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Author: Faisal Shahnawaz

  • PTCL facilitates payment for Netflix subscription

    PTCL facilitates payment for Netflix subscription

    KARACHI: Pakistan Telecommunication Company Limited (PTCL) has facilitated its customers for pay subscription of Netflix, the world’s leading internet entertainment service, in their monthly broadband bills.

    A statement on Monday said that the PTCL had partnered with Netflix. “This partnership will enable PTCL customers to easily pay for their Netflix subscription as part of their monthly PTCL broadband bills, eliminating the need to share additional credit card or debit card details.”

    New and existing PTCL customers can avail this service by simply registering at https://www.ptcl.com.pk/netflix.

    Speaking on this collaboration, Moqeem ul Haque, Chief Commercial Officer, PTCL, said, “Many PTCL customers enjoy the stellar content catalogue of Netflix through our broadband service that offers seamless high speed internet connectivity.

    “This encouraged us to offer them a convenient way to pay for their Netflix subscription through their monthly PTCL bills.”

    Speaking on the partnership, Tony Zameczkowski, Vice President, Business Development, Asia, Netflix, said: “The growing broadband internet ecosystem in Pakistan is fueling the rise of video consumption in the country.

    “Our association with PTCL enables their customers to seamlessly pay for their Netflix subscription, and enjoy the wide breadth of content from across the world on any internet connected screen.”

    PTCL provides digital lifestyle to its customers through its vast array of products and services, including international collaborations like Netflix that bring ease and convenience to the subscribers.

  • Many withholding tax provisions to be abolished in budget

    Many withholding tax provisions to be abolished in budget

    ISLAMABAD: The government has intended to abolish large number of withholding tax provisions in the budget.

    According to Medium-Term Economic Framework (MTEF), which was launched by Finance Minister Asad Umar on Monday, pointed out that withholding taxes become regressive if people who are not liable to income taxes and/or if firms treat them as consumption taxes and are generally passed them on to the consumers, badly impacting the progressivity of the tax.

    As such, the tax needs some fundamental reforms.

    “As a first step, the government intends to discontinue a large number of low yielding withholding taxes in the next year’s budget.”

    The framework also highlighted about the taxation and valuation of immovable properties.

    Since the federal government collects tax on income from property and provincial and local governments collect property and transaction tax on immovable property, all parties have an interest in proper documentation and valuation of property.

    “The government intends to pursue a coordinated approach to taxation and valuation of the real estate sector in a way to collect optimum revenue from it without discouraging investment.”

  • FBR empowered to use third-party information for identifying tax dodgers: MTEF

    FBR empowered to use third-party information for identifying tax dodgers: MTEF

    ISLAMABAD: Federal Board of Revenue (FBR) has been empowered for using third-party information to identify tax dodgers.

    The Medium-Term Economic Framework (MTEF), which was launched on Monday by the Finance Minister Asad Umar, the government had promulgated a law so as to allow FBR to access third-party data bases.

    The MTEF pointed out building data analytics capacity to utilize available information. “This involves identifying and identifying and pursuing individuals falling outside the tax net through the use of third-party information on consumption patterns utilizing data from income, income tax returns and expenditure data from various sources such as travel, bank account, car ownership, property ownership, children studying abroad, children studying in expensive schools etc.”

    Since FBR does not have adequate capacity to utilize these data using latest techniques available, it would be necessary to collaborate with researchers and experts to develop efficient and effective analytical tools.

    The government has evolved measures to strengthening tax enforcement and tax audits

    The framework said that tax enforcement has remained one of the weakest areas of tax administration.

    The government intends to overcome this shortcoming by building enforcement capabilities within FBR through staff training and an intensive use of information technology.

    In this regard, priority is being given to putting in place a track-and-trace system and strengthening the risk-based tax audits.

    The government also planned harmonizing the tax codes. The MTEF said that the government is well aware that some tax issues (e.g. non-harmonized sales tax rates across tiers of government, taxation of real estate, etc.) adds to the cost of doing business by requiring multiple tax returns to be filed in a single tax year.

    While working with the provincial governments in the National Finance Commission (NFC) framework, the federal government intends to harmonize the tax code and integrate tax processes through digitization and process automation.

    In addition, it intends to establish a mechanism to fast-track resolution of tax disputes, thus reducing compliance cost.

    This will reduce the cost of doing business to some extent and make it harder for taxpayers to play the tax administrations off against each other to evade taxes.

    An NFC sub-group has already been tasked with formulating recommendations to simplify payment of taxes to enhance ease of doing business in taxation area.

  • All tax exemptions to have sunset clause: MTEF

    All tax exemptions to have sunset clause: MTEF

    ISLAMABAD: The ministry of finance on Monday launched Medium-Term Economic Framework (MTEF), which envisaged that all permanent exemptions to be withdrawn or have a sunset clause.

    The MTEF said that presently tax policy has a predominant revenue focus and as such is likely to create distortions in the economy which can adversely affect the growth and equity objectives.

    In addition, even the revenue objective is compromised by large scale exemptions.

    To correct this shortcoming, the government intends the following:

    i) Enact a law to ensure that no tax exemption is allowed through law or notification without an estimate of its cost independently by the tax department as well as the concerned ministry. Such cost will be made public before notification of the exemption.

    ii) Review all existing exemptions, with the purpose of eliminating as many of those as possible. Even if an exemption is to be retained its cost will be determined and made public. Ministry of Finance to publish annually a statement of tax expenditures to show how much revenue is being foregone due to exemptions.

    iii) Ensure that all exemptions, existing or newly proposed, will have a sunset clause (ideally not more than 5 years).

    iv) Publish a list of all government owned, quasi-government and government-linked enterprises availing tax exemption/concession in any way along with quantification of the tax expenditure. In addition, a plan be prepared for phasing out of these concessions.

    v) Withdraw FBR powers to issue SROs to grant exemptions. This power will vest only with the Parliament.

    vi) Ensure that all non-procedural existing SROs will expire at the end of the fiscal year. Steps taken over the last two years to incorporate all exemptions granted through SROs to be made part of the body of law.

  • SBP to be given independence for money market discipline

    SBP to be given independence for money market discipline

    ISLAMABAD: The State Bank of Pakistan (SBP) to be given operation and institutional independence for bringing discipline in money market.

    According to ‘Medium-Term Economic Framework’ launched by Finance Minister Asad Umar on Monday, the government is considering giving the SBP greater operation and institutional independence to bring greater discipline in money market and exchange rate regimes.

    It said that the State Bank Act would be amended to further strengthen the autonomy of SBP and clarify its objectives and functions.

    “Specifically, the government, in consultation with SBP and other stakeholders, will finalize proposals to facilitate implementation of flexible inflation targeting as envisage in SBP Vision 2020,” it added.

    The existing exchange rate arrangements and possible limits of government borrowing from SBP will also be clarified in line with prioritizing price stability as an objective of monetary policy.

    The framework said that the exchange rate is one of the most important prices and is determined by underlying economic fundamentals.

    These fundamentals ensure that it would adjust to its equilibrium value over the long run.

    As mentioned earlier, Pakistan’s approach over the last two years to manage the exchange rate was structurally flawed, as it focused more on the overriding desire to avoid unnecessary volatility in the foreign exchange market and avoid fiscal cost of exchange rate adjustment, even when it was needed.

    “This led to persistent overvaluations of rupee contributing to a massive increase in trade and current account deficits; which was the central to the macroeconomic instability faced by the country today.”

    The recent pressures on external fronts are a manifestation of the misaligned exchange rate for the past two years.

    Against this background, the principal idea now is to enshrine an exchange rate policy which enhances competitive of Pakistani exports, by avoiding the persistent overvaluation of rupee.

    Accordingly, the Pakistani rupee has depreciated around 33.4 percent since November 2017. The depreciation has moved the exchange rate to a level, which is more reflective of economy’s medium-term needs and market conditions while at the same time minimizing disorderly fluctuations.

    The near-term goal of this policy is to move towards an exchange rate regime which SOEs not allow overvaluation of rupee on persistent basis.

  • Equity market plunges by 600 points

    Equity market plunges by 600 points

    KARACHI: The equity market plunged by 600 points on Monday owing to reports of possible border confrontation between Pakistan and India.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,922 points as against 37,522 points showing a decline of 600 points.

    Analysts at Arif Habib Limited said that negative news flow over the weekend, especially possible border confrontation between Pakistan and India, as highlighted by Foreign Minister, in addition to macro-economic woes added to deficit of Investor confidence.

    The index slid by 783 points during the session and closed 600 points down.

    Cement blue chips hit lower circuits, especially LUCK, DGKC and MLCF that contributed to decline in KSE100. Cement Sector topped volumes table with 20 million shares, followed by Power and Banks. Among Scrips, KEL registered highest traded volume of 10.9 million shares followed by FCCL (9.5 million).

    Sectors contributing to the performance include Cement (-120 points), Banks (-79 points), Fertilizer (-59 points), O&GMCs (-59 points), E&P (-58 points).

    Volumes increased slightly from 101.7 million shares to 106.9 million shares (+5 percent DoD). Average traded value also increased by 9 percent to reach US$ 28.9 million as against US$ 26.6 million.

    Stocks that contributed significantly to the volumes include KEL, FCCL, UNITYR1, BOP and MLCF, which formed 38 percent of total volumes.

    Stocks that contributed positively include HUBC (+17 points), HBL (+10 points), NESTLE (+9 points), FABL (+6 points), and IGIHL (+3 points). Stocks that contributed negatively include LUCK (-56 points), ENGRO (-26 points), MCB (-24 points), SEARL (-22 points) and PSO (-22 points).

  • Rupee ends down by nine paisas

    Rupee ends down by nine paisas

    KARACHI: The Pak Rupee ended down by nine paisas against dollar on Monday after gaining value earlier in the day.

    The rupee ended Rs141.39 to the dollar from last Friday’s closing of Rs141.30 in interbank foreign exchange market.

    The interbank foreign exchange was initiated in the range of Rs141.10 and Rs141.20. The market recorded day high of Rs141.40 and low of Rs141.20 and closed at Rs141.39.

    The exchange rate in open market was remained unchanged.

    The buying and selling of dollar was recorded at Rs142.50/Rs142.80 the same last Saturday’s level in cash free market.


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  • Amnesty Scheme 2019 likely be introduced on April 15

    Amnesty Scheme 2019 likely be introduced on April 15

    ISLAMABAD: The government likely to introduce new tax amnesty scheme 2019 for undeclared foreign and local assets from next week.

    In this regard a briefing was give to Prime Minister Imran Khan on Monday.

    According to the sources the amnesty would be introduced from April 15, 2019 and will continue till June 30, 2019.

    The amnesty scheme may be announced through Presidential Ordinance and subsequently passed I Finance Act, 2019 in May or June this year.

    According to documents, all companies and individuals would be qualified for the scheme except: holders of public office since January 01, 2000, their spouses, children, brothers and sisters or lineal ascendant or descendant; proceeds derived from commission of a criminal offence are excluded; cases pending before a court of law with the exception of older pending litigation.

    The amnesty scheme would have conditions, included:

    — filing of income tax returns or revision thereof for 2018 and payment of tax.

    — filing/revising sales tax returns for last completed tax period and declaring last 5 years undisclosed sales and payment of three percent sales tax/Federal Excise Duty.

    –Depositing the case declared in a bank account and retaining the balance till June 30.

    — Gold and precious stones declaration shall not exceed value of Rs5 million.

    According to valuation of assets for the amnesty, the Benami assets would be allowed to declare at 10 percent. Foreign liquid assets repatriated into Pakistan at five percent.

  • Active taxpayers list shows 1.88 million return filers

    Active taxpayers list shows 1.88 million return filers

    KARACHI: The number of active taxpayers has surged to 1.88 million for the tax year 2018 as of April 07, 2019, according to an official document released on Monday. This marks a significant increase from the previous year, reflecting a growing compliance among taxpayers in Pakistan.

    (more…)
  • Rupee gains five paisas against dollar in early trade

    Rupee gains five paisas against dollar in early trade

    KARACHI: The Pak Rupee gained five paisas against dollar in early trade on Monday owing to monitoring by authorities for import payments.

    The dollar is being traded at Rs141.25 in interbank foreign exchange market. The foreign currency market was ended at Rs141.30 to the dollar on last Friday.

    Last week the State Bank of Pakistan (SBP) said that large payments had been made and the local currency would recover against the greenback.

    The SBP told this at a meeting with members of Forex Association of Pakistan (FAP). Since then the rupee gained 25 paisas till today morning.

    Currency experts however said that the latest World Bank report issued on Sunday April 07, 2019, pointed out difficulties to Pakistan economy and forecast lower growth during two fiscal years.

    The experts said that the weak economic indicators may exert pressure on the local currency in coming months.