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  • Unilever Pakistan declares 55% growth in quarterly profit

    Unilever Pakistan declares 55% growth in quarterly profit

    KARACHI: Unilever Pakistan Foods Limited on Monday announced a sharp growth of 55 per cent in net profit for the quarter ended September 30, 2021. The company made a profit of Rs1.19 billion for the quarter July – September 2021 as compared with Rs767 million in the same quarter of the last year.

    The company declared Rs187.08 as earnings per share (EPS) for the quarter under review as compared with EPS of Rs120.52 in the same quarter of the last year.

    The board of directors of Unilever Pakistan Foods Limited in its meeting held on October 25, 2021 approved the un-audited condensed interim financial information for the nine months ended September 30, 2021.

    The after tax profit for nine months period ended September 30, 2021 has also surged by 45 per cent. The company announced the net profit of Rs3.61 billion during January – September 2021 as compared with Rs2.49 billion in the same period of the last year.

    The company announced Rs567.20 EPS for the period under review as compared with Rs391.53 in the same period of the last year.

    The company said that sales grew by 28 per cent on the back of strong fundamentals i.e. brand equity, wider reach and effective spending on advertisement and promotion.

    The growth was broad based with both retail business and food solution delivering strong result of easing lockdowns.

    Gross margin increased by 1.23 per cent to 43.69 per cent versus same period last year, through a combination of pricing, better cost absorption and a rigorous savings agenda.

    EPS increased by 45 per cent versus the same period last year driven by growth, margin improvement and tax credits pertaining to capital expenditure.

    About the future outlook of the country, the company said that Pakistan’s economy has shown resilience in the face of global COVID-19 pandemic, witnessing GDP growth of 3.94 per cent in fiscal year 2021 as a result of timely monetary and fiscal measures.

    This was supported by a nation-wide vaccination drive which has, so far, played an important role in successfully fighting COVID. With restriction easing out further, commercial activity expected to return to pre-covid levels.

    “However, rising global commodity prices and energy costs coupled with sharp rupee devaluation is expected to further aggravate the inflationary headwinds which in turn, may have significant implications on the economic activity in the country,” the company said.

    “In such challenging times, the management remains committed to navigate by leveraging the power of our brands and our global and local expertise to drive efficiencies within the value chain. We will continue our efforts on providing value to our consumers to meet their daily needs and on delivering competitive, consistent, responsible, and profitable growth benefitting all stakeholders.”

    POS installation offers reduced tax rates: LTO Karachi
  • KTBA highlights issues in implementing digital payments

    KTBA highlights issues in implementing digital payments

    KARACHI: Tax practitioners have said that implementing digital payments mode for corporate entities is not possible due to various difficulties.

    Karachi Tax Bar Association (KTBA) in a letter sent on Monday to the Muhammad Ashfaq Ahmed, Chairman, Federal Board of Revenue (FBR), informed that a provision of digital payment was introduced through Tax Laws (Third Amendment) Ordinance, 2021. This provisions is scheduled to implement from November 01, 2021.

    Muhammad Zeeshan Merchant, President, KTBA said that the condition is remarkably in contradiction with other modes of payment through banking channels, which is historically remained in practice and is widely accepted under the provisions of the Income Tax Ordinance, 2001.

    “We feel that this provision of law is antibusiness; sans due diligence and is incorporated without taking the stakeholders into confidence,” he said.

    Additionally, it is not practical for many business houses, he added.

    A summary explaining certain situations (and by no means a complete synopsis) is given below:

    (a) You will appreciate that it is normal business practice that in lieu of advance delivery of goods, the buyer tenders its payment by way of post-dated cheques, which is normally accepted by the other party and is inherently a secured way of making the payment. We are afraid that this law of “digital mode of payment” is surely going to hamper the business activities, as it does not cater the situation and solution of such transactions.

    (b) Normally, it is a practice that, the port terminal charges, wharfage charges, charges for clearance of delivery orders etc., are paid in advance through crossed cheques or pay-orders. We understand that presently, the businesses, including but not limited to Port Terminal Operators and Shipping Lines, are unaware and are not ready for implantation of this “digital mode of payment”. In our view, it needs a rigorous awareness campaign for them.

    (c) Furthermore, we feel that the similar issues are likely to arise and are to be faced by the Companies for making payments to the growers of various agricultural crops such as sugar cane, rice, cotton, wheat etc. We feel that a rigorous campaign is also required for the recipients of such payments.

    (d) Moreover, in our view this “digital mode of payment” is also impractical and is likely to affect the business transactions in the cases where petty cash payments, in aggregate exceed millions of rupees, which cannot be made digitally.

    (e) Furthermore, we understand that various banks have fixed their own limitation on the quantity of making digital/online payments in a day and have also fixed the threshold of the amount and they do not allow to exceed the threshold limit fixed by them. In our view, this also needs a proper campaign without which the implementation of the law is not possible.

     The KTBA said that the tax authorities would come across with the other impediments on the subject in times to come.

    We strongly believe that, unless there is a wide off the mark in conventional banking transaction, this move is likely to create lots of trouble for the Corporate Sector.

    It is, therefore, suggested that the mandatory condition of “digital mode of payment” for Companies as envisaged U/s. 21 (la) of the Income Tax Ordinance, 2001, be allowed to run simultaneously with other conventional modes of payments for at least a year so that their business is not affected and is smoothly run till they are aware of this change in the mode of payment.

    FBR suspends credit notes against unregistered supplies
  • Yarn Merchants demand massive cut in POL prices

    Yarn Merchants demand massive cut in POL prices

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded Prime Minister Imran Khan of massive reduction in prices of petroleum products in order to make industrial activities viable.

    Saqib Naseem, Central Chairman Pakistan Yarn Merchants Association (PYMA) and Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region in a statement on Monday expressed serious concerns over the sharp rise in the petroleum prices.

    They appealed to Prime Minister Imran Khan to significantly reduce in the petroleum prices in the best economic, industrial and public interest of the country, so that the business & industry can survive in COVID-ridden economy.

    The PYMA office bearers said that despite the adverse economic situation caused by the COVID-19 pandemic, the sharp rise in prices of petroleum products by the government was a matter of grave concern to the business community, as the increase in the prices of petroleum products is not only a sign of a huge increase in inflation but also cause a huge increase in the production cost of business and industry.

    They said: “Raw materials for industries in particular, whose prices have already skyrocketed, will now rise to unbearable levels with the government’s recent move, which will destroy industries, especially SMEs, and increase unemployment in the country.”

    The PYMA officer bearers appealed to Prime Minister Imran Khan to reverse the recent rise in petroleum prices, and significantly reduce prices to make it easier to do business and run industries.

    They also requested the Prime Minister to review the economic situation of the country and direct the economists to formulate policies according to the ground realities so that steps can be taken to make the country economically stable and prosperous.

    Otherwise, in the current situation, it will be very difficult for traders to do business and for industrialists to run industries, which will be a severe blow to the country’s exports.

    Saqib Naseem elected central chairman PYMA
  • PPL posts 18% net profit growth in first quarter

    PPL posts 18% net profit growth in first quarter

    KARACHI: Pakistan Petroleum Limited (PPL) has announced 18 per cent growth in net profit of the first quarter ended September 30, 2021.

    The company announced profit after tax of Rs16.86 billion during the first quarter (July – September) of the current fiscal year as compared with Rs14.32 billion in the corresponding period of the last fiscal year.

    PPL announced earnings per share at Rs6.2 for the quarter under review as compared with Rs5.26 EPS in the same quarter of the last year.

    The board of directors of the company at its meeting held on Monday approved the unconsolidated and consolidated financial statements for the first quarter ended September 30, 2021.

    The company declared revenue growth to Rs43.59 billion during the first quarter of the current fiscal year as compared with Rs39.32 billion in the same quarter of the last fiscal year.

    Operating expenses of the company also grew to Rs10.43 billion as compared with Rs9.4 billion.

    Under the head of royalties and other levies, the company paid an amount of Rs6.43 billion during the first quarter of the current fiscal year as compared with Rs5.95 billion in the same period of the last year.

    The exploration expenses of the company increased to Rs4.86 billion during the quarter of July – September 2021 as compared with 2.29 billion in the same period of the last year.

    Pakistan Petroleum discovers hydrocarbons in Sindh
  • PKR plunges to historic low at Rs174.43 to dollar

    PKR plunges to historic low at Rs174.43 to dollar

    KARACHI – The Pakistani rupee (PKR) plunged to a record low of Rs174.43 against the dollar in the interbank foreign exchange market on Monday, marking a significant depreciation in the local currency.

    (more…)
  • Engro Fertilizers awarded for largest taxpayer

    Engro Fertilizers awarded for largest taxpayer

    Engro Fertilizers has been recognized as the largest tax paying company in the fertilizer sector. Engro Fertilizer is Pakistan’s premier seed-to-harvest solutions provider.

    Engro Fertilizers has been recognized as the largest tax paying company in a ceremony held at the Aiwan-e-Sadr.

    Nadir Qureshi, CEO of Engro Fertilizers, received the award from the Honorable President Dr. Arif Alvi, who was the chief guest on this occasion.

    According to Nadir Qureshi, “For over 50 years, Engro Fertilizers has remained committed to serving the farmers of Pakistan with world-class products and solutions. Our contributions to the community and the national exchequer are a testament to our philosophy of doing good while doing well. We fully support the Government’s vision of transforming the agricultural landscape and improving the well-being of the farmers of Pakistan.” 

    He added: “the fertilizer industry in Pakistan operates at the highest level of transparency, with all companies listed and contributing high tax revenues to the Government. Our sector is the only sector whose contributions in taxes to the national exchequer are almost entirely equal to the income provided to the shareholders of fertilizer companies. This makes the Government of Pakistan an equal partner in the earnings of the fertilizer sector.”

    Qureshi appreciated the Government for enabling the domestic fertilizer sector to provide adequate and affordable supply of urea to farmers in Pakistan, despite the steep rise in international prices. Continued support from the Government will ensure farmer well-being and even higher tax contributions from the fertilizer industry. He stated that the fertilizer industry of Pakistan is internationally competitive and can thrive in a fully deregulated environment, even without any gas subsidies.

    The local industry has always provided farmers in Pakistan with urea at prices below international and is currently delivering a discount of circa Rs 5000/bag compared to the global market.

    Through import substitution, the fertilizer sector will contribute more than $3 billion towards reducing the trade deficit in 2021. As a result of the significantly lower prices, the local fertilizer industry will save farmers from an additional burden of Rs 363 billion in 2021 as well.

    The ceremony was organized by the Rawalpindi Chamber of Commerce and Industry (RCCI) and Federal Board of Revenue (FBR) to appreciate the contribution of leading taxpayers and business institutions in the development of economy, while also highlighting the government’s efforts to facilitate the taxpayers.

    The event was also attended by the Federal Minister for Privatization Muhammad Mian Soomro, senior FBR and government officials, President RCCI Nadeem Rauf and other prominent business personalities.

  • President, PM congratulate Pakistan cricket team

    President, PM congratulate Pakistan cricket team

    ISLAMABAD: President of Pakistan Dr. Arif Alvi and Prime Minister Imran Khan on Sunday congratulated the Pakistan cricket team for a comprehensive 10-wicket victory against India in T20 World Cup.

    In a tweet the Prime Minister said, “Congratulations to the Pakistan Team & esp [especially] to Babar Azam who led from the front, as well as to the brilliant performances of Rizwan & Shaheen Afridi. The nation is proud of you all.”

    President of Pakistan Dr. Arif Alvi in his tweet congratulated the team with words: “Tremendous batting by Mohammad Rizwan and Babar Azam. What a pleasure to see total dominance. Going towards a good ending.”

    Pakistan thrashes India; Wins by 10 wickets

    Earlier, Pakistan smashed the Indian cricket team with a 10 wicket win; their first-ever win in ICC Men’s T20 World Cup against India.

    Jubilant cricket lovers danced to the tune of music and the slogans of Pakistan reverberated across the country and abroad; wherever the Pakistanis reside.

    Pakistani skipper Babar Azam and Mohammad Rizwan hit unbeaten half-centuries and successfully chased target of 152 runs set by India.

    The Pakistani openers remained in control of the match throughout their innings and achieved a resounding victory ending the domination of India against Pakistan in the T20 World Cup matches.

    Messages of felicitations poured in from the President of Pakistan, Prime Minister, ministers, and Pakistani crickets fans.

  • History of Prize Bonds in Pakistan

    History of Prize Bonds in Pakistan

    KARACHI: State Bank of Pakistan (SBP) has made Rs5 denomination prize bond as part of its museum.

    Prize Bond, as the name suggests, are Bonds issued by a Government, which do not promise any interest, but award a prize, determined by a draw held at fixed date or regular intervals. Prize Bonds are investment and are bearer type of security available in different denominations.

    The First Prize Bonds in the sub-continent were issued on sale in denominations of Rs. 10 and Rs. 100, by the undivided Indian Government on 15th January, 1944 and could be cashed on any date after 15th January, 1949. These were called “Five Year interest-free Bonds 1949”.

    After the partition of sub-continent, Pakistan first issued the interest-free “National Prize Bonds” of Rs. 10 in October 1960, managed by the ‘Central Directorate of National Savings’ (CDNS). The Prize Bonds were launched by the then Minister, Gen. K.M. Shaikh, and the first Bond was also purchased by him. Later Rs. 5, 11, 50, 100, 500, 1000, 5000, 10000 & 25000 denomination Prize Bonds were issued.

    The draw of each Prize Bond was held every three months, with the first draw held in January 1961. The traditional drum was used initially for the draw, but imported machines similar to slot machines were later used. The draws were supervised by draw committees, with the chairman being a senior Government officer, and members from the State Bank of Pakistan and Central Directoarte of National Savings (CDNS).

    Rs. 200, 750, 1500, 7500, 15000, 25000 & 40000 denomination Bonds are currently in circulation.

    Date extended for exchanging bearer prize bonds
  • Tax rates on prize and winnings during tax year 2022

    Tax rates on prize and winnings during tax year 2022

    The income tax rates on prize and winnings for tax year 2022 to be applicable under Section Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax on prize and winnings:

    (1) The rate of tax to be deducted under section 156 on a prize on prize bond or cross-word puzzle shall be 15 per cent of the gross amount paid.

    (2) The rate of tax to be deducted under section 156 on winnings from a raffle, lottery, prize on winning a quiz, prize offered by a company for promotion of sale, shall be 20 per cent of the gross amount paid.

    Following is the text of Section 156 of the Income Tax Ordinance, 2001:

    156. Prizes and winnings.—(1) Every person paying prize on a prize bond, or winnings from a raffle, lottery, prize on winning a quiz, prize offered by companies for promotion of sale, or cross-word puzzle shall deduct tax from the gross amount paid at the rate specified in Division VI of Part III of the First Schedule.

    (2) Where a prize, referred to in sub-section (1), is not in cash, the person while giving the prize shall collect tax on the fair market value of the prize.

    (3) The tax deductible under sub-section (1) or collected under sub-section (2) shall be final tax on the income from prizes or winnings referred to in the said sub-sections.

    (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    Tax rates on income from property during tax year 2022
  • Pakistan pavilion to be set at China expo

    Pakistan pavilion to be set at China expo

    BEIJING: An online pavilion of Pakistan will be established at 4th China International Import Expo (CIIE), which will be held offline and online in Shanghai from November 5 to 10 this year.

    Pakistan Ambassador to China, Moin ul Haque will lead the Pakistani delegation at the opening ceremony of the Expo.

    A number of Pakistani exhibitors, who are already in China, have geared up their preparations to participate in the upcoming expo.

    They will set up stalls to showcase popular household gadgets from Pakistan to the Chinese market, Pakistan Counsel General, Shanghai, Hussain Haider told state new agency.

    This year, the traders and businessmen from Pakistan are not coming to China owing to travelling restrictions and quarantine in wake of Covid-19 pandemic, he added.

    A few Pakistani enterprises specialized in jewellery design, furniture and artistic handicrafts will attend this year’s expo. Among all the exhibits, stunning gems and jewellery from Pakistan is likely to become a big hit with the Chinese buyers.

    More than 200 exhibitors and over 500 purchasers will be participating in the expo this year. As the first dedicated import exhibition globally, the CIIE has yielded fruitful outcomes from the past three expos.

    Shu Jueting, spokesperson of China’s Ministry of Commerce, said the exhibition area exceeded 360,000 square meters, and the number of signed exhibitors exceeded that of the previous year, adding that over 80 percent of the Fortune 500 and industry-leading companies from last year’s CIIE will participate again in this year’s event.

    According to the customs, more than 200 batches of exhibits are expected to enter the country by sea, air and rail in the coming month.

    Gu Honghui, deputy secretary-general of the Shanghai municipal government, said efforts will be made to ensure the COVID-19 prevention and control is more precise, urban service more refined, and the spillover effect of the CIIE brand more prominent during the expo.

    Pakistan spends $1 billion for vaccines in first quarter