In a proactive step towards modernizing tax procedures and enhancing ease of doing business, the Federal Board of Revenue (FBR) organized informative sessions in Karachi and Lahore for the business community and tax consultants.
(more…)Author: Faisal Shahnawaz
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Weekly Review: Equity market likely to display mixed trend
KARACHI: The equity market likely to display a mixed trend next week showing a range-bound behavior, analysts said.
Analysts at Arif Habib Limited said that concerns of an expected hike in the upcoming monetary policy statement may keep investors on the back seat.
However, valuations across the index have opened up to an enticing level which can provide numerous entry options.
Investor climate in the outgoing week regained some confidence while volumes continued to remain dull.
Improvement on the external front (CAD portrayed a significant decline of 72 percent YoY/59 percent MoM during February 2019, while contracting 23 percent YoY during 8MFY19), visit of Malaysian PM Mahatir Mohamad and improving ties with the US all contributed towards stimulating positivity in the investors’ sentiments.
The benchmark KSE-100 index closed at 38,532 points, registering an increase of 225 points during the week (+0.6 percent WoW).
Sector-wise positive contributions came from i) Commercial Banks (+278 points), ii) Oil and Gas Exploration Companies (+194 points), and iii) Fertilizer (+75 points).
Whereas, sectors that contributed negatively include i) Power Generation & Distribution (-126 points), ii) Oil & Gas Marketing Companies (-39 points) and Pharmaceuticals (-30 points). Scrip-wise major positive contributions came from PPL (+115 points), MCB (+91 points), HBL (+77 points), POL (+57 points), and OGDC (+51 points).
Major laggards included HUBC (-122 points), SEARL (-30 points) and MARI (-29 points).
Foreign buying witnessed in the week settled at USD 3.1 million compared to a net sell of USD 15.6 million last week.
Buying was witnessed in Commercial Banks (USD 2.9 million) and Exploration & Production (USD 1.7 million).
On the domestic front, major selling was reported by Insurance Companies (USD 4.8 million) and Other Organizations (USD 2.7 million).
Average volumes during the week settled at 84 million shares (down by 10 percent WoW) whereas average value traded arrived at USD 28 million (up by 6.6 percent WoW).
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Advance tax on dealers, commission agents
KARACHI: Every market committee has been required to collect advance tax from dealers, commission agents under income tax laws.
The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 under which advance tax is collectable from dealers, commission agents and arhatis under Section 236J.
Section 236J: Advance tax on dealers, commission agents and arhatis etc
Sub-Section (1): Every market committee shall collect advance tax from dealers, commission agents or arhatis, etc. at the rates specified in Division XVII of Part-IV of the First Schedule at the time of issuance or renewal of licences.
The rate of collection of tax under section 236J shall be as follows:
Group Amount of tax
(per annum)Group or Class A: Rs. 10,000 Group or Class B: Rs. 7,500 Group or Class C: Rs. 5,000 Any other category: Rs. 5,000 Sub-Section (2): The advance tax collected under sub-section (1) shall be adjustable.
Sub-Section (4): In this section “market committee” includes any committee or body formed under any provincial or local law made for the purposes of establishing, regulating or organizing agricultural, livestock and other commodity markets.
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MCC Appraisement West announces auction of vehicles on March 25
KARACHI: Model Customs Collectorate (MCC) Appraisement (West) Karachi announced auction of vehicles laying at Al-Hamd International Cargo Terminal to be held on March 25, 2019.
Following vehicles will be offered for the auction:
S. No. Description Model Capacity 1 Used Mitsubishi Car 2009 – 2 Used Mitsubishi Mini Cab 2013 – 3 Used Nissan Clipper 2012 – 4 Used Suzuki Stingray Wagon R (without extra goods) 2013 – 5 Used Toyota KX-R V6 2013 3456 ML 6 Used Honda FIT Car 2014 – 7 Used Suzuki Carry 2013 650 CC 8 Used Honda Shuttle Hybrid Car 2015 – 9 Used Honda FIT Hybrid Car 2017 – 10 Used Suzuki Lapin Car (ene-charge) 2017 – 11 Used Lexus NX300H (Hybrid) 2015 2494 ML/CC 12 Old & Used Toyota Mark-II (Grande) Car 2004 2000 CC 13 Old & Used Toyota Mark-II (Grande) Car 2000 2000 CC 14 Old & Used Toyota Mark-X-250G 2005 2500 CC 15 Used Toyota Hilux 4X4 Double Cabin 2009 3000 CC 16 Used Toyota Hilux Double Cabin 2004 2779 ML 17 Old & Used Toyota Hilux 4X4 2009 3000 CC 18 Used Toyota Hiace Van – 2446 CC 19 Old & Used Toyota Hiace Van Ambulance 1995 2446 CC 20 Old & Used Toyota Hilux Pickup D/ Cabin 2008 2779 CC 21 Old & Used Toyota Hilux Pickup D/ Cabin 2000 2779 CC 22 Old & Used Toyota Hilux Pickup D/ Cabin 2008 2779 CC 23 Old and Used Toyota Vigo 2005 2779 CC 24 Old and Used Toyota Hilux 4X4 2002 2779 CC 25 Old and Used Toyota Hilux 4X4 2002 2779 CC 26 Old & Used Toyota Hilux 4X4 2000 2779 CC 27 Old and Used Toyota Hilux 4X4 2002 2779 CC 28 Old and Used Toyota Hilux 4X4 2002 2779 CC 29 Old and Used Toyota Hilux 4X4 2002 2779 CC 30 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 31 Old and Used Toyota Hilux 4X4 2000 2779 CC 32 Old and Used Toyota Hilux 4X4 2000 2779 CC 33 Old and Used Toyota Tsusho 4X4 2000 2779 CC 34 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 35 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 36 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 37 Old and Used Toyota Hliux Pickup 4X4 2002 2779 CC 38 Old and Used Toyota Hliux Pickup 4X4 2000 2779 CC 39 Old & Used Mitsubishi Van 1997 2477 CC 40 Used Volkswagen AG Car 2013 999 CC 41 Used Nissan Dayz Roox 2017 – 42 Used Honda Jade Hybrid Car 2015 – 43 Used Honda N-ONE 2015 – 44 Used Daihatsu Subaru Stella Car 2016 658 CC 45 Used Honda ACTY Van 2017 – 46 Used Suzuki Alto ene-charge Car 2016 – 47 Used Daihatsu Mira E:S Car 2015 658 CC Related Stories
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SBP directs banks to ensure OTC tax collection by March 27
KARACHI: State Bank of Pakistan (SBP) on Friday directed all commercial banks to ensure receiving payment of duty and taxes through over the counter (OTC) channel.
The SBP said that the finance department through circular on July 17, 2018 made it mandatory for banks to enable their Over-the-Counter (OTC) Channel for collection of taxes and duties.
Complaints are pouring in from different quarters, regarding non-entertaining of tax payment requests through banks’ OTC Channel.
So much so that Federal Board of Revenue (FBR) has formally launched a complaint that PSIDs generated by WeBOC system for payment of customs duty and other taxes especially the levy on Mobile devices are not being entertained, by the bank branches.
In view of the above, all banks were advised vide email dated 15th March 2019 to improve their customer services in facilitating taxpayers with due courtesy.
Despite the above-referred instructions, there is no visible improvement, as complaints from different quarters are still landing with us.
It is therefore advised to share these instructions with all your branches across the country with the advice to ensure meticulous compliance and facilitate the taxpayers in payment of taxes and duties under the I Link’s OTC facility.
The branches shall also prominently display on their respective Notice Boards that “Taxes and Duties are accepted here under the 1Link’s OTC facility”. Further, banks shall also ensure that the branch staff has adequate understanding of the mechanism for collection of taxes and duties under the said facility.
The banks shall inform this department within 3 working days of the date of circular i.e. 27th March 2019 that these instructions have been communicated to all their branches for meticulous compliance and that the Notice Boards of branches are prominently displaying the message that “Taxes and Duties are accepted here under the 1Link’s OTC facility”.
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Equity market gains 147 points on optimistic sentiments
KARACHI: The equity market gained 147 points on Friday on hopes of good news on economic front. The benchmark KSE-100 index closed at 38,532 points as against 38,385 points showing an increase of 147 points.
Analysts at Arif Habib Limited said that the market had a relatively better session as compared to the past whole week.
PM’s promise of sharing good news in 3 weeks did the trick for the investors, causing E&P stocks especially OGDC and PPL to take off and growing both in price and volumes.
First session saw market increasing by 228 points with 35.2 million trading volume, which grew further in the second session by adding another 108 points to reach a total of +336 points in the index, however, selling pressure ensued in second session that resulted in erosion of almost all the gains during the day.
Last half hour of trading saw buying activity that closed the index +207 points (unadjusted).
Sectors contributing to the performance include E&P (+162 points), Banks (+58 points), Textile (+11 points), Power (-36 points), Food (-21 points).
Volumes improved slightly to reach 84.6 million shares as against 81.4 million shares (+4 percent DoD).
Average traded value also increased by 4 percent to reach US$ 31.6 million as against US$ 30.4 million.
Stocks that contributed significantly to the volumes include PKGP, BOP, OGDC, HUBC and PPL, which formed 41 percent of total volumes.
Stocks that contributed positively include PPL (+84 points), OGDC (+58 points), POL (+23 points), BAFL (+18 points), and PMPK (+12 points). Stocks that contributed negatively include HUBC (-37 points), NESTLE (-20 points), PSEL (-11 points), LUCK (-10 points) and ENGRO (-8 points).
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FPCCI welcomes FBR focal person appointment
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed the appointment of focal person by Federal Board of Revenue (FBR) for resolving issues related to industry.
In a statement on Friday FPCCI praised appointment of FBR focal person, Engr. Daroo Khan Achakzai
Engr. Daroo Khan Achakzai, President FPCCI on behalf of Federation of Pakistan chamber of commerce & industry, praised Chairman FBR Jahanzeb Khan to appoint Ambreen Iftikhar Director Program office as focal person to solve any issue faced by business community by FBR relevant offices.Engr. Daroo Khan Achakzai said, FPCCI has requested Chairman FBR on his recent visit to Federation House to appoint a focal person to deal with harassment of the business community, he thanked
Chairman for his prompt action as per his announcement made at the federation house.
He added that, such measures will bring business community closer to FBR for better working relationship.Engr. Daroo Khan Achakzai also assured Chairman FBR their full cooperation & support.
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Bank holiday
KARACHI: State Bank of Pakistan (SBP) has announced bank holiday on March 23, 2019 on occasion of Pakistan Day.
In a circular issued by the SBP said that the State Bank of Pakistan would remain closed on March 23, 2019 (Saturday) being public holiday on the occasion of “Pakistan Day” as declared by the Government of Pakistan.
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Rupee declines by 61 paisas against dollar in early trade
KARACHI: The Pak Rupee significantly declined by 61 paisas against US dollar in early trade on Friday.
The dollar is being traded at Rs140.10 in interbank foreign exchange market. The foreign currency market was ended last day at Rs139.49 to the dollar.
Currency experts said that due to high demand for import and corporate payment and coming weekly holidays escalated the pressure.
The latest increase in dollar value was despite the rise in foreign exchange reserves of the country.
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Maintaining five-year record of international trade mandatory under Customs Act
KARACHI: Importers, exporters and other stakeholders related to international trade are required to maintain transactions record for at least past five years.
According to Customs Act, 1969 the stakeholders of international trade are required to maintain record under the following section:Section 211: Maintenance of record
Sub-Section (1): All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, transport operators and tracking companies, carrying out business under this Act or rules made thereunder or under any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import, export and transit trade transactions.
Sub-Section (2) The records required under sub-section (1) shall be kept for a period not less than five years in such form as the Board may by notification in the official gazette, specify.
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Sub-Section (3): The provision of sub-section (1) shall not be applicable to the baggage of the passengers and crew of the conveyance and to the recipients of gifts.