Pkrevenue.com

Author: Faisal Shahnawaz

  • Refund should have no nexus with revenue targets: FTO

    Refund should have no nexus with revenue targets: FTO

    ISLAMABAD: The office of Federal Tax Ombudsman (FTO) has advised Federal Board of Revenue (FBR) to set its targets rationally and refunds should have no nexus with revenue targets.

    “To link accountability to performance, compensation for delayed refund be ensured as delay has its own cost,” the FTO office said in its suggestion for budget 2019/2020.

    Refunds data should be placed on website, showing chronological sequence of status and settlement.

    It further said that the collection of Customs duty on challans, in advance, for the sake of targets, should be stopped. It also said that regulatory duties kill economic activity.

    Instead of more focus on the rates of taxes, FBR should pay more emphasis on stimulation of economic activity.

    Recommendations of separate Customs and IR Board given in ISAF Container scandal should be implemented, it said.

    The above mentioned suggestions were sent to Chairman FBR with the note that FTO’s office regards proposals worthwhile to be considered at the time of next budgetary exercise.

    As part of annual consultation to provide well thought-out advice, from a common citizen as well as expert perspective, to the FTO and FBR, meeting of the Rawalpindi/Islamabad based members of Advisory Committee was held in the Conference Room of the FTO office on December 27, 2018.

    The Federal Tax Ombudsman welcomed the participants and briefed them about the purpose of meeting which was to give recommendations for improvement in system and proposals for next budget.

    The conference was attended by Salman Nabi, Former Chairman, National Tariff Commission, Muhammad Sulaiman Khan, Ex-Member Customs and Former Advisor FTO Secretariat, Zaheer-u-Din Dar, Consultant, Zikria A. Zia, Resident Director AGE Cables, Muhammad Siddique, Former Advisor, FTO Secretariat, Najeeb R. Abbasi, Advocate High Court, Shabaz Rana, Economic Correspondent, The Express Tribune, Muhammad Azeem Siddiqi, Bureau Chief, Khyber News, M. Naeem Siddiqi, Chairman ST, IT and FBR Affairs Subcommittee.

    Tariq Ahad Nawaz, Advisor (Research) FTO Office, apprised the audience about the efforts made by the office of the FTO in the area of recommendations sent to FBR for streamlining the systemic issues and performance of the FTO office.

    In the open house discussion, the debate resulted in some very useful recommendations for improvement of the system.

  • FBR launches crackdown against high-valued undeclared immovable properties

    FBR launches crackdown against high-valued undeclared immovable properties

    KARACHI: Federal Board of Revenue (FBR) has launched drive against high-valued transactions of immovable properties in order to unearth quantum of black money used for the purpose.

    FBR sources said that the Broadening of Tax Base (BTB) unit of Regional Tax Office (RTO) – II Karachi launched action against around 2,000 persons who had acquired high valued immovable properties.

    Those persons either failed to declare their assets before the tax authorities or misdeclared the amount used for the transactions.

    The FBR sources said that the transactions had been identified through third party sources including banking transactions, where buyers made pay orders or demand draft for payment.

    The real estate sector is one of the biggest parking lot for black economy in Pakistan. This is because the declared values of immovable properties are much lower than transactions values.

    The FBR sources said that the BTB has expanded its coverage all around the mega city and detected huge number of transactions, where misdeclarations were found.

    The sources further said that the BTB is taking action against 2,000 high valued transactions in the first phase. This will be further expanded on the basis of withholding tax data obtained from registrar of properties.

    The sources said that huge mismatch was found in the properties of DHA, Gulshan e Iqbal, North Nazimabad, F B Area, Clifton, etc.

    The sources further said that the BTB had conducted independent survey to determine the open market value and the payment history of past transactions of immovable properties.

    The FBR sources also made it clear that immunity available under Section 236W was available to amounts to the extent of FBR valuations.

    Under Section 236W of Income Tax Ordinance, 2001, the FBR will not ask any person making payment of withholding tax under this section to the extent values available under FBR valuation table.

  • Equity market plunges by over 400 points on selling pressure

    Equity market plunges by over 400 points on selling pressure

    KARACHI: The equity market plunged by over 400 points on Monday due to selling pressure seen in banking scrips.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,607 points as against 40,016 points showing a decline of 409 points.

    Analysts at Arif Habib Limited said that the market opened 26 points down but turned green for a short while up to +30 points.

    However, the selling pressure in Banking sector, especially UBL and HBL plunged the market.

    For good part of the session, UBL topped the volumes chart and price drop carried from previous sessions.

    Overall market volumes remained anemic, where banking sector garnered most with 21 million shares out of which BOP did 12.2 million, followed by UBL 4.5 million shares.

    Absence of positive news triggers and heightened tensions on the border with India dented investor sentiment.

    Sectors contributing to the performance include Banks (-160 points), Cement (-46 points), E&P (-42 points), Fertilizer (-35 points), Power (-33 points).

    Volumes declined from 99 million shares to 68 million shares (-31 percent DoD).

    Average traded value also declined by 33 percent to reach US$ 26 million as against US$ 39 million.

    Stocks that contributed significantly to the volumes include BOP, STPL, UBL, PAEL and KEL, which formed 40 percent of total volumes.

    Stocks that contributed positively include FFC (+8 points), SHFA (+5 points), MCB (+5 points), POL (+3 points), and SCBPL (+3 points). Stocks that contributed negatively include HBL (-54 points), UBL (-51 points), HUBC (-31 points), LUCK (-27 points) and DAWH (-22 points).

  • Rupee ends down against dollar on higher demand

    Rupee ends down against dollar on higher demand

    KARACHI: The Pak Rupee ended down against US dollar on Monday owing to higher demand for import and corporate payments.

    The rupee depreciated by three paisas to close at Rs138.58 to the dollar from last Friday’s close of Rs138.55 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs138.70 and Rs138.75.

    The market recorded day high of Rs138.70 and low of Rs138.52 and closed at Rs138.58.

    The local currency fell after maintaining gain for three consecutive trading days,

    Earlier on last Friday, the Pak Rupee gained for the third consecutive day against dollar owing to shrinking current account deficit and foreign inflows.

    The rupee ended with gain of eight paisas to end at Rs138.55 to the dollar as compared with previous day’s closing of Rs138.63 in interbank foreign exchange market.

    The rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.

    Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.

    According to statistics released by State Bank of Pakistan (SBP), the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.

    In the open market the local unit, however, maintained level.

    The buying and selling of dollar was recorded at Rs138.30/Rs138.80, the same level ended on Saturday, in cash ready market.

  • Indus Motors declares fall in half-year profit on high cost of sales

    Indus Motors declares fall in half-year profit on high cost of sales

    KARACHI: Indus Motors Company Limited has declared 6.13 percent decline in half yearly net profit owing to significant rise in cost of sales for the period.

    According to financial results for half year period ended December 31, 2018 submitted to Pakistan Stock Exchange (PSX) on Monday, the company declared profit after tax at Rs6.912 billion as compared with the profit of Rs7.364 billion in the corresponding half of the last year.

    The sales of the company surged by 21 percent to Rs76.44 billion during the first half of current fiscal year as compared with Rs63.07 billion in the corresponding half of the last year.

    However, cost of the sales increased more rapidly by 27 percent to Rs66.38 billion for the period under review as compared with Rs52.18 billion in the same period of the last year.

    Other expenses including administrative and distribution are flat at Rs1.337 billion as compared with Rs1.334 billion for the period.

    Indus Motors Company Limited declared profit before taxation at Rs10.03 billion during July – December 2018 as compared with Rs10.51 billion in the corresponding period of the last year.

    The company declared earnings per share for the period at Rs87.94 as against Rs93.69 EPS declared in the same period of the last year.

  • Rupee continues gain against dollar in early trade

    Rupee continues gain against dollar in early trade

    KARACHI: The Pak Rupee has continued its appreciation against the US dollar and gained 10 paisas in early trade on Monday.

    The US dollar is being traded at Rs138.45 in interbank foreign exchange market.

    The exchange rate was closed at Rs138.55 to a dollar on last Friday or February 22, 2019.

    Currency analysts said that the narrowed current account deficit had improved market sentiments.

    Earlier on last Friday, the Pak Rupee gained for the third consecutive day against dollar owing to shrinking current account deficit and foreign inflows.

    The rupee ended with gain of eight paisas to end at Rs138.55 to the dollar as compared with previous day’s closing of Rs138.63 in interbank foreign exchange market.

    The rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.

    Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.

    According to statistics released by State Bank of Pakistan (SBP), the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.

  • Income Tax Ordinance 2001: Commissioner IR has court powers for production of taxpayers’ record

    Income Tax Ordinance 2001: Commissioner IR has court powers for production of taxpayers’ record

    KARACHI: The tax laws have empowered Commissioner of Inland to act as a court under the Code of Civil Procedure for compelling production of records of any person.

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  • FBR devises strategy for survey of existing, new shopping centers to identify tax evaders

    FBR devises strategy for survey of existing, new shopping centers to identify tax evaders

    KARACHI: Federal Board of Revenue (FBR) is set to launch survey in existing and new shopping markets in Karachi for identifying tax evaders.

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  • Income Tax Ordinance 2001: Tax officials’ power to enter premises without notice

    Income Tax Ordinance 2001: Tax officials’ power to enter premises without notice

    KARACHI: Tax officials have immense powers to enter any premises for the purpose of audit of a taxpayer or survey of a potential taxpayer.

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  • SRB suspends sales tax registration of Multinet Pakistan

    SRB suspends sales tax registration of Multinet Pakistan

    KARACHI: Sindh Board of Revenue (SRB) has suspended sales tax registration of an IT service provider for failure in timely payment of provincial government dues and filing sales tax return.

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