to facilitate taxpayers by directing offices of Inland Revenue (IR) to observe extended working hours.

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  • Stock market gains over 1,000 points on market support fund

    Stock market gains over 1,000 points on market support fund

    KARACHI: The stock market on Wednesday witnessed sharp gain of over 1,000 points over clarity in market support fund.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 35,959 points as against 34,949 points showing an increase of 1010 points.

    Analyst at Arif Habib Limited said that market bounced from the word Go. Within minutes of initial trading, the index was +150 points and did not see back. Clarity on Market Opportunity and Market Support Fund gave much needed confidence amongst investors and the erosion saw yesterday in the shape of a drop of ~750 points was recovered today.

    During the session, the index increased by 1044 points and closed (unadjusted) near day’s high at +1010 points. Buying was observed across the board and especially in stocks that could be of significance to the Government Supported Funds.

    Banks led the volumes table with 40 million shares (contributed by BOP 17 million), followed by Cement Sector with 23M shares (led by FCCL with ~12M shares).

    Sectors contributing to the performance include Fertilizer (+206 points), E&P (+201 points), Banks (+196 points), Power (+101 points) and Cement (+100 points).

    Volumes increased from 152.3mn shares as against 182.4mn shares (+20 percent DoD). Average traded value also increased by 4 percent to reach US$ 50.9mn as against US$ 48.8mn.

    Stocks that contributed significantly to the volumes include BOP, FCCL, UNITY, ISL and KEL, which formed 30 percent of total volumes.

    Stocks that contributed positively include HUBC (+76 points), ENGRO (+74 points), FFC (+67 points), OGDC (+64 points) and POL (+57 points). Stocks that contributed negatively include NESTLE (-33 points), FFBL (-1 points), GADT (-0 points), GHGL (-0 points) and DCR (-0 points).