KARACHI: Chairman Pakistan-South Africa Business Forum (PSABF) Mohammad Rafiq Memon has said that Pakistan’s cement exports to South Africa have suffered terribly during the last couple of years because of the anti-dumping duty imposed by the South African government that resulted in shrinking cement export to around US$100 to US$150 million which was around US$700 million prior to imposition of anti-dumping duty.
(more…)Author: Faisal Shahnawaz
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Equity market plunges by 600 pts on selling pressure
KARACHI: The equity market plunged by over 600 points on Wednesday owing to selling pressure and proposed treasury single account.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,753 points as against 37,382 points showing a decline of 629 points.
Analysts at Arif Habib Limited said that the profit booking at the bourse turned into panic selling, courtesy of banking sector.
Market opened 5 points plus and could gain a total of 37 points after which the selling pressure started building.
O&GMCs, Cement and Fertilizer were the sectors that saw some uptick in the beginning however, selling pressure in Engineering (ISL) on the back of yesterday’s disappointing result and Banks (due to proposal of setting up Treasury Single Account) caused havoc.
BOP saw lower circuit breaker and +50M shares by the end of session.
Amongst other banking sector scrips, HBL also saw lower circuit that added pressure on the Index.
Overall, Banking sector realized 65M shares, followed by Vanaspati (UNITYR1) and Cement. Besides BOP, MLCF and FCCL ranked among top 10 scrips in traded volume.
Sectors contributing to the performance include Banks (-245 points), Power (-58 points), O&GMCs (-46 points), E&P (-38 points) and Cement (-38 points).
Volumes bounced back from 140 million shares the other day to 173 million shares (+23 percent DoD). Average traded value also increased by 5 percent to US$34.8 million and from US$33.3 million.
Stocks that contributed significantly to the volumes include BOP, UNITYR1, MLCF, TRIBL and LOTCHEM, which formed 54 percent of total volumes.
Stocks that contributed positively include POL (+10 points), KTML (+4 points), NRL (+2 points), SCBPL (+2 points), and LOTCHEM (+2 points). Stocks that contributed negatively include HBL (-97 points), HUBC (-38 points), NESTLE (-28 points), OGDC (-26 points) and BOP (-24 points).
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Banking deposits reach all time high at Rs13.45 trillion
KARACHI: The banking deposits have reached to all time high at Rs13.45 trillion by end of March 2019 amid reports of government initiatives of Treasury Single Account (STA).
The deposits of the banking system increased to Rs13.456 trillion by March 2019 as compared with Rs12.57 trillion in the same month a year ago, showing growth of seven percent, according to statistics released by State Bank of Pakistan (SBP) on Wednesday.
Previously, the deposits hit record high at Rs13.35 trillion by the end of December 2018.
Analysts said that the initiatives of TSA would have negative repercussions on the banking deposits.
The has drafted a proposal to introduce TSA to transfer its deposits that are currently being maintained with commercial banks, to State Bank of Pakistan (SBP).
In this regard, SBP a day earlier held a meeting with bank representatives to brief them about the proposed mechanism of TSA.
The SBP has asked banks to provide feedback by the end of this month on the viability to consolidate government accounts into a single account as well as the readiness of their system to perform the implementation, as per channel checks.
Analysts at Topline Securities said that it would be a negative development for banks in terms of systematic risk as total government deposits with commercial banks are around Rs1.9 trillion or 13.7 percent of total deposits, around which, Rs0.9 trillion are of the federal government.
Bank of Khyber (BOP) has the highest government deposits (Federal & Provincial) of 63 percent of its total deposits, followed by Bank of Punjab (BOP) 56 percent, Askari Bank (AKBL) 33 percent and National Bank of Pakistan (NBP) 29 percent.
The analyst said that in the first phase, federal government deposits (around Rs0.9 trillion) will be transferred to SBP under single account, which may be followed by transfer of provincial deposits (around Rs1 trillion).
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Rupee ends firmer on lower dollar demand for imports
KARACHI: The Pak Rupee ended firmer against dollar on Wednesday amid static demand for import and corporate payments.
The rupee ended Rs141.40 to the dollar, the same previous day’s level, in interbank foreign exchange market.
The interbank foreign exchange market was initiated in the range of Rs141.39 and Rs141.40.
The market recorded day high of Rs141.40 and low of Rs141.39 and closed at Rs141.40.
The currency experts said that the falling imports and narrowing trade deficit up to month of March 2019 had helped the rupee to maintain levels.
In the open market the rupee further strengthened owing to inflows.
The buying and selling of dollar was recorded at Rs141.50/Rs142.00 from previous day’s closing of Rs141.70/Rs142.20 in cash ready market.
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Senior citizens allowed investment in national savings on expired CNICs
KARACHI: The Central Directorate of National Savings (CDNS) has issued directives to its zonal offices, instructing them to follow the policy outlined by the central bank to facilitate older citizens aged 65 years and above in making investments using expired Computerized National Identity Cards (CNICs).
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Sales Tax Act 1990: requirement of issuing tax invoice
KARACHI: A person making taxable supplies is required to issue serially numbered tax invoice at the time of making supply of goods.
According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 23 of the Act explained the requirement of issuing tax invoice.
Section 23: Tax Invoices
Sub-Section (1): A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, namely: –
(a) name, address and registration number of the supplier;
(b) name, address and registration number of the recipient;
(c) date of issue of invoice;
(d) description and quantity of goods;
(e) value exclusive of tax;
(f) amount of sales tax; and
(g) value inclusive of tax:
Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons:
Provided further that not more than one tax invoice shall be issued for a taxable supply.
Sub-Section (2): No person other than a registered person or a person paying retail tax shall issue an invoice under this section.
Sub-Section (3): A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.
Sub-Section (4): The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.
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Sales tax auditors form association against FBR’s unfair treatment
KARACHI: The officers of Sales Tax have formed an association to voice against biased treatment of Federal Board of Revenue (FBR).
A statement issued on Tuesday said that Senior Auditors of BS-16 and Audit Officers of BS-16 had formed the association against unfair treatment of the FBR.
They said that the sales tax officers had been continuously ignored after the integration of services by the FBR.
They said that the BS-18 audit officers had been compelled to work under BS-16 and BS-19 officers of Income Tax.
The statement said that the situation was frustrating as officers having 20 years experience were compelled to work under inexperienced income tax officers. This situation has also jeopardized the revenue collection efforts.
The statement pointed out that sales tax officers having higher education caliber including MBA, MCOM, ICMA etc, had been deprived of promotions. Instead those officers were upgraded in the name of promotions.
It said that the sales tax wing was major arm of FBR and contributing huge sum in the shape of revenue collection. But the FBR is continuously ignoring the experience of sales tax officers, which is resulting in massive revenue shortfall.
The association requested Prime Minister Imran Khan, Finance Minister Asad Umar and State Minister Hamad Azhar to take notice of unfair treatment of FBR and resolve the issue.
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ECC may approve sovereign guarantee for Utility Stores Corporation
ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) may grant formal approval for sovereign guarantee for Utility Stores Corporation (USC) in its meeting scheduled for April 17, 2019.
According to agenda of the ECC meeting scheduled for Wednesday, the ministry of industries and production had proposed for the sovereign guarantee for the public sector store chain in order to overcome its financial crisis.
The USC is providing consumer items at low priced and subsidized rates to masses. The government has also approved an amount of Rs2 billion for Ramazan package to be provided to masses through the USC.
In other agenda items, the ECC may approve an amount of Rs700 million in favour of National Commission for Human Development under the ministry of federal education and professional training.
A supplementary grant of Rs337.02 million likely to be approved in respect of Gilgit-Baltistan Council for Financial Year 2018/2019.
Provision of supplementary grant of Rs1.33 billion to department of immigration and passport likely to be approved.
Further, on the recommendation of petroleum ministry, the ECC likely to approve utilization of Railways services by PSO for transportation of petroleum products.
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Doctors, lawyers earning huge money but not on tax net: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to bring professionals into tax net as they are not documented despite earning huge money.
In its proposals for Budget 2019/2020, the apex trade body said that the professionals including doctors and lawyers should be taxed as large number of those professionals was not documented despite earning huge money.
The FPCCI said that the government should make a comprehensive policy to encourage the people to establish industries in the country.
The government should announce tax exemptions for 10 years to those who set up their industrial units within a time period of three years.
The FPCCI said industrialization would help increase in employment opportunities and it would also generate more revenues for the government through indirect tax.
Besides, industrial units should be provided cheaper electricity to make them more competitive.
The national chamber also suggested the government to expand the tax net by documenting the economy. It said that retailers and small shopkeepers should be brought into tax net but rate of tax on them should not be more than one percent.
Further, the FPCCI said that tax rates on immovable properties should be reduced in order to enhance valuation near to fair market value.
The FPCCI also demanded that the sales tax should immediately be reduced from current 17 percent to 15 percent and it should further gradually reduced by one percent per annum.
Corporate sector is heavily taxed at the rate of 29 percent which is too high and should be cut down to 25 percent. While, individual tax should be reduced as it is too much high at 20 percent.
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FBR promotes 114 inspectors to BS-16 Revenue Officers
ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified promotion of 114 inspectors of Inland Revenue and Assistant Private Secretaries to the post of Revenue Officers (BS-16) on regular basis with immediate effect.
Following officers have been promoted:
01. Muhammad Aslam, Regional Tax Office (RTO) Rawalpindi
02. Muhammad Arshad, Large Taxpayers Unit (LTU) Islamabad
03. Abbas Jan Muhammad, RTO-II Karachi
04. Muhammad Shakil, Intelligence and Investigation (I&I), IR Karachi
05. Muhabat Ikhlaq, RTO Gujranwala
06. Abdul Rasool Soomro, RTO Hyderabad
07. Liaqat Ali Sahu, RTO Sukkur
08. Niaz Ali Bhan, Internal Audit (IR), Hyderabad
09. Muhammad Rahim Khan, Directorate General I&I IR, Islamabad
10. Muhammad Ashraf, RTO Faisalabad
11. Umar Hayat, RTO Faisalabad
12. Samiullah Khan, RTO Sargodha
13. Muhammad Intezar, RTO Sargodha
14. Javed Iqbal Qureshi, RTO Sargodha
15. Khalid Hayat, RTO Rawalpindi
16. Muhammad Muaaz Khalid, RTO Sargodha
17. Abdul Saleem Tariq, RTO Gujranwala
18. Muhammad Ramzan, RTO Gujranawala
19. Muhammad Ghias Khan, RTO Sialkot
20. Muhammad Nadeem, LTU Lahore
21. Iqtidar Ahmed, LTU Lahore
22. Manstoor Najeeb, RTO-II Lahore
23. Nisar Hussain, Corporate RTO Lahore
24. Malik Riaz Ahmed, Corporate RTO Lahore
25. Abdul Waheed, RTO-II Lahore
26. Tariq Baig, Corporate RTO Lahore
27. Syed Muzaffar Ali Langa, RTO Hyderabad
28. Shafqat Ali Arain, Directorate of Internal Audit IR Karachi
29. Muhammad Aslam Qureshi, RTO Hyderabad
30. Syed Shabbir Ahmed Shah, RTO Hyderabad
31. Abdul Lateef Kerio, RTO Hyderabad
32. Ameer Ali Kerrio, RTO Hyderabad
33. Ghulam Sarwar, Corporate RTO Karachi
34. Muhammad Aslam Chandio, RTO Sukkur
35. Allah Bux Agham, Additional Directorate of Internal Audit IR Sukkur
36. Ghulam Ali Kakepata, RTO Quetta
37. Mardan Ali, RTO Sukkur
38. Pir Naveed Ahmed, RTO Sukkur
39. Jamil Ahmed Soomro, Corporate RTO Karachi
40. Abdul Nabi Khokhar, RTO Sukkur
41. Muhammad Ayub Brohi, RTO Quetta
42. Abdul Khalique Jamali, RTO Hyderabad
43. Ishq Ali Magsi, RTO Sukkur
44. Imamuddin Zardari, RTO Hyderabad
45. Abdul Jabbar Bhutto, RTO-III Karachi
46. Rashid Hussain Soomro, RTO Sukkur
47. Nazir Ali Keerio, RTO Hyderabad
48. Aftab Ahmed Thallo, RTO Quetta
49. Rashid Ahmed Shahani, RTO Sukkur
50. Pir Sharful Haq Qureshi, RTO Hyderabad
51. Hussain Bukksh Shahani, RTO Hyderabad
52. Zulfiqar Ali Jamali, RTO Hyderabad
53. Saleem Ahmed Hakro, RTO Sukkur
54. Muhammad Rafique Magsi, RTO Quetta
55. Sultan Ahmed Magsi, LTU-II, Karachi
56. Mujeeb-ur-Rehman, RTO Sukkur
57. Agha Avais Khan, RTO Sukkur
58. Kashif Ali Shah, Corporate RTO Karachi
59. Muneer Ahmed Brohi, RTO Sukkur
60. Irfan Ali Umrani, RTO Quetta
61. Mujahid Hussain Shah, RTO Sukkur
62. Mazhar Ali Shah, RTO Sukkur
63. Mumtaz Ali Siyal, RTO Sukkur
64. Shafique Ahmed Mengal, RTO Quetta
65. Azhar Ali Bhutto, RTO Sukkur
66. Muhammad Aftab Amin, Corporate RTO Karachi
67. Ambrat Rai Chawla, LTU-II Karachi
68. Tahir Hussain Shah, RTO Sukkur
69. Syed Zaheer Haider Zaidi, LTU Karachi
70. S Q Aijaz ul Haq, RTO Hyderabad
71. Ghulam Muhammad Memon, RTO Hyderabad
72. Ashouk Kumar Rathi, RTO Hyderabad
73. Madad Ali Bhatti, RTO Hyderabad
74. Sarfraz Ali, RTO Bahawalpur
75. Zafar Iqbal, RTO Bahawalpur
76. Muhammad Yamin, RTO Bahawalpur
77. Sajid Hussain, RTO Sahiwal
78. Rao Abdul Qayyum, RTO Bahawalpur
79. Muhammad Hafeez Watto, RTO Bahawalpur
80. Riaz Ahmed, RTO Bahawalpur
81. Mashooq Hussain, RTO Multan
82. Rab Nawaz, I&I IR Multan
83. Abdur Rasheed, RTO Multan
84. Syed Ghulam Mustafa, RTO Sahiwal
85. Irshad Ahmed Bajwa, RTO Sahiwal
86. Muhammad Iqbal, RTO-II Lahore
87. Masood-ul-Hassan, RTO Sahiwal
88. Ahmed Shafique Elahi, RTO Faisalabad
89. Ch. Muhammad Kha, RTO Rawalpindi
90. Syed Ali Atif Jaffary, RTO Rawalpindi
91. Humayun Khan Durrani, RTO Rawalpindi
92. Rao Baber Ali Khan, LTU Islamabad
93. Naseer Ahmed, RTO Peshawar
94. Ms. Salma Sharif, RTO Islamabad
95. Akhtar Mehmood, RTO Islamabad
96. Arshad Mahmood Baig, RTO Islamabad
97. Muhammad Khalid Gill, FBR HQ Islamabad
98. Waqar Haider, RTO Islamabad
99. Altaf Hussain Khan, LTU Islamabad
100. Muhmmad Shomail Aslam Khan Tareen, RTO Islamabad
101. Saqib Faryad Malik, RTO Islamabad
102. Raja Riffat Hayat, RTO Sargodha
103. Ghulam Sarwar Shaikh, Directorate of Internal Audit, Sukkur
104. Ayaz Ali Shaikh, LTU II Karachi
105. Shahanshah Muhammad Yousaf, RTO-II Karachi
106. Ghulam Raza, LTU-II Karachi
107. Salman Qamar, RTO-II Karachi
108. Gain Chand Chawala, RTO-II Karachi
109. Akif Sohail APS, Corporate RTO Lahore
110. Muhammad Jawed, APS, IR Appeals-I Karachi
111. Muhammad Nadeem, APS, I&I IR Karachi
112. Muhamamd Islam, APS, RTO Peshawar
113. Tahir Pervaiz, APS, Corporate RTO Lahore
114. Abdul Khaliq Ch. APS, RTO Islamabad
The FBR said that the promotion would take effect from the date of joining by the officers, subject to the condition that no disciplinary proceedings were pending against them.