ISLAMABAD, Monday – The Federal Board of Revenue (FBR) has released comprehensive guidelines, outlined in the Eleventh Schedule of the Income Tax Ordinance, 2001, for the computation of income tax specifically tailored for builders and developers.
(more…)Author: Faisal Shahnawaz
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Stocks sink 599 points on MSCI announcement
KARACHI: The stocks fell by 599 points on Friday owing to announcement of semi-annual index review for the MSCI equity indexes.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 45,749 pints as compared with previous day’s close of 46,348 points.
MSCI has announced the results of the November 2021 Semi-Annual Index Review for the MSCI Equity Indexes. As previously announced, the MSCI Pakistan Indexes will be reclassified from Emerging Markets to Frontier Markets in one step coinciding with this Index Review, effective from December 1, 2021. Pakistan’s in MSCI Frontier Markets will have a weight of 1.25 per cent compared to earlier simulated weight of 1.9 per cent.
Analysts at Topline Securities said that the KSE-100 index extended its decline to close at 45,749 level, this decline in market can be attributed to MSCI announcement, where it notified Pakistan weight in MSCI Frontier Markets will have a weight of 1.25 per cent compared to earlier simulated weight of 1.9 per cent and three Pakistani securities will be added to the MSCI Frontier Markets Index (LUCK, HBL, MCB) compared to earlier simulated four constituents where OGDC was the fourth constituent.
TRG, LUCK, OGDC, ENGRO and SYS lost value to weigh down on the index by 186 points.
Traded volume and value for the day stood 192 million shares and Rs.7.66 billion, respectively.
UNITY was today`s volume leader with 14.89 million shares.
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Rules for persons not appearing in ATL
Rules for persons not appearing in ATL have been unveiled by the Federal Board of Revenue (FBR) through updated version of the Income Tax Ordinance, 2001, incorporating amendments through the Finance Act, 2021.
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KIBOR rates on November 12, 2021
KARACHI: State Bank of Pakistan (SBP) on Friday issued the following Karachi Interbank Offered Rates (KIBOR) on November 12, 2021.
Tenor BID OFFER 1 – Week 7.25 7.75 2 – Week 7.30 7.80 1 – Month 7.40 7.90 3 – Month 8.40 8.65 6 – Month 8.67 8.92 9 – Month 8.97 9.47 1 – Year 9.15 9.65 -
SBP issues customers exchange rates for November 12
KARACHI: The State Bank of Pakistan (SBP) on Friday issued customers’ exchange rates for November 12, 2021. The exchange rate is on the basis of weighted average rates of commercial banks.
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Dollar hits all-time high at Rs175.73 at interbank closing
The US dollar climbed to a record high against the Pakistani Rupee (PKR), touching Rs175.73 in interbank trading on Friday. This unprecedented surge marks the rupee’s weakest performance, as escalating import payments continue to exert pressure on the local currency.
Currency experts noted a significant depreciation of the rupee by Rs1.54, ending the day at Rs175.73 against the previous day’s close of Rs174.19. This new record surpasses the previous all-time low of Rs175.27, recorded on October 26, 2021.
The rupee had experienced a temporary rally following its last record low in October 2021, buoyed by a financial pledge from Saudi Arabia. The Saudi government committed to transferring $3 billion directly to the State Bank of Pakistan (SBP) on the same day the last lowest rate was recorded. This support had offered a brief reprieve to the weakening currency.
However, the relief was short-lived as the demand for dollars continued to rise, primarily driven by a significant increase in import bills. Data from the Pakistan Bureau of Statistics (PBS) reveals that the import bill soared by 65.15 percent to $25.06 billion during the period from July to October 2021, compared to $15.17 billion during the same period in the previous fiscal year. This stark increase in imports reflects a growing economic challenge for Pakistan, fueling further demand for the US dollar.
The rising dollar has been a source of concern for Pakistan’s economy, which is grappling with multiple financial pressures including higher import costs and international debt obligations. These factors combine to stress the PKR, making imports more expensive and inflation harder to control.
Market analysts predict that if the trend of high import bills continues without corresponding increases in exports or external financial support, the PKR could face further devaluation. Economists suggest that Pakistan needs to enhance its export capabilities and seek more sustainable financial inflows to stabilize the currency.
As the government and financial authorities ponder over solutions to mitigate this economic challenge, the business community and consumers are bracing for potential impacts on pricing and cost of living due to the depreciating local currency.
The situation underscores the importance of comprehensive economic strategies that balance import needs with export growth, effective utilization of foreign aid, and stabilization measures by the central bank to ensure economic stability in the face of fluctuating global currency markets.
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Taxation on profits and gains for traders
Part I, Ninth Schedule of Income Tax Ordinance, 2001 has explained the rules for taxation computation on profits and gains of trader.
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IREN detects evasion worth Rs125.66 million
ISLAMABAD: Inland Revenue Enforcement Network (IREN) has detected duty and tax evasion to the tune of Rs125.66 million during first four months (July – October) 2021.
Implementing its policy of zero tolerance against tax evasion, Inland Revenue Enforcement Network (IREN) Squads of FBR, in a counter-evasion operation, has seized non duty / tax paid cigarettes (approximately 65,811,500 sticks) worth Rs. 156,480,112, resulting in detection of evasion of taxes and duties of Rs. 125,662,630 in the first four months of FY 2021-22.
Likewise, during the month of October, 2021, IREN had seized 16,326,000 illegal cigarettes worth Rs. 46,978,050. As such evasion of taxes and duties worth of Rs. 33,366,319 was detected.
This action is in pursuance to directions of the honorable Prime Minister of Pakistan against illicit sale of non-duty/tax-paid and counterfeit cigarettes.
IREN was established in September 2019 with a Chief Coordinator, Central Field Coordinator and seven regional enforcement hubs all across Pakistan, tasked to conduct raids and seizures on the counterfeit and non-duty paid cigarettes.
As a part of ongoing crackdown against illicit cigarette trade country wide, all IREN hubs intensified their operation against businesses dealing in non-duty paid and counterfeit cigarettes to save national exchequer from revenue loss.
Dr. Muhammad Ashfaq Ahmed, the Chairman FBR has appreciated the performance of IREN staff. He informed that from January 1, 2022, Track & Trace System would be rolled out to cover tobacco manufacturing across the country, and that AJK Government had approached Federal Board of Revenue to extend the scope of Track & Track System to cigarette manufacturing units located inside AJK territory.
It is expected that over the next few months’ implementation of Track & Trace System and its extension into AJK, coupled with IREN’s valiant drive would help overcome the menace of counterfeit, illicit and non-tax paid cigarettes in the market.
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Customs introduces new module in WeBOC for SMEs
The Federal Board of Revenue (FBR) has unveiled a new module within the WeBOC (Web-Based One Customs) system. This online Customs clearance system is designed to specifically cater to the needs of small and medium enterprises (SMEs), aiming to streamline their operations in the realm of international trade.
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FBR promotes 42 IR officials to BS-16
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday promoted 42 stenotypists (BS-14) to the post of Assistant Private Secretary (BS-16) in the Inland Revenue Department with immediate effect.
Following are the names of officials and place of present posting:
01. Muhammad Abid, Regional Tax Office 9RTO) Islamabad (Presently posted with CTO, Islamabad).
02. Iftiaq Ahmed, Directorate General Internal Audit, Islamabad
03. Muhammad Tahir, Directorate General Internal Audit, Islamabad
04. Shahid Masood Sheikh, RTO Islamabad (Presently posted with CTO Islamabad)
05. Muhammad Saeed Ahmed, RTO Lahore
06. Shakeel Nagra, RTO Lahore
07. Tasneem Raza, Corporate Tax Office (CTO) Lahore
08. Sufi Irfan Nazar, CTO Lahore
09. Syed Ilyas Ahmed, RTO Lahore
10. Zia ud Din, Large Taxpayers Office (LTO) Lahore
11. Kazam Ali, Directorate of Intelligence and Investigation (IR) Lahore
12. Muhammad Arif Iqbal, Directorate of Intelligence and Investigation (IR) Lahore
13. Fazal Mahmood, CTO Lahore
14. Farrukh Iqbal, RTO-I Lahore
15. Hisaab Khan, RTO-II Lahore
16. Qaiser Raza Hashmi, RTO-II Lahore
17. Syed Pervez Ahmed, LTO Karachi
18.Muhammad Naeem, Medium Tax Office (MTO) Karachi
19. Imam Ali Sial, CTO Karachi
20. Muhammad Ayub, RTO-I Karachi
21. Muhammad Tahir Mushtaq, CTO Karachi (Presently posted with CIR Appeals V Karachi)
22. Saeed Ahmed, MTO Karachi
23. Abdul Saleem Khan, MTO Karachi
24. Hameed Ahmed, LTO Karachi
25. Ahmed Ali, CTO Karachi
26. Iftikhar Ali S/o Intizar Ali, RTO-I Karachi
27. Jabbar Hussain, RTO Rawalpindi
28. Zulfiqar Ali, RTO Peshawar
29. Ms. Aftab Khattak, RTO Peshawar
30. Muhammad Yasin Abbasi, RTO Sukkur
31. Abdul Fatah Mughal, RTO Sukkur
32. Masood Ahmed, RTO Sargodha
33. Muhammad Zulqarnain, RTO Sialkot
34. Muhammad Yousaf, RTO Sialkot
35. Muhammad Abid, RTO Hyderabad
36. Malik Shahid Iqbal, RTO Multan
37. Syed Khawar Hussain Zaidi, RTO Multan
38. Imran Shams, RTO Multan
39. Muhammad Kaleem Ahmed, RTO Bhawalpur (Presently posted with CIR Appeals Bhawalpur)
40. Muhammad Nawaz, RTO Faisalabad
41. Muhammad Abid Mukhtar, RTO Faisalabad
42. Mukhtar Ahmed, RTO Faisalabad
The FBR said that promotion will take effect from the date of their joining in their present places of posting, subject to the condition that no disciplinary / inquiry proceedings are pending against them.
The FBR further said that the officials will be on probation for a period of one year, extendable for further period not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall be deemed to be held until further orders.
The officials who are already drawing performance allowance will continue to draw the same on their promotion, the FBR added.