KARACHI: The equity market gained 545 points on Monday following positive comments came from the finance minister at an even.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,852 points as against 38,307 points showing an increase of 545 points.
Analysts at Arif Habib Limited said that the market opened on a positive note with +49 points and initially leaped forward +200 points however, low volumes and lack of interest by investors in general caused the index to slide.
The market came down by 145 points, again with low volumes. Mid day, activity started picking pace with first signs of recovery in KEL, followed by Cement sector and then spreading to all and sundry.
Positive comments by participants in a Bloomberg conference and days of lethargic activity is believed to have caused an improvement in sentiment and increase in otherwise poor trading volumes.
Sectors leading the volumes table include Power (KEL), Banks (BOP) and Cement (MLCF). Large cap stocks such as UBL, HBL, ENGRO, OGDC increased significantly that had the index close +566 points (unadjusted).
Sectors contributing to performance include Banks (+230 points), Fertilizer (+93 points), Cement (+70 points), Power (+47 points), & O&GMCs (+38 points).
Volumes declined from 129.5mn shares to 99.4 million shares (-23 percent DoD). Average traded value also declined by 3 percent to reach US$ 32 million as against US$ 33.1 million.
Stocks that contributed significantly to the volumes include KEL, BOP, PAEL, PIBTL and TRG, which formed 39 percent of total volumes.
Stocks that contributed positively include HBL (+91 points), MCB (+69 points), FFC (+43 points), HUBC (+35 points), and LUCK (+34 points). Stocks that contributed negatively include COLG (-12 points), IGIHL (-7 points), JLICL (-7 points), SEARL (-7 points) and PMPK (-5 points).
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday said that the tax authorities have assured of not to conduct raids and harass taxpayers.
Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Dr. Mirza Ikhtair Baig Sr. Vice President FPCCI, Vice Presidents FPCCI, Mr. S. M. Muneer, Mr. Zubair Tufail, former President FPCCI and Sheikh Khalid Tawab Former Sr. Vice President FPCCI hailed the announcement of Chairman Federal of Revenue (FBR) Dr. Jehanzeb Khan made in a meeting with Business Community at FPCCI that henceforth there will be no raids on the tax payer as these raids had created great deal of concern, harassment and anxiety among the business circles.
They also appreciated the decision of Chairman FBR to formulate a Committee consisting of FPCCI and officials of FBR to resolve the day to day issues of businessmen. They assured that FPCCI will not support tax evaders and will look into the individual cases of tax evasion on merit.
The President FPCCI underscored the need of activation of Alternate Dispute Resolution Committee for resolving taxes related cases of Rs. 38 billion. He also suggested early issuance of promissory notes against the refunds as exporters are facing huge capital shortage for making new investments.
He also emphasized on the identification of new tax payers and exploration of new areas for broadening of tax payers instead of putting more burden on the existing tax payers.
The businessmen appreciated FBR for extending date of filing tax returns till March 31, 2019 and urged to enhance the tax base through direct taxes instead of indirect taxes which directly affects the low income group.
KARACHI: Federal Board of Revenue (FBR) has updated advance tax rates on marriages and functions through latest amendment to Income Tax Ordinance, 2001. The national assembly recently approved Finance Supplementary (Second Amendment) Act, 2019 and advance tax rate for functions and gathering has been updated. The advance tax is collected under following section of the Ordinance. Section 236D: Advance tax on functions and gatherings Sub-Section (1): Every prescribed person shall collect advance tax at the rate specified in Division XI of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose. Sub-Section (2): Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division XI of Part IV of the First Schedule from the person arranging or holding the function. Sub-Section (3): The advance tax collected under sub-section (1) and sub-section (2) shall be adjustable. Sub-Section (4): In this section,— (a) “function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and (b) “prescribed person” includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose. The rate of tax to be collected under each sub-sections (1) and (2) of section 236D shall be 5%; Provided that the rate for the function of marriage in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose shall be as set out in the Table below:─
S. No.
Rate of tax
01
5% of the bill ad valorem or Rs20,000 per function, whichever is higher
For Islamabad, Lahore, Multan,Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhurpura, Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbottabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dera Murad Jamali and Turbat.
02
5% of the bill ad valorem or Rs10,000 per function, whichever is higher
The Pakistan Yarn Merchants Association (PYMA) has officially rejected the new valuation ruling for polyester filament yarn (PFY) issued by the customs authorities, terming it as “unjust” and not reflective of the current global market prices.
KARACHI: A large number of taxpayers may file their annual income tax returns while taking advantage of date extension up to March 31, 2019, tax manager said.
The Federal Board of Revenue (FBR) recently extended the last date for filing income tax return for tax year 2018 up to March 31, 2018, which was December 15, 2018 for salary, business individuals, taxpayers falling in final tax regime and companies having special tax year.
Similarly, the date was also extended for corporate units up to March 31, 2019, whose last date was December 31, 2018.
The tax managers said that due to burden and restrictions on non-filers under Income Tax Ordinance, 2001 a huge number of individuals and companies would file their income tax returns for tax year 2018 to appear on Active Taxpayers List (ATL).
They said that the non-filers have been restricted in purchasing immovable properties over Rs40 million and registration of imported motor vehicles.
Further, the non-filers are also required to pay higher percent of withholding tax on various transactions. The non-filers in the recent mini-budget allowed to purchase and register new locally assembled motor vehicles. However, the withholding tax rates on non-filers have been increased by 50 percent.
The ATL issued by FBR on March 01, 2019 for tax year 2018 carried list of 1.59 million active taxpayers. In contrast the ATL for the tax year 2017 had carried 1.84 million active taxpayers, which showed about 240,000 taxpayers were not on the new list.
With the extension of date up to March 31, 2019 the return filers would not require to pay penalty and also become eligible for appearing on the ATL.
To some estimates the recent date extension by the FBR around 250,000 to 300,000 more returns would be added to the current active taxpayers list.
KARACHI: Adjustable advance tax is applicable for filers and non-filers of income tax return on sales and purchase of immovable properties to be collected at the time of transaction.
According to updated Income Tax Ordinance, 2001 issued by Federal Board of Revenue (FBR) the tax shall be collected under Section 236C and Section 236K of the Ordinance, which are as follow:
Section 236C: Advance Tax on sale or transfer of immovable Property Sub-Section (1): Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:
“The rate of tax to be collected under section 236C shall be 1% of the gross amount of the consideration received for filers and 2% of the gross amount of the consideration received for non-filers.”
Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.
Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service.
Sub-Section (2): The Advance tax collected under sub-section (1) shall be adjustable:
Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.
Sub-Section (3): Advance tax under sub-section (1) shall not be collected if the immovable property is held for a period exceeding three years.
Section 236K: Advance tax on purchase or transfer of immovable property
Sub-Section (1): Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.
The rate of tax to be collected under section 236K shall be:-
S. No
Period
Rate of Tax
01
Where value of immovable property is up to Rs4 million
Zero percent
02
Where the value of immovable property is more than Rs4 million
Filer 2 percent
Non-filer 4 percent
Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.
Sub-Section (2): The advance tax collected under sub-section (1) shall be adjustable.
Sub-Section (3): Any person responsible for collecting payments in installments for purchase or allotment of any immovable property where the transfer is to be effected after making payment of all installments, shall at the time of collecting installments collect from the allotee or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.
Sub-Section (4): Nothing contained in this section shall apply to a scheme introduced by the Federal Government, or Provincial Government or an Authority established under a Federal or Provincial law for expatriate Pakistanis:
“Provided that the mode of payment by the expatriate Pakistanis in the said scheme or schemes shall be in the foreign exchange remitted from outside Pakistan through normal banking channels.”
KARACHI: The import of motor cars has sharply declined by 38.34 percent during first eight months of current fiscal year due to certain government checks on preventing misuse of allowed schemes.
The import of motor cars in Completely Built Unit (CBU) condition was at $202.9 million during July – February 2018/2019 as compared with $329.06 million in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).
Industry experts attributed the decline mainly to restriction imposed on non-filers in registering imported cars with provincial motor vehicle authorities.
The experts further said that the condition of arranging foreign exchange for payment of customs duty had also discouraged the imports of cars.
The import of cars fell even more sharply when compared the imports of $9.47 million in February 2019 as compared with $37 million in the same month of the last year.
The experts said that the import of cars had been allowed under three different schemes such as gift scheme, transfer of resident scheme and baggage scheme for Pakistanis living abroad.
However, these schemes were grossly misused which resulted huge loss of foreign exchange.
