Pkrevenue.com

Author: Faisal Shahnawaz

  • Sensitive price inflation grows by 12.02 percent

    Sensitive price inflation grows by 12.02 percent

    KARACHI: The prices of essential items have registered 12.02 percent growth by week ended April 11, 2019 as compared with corresponding week last year, according to data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The Sensitive Price Indicator (SPI) based inflation has shown the increase with the average inflation for all income groups.

    The weekly data revealed that the inflation grew by 16.31 percent for income group above Rs35,000. While the SPI based inflation grew by 12.89 percent for the income group range between Rs18,001 – Rs35,000.

    Meanwhile, the inflation increased by 8.9 percent, 9.07 percent and 8.97 percent for income group up to Rs8,000, Rs8,001-Rs12.000 and Rs12,001 – Rs18,000, respectively.

    The PBS calculates the weekly SPI with base 2007-08=100 covering 17 urban centres and 53 essential items for all income groups/quintiles and combined has been computed.

  • Non-acceptance of duty, taxes: SBP launches surprise inspection of bank branches

    Non-acceptance of duty, taxes: SBP launches surprise inspection of bank branches

    KARACHI: State Bank of Pakistan (SBP) has launched surprise inspection of bank branches across the country on complaints received from taxpayers that banks were not accepting duty, taxes through over the counter (OTC).

    In a circular issued on Monday, the SBP said that banks are required to enable their OTC Channel for collection of taxes and duties and advise their branches to comply meticulously with the above instructions.

    “However, despite above clear instructions, the complaints regarding non-acceptance of taxes particularly the mobile levy through banks’ OTC Channel are piling up unabatedly.”

    Federal Board of Revenue (FBR), Pakistan Telecommunication Authority (PTA) and general public reported numerous instances whereby commercial banks are not accepting over the counter payments of Customs Duty and other taxes including mobile levy against PSIDs generated by the WeBoc system.

    “The increasing large number of complaints shows that the branches are still not fully aware of the instructions to collect the taxes and duties through 1Link’s integrated/ enabled OTC facility.”

    The central bank said that the matter was viewed seriously and therefore, it has been decided that SBP would conduct surprise inspection of bank branches across the country, to assess the level of dissemination of information, awareness at branches and compliance of instructions issued by SBP from time to time. “Any violation of above instructions by the branches if detected during surprise inspections i.e. the branches are found not accepting the taxes and duties from the clients approaching them with PSIDs for payment of the taxes and duties would attract strict punitive action including levy of monetary penalty,” the SBP said.

    The SBP directed that keeping in view the above, the branches / Regional Offices must be advised again to ensure meticulous compliance of the instructions and facilitate the taxpayers in payment of taxes and duties.

  • Equity market gains 166 points in mixed trading

    Equity market gains 166 points in mixed trading

    KARACHI: The equity market gained 166 points on Monday in mixed trading sessions.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,504 points as against 37,338 points showing an increase of 166 points.

    Analysts at Arif Habib Limited said that the market continued the trend showed last week with an upward move of 361 points during the session but also saw profit booking in sectors (Cement, Engineering, Banks) which took the Index up last week.

    Among Cement sector, FCCL, MLCF and PIOC contributed significantly in the top 10 traded volumes.

    O&GMCs continued driving upward with SNGP trading at upper circuit and closing at that level.

    Friday saw SNGP announcing Board meeting in last week of April, which gave Investors confidence in scrip.

    Among Banks, HBL and UBL saw price gains but last half hour saw selling pressure in HBL.

    Cement Sector topped volumes table with around 37 million shares, followed by Banks (around 25 million).

    Among Scrips, PAEL consecutively outperformed with 18 million traded volume and trading near upper circuit. KEL was also able to garner around 14 million shares however, its price declined by 3.4 percent.

    Sectors contributing to the performance include Banks (+55 points), O&GMCs (+31 points), Fertilizer (+27 points), Cement (+20 points), Food (+18 points), Insurance (-14 points).

    Volumes declined slightly from 189.4 million shares to 172 million (-9 percent DoD). Average traded value however, increased by 15 percent to reach US$ 43.6 million as against US$ 37.8 million.

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

    Stocks that contributed positively include HBL (+33 points), SNGP (+22 points), NESTLE (+14 points), FCCL (+11 points), and MCB (+11 points). Stocks that contributed negatively include PMPK (-8 points), KEL (-8 points), EFUG (-7 points), POL (-7 points) and ABOT (-6 points).

  • Rupee eases against dollar on higher corporate demand

    Rupee eases against dollar on higher corporate demand

    KARACHI: The Pak Rupee ended down by one paisa against dollar on Monday on higher demand from corporate sector.

    The rupee ended Rs141.40 to the dollar from last Friday’s closing of Rs141.39 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 Rs141.35 and closed at Rs141.40.

    Currency dealers said that the local unit gained earlier in the day. However, on demand corporate side the value rebounded.

    In open market the rupee gained 20 paisas against dollar.

    The buying and selling of dollar was recorded at Rs141.80/Rs142.30 from last Saturday’s closing of Rs142.00/Rs142.50 in cash ready market.

  • Rupee gains four paisas against dollar in early trade

    Rupee gains four paisas against dollar in early trade

    KARACHI: The Pak Rupee gained 4 paisas against dollar in early trade on Monday owing to narrowing trade deficit during first nine months in the current fiscal year.

    The dollar is being traded at Rs141.35 to the dollar in interbank foreign exchange market. The foreign current market was ended at Rs141.39 to the dollar on last Friday.

    The trade deficit was narrowed by 8 percent during July – March 2018/2019 to $23.67 billion as compared with the deficit of $27.21 billion in the corresponding period of the last fiscal year.

    The trade deficit significantly shrank by 21 percent in March 2019 to $2.17 billion as compared with $3.02 billion in the same month of the last year.

  • Sales Tax Act 1990: Invoice issued by suspended taxpayers not to be entertained for refund, input adjustment

    Sales Tax Act 1990: Invoice issued by suspended taxpayers not to be entertained for refund, input adjustment

    KARACHI: Any invoice issued by a person, who is suspended or black listed by tax authorities, may not be acceptable for refund claim or input adjustment by another registered person.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 21 of the Act explained the de-registration, blacklisting and suspension of sales tax registration.

    Section 21: De-registration, blacklisting and suspension of registration.

    Sub-Section (1): The Board (FBR) or any officer, authorized in this behalf, may subject to the rules, de-register a registered person or such class of registered persons not required to be registered under this Act.

    Sub-Section (2): Notwithstanding anything contained in this Act, in cases where the Commissioner is satisfied that a registered person is found to have issued fake invoices or has otherwise committed tax fraud, he may blacklist such person or suspend his registration in accordance with such procedure as the Board may by notification in the official Gazette, prescribe.

    Sub-Section (3): During the period of suspension of registration, the invoices issued by such person shall not be entertained for the purposes of sales Tax refund or input tax credit, and once such person is black listed, the refund or input tax credit claimed against the invoices issued by him, whether prior or after such black listing, shall be rejected through a self-speaking appealable order and after affording an opportunity of being heard to such person.

    Sub-Section (4): Notwithstanding anything contained in this Act, where the Board, the concerned Commissioner or any officer authorized by the Board in this behalf has reasons to believe that a registered person is engaged in issuing fake or flying invoices, claiming fraudulent input tax or refunds, does not physically exist or conduct actual business, or is committing any other fraudulent activity, the Board, concerned Commissioner or such Officer may after recording reasons in writing, block the refunds or input tax adjustments of such person and direct the concerned Commissioner having jurisdiction for further investigation and appropriate legal action.

  • Procedure to get WeBOC registration for online customs access

    Procedure to get WeBOC registration for online customs access

    KARACHI: Federal Board of Revenue (FBR) has issued procedure to get registration for WeBOC in order to access the Customs online system for consignment clearance.

    According to the procedure, a person is required to submit an application to Deputy/Assistant Collector WeBOC User-ID Section, along with supportive/required documents.

    For the registration personal appearance of applicant before Deputy / Assistant Collector User-ID Section is mandatory with original CNIC.

    The customs staff will take digital picture and thumb impression of the applicant upon personal appearance.

    The customs authorities may visit of the business premises (wherever required) as mentioned by the applicant.

    After thorough verification the customs authorities may accept or reject the application.

    On acceptance of the application the customs authorities to create User-ID and issue Login-ID and automatic sending of computer generated password to the applicant through email.

    For the WeBOC registration following details would be required:

    NTN Number *

    STRN *

    Business Name *

    Business Address *

    Contact Person Name *

    Contact Person CNIC *

    Phone Number 1*

    Phone Number 2

    Fax Number

    Cell Number*

    Contact Person Email id *

    Bank Name

    Branch City

    Branch Name

    Account Number

    License Number

    Collectorate

    Warehouse (In case of Warehouse)

    Shipping Line Type (In case of Shipping Line)

    Location (In case of Terminal Operator)

  • FBR suspends zero rating on electricity to textile unit

    FBR suspends zero rating on electricity to textile unit

    ISLAMABAD: Federal Board of Revenue (FBR) has suspended sales tax zero rating allowed to a textile unit on consumption of electricity.

    The FBR issued Sales Tax General Order (STGO) No. 51 of 2019 and suspended sales tax zero rating under SRO 1125(I)/2011 dated December 31, 2011 of Habib Fabric Private Limited.

    The zero rating of the taxpayers has been suspended on the recommendation of Regional Tax Office (RTO) Faisalabad.

    The FBR directed Chief Commissioner RTO Faisalabad to coordinate with power supply company to implement the normal tax rate. The RTO has also been asked to submit report in respect of action taken/recovery made for misuse of the facility.

    The FBR also asked Faisalabad Electric Supply Company (FESCO) to start charging sales tax on the supply of electricity in respect of the said consumer with immediate effect (April 10, 2019).

  • FBR may redefine motor vehicle for withholding tax collection

    FBR may redefine motor vehicle for withholding tax collection

    KARACHI: Federal Board of Revenue (FBR) to recommend the government to redefine withholding tax on motor vehicles to bring construction and heavy vehicles into tax net.

    The FBR sources said that the FBR may propose amendment to Section 231B(7) of Income Tax Ordinance, 2001.

    This section presently defined motor vehicle, including car, jeep, van, sports, utility vehicle, pick up trucks for private use, caravan automobile, limousine, wagon and any other automobile used for private purpose.

    The proposed amendment to section is:

    “Motor vehicle includes car ,jeep, van, sports, utility vehicle, pick up trucks for private use, caravan automobile , limousine , wagon and any other automobile used for private purpose, any mechanically propelled vehicle adapted for use upon roads whether the powers of propulsion in transmitted thereto from an external or internal source, and includes a chassis to which a body has not been attached, a tractor and a trailer, a combined harvester, a rig, a fork lifter a road roller, construction and earth moving machinery such as a wheel loader, a crane, an excavator, a grader, a dozer and a pipe layer, a road making and road/sewerage cleaning plant and any other motor vehicle as defined under provincial Motor Vehicles Ordinance 1965 and any other law.”

  • Sales Tax Act 1990: persons required to get registration

    Sales Tax Act 1990: persons required to get registration

    KARACHI: All the persons engaged in making taxable supplies are required to get sales tax registration.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 14 of the Act, explained the requirement of registration.

    Section 14: Registration

    Sub-Section (1): Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-

    (a) a manufacturer who is not running a cottage industry;

    (b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;

    (c) an importer;

    (d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;

    (e) a wholesaler, dealer or distributor; and

    (f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.

    Sub-Section (2): Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.

    Sub-Section (3): The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.