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Author: Faisal Shahnawaz

  • Equity market climbs up by 545 points

    Equity market climbs up by 545 points

    KARACHI: The equity market gained 545 points on Monday following positive comments came from the finance minister at an even.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,852 points as against 38,307 points showing an increase of 545 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note with +49 points and initially leaped forward +200 points however, low volumes and lack of interest by investors in general caused the index to slide.

    The market came down by 145 points, again with low volumes. Mid day, activity started picking pace with first signs of recovery in KEL, followed by Cement sector and then spreading to all and sundry.

    Positive comments by participants in a Bloomberg conference and days of lethargic activity is believed to have caused an improvement in sentiment and increase in otherwise poor trading volumes.

    Sectors leading the volumes table include Power (KEL), Banks (BOP) and Cement (MLCF). Large cap stocks such as UBL, HBL, ENGRO, OGDC increased significantly that had the index close +566 points (unadjusted).

    Sectors contributing to performance include Banks (+230 points), Fertilizer (+93 points), Cement (+70 points), Power (+47 points), & O&GMCs (+38 points).

    Volumes declined from 129.5mn shares to 99.4 million shares (-23 percent DoD). Average traded value also declined by 3 percent to reach US$ 32 million as against US$ 33.1 million.

    Stocks that contributed significantly to the volumes include KEL, BOP, PAEL, PIBTL and TRG, which formed 39 percent of total volumes.

    Stocks that contributed positively include HBL (+91 points), MCB (+69 points), FFC (+43 points), HUBC (+35 points), and LUCK (+34 points). Stocks that contributed negatively include COLG (-12 points), IGIHL (-7 points), JLICL (-7 points), SEARL (-7 points) and PMPK (-5 points).

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  • Rupee ends down by 11 paisas against dollar

    Rupee ends down by 11 paisas against dollar

    KARACHI: The rupee ended down by 11 paisas against dollar on Monday owing to high demand for import and corporate payments.

    The rupee closed at Rs139.39 to the dollar from last Friday’s close of Rs139.28 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs139.30 and Rs139.40.

    The market recorded a high of Rs139.40 and low of Rs139.30 and closed at Rs139.39.

    Currency experts said that the demand pressure was due to market opened after two weekly holidays.

    They said that the narrowed trade deficit and current account deficit would help the rupee to regain some values in coming days.

    They further said that the inflows from friendly countries would also help the local unit to gain the values against the greenback.

    The exchange rate in open market also witnessed depreciation in rupee value by 20 paisas.

    The buying and selling of dollar was recorded at Rs139.20/Rs139.70 as compared with last Saturday’s closing of Rs139.00/Rs139.50 in cash ready market.

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  • FBR not to conduct raids: FPCCI

    FBR not to conduct raids: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday said that the tax authorities have assured of not to conduct raids and harass taxpayers.

    Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Dr. Mirza Ikhtair Baig Sr. Vice President FPCCI, Vice Presidents FPCCI, Mr. S. M. Muneer, Mr. Zubair Tufail, former President FPCCI and Sheikh Khalid Tawab Former Sr. Vice President FPCCI hailed the announcement of Chairman Federal of Revenue (FBR) Dr. Jehanzeb Khan made in a meeting with Business Community at FPCCI that henceforth there will be no raids on the tax payer as these raids had created great deal of concern, harassment and anxiety among the business circles.

    They also appreciated the decision of Chairman FBR to formulate a Committee consisting of FPCCI and officials of FBR to resolve the day to day issues of businessmen. They assured that FPCCI will not support tax evaders and will look into the individual cases of tax evasion on merit.

    The President FPCCI underscored the need of activation of Alternate Dispute Resolution Committee for resolving taxes related cases of Rs. 38 billion. He also suggested early issuance of promissory notes against the refunds as exporters are facing huge capital shortage for making new investments.

    He also emphasized on the identification of new tax payers and exploration of new areas for broadening of tax payers instead of putting more burden on the existing tax payers.

    The businessmen appreciated FBR for extending date of filing tax returns till March 31, 2019 and urged to enhance the tax base through direct taxes instead of indirect taxes which directly affects the low income group.

  • Rupee weakens against dollar in mid-day trading

    Rupee weakens against dollar in mid-day trading

    KARACHI: The Pak Rupee weakened against dollar by 13 paisas in mid-day trading on Monday owing to higher demand for import and corporate payments.

    The US dollar is being traded at Rs139.41 in interbank foreign exchange market.

    Currency experts said that the demand pressure was due to market opened after two weekly holidays.

    They said that the narrowed trade deficit and current account deficit would help the rupee to regain some values in coming days.

    They further said that the inflows from friendly countries would also help the local unit to gain the values against the greenback.a

  • Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

    Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

    KARACHI: Federal Board of Revenue (FBR) has updated advance tax rates on marriages and functions through latest amendment to Income Tax Ordinance, 2001.
    The national assembly recently approved Finance Supplementary (Second Amendment) Act, 2019 and advance tax rate for functions and gathering has been updated.
    The advance tax is collected under following section of the Ordinance.
    Section 236D: Advance tax on functions and gatherings
    Sub-Section (1): Every prescribed person shall collect advance tax at the rate specified in Division XI of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.
    Sub-Section (2): Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division XI of Part IV of the First Schedule from the person arranging or holding the function.
    Sub-Section (3): The advance tax collected under sub-section (1) and sub-section (2) shall be adjustable.
    Sub-Section (4): In this section,—
    (a) “function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and
    (b) “prescribed person” includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.
    The rate of tax to be collected under each sub-sections (1) and (2) of section 236D shall be 5%;
    Provided that the rate for the function of marriage in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose shall be as set out in the Table below:─

    S. No.Rate of tax 
    015% of the bill ad valorem or Rs20,000 per function, whichever is higherFor Islamabad, Lahore, Multan,Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhurpura, Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbottabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dera Murad Jamali and Turbat.
     
    025% of the bill ad valorem or Rs10,000 per function, whichever is higherFor cities other than those mentioned above.

    Through Finance Supplementary (Second Amendment) Act, 2019, the following amendment has been inserted:
    “Provided further that the rate for the function of marriage in a marriage hall, marquee or a community place with the total function area less than 500 square yards or, in case of a multi-stories premises, with the largest total function area on one floor less than 500 square yards, shall be 5 percent of the bill ad valorem or Rs5,000 function whichever is higher.”
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  • Yarn merchants reject new customs valuation ruling

    Yarn merchants reject new customs valuation ruling

    The Pakistan Yarn Merchants Association (PYMA) has officially rejected the new valuation ruling for polyester filament yarn (PFY) issued by the customs authorities, terming it as “unjust” and not reflective of the current global market prices.

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  • Filing annual return: large number to benefit from date extension

    Filing annual return: large number to benefit from date extension

    KARACHI: A large number of taxpayers may file their annual income tax returns while taking advantage of date extension up to March 31, 2019, tax manager said.

    The Federal Board of Revenue (FBR) recently extended the last date for filing income tax return for tax year 2018 up to March 31, 2018, which was December 15, 2018 for salary, business individuals, taxpayers falling in final tax regime and companies having special tax year.

    Similarly, the date was also extended for corporate units up to March 31, 2019, whose last date was December 31, 2018.

    The tax managers said that due to burden and restrictions on non-filers under Income Tax Ordinance, 2001 a huge number of individuals and companies would file their income tax returns for tax year 2018 to appear on Active Taxpayers List (ATL).

    They said that the non-filers have been restricted in purchasing immovable properties over Rs40 million and registration of imported motor vehicles.

    Further, the non-filers are also required to pay higher percent of withholding tax on various transactions. The non-filers in the recent mini-budget allowed to purchase and register new locally assembled motor vehicles. However, the withholding tax rates on non-filers have been increased by 50 percent.

    The ATL issued by FBR on March 01, 2019 for tax year 2018 carried list of 1.59 million active taxpayers. In contrast the ATL for the tax year 2017 had carried 1.84 million active taxpayers, which showed about 240,000 taxpayers were not on the new list.

    With the extension of date up to March 31, 2019 the return filers would not require to pay penalty and also become eligible for appearing on the ATL.

    To some estimates the recent date extension by the FBR around 250,000 to 300,000 more returns would be added to the current active taxpayers list.

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  • Income Tax Ordinance 2001: advance tax on sale, purchase of immovable properties

    Income Tax Ordinance 2001: advance tax on sale, purchase of immovable properties

    KARACHI: Adjustable advance tax is applicable for filers and non-filers of income tax return on sales and purchase of immovable properties to be collected at the time of transaction.

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  • Car imports fall by massive 38.34 percent after strict checks on concessionary schemes

    Car imports fall by massive 38.34 percent after strict checks on concessionary schemes

    KARACHI: The import of motor cars has sharply declined by 38.34 percent during first eight months of current fiscal year due to certain government checks on preventing misuse of allowed schemes.

    The import of motor cars in Completely Built Unit (CBU) condition was at $202.9 million during July – February 2018/2019 as compared with $329.06 million in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).

    Industry experts attributed the decline mainly to restriction imposed on non-filers in registering imported cars with provincial motor vehicle authorities.

    The experts further said that the condition of arranging foreign exchange for payment of customs duty had also discouraged the imports of cars.

    The import of cars fell even more sharply when compared the imports of $9.47 million in February 2019 as compared with $37 million in the same month of the last year.

    The experts said that the import of cars had been allowed under three different schemes such as gift scheme, transfer of resident scheme and baggage scheme for Pakistanis living abroad.

    However, these schemes were grossly misused which resulted huge loss of foreign exchange.

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  • Rupee ends down by 20 paisas in open market

    Rupee ends down by 20 paisas in open market

    KARACHI: The Pak Rupee ended down by 20 paisas against dollar in open market owing to week-end demand.

    The buying and selling of dollar was recorded at Rs139.00/Rs139.50 as compared with previous day’s closing of Rs138.80/Rs139.30 in cash ready market.

    The rupee in interbank foreign exchange market ended the week at Rs139.28 to the dollar.

    The local unit lost another nine paisas against dollar on Friday amid foreign currency demand for import and corporate payments.

    The rupee ended at Rs139.28 to the dollar from previous day’s closing of Rs139.19 in interbank foreign exchange market.