Author: Faisal Shahnawaz

SCB Pakistan allowed Chinese Yuan clearing, settlement

KARACHI: State Bank of Pakistan (SBP) has allowed Standard Chartered Bank, Pakistan to establish local Chinese Yuan Renminbi (CNY) clearing and settlement setup in the country.

In a statement on Tuesday, the central banks said that Standard Chartered Bank (SCB) Pakistan can now open CNY accounts of the banks operating in Pakistan to facilitate settlement of CNY based transactions such as remittance to/from China.

SCB can also provide CNY liquidity to the interbank market for the settlement of CNY based transactions.

It may be mentioned here that over the years, the SBP has been at the forefront in providing a conducive policy and regulatory environment to encourage the use of local currencies in trade and financing transactions between China and Pakistan.

Earlier, SBP had also permitted Industrial and Commercial Bank of China Limited (ICBC) Pakistan in 2015 and Bank of China Limited (BOC) Pakistan in 2018 to establish similar local CNY clearing and settlement mechanism in Pakistan.

The expansion of local CNY clearing and settlement setup in Pakistan is expected to further improve efficiency of the local banking system in transacting in CNY, enhance market liquidity and facilitate rising trade and investment with China through fostering competition and increasing CNY resource avenues.

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March 19, 2019
Equity market falls by 240 points in dull trading

KARACHI: The equity market fell by 240 points on Tuesday as dull trading activities prevailed during the day.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,612 points as against 38,852 points showing a decline of 240 points.

Analysts at Arif Habib Limited said that KSE-100 index opened positive 61 points and carried the optimism from yesterday’s buying activity that saw market jumped 545 points.

Contrary to that market returned to the dull pace and non-interest that has been witnessed past whole week.

Trading volume was seen highest in PAEL that saw 15.4 million shares against a total market volume of 70.7 million shares.

Investors did not show interest in buying at prevailing prices, which eventually took the market down in the final hour by a wide margin.

Close to 30 million trading volume was seen in the final hour of trading.

Selling was seen across the board and large cap scrips saw the most declines including HBL, UBL, LUCK, GHNI and Auto sector stocks.

Sectors contributing to the performance include Banks (-63 points), Cement (-60 points), Power (-50 points), O&GMCs (-17 points), E&P (-12 points).

Volumes declined from 99 million shares to 70.8 million shares (-28 percent DoD). Average traded value also declined by 29 percent to reach US$ 22.7 million as against US$ 32.1 million.

Stocks that contributed significantly to the volumes include PAEL, BOP, TRG, MLCF and SNGP, which formed 42 percent of total volumes.

Stocks that contributed positively include BAFL (+14 points), PMPK (+12 points), POL (+10 points), ENGRO (+9 points), and HMB (+8 points). Stocks that contributed negatively include HUBC (-39 points), LUCK (-26 points), HBL (-26 points), UBL (-23 points) and BAHL (-12 points).

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March 19, 2019
Rupee unchanged against dollar

KARACHI: The Pak Rupee was remained unchanged against dollar on Tuesday in a range bound trading activity.

The rupee ended at Rs139.39 to the dollar, the same previous day’s closing, in interbank foreign exchange market.

The interbank foreign exchange market was initiated in the range of Rs139.35 and Rs139.40.

The market recorded day high of Rs139.40 and low of Rs139.38 and closed at Rs139.39.

The exchange rate in open market was also remained unchanged.

The buying and selling of dollar was recorded at Rs139.20/Rs139.70, the same previous day’s level, in cash ready market.

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March 19, 2019
NCCPL to collect capital gain tax on March 29

KARACHI: The National Clearing Company of Pakistan Limited (NCCPL) on Tuesday said that it will collect Capital Gain Tax (CGT) on disposal of shares for February 2019 on March 29, 2019.

The aggregate amount of CGT arising on disposal of shares at Pakistan Stock Exchange for the period February 01, 2019 to February 28, 2019, would be collected on Friday, March 29, 2019 through respective settling banks of the clearing members, along with refund or adjustments on the basis of amount collected up to previous month, the NCCPL said.

All clearing members have been directed to ensure requisite amount in their respective settling bank’s account.

Further, the aggregate amount of CGT arising on trading of future commodity contracts at Pakistan Mercantile Exchange for the period February 01, 2019 to February 28, 2019, would also be collected from the Pakistan Mercantile Exchange on Friday, March 29, 2019.

Necessary details and reports for the period have already been made available.

Moreover, the aggregate amount of CGT arising on redemption of units of open end mutual funds have also been finalized for the period February 01, 2019 to February 28, 2019. Necessary details and reports have already been made available in the CGT System.

Clearing Members, Pakistan Mercantile Exchange and Mutual Funds are hereby requested to verify the investor wise details of capital gain or loss and tax thereon, if any, through reports/downloads.

The NCCPL warned that in case of none or partial collection of CGT, necessary action would be taken in accordance with the Rules and NCCPL Regulations.

March 19, 2019
FBR extends last date for submitting customs proposals for budget 2019/2020

ISLAMABAD: Federal Board of Revenue (FBR) has extended the last date for submitting customs related budget proposals for 2019/2020.

In a notification to all chambers and association, the FBR said that the board issued a letter on January 25, 2019 for submitting customs proposals for budget 2019/2020.

The proposals would cover three areas i.e. changes in Customs Tariff rates, Rules/Procedures and Customs Act, 1969.

The FBR said that to enable the Customs Wing of the FBR to properly process and evaluate each proposal, three separate formats had been attached to the letter for preparing the proposals on MS Excel Sheets.

The FBR said that while formulating the proposals, provision of the existing customs tariff rates/law may carefully be studied/consulted.

Wherever required the proposal may be supported with the statistical data etc. so that it is not dropped on account of any such infirmity.

In case of local manufacturer claiming tariff protection on its finished products or concession o its raw materials, complete given annexure as well, without which it would not be possible to process these types of proposals.

It is requires that the proposals may be sent to the FBR by March 25, 2019.

The government is scheduled to announce the budget 2019/2020 in the first week of June 2019.

March 19, 2019

Advance tax on electronic media, cable operators

KARACHI: Electronic media and cable operators are required to pay adjustable advance tax at the time of obtaining new license or renewal of license.

According to updated Income Tax Ordinance, 2001 issued by the Federal Board of Revenue (FBR), Pakistan Electronic Media Regulatory Authority (PEMRA) shall collect the advance tax at the time of issuance of licence for distribution services or renewal of the licence to a licencee under Section 236F of the Ordinance.

Section 236F: Advance tax on cable operators and other electronic media

Sub-Section (1): Pakistan Electronic Media Regulatory Authority, at the time of issuance of licence for distribution services or renewal of the licence to a licencee, shall collect advance tax at the rates specified in Division XIII of Part IV of the First Schedule.

(1) The rate of tax to be collected under section 236F in the case of Cable Television Operator shall be as follows:—

License Category as provided in PEMRA Rules	Tax on License Fee	Tax on Renewal
H	Rs. 7,500	Rs. 10,000
H-I	Rs. 10,000	Rs. 15,000
H-II	Rs. 25,000	Rs. 30,000
R	Rs. 5,000	Rs. 12,000
B	Rs. 5,000	Rs. 40,000
B-1	Rs. 30,000	Rs. 35,000
B-2	Rs. 40,000	Rs. 45,000
B-3	Rs. 50,000	Rs. 75,000
B-4	Rs. 75,000	Rs. 100,000
B-5	Rs. 87,500	Rs. 150,000
B-6	Rs. 175,000	Rs. 200,000
B-7	Rs. 262,500	Rs. 300,000
B-8	Rs. 437,500	Rs. 500,000
B-9	Rs. 700,000	Rs. 800,000
B-10	Rs. 875,500	Rs. 900,000

(2) The rate of tax to be collected by Pakistan Electronic Media Regulatory Authority under section 236F in the case of IPTV, FM Radio, MMDS, Mobile TV, Mobile Audio, Satellite TV Channel and Landing Rights, shall be 20 per cent of the permission fee or renewal fee, as the case may be.

“(3) In addition to tax collected under paragraph (2) Pakistan Electronic Media Regulatory Authority shall collect tax at the rate of fifty per cent of the permission fee or renewal fee, as the case may be, from every TV Channel on which foreign TV drama serial or a play in any language, other than English, is screened or viewed.”

Sub-Section (2): The tax collected under sub-section (1) shall be adjustable.

Sub-Section (3): For the purpose of this section, “cable television operator” “DTH”, “Distribution Service”, “electronic media”, “IPTV”, “loop holder”, “MMDS”, “mobile TV”, shall have the same meanings as defined in Pakistan Electronic Media Regulatory Authority Ordinance, 2002 (XIII of 2002) and rules made thereunder.

March 19, 2019

Asad Umar reviews revenue collection, broadening of tax base

KARACHI: Finance Minister Asad Umar on Monday reviewed the revenue collection progress and ongoing drive of broadening of tax base at a meeting with senior officials of Federal Board of Revenue (FBR).
The meeting was attended by Member Inland Revenue Operations Ms. Seema Shakil, Member Customs Operations Agha Jawad, Chief Commissioners Inland Revenue and Chief Collectors of Pakistan Customs.
Ms. Seema Shakil updated the finance minister about revenue collection and performance of Inland Revenue besides giving details of ongoing campaign for broadening of tax base.
She apprised the finance minister about the difficulties in the way of taking harsh action against tax evaders.
The sources said that the finance minister issued directives for taking harsh measures against tax evaders including high profile cases.
He also assured all logistic support to FBR officials in taking actions against influential persons.

Member Customs Operations Agha Jawad also briefed the finance minister about the working of customs clearance. The member said that transparency had been ensured in the clearance process in order to facilitate genuine taxpayers.
The member pointed out high volume of smuggled betel nut.
The finance minister directed to evolve a tariff mechanism for betel nut.
The finance minister directed both the wings of FBR to ensure facilitation of taxpayers and focus on tax evaders.

March 19, 2019
FBR adds over 114,000 return filers to ATL

ISLAMABAD: Federal Board of Revenue (FBR) has added over 114,000 return filers to Active Taxpayers List (ATL) following the grant of extension in filing income tax returns for Tax Year 2018 up to March 31, 2019.

The FBR issued weekly updated ATL 2018 on Monday, which showed the number of active taxpayers increased to 1.75 million.

The FBR issued first ATL 2018 on March 01, 2019 which had carried 1.6 million taxpayers in the list.

The appearance of ATL is mandatory for availing reduced rate of withholding tax rate and other benefits available only to return filers.

Through Finance Act, 2018, a section 182A was inserted to Income Tax Ordinance, 2001 which barred the late filers to appear on the ATL.

Therefore, the ATL issued on March 01, 2019 only those taxpayers were included who filed their returns by December 15, 2018 in case of salaried persons, business individuals and companies with special years and December 31, 2018 for companies with normal tax year.

However, the FBR last week extended the last date for filing income tax returns for all classes of taxpayers. Hence, those taxpayers who have filed their returns after December 15 or December 31 became eligible for ATL.

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March 18, 2019
Preventive auctions confiscated vehicles on March 19

KARACHI: Model Customs Collectorate (MCC) Preventive has announced public auction of confiscated vehicles on March 19, 2019 to be held at State Warehouse, Ghasbandar, East Wharf, Karachi.

The following vehicles will be presented for auction:

01. Mitsubishi Pajero Jeep, GS-200, Model 1994, Chassis No. Reg. GS-2000/V46-4034794

02. Lexus Car, Model 2006, 3450CC, Chassis No. JTHBG963905034702

03. Toyota Premio Car VVT, Reg. No. AAH-747, Model 2007, Chassis No. ZZT240-0140149

04. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999CC, Chassis No. MCU-10-0013510

05. Toyota Hilux Surf, Reg No. CP-0693, Model 1990, 2958CC, Chassis No. LN-130-0009771

06. Honda Saloon Accord Car, Reg. No. BFT-418, Model 2003, 1990CC, Chassis No. LC7-3006339

07. Toyota Land Cruiser Parado, Reg. No. BD-9380, Model 1998, 2657CC, Chassis No. RZI-90-0002888

08. Toyota Hilux Surf SSR-X-3.0, Reg No. BD-8045, 2962CC, Chassis No. KZN-130-9048116

09. Mercedes Benz (AG), Fake Reg. No. AB-1001, 2999CC, Chassis No. WDB1240312B4767728

10. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, 1800HP, Chassis No. JZX110-6000922

11. Toyota Hilux Surf, Reg. No. BD-1688, Model 1994, Chassis No. LN-130-0123784

12. Honda Accord, Reg. No, AUX-934, Model 2004, Chassis No. CL7310078

13. Mercedes Benz Car, Model 2001, 2000CC, Chassis No. WDB2037452A272217

14. Toyota Axio-X car, Reg. No. BFE-068, 1496CC, Model 2007, Chassis No. NZE-141-6028039

15. Toyota Primo Car, Reg. No. AAM-095, Model 2005, 1794CC, Chassis No. ZZT-240-5039822

16. Honda Civic Saloon Car, Reg. No. AAM-988, Model 2007, Chassis No. FD-31001100

17. Toyota Land Cruiser Jeep, Reg. No. BG-1131, Model 1989, 3431CC, Chassis No. BJ 60-023765

18. Toyota Corolla Car, Model 2015, Reg. No. BDE-852, Chassis No. NZE170R4016729

19. Toyota Crown Saloon Car, Model 2004, Reg. No. BHK-012, Chassis No. GRS182-5014910

20. Toyota Saloon Car XE- Model 1999, 1500CC, Cassis No. AE-100-5171778

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March 18, 2019
FBR to improve capacity for action against tax evaders

KARACHI: Federal Board of Revenue (FBR) is increasing its capacity to handle large size data of tax evaders, FBR chairman said in a meeting with members of Karachi Chambers of Commerce and Industry (KCCI).
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March 18, 2019