Pkrevenue.com

Author: Faisal Shahnawaz

  • FBR issues ATL for Tax Year 2018, active taxpayers decline to 1.6 million

    FBR issues ATL for Tax Year 2018, active taxpayers decline to 1.6 million

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday launched new Active Taxpayers List (ATL) for Tax Year 2018, which is showing around 1.6 million taxpayers filed their income tax returns by respective due dates.

    The FBR issues ATL for the latest tax year on every first day of March. In the latest ATL the number of active taxpayers reduced to 1.6 million from 1.84 million as per the last weekly updated ATL for Tax Year 2017, showing fall of 240,000 returns submitted to the tax authorities.

    The number of active taxpayers will not further increased as late return filers have been deprived of appearing on the ATL.

    The previous PML-N government in its last budget announcement made a law to restrict the list with those name, who filed their list by due date.

    Through Finance Act, 2018 a new provision Section 182A was added to Income Tax Ordinance, 2001 for this purpose.

    Section 182A: Return not filed within due date.—

    Sub-Section (1): Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—

    (a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date; and

    “Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and

    (b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV.

    The appearance on ATL is important for a taxpayer to avail reduced rate of withholding tax rates.

    The appearance of name has become even more important after the amendments brought in to restrict non-filers in purchase / registering new motor vehicles and immovable properties.

    With the issuance of new active taxpayers’ list the FBR will also suspend the weekly updated list as the late filers have been denied to have their names on the list.

  • Authorities to pay penalty for processing non-filers’ request

    Authorities to pay penalty for processing non-filers’ request

    KARACHI: Provincial motor or immovable property registration authorities will liable to pay penalty around three percent of the value in case of processing registration request by non-filers of income tax return.

    According to updated Income Tax Ordinance, 2001 issued by the Federal Board of Revenue (FBR), the government imposed restriction on registration of motor vehicle and immovable properties by non-filers under Section 227C.

    A penalty of three percent of the value of motor vehicle or immovable property is liable to pay:

    i. Where any registering authority of Excise and Taxation Department accepts, processes or registers any application for registration of a locally manufactured motor vehicle or for the first registration of an imported vehicle in violation of the provisions of clause (a) of section 227C.

    ii. Where any authority responsible for registering, recording or attesting the transfer of immovable property accepts or processes the registration or attestation of such property in violation of the provisions of clause (b) of section 227C.

    Similarly car manufacturers are also liable to pay penalty in case of selling motor car to non-filer of income tax return.

    A car manufacturer is liable to pay penalty of five percent of the value of the motor vehicle:

    Where any manufacturer of a motor vehicle accepts or processes any application for booking or purchase of a locally manufactured motor vehicle in violation of the provisions of clause (a) of section 227C.

    Related Stories
    Income Tax Ordinance 2001: Late filers not to get names on ATL
    Income Tax Ordinance 2001: No commercial, industrial gas or electricity connection without NTN
    Income Tax Ordinance 2001: Commissioner can take assistance of police, civil armed forces to conduct audit
    Income Tax Ordinance 2001: Commissioner IR has court powers for production of taxpayers’ record
    Income Tax Ordinance 2001: Tax officials’ power to enter premises without notice

  • Customs I&I announces auction of vehicles on March 05

    Customs I&I announces auction of vehicles on March 05

    ISLAMABAD: The Directorate of Intelligence and Investigation (I&I), Customs, Federal Board of Revenue (FBR) has announced auction of confiscated vehicles to be held on March 05, 2019 at state warehouse of its regional office in Multan.

    The following confiscated vehicles will be offered for the auction:

    01. Honda Civic Car, Model 2002, Chassis No. NFBES56D92R106849

    02. Suzuki Jimmy Jeep, Model 1998, Chassis No. JB33W105092

    03. Toyota Mark X, Model 2004, Chassis No. GRX121-1000041

    04. Toyota Corolla Altis Car, Mode 2005, Chassis No. MR053ZEC107098965

    05. Toyota Vitz Car, Model 2002, Chassis No. SCP10-3109526

    06. Toyota Vitz Car, Model 2004. Chassis No. SCP13-0049272

    07. Toyota Vitz Car, Model 2003, Chassis No. SCP10-0429866

    08. Toyota Vitz Car, Model 2003, Chassis No. SCP13-0011311

    09. Toyota Vitz Car, Model 2007, Chassis No. SCP90-2044891

    10. Toyota Vitz Car, Model 2007, Chassis No. KSP90-2043958

  • Petrol price increased to Rs92.88 per liter

    Petrol price increased to Rs92.88 per liter

    ISLAMABAD: The government has increased the prices of petroleum products for the month of March 2019. The price of petrol has been increased to Rs92.88 per liter.

    A statement on Thursday said that the government decided to change prices of petroleum products for the month of March 2019 as follows:

    Ms 92 RON Petrol has been increased by Rs2.50 from Rs90.38 to Rs92.88.

    The price of High Speed Diesel (HSD) has been increased by Rs4.75 from Rs106.68 to Rs111.43 4.75.

    The price of Kerosene Oil (SKO) has been increased by Rs4 from Rs82.31 to Rs86.31

    The price of Light Diesel Oil (LDO) has been increased by Rs2.50 from Rs75.03 to Rs77.53.

    It may be added that based on international oil prices, increase of Rs. 4.71, Rs 9.44, Rs 8.06 and Rs 5.12 per litre in the price of MS (Petrol), HSD, Kerosene Oil and LDO respectively was worked out but the government decided not to pass on the full impact of price increase to the consumers and approved a reduced level of increase as indicated in the table above.

    The new prices shall be applicable from 1st to 31st March 2019.

  • Forex reserves increase to $14.815 billion

    Forex reserves increase to $14.815 billion

    KARACHI: The total foreign exchange reserves of Pakistan increased by $21 million to $14.815 billion by week ended February 22, 2019 as compared with $14.794 billion a week ago, the State Bank of Pakistan (SBP) said on Thursday.

    The reserves held by SBP, however, declined by $7 million to $8.036 billion as compared with $8.043 billion.

    The reserves held by commercial bank increased by $28 million to $6.779 billion from $6.751 billion.

  • SBP issues instructions for opening bank accounts of Afghan refugees

    SBP issues instructions for opening bank accounts of Afghan refugees

    KARACHI: State Bank of Pakistan (SBP) has issued instructions for banks regarding opening of bank accounts by Afghan refugees.

    In a circular issued on Thursday, the SBP said that National Database and Registration Authority (NADRA) had informed that biometric verification for opening bank accounts of Afghan refugees holding Proof of Registration (PoR) Card has been made live w.e.f February 26, 2019 over the existing established linkage of CNIC verification.

    The biometric verification service for Afghan refugees holding PoR Card would work similar to the CNIC biometric verification system.

    Accordingly, for opening accounts of Afghan refugees holding PoR Card, banks/DFIs may accept the valid Proof of Registration (PoR) Card issued by NADRA as identity document. In this regard, banks/DFIs shall verify the identity of the Afghan refugees holding PoR Card through NADRA biometric verification system for opening of account.

    Moreover, for services offered by banks to their account holders, where CNIC and biometric verification is required under AML/CFT Regulations, valid biometrically verified PoR Card is acceptable as identity document.

    However, banks/DFIs are advised to ensure compliance of all relevant legal and regulatory requirements including AML / CFT preventive measures instructed by SBP for account opening from time to time.

  • SBP approval mandatory for opening currency exchange outlets at airports

    SBP approval mandatory for opening currency exchange outlets at airports

    KARACHI: State Bank of Pakistan (SBP) on Thursday directed exchange companies to take approval from the central bank before opening outlets at any airport in the country.

    In a circular, the SBP said that in order to facilitate the Exchange Companies and Exchange Companies of ‘B’ category in timely opening of their outlets (Currency Exchange Booths / Branches) at Pakistani airports under Pakistan Civil Aviation Authority (CAA) license, the following procedure will be applicable with immediate effect:

    a. Exchange Companies and Exchange Companies of ‘B’ category desirous of participating in CAA tender(s) for award / renewal of license of currency exchange booth(s) / branch(es) at any Pakistani airport(s) shall obtain in-principle approval from SBP before participating in each CAA tender.

    b. Application(s) complete in all respects by Exchange Companies and Exchange Companies of ‘B’ category for obtaining in principal approval to participate in CAA tender(s) must reach Exchange Policy Department at least 7 working days prior to the last date of application submission in CAA tender(s).

    Exchange Companies

    c. In principle approval for participation in CAA tender(s) shall be given by SBP to those Exchange Companies which have better compliance ratings, financial health, corporate governance etc. as mentioned in Para 3(iii) and (iv) of Chapter 4 of Exchange Companies Manual.

    d. Application(s) of Exchange Companies for in-principle approval for participation in CAA tender(s) for opening of currency exchange booth(s) / branch(es) at airports shall be treated independent of their Annual Network Expansion Plan and may be submitted to the Director, Exchange Policy Department any time during the year as per CAA tender timelines.

    Exchange Companies of ‘B’ category

    e. Exchange Companies of ‘B’ Category are not allowed to participate in CAA tender(s) for award of new license of currency exchange booth(s) / branch(es) as at present they are not allowed expansion of their branch network.

    f. Exchange Companies of ‘B’ category holding valid CAA license of currency exchange booth(s) / branch(es) shall apply for permission to participate in fresh tenders at airports/locations where they already operate after expiry of CAA license subject to compliance as applicable to Exchange Companies with requirement of Para 3(iii) and (iv) of Chapter 4 of Exchange Companies Manual.

    The SBP said that while submitting the application for participation in CAA tender, Exchange Companies and Exchange Companies of ‘B’ category shall deposit non-refundable fee of Rs.50,000/- per outlet in RTGS Clearing account number 427516 of the State Bank and submit the payment receipt as evidence of having paid the applicable fee.

    The central bank warned that failure to comply with the above instructions shall attract regulatory action against the concerned Exchange Company / Exchange Company of ‘B’ Category under the relevant provisions of the Foreign Exchange Regulation Act, 1947.

  • KSE-100 gains 362 points amid Pak-India border tension

    KSE-100 gains 362 points amid Pak-India border tension

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended with gain of 362 points despite tension on the Pak-India borders.

    The index closed at 39,055 points as against 38,693 points showing an increase of 362 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today and leaped by 123 points at the opening.

    During the session, the index increased by 456 points, however, later the investors showed concern due to tensions on the border, which resulted in a decline of 134 points.

    Market recovered back in the last trading hours that resulted in an adjusted closing of +362 points.

    Though volumes declined as compared to yesterday, nonetheless healthy volumes were seen in the end.

    Banking sector led the volumes table with 24 million shares, which was topped by BOP.

    Sectors contributing to the performance include Banks (+63 points), Autos (+37 points), Pharma (+35 points), Tobacco (+33 points), Miscellaneous (+29 points).

    Volumes declined from 274 million shares to 159 million shares (-42 percent DoD). Average traded value also declined by 28 percent to reach US$ 53 million as against US$ 74 million.

    Stocks that contributed significantly to the volumes include BOP, WTL, KEL, PAEL and FCCL, which formed 29 percent of total volumes.

    Stocks that contributed positively include DAWH (+36 points), PAKT (+33 points), OGDC (+29 points), PSEL (+23 points), and MEBL (+19 points). Stocks that contributed negatively include MCB (-19 points), NESTLE (-14 points), PPL (-12 points), ENGRO (-11 points) and EFERT (-11 points).

  • Rupee makes sharp recovery of 44 paisas against dollar

    Rupee makes sharp recovery of 44 paisas against dollar

    KARACHI: The Pak Rupee made a sharp recovery of 44 paisas against dollar on Thursday on peace message sent by Pakistan after giving strong response to Indian aggression.

    The rupee ended Rs138.82 to the dollar as compared with last day’s closing of Rs139.25 in interbank foreign exchange market.

    The rupee was depreciated massively last day against dollar.

    However, yesterday Pakistan shot down two Indian fighter jets in response to Indian violation of Pakistan airspace a day earlier.

    Dealers said that the sentiments were positive in foreign currency market as economic indictors showing improvement.

    The interbank foreign exchange market was initiated in the range of Rs139.20 and Rs139.25.

    The market recorded a high of Rs139.20 and low of Rs138.80 and closed at Rs138.82.

    The exchange rate however has shown some negative trend.

    The buying and selling of dollar was recorded at Rs139.00/Rs139.50 from previous day’s closing of Rs138.70/Rs139.20 in cash ready market.

  • Murree Brewery declares profit amid liquor ban in Sindh

    Murree Brewery declares profit amid liquor ban in Sindh

    KARACHI: Murree Brewery Company Limited has declared 4.6 percent increase in net profit despite ban on liquor sale in Sindh, according to half- year financial results for period ended December 31, 2018 submitted to Pakistan Stock Exchange (PSX) on Thursday.

    The net sales revenue increased by 10.2 percent to Rs4.582 billion during July – December 2018 from Rs4.15 billion in the corresponding period of the last year.

    The gross profit of the company has increased by 10.2 percent to Rs1.544 billion from Rs1.4 billion.

    Earnings per share of the company have increased by 4.6 percent to Rs23.78 from Rs22.75 EPS.

    The company declared the profit despite ban on liquor sale in Sindh. It said that as advised earlier the case is pending before the Sindh High Court. Meanwhile, sales during the half year were satisfactory.

    The company also pointed out depreciation in local currency. It said that the rupee has further devalued to Rs.138 per US dollar increasing the cost of imports and making repayment of foreign currency loans and interest thereon dearer.

    The benefit to the country by making exports cheaper has been marginally received by reducing the current account deficit. The cost of production has increased with dearer imports and increases in the cost of gas and electricity which has also increased the cost of living of the public utilizing higher quantities of these utilities, it added.

    The company said that the Punjab Government issued a notification # SO(E&M)2-3/2011(P-II) dated 24th June, 2015 by which Still Head Duty was levied from 1st July, 2015 on all Pakistan Made Foreign Liquor and beer meant for consumption outside the province of Punjab. The Company challenged this notification in the Lahore High Court, Lahore.

    The notification was set aside by the Honorable High Court on 27th June 2016.

    The Company is paying this duty and recovering it from the buyers, which makes Murree Brewery products dearer than our competitors.

    The Punjab Government has filed an appeal in the Lahore High Court, Lahore praying the impugned judgment may be set aside and the Notification dated 24th June, 2015 be declared intra vires to the Constitution of Islamic Republic of Pakistan.

    Punjab Excise has got a stay against Sindh wine dealers and is collecting “extra duty”. The intra court appeal of the Excise Department has been dismissed by the Honorable Lahore High Court, Lahore on 19th February, 2019. However, the department has the right to appeal in the Supreme Court.

    The company said that tax on extraction for business purpose also affected the sales.

    In December 2018 the Supreme Court ordered a Re 1 per litre tax on water extracted for business purposes on a suo motu case pertaining to selling of water extracted from underground sources without any charge as well as the fitness of the same for human consumption.

    Finally it applies to many industries including cement, beverages, textiles etc. The modalities of this tax have not yet been determined.

    As the Company’s Tops and Liquor Divisions come under the purview of this tax, a review petition has been led in the Supreme Court.