Pkrevenue.com

Author: Faisal Shahnawaz

  • Local car assemblers to be beneficiary on concession to non-compliant taxpayers

    Local car assemblers to be beneficiary on concession to non-compliant taxpayers

    KARACHI: The local car assemblers are main beneficiary of the government decision to allow non-compliant taxpayers for purchasing motor vehicles, analysts said on Thursday.

    A day earlier on floor of the house Finance Minister Asad Umar presented this proposal to the Finance Supplementary (Second Amendment) Bill, 2019 to allow non-filers of income tax returns to purchase any engine capacity of motor vehicles.

    Though the decision has been taken to generate tax revenue through collection of withholding tax on purchase of motor vehicles as non-filers are required to pay higher rate but it seems to be a big ‘U’ turn by the present government.

    The PML-N government in its last budget 2018/2019 announced to imposed restriction on non-filers to purchase motor vehicles of any engine capacity in order to bring large number of tax evaders into tax net.

    The present PTI government however in its Finance Supplementary (Second Amendment) Bill, 2019 initially proposed to allow non-filers for purchasing motor vehicles with engine capacity up to 1300CC. However, finalizing this bill and approval from the parliament the concession to non-filers further enhanced and now they would be able to purchase any engine capacity motor vehicle.

    The analysts at Taurus Securities Limited said that the Supplementary Finance (Second Amendment) Bill, commonly known as the ‘Mini-Budget’, passed in the National Assembly yesterday, in the midst of an opposition walk-out protesting the Bill’s contents.

    The Bill has wholly removed the ban on Non-Filers; the initial proposal allowed Non-Filers access to the market for cars with a cylinder capacity of less than 1300cc.

    All three auto players (PSMC, INDU and HCAR) will be the beneficiary of this reversal in policy, as they will now be able to clear their build-up of stock.

  • Company registration crosses over 95,500 by February

    Company registration crosses over 95,500 by February

    ISLAMABAD: Total company registration with Securities and Exchange Commission of Pakistan (SECP) has crossed 96,500 by end of February 2019.

    A statement issued by the SECP said that about 1,290 new companies were registered in February. As compared to the corresponding month of last financial year, it represents a growth of 26 percent raising the number of registered companies to 96,510.

    The massive increase is the result of the SECP’s various reforms measures, i.e. introduction of simplified combined process for name reservation and incorporation, one window facility for company incorporation and NTN generation, reduction of fee, assistance of incorporation by facilitation wings of CROs etc.

    Around 75 percent companies were registered as private limited companies, while around 22 percent were registered as single member companies. Three percent were registered as public unlisted companies and limited liability partnerships (LLP).

    The trading sector took the lead with the incorporation of 195 companies, construction with 166, services with 148, I.T. with 139, tourism with 119, food and beverages with 60, real estate development with 50, corporate agricultural farming with 45, education with 32, chemical, marketing and advertisement, and transport with 27 each, engineering, and fuel and energy with 24 each, pharmaceutical with 23, textile with 21, healthcare, and mining and quarrying with 20 each, communication with 15, auto and allied with 14, broadcasting and telecasting 13, logging 12, cables and electric goods with 11 and 58 companies were registered in other sectors.

    Foreign investment has been reported in 39 new companies. These companies have foreign investors from Argentina, China, Denmark, Germany, Jordan, Kenya, Korea South, Portugal, Russia, Singapore, Sweden and the US.

    The highest numbers of companies, i.e. 468 were registered in Islamabad, followed by 322 and 240 companies registered in Lahore and Karachi respectively.

    The CROs in Peshawar, Multan, Gilgit-Baltistan, Faisalabad, Quetta, and Sukkur registered, 81, 67, 45, 39, 24 and 4 companies respectively.

  • Non-filers allowed locally assembled motor vehicle of any engine capacity

    Non-filers allowed locally assembled motor vehicle of any engine capacity

    ISLAMABAD: The federal government has allowed non-filers of income tax returns to purchase of locally assembled motor vehicles of any engine capacity.

    (more…)
  • PM approves country’s first-ever National Tariff Policy

    PM approves country’s first-ever National Tariff Policy

    ISLAMABAD: Prime Minister Imran Khan on Wednesday approved the first-ever ‘National Tariff Policy’ which is aiming to improve competitiveness through access to raw materials, increase employment opportunities by attracting investment through transparent and predictable tariff regime.

    The draft policy, approved by the prime minister, would be presented before the Federal Cabinet for its consideration.

    Highlighting salient features of the policy, Secretary Commerce Mohammad Younus Dagha said that the major objectives of the National Tariff Policy (NTP), which has been drafted after detailed and comprehensive discussions with the stakeholders, is to improve competitiveness through access to raw materials, increase employment opportunities by attracting investment through transparent and predictable tariff regime and remove anomalies in tariff structure, causing distortions.

    Policy principles include tariff as a trade policy instrument, reducing exemptions and concessions, cascading tariff structures with stage of processing of a product, strategic protection to domestic industry and competitive import substitution.

    The new policy also envisages establishment of a broad-based Tariff Policy Center in the Ministry of Commerce to formulate proposals for improving tariff structure in pursuance of the objectives of the National Tariff Policy.

    The prime minister appreciated the efforts of commerce ministry in formulating a comprehensive tariff policy for the first time in the history of the country which, he said, will greatly restore confidence of the business community by providing for a transparent, predictable and institutionalized structure for tariff setting.

    The Prime Minister observed that the economy, especially the trade and industrial development suffered in past due to ad-hocism and unpredictability of tariff structure resulting in capture of the economy by vested interests and rampant corruption.

  • SFA finds unhygienic, expired food items in Karachi

    SFA finds unhygienic, expired food items in Karachi

    KARACHI: Sindh Food Authority (SFA) on Wednesday raided several shops of sweets and bakers and found unhygienic environment and expired food items.

    The raids were undertaken in central district of Karachi. The authority inspected sweet shops, bakeries and marts at Block ‘M’ and ‘L’ of North Nazimabad.

    The authority sealed three bakeries and sweet shops in North Nazimabad. Further a fine of Rs120,000 was imposed.
    The SFA found deteriorated and unhygienic condition at a famous bakery. They found chemical at the bakery, which was strictly prohibited for human consumption. Further, they found insecticides and chemicals at the bakery.

    Another nimco shop was raided and found deteriorated hygienic conditions.
    The authority raided at a mart where they found expired ketchup, cold drinks, packed milk, pickles, sauces, tea etc.

    The SFA imposed a fine of Rs10,000 on a famous pakwan centre in North Nazimabad. They found expired and prohibited edible oil in use at the centre.

    The SFA warned shops to comply with standards within 15 days otherwise harsh action would be taken.

  • Industry demands separate gas line to avoid losses

    Industry demands separate gas line to avoid losses

    KARACHI: The business community has demanded separate gas line for industries and CNG stations in order to avoid production losses.

    Saleem Parekh, President, SITE Association of Trade and Industry in a statement on Wednesday said that the common gas line for industries and CNG stations is a ‘hurdle in industrial production’ and also the main cause behind low gas pressure being faced by industries of SITE frequently.

    He said that on the days when CNG stations remains open, the industries face acute low gas pressure which is similar to no gas and badly effects industrial production.

    Hardly 30 percent industries manage to run on low gas pressure due to which, exporters in particular face delays in timely completion of export orders.

    There are approximately 4,000 industries in SITE area, Karachi, out of which 60 percent industries run on gas. As such, the production process of these 60 percent industries stops due to low gas pressure which remains below the required pressure.

    Resultantly, the industries suffer losses of billions due to production losses and damages. They quoted that in other industrial zones, separate gas lines have been laid for industries and CNG stations.

    Therefore, gas line of SITE Area industries should be separated from CNG stations line in order to maintain the gas pressure required to run industries.

    Expressing concern over gas closure for industries on Sundays, they said that on every Sunday, gas remains closed for industries for 24 hours.

    However, gas pressure starts to drop 4-6 hours earlier, much before the time given for closure. The effects of one day gas closure last for more than 36-40 hours which ultimately hits industries.

    The possibilities of increase in unemployment due to closure of industries cannot be ignored in this matter.

    They demanded the Federal Government to direct SSGC to end Sunday gas closure for industries, improve gas load management system and provide gas to industries in required pressure so that industrial production continues without hurdle which is essential to put the country back on the path of economic and industrial development.

  • Equity market ends down by 120 pts on selling pressure

    Equity market ends down by 120 pts on selling pressure

    KARACHI: The equity market ended down by 120 points on Wednesday owing to continued selling pressure.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 39,568 points as against 39,689 points showing a decline of 120 points.

    Analysts at Arif Habib Limited said that the market remained under pressure during the day despite starting with positive 30 points.

    During the session, the index saw oscillation of 351 points (-194 points to +157 points) and the ended the session in red (unadjusted).

    Following the trend in past couple of sessions, banking sector again topped the chart, mainly contributed by BOP with 18 million shares however, price declined slightly.

    Besides banking sector, Cement followed suit and investors took interest in DGKC, FCCL, MLCF and LUCK among others.

    E&P, O&GMCs and Steel saw selling pressure and little interest was seen in underlying scrips.

    Sectors contributing to the performance include Banks (-29 points), O&GMCs (-26 points), Power (-25 points), E&P (-25 points), Tobacco (-10 points), Cement (+22 points).

    Volumes declined significantly from 164 million shares to 81 million shares (-50 percent DoD). Average traded value also declined by 33 percent to reach US$ 28 million as against US$ 42 million.

    Stocks that contributed significantly to the volumes include BOP, UNITY, KEL, FCCL and MLCF, which formed 44 percent of total volumes.

    Stocks that contributed positively include BAHL (+19 points), PSEL (+18 points), LUCK (+9 points), EPCL (+8 points), and FCCL (+7 points).

    Stocks that contributed negatively include OGDC (-24 points), HBL (-21 points), HUBC (-19 points), MCB (-14 points) and PSO (-12 points).

  • Rupee ends down by 11 paisas against dollar

    Rupee ends down by 11 paisas against dollar

    ISLAMABAD: The Pak Rupee ended down by 11 paisas against dollar in interbank foreign exchange market owing to high demand for import and corporate payments. (more…)

  • FBR promotes customs officers to BS-18

    FBR promotes customs officers to BS-18

    Karachi – In a move aimed at strengthening the administrative core of the Pakistan Customs Service (PCS), the Federal Board of Revenue (FBR) has announced the promotion of three distinguished customs officers from BS-17 to BS-18 on a regular basis, effective immediately.

    (more…)
  • Income Tax Ordinance 2001: furnishing customers’ information by banks

    Income Tax Ordinance 2001: furnishing customers’ information by banks

    KARACHI: Banks are required to provide certain details of their customers and transactions to Federal Board of Revenue (FBR) for subsequent use of identifying new taxpayers and tax evasion.

    After the implementation of Finance Act, 2018 and Finance (Supplementary) Act, 2018 there are various changes made to Section 165A of Income Tax Ordinance, 2001 related to furnishing of information by banks.

    Section 165A: Furnishing of information by banks

    Sub-Section (1): Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject every banking company shall make arrangements to provide to the Board in the prescribed form and manner,—

    (a) a list of persons containing particulars of cash withdrawals exceeding Rs50,000 (fifty thousand rupees) in a day and tax deductions thereon for filers and non-filers, aggregating to Rupees one million or more during each preceding calendar month.”;

    (b) a list containing particulars of deposits aggregating rupees ten million or more made during the preceding calendar month;

    (c) a list of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month;

    “(d) a list of persons receiving profit on debt exceeding one million rupees for filers and five hundred thousand rupees for non-filers and tax deductions thereon during preceding financial year.”

    Sub-Section (2): Each banking company shall also make arrangements to nominate a senior officer at the head office to coordinate with the Board for provision of any information and documents in addition to those listed in sub-section (1), as may be required by the Board.

    Sub-Section (3): The banking companies and their officers shall not be liable to any civil, criminal or disciplinary proceedings against them for furnishing information required under this Ordinance.

    Sub-Section (5): Subject to section 216, all information received under this section shall be used only for tax purposes and kept confidential.

    Section 165B: Furnishing of information by financial institutions including banks

    Sub-Section (1): Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act,1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of1947) and any regulations made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) on the subject, every financial institution shall make arrangements to provide information regarding non-resident or any other reportable persons to the Board in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.

    Sub-Section (2): All information received under this section shall be used only for tax and related purposes and kept confidential.”

    Sub-Section (3): For the purpose of this section, the terms “reportable person” and “financial institution” shall have the meaning as provided in Chapter XIIA of the Income Tax Rules, 2002.