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  • 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
  • Tax rates on income from property during tax year 2022

    Tax rates on income from property during tax year 2022

    The Federal Board of Revenue (FBR) has recently released the updated Income Tax Ordinance, 2001, incorporating amendments made through the Finance Act, 2021.

    (more…)
  • Rate of tax on exports during Tax Year 2022

    Rate of tax on exports during Tax Year 2022

    The Federal Board of Revenue (FBR) has provided clarity on the tax rates applicable to exports for the tax year 2022, as outlined in the First Schedule of the Income Tax Ordinance, 2001.

    (more…)
  • Tax rates on payments for goods or services during TY22

    Tax rates on payments for goods or services during TY22

    The Federal Board of Revenue (FBR) has released the advance tax rates on payments for goods or services to non-residents for the tax year 2022.

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  • Industry protests over 20% additional ST on electricity

    Industry protests over 20% additional ST on electricity

    KARACHI: Industry has strongly protested over imposition of 20 per cent additional sales tax on supply of electricity and said it will destroy the industrial activities and result in mass unemployment.

    Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI) in a statement on Saturday expressed deep concerns over the imposition of 20 per cent additional sales tax on electricity bills by K-Electric and by strongly protested.

    He demanded the government to withdraw the increase immediately and K-Electric should be stopped from looting the industrial community.

    The imposition of additional taxes on electricity will lead to destruction and a flood of unemployment.

    In a statement, NKATI president said that 20 per cent additional sales tax has been levied on the electricity bills sent to industries by K-Electric.

    While KE is already levying 17 per cent sales tax on electricity bills, so there is no justification for imposing an additional 20 per cent sales tax.

    “Forcible collection of additional sales tax from registered consumers in sales tax is a total injustice which will increase the cost of production immensely. Which will have a very bad effect on the country’s exports and industrial production activities”, he said.

    Faisal Moiz Khan demanded the government to take notice of the imposition of 20% additional sales tax on electricity bills by K-Electric and withdraw this decision immediately and provide a conducive business and industrial environment in line with Prime Minister Imran Khan’s vision of making it easier to do business and run industries. Otherwise, it will be impossible for industrialists to run their own factories

    NKATI president further said that if the government wants industries to flourish and create more employment opportunities, then anti-business and anti-industrial measures must be avoided, so that the domestic industries can get back on their feet in the face of the dire economic situation due to COVID-19 pandemic.

  • Weekly Review: stock market likely to remain positive

    Weekly Review: stock market likely to remain positive

    KARACHI: The stock market is likely to stay positive during the next week as the IMF and Pakistan expected to reach an agreement.

    Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week. With IMF and Pakistan expected to reach agreement soon, the investor sentiment is anticipated to remain buoyant.

    Moreover, with the ongoing result season, certain sectors and scrips are expected to stay under limelight.

    Keeping in view concerns over inflation and devaluation of Pak Rupee against greenback, investors are expected to have a cautious approach.

    The KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.2x (2021) compared to Asia Pac regional average of 14.7x while offering a dividend yield of ~8.1 per cent versus ~2.2 per cent offered by the region.

    The market commenced on a negative note this week given the uncertainty over outcome of Pakistan-IMF talks tagged with surge in petroleum prices raising concerns over inflation.

    The market sentiment changed after Advisor to the PM informed that talks with IMF were moving in the positive direction, with staff-level agreement expected to be reached soon.

    Alongside this, the current account deficit for September 2021 narrowed by 24.5 per cent MoM to USD 1.1 billion, fueling the positive momentum.

    On the flip, continuous drop in PKR/USD parity to PKR 174 (all time high exchange rate), reduction in SBP reserves by 8 per cent WoW to USD 17.5 billion and FATF retaining Pakistan on grey-list in its plenary meeting, kept the index in check.

    Albeit, the market closed at 45,578 points, gaining 757 points (up by 1.7 per cent) WoW.

    Sector-wise positive contributions came from i) Commercial Banks (463 points), ii) Cement (184 points), iii) Oil & Gas Exploration Companies (137 points), iv) Fertilizer (107 points), and v) Insurance (42 points).

    Whereas, sectors which contributed negatively were i) Technology & Communication (155 points), and ii) Food & Personal Care Products (31 points).

    Scrip-wise positive contributors were HBL (187 points), UBL (150 points), ENGRO (99 points), LUCK (72 points) and MCB (64 points).

    Meanwhile, scrip-wise negative contribution came from TRG (113 points), PSO (27 points) and SYS (26 points).

    Foreign selling continued this week, clocking-in at USD 7.3 million compared to a net sell of USD 13.3 million last week. Major selling was witnessed in Fertilizer (USD 4.5 million) and Commercial Banks (USD 3.8 million). On the local front, buying was reported by Insurance Companies (USD 4.6 million) followed by Other Organizations (USD 2.5 million).

    Average volumes clocked-in at 299 million shares (down by 13 per cent WoW) while average value traded settled at USD 64 million (down by 10 per cent WoW).

    Stocks end down by 243 points on political unrest
  • FBR suspends credit notes against unregistered supplies

    FBR suspends credit notes against unregistered supplies

    The Federal Board of Revenue (FBR) has stirred controversy with its recent decision to suspend credit notes against supplies made to unregistered persons, a move that has drawn strong protests from the Karachi Tax Bar Association (KTBA).

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  • FPCCI demands replacing SBP governor

    FPCCI demands replacing SBP governor

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday demanded the government of replacing the governor of State Bank of Pakistan (SBP).

    “The business, industry and trade community of Pakistan demands a better, more competent and responsible leadership at the helm of the affairs at State Bank of Pakistan,” said Mian Nasser Hyatt Maggo, President FPCCI while criticizing irresponsible and fictitious statement by the Governor SBP on deprecating value of Pakistani Rupee and how it is benefiting Pakistan.

    FPCCI Chief said that there is no economic sense and justification in the statement that Pakistan has gained around $3 billion due to recent depreciation in Pak Rupee. He added that the ground realities are diametrically opposite than that of assertions by SBP Chief.

    Mian Nasser Hyatt Maggo emphasized that monetary policy should be devised in a manner to promote economic growth and bring stability in the economic indicators; however, monetary policy has failed to achieve any of the above.

    Nasir Khan, VP FPCCI, has said that unrelentingly depreciating exchange rate is playing a havoc with Pakistani society and the economy. This is unsustainable and the Prime Minister should intervene – in the larger national interest – immediately to arrest the slide in the value of Pak Rupee.

    Nasir Khan said that the government must address the domestic and imported inflation through its monetary and fiscal policies; instead of making lame excuses.    

    Mian Nasser Hyatt Maggo said that hardly any justification exists in continuation of the present Governor SBP. In fact, ethically speaking, he should prefer to resign himself in view of totally indefensible policy structure given by SBP.

    Mian Nasser Hyatt Maggo has also demanded a binding inquiry into the conduct of SBP in recommending sweeping tax concessions for non-resident companies to attract investments in government debt at very high rates to favor certain foreign commercial banks. The same conduct of Governor SBP is part of the history archives, when he was in Egypt.

    Dollar goes up to new closing high at Rs174
  • Digital payments continues upward trajectory: SBP

    Digital payments continues upward trajectory: SBP

    KARACHI: The State Bank of Pakistan (SBP) has said that the digital payment continued upward trajectory during fiscal year 2020/2021.

    The SBP on Friday released its Annual Payment Systems Review (PSR) for the fiscal year 2020-21, which shows strong growth in the space of digital financial transactions in the country.

    According to the SBP, transactions processed through SBP’s large-value payments segment, known as Real-time Inter-Bank Settlement Mechanism (PRISM), recorded YoY growth of 60.0 per cent by number of transactions (volume) and 12.8 per cent by value.

    Similarly, overall e-Banking transactions registered YoY growth of 31.1 per cent which highlights substantial increase in adaption of digital means for payments.

    This growth was spurred by major uptake in mobile banking (29 per cent increase in the number of users, 133.6 per cent and 178.7 per cent increase in volume and value respectively) and internet banking (32 per cent increase in the number of users, 65.1 per cent and 91.7 per cent increase in volume and value respectively).

    This promising growth was achieved on the back of 27 banks offering app-based banking along with other entities offering innovative payment solutions for accepting digital transactions.

    During FY21, digital payments adoption for retail transactions continued to show an upward trend. Due to the active efforts of the SBP, the number of card accepting POS machines saw a growth of 47 per cent. Transactions processed through POS machines reached as high as 88.8 million amounting to PKR 453.1 billion, showing YoY growth of 26.3 per cent by volume and 24.4 per cent by value of transactions.

    The same trend was reflected in e-commerce transactions as well. The number of e-commerce merchants reached 3,003 which shows double-digit growth of 76 per cent.

    Consumers carried out 21.9 million online transactions worth Rs60.6 billion on these locally registered e-Commerce Merchants during the year FY21 which amounts to significant YoY growth of 114.8 per cent and 74.1 per cent by volume and value of transactions respectively. These trends point toward healthy growth in fostering a more digitally integrated economy.

    Similarly, on the card issuance side, as on end-June 2021, there were 45.9 million total cards in circulation that mainly comprised of Debit cards (65.0 per cent), Social welfare cards (18.4 per cent), ATM only cards (12.6 per cent), Credit cards (3.7 per cent), and Prepaid cards (0.3 per cent).

    Collectively, these cards processed 708.7 million transactions amounting to Rs8.4 trillion during FY2021. The number of debit cards at the end of FY 2021 has been 29.8 million, observing a YoY growth of 11.8 per cent and annualized growth of 13.8 per cent during the last 4 years. Transactions processed through ATMs also grew to 598.7 million with the total value of Rs8.1 trillion.

    This amounts to growth of 16.9 per cent by volume and 25.6 per cent by value on YoY basis.

    The country’s core payment systems infrastructure remained operationally resilient. All channels of payment systems showed significant growth. SBP expects that going forward, the momentum of growth across all key areas of the digital payments ecosystem will continue to strengthen.

    Modernizing the country’s payment system and infrastructure is a key priority, for which SBP will continue to work on providing an enabling regulatory environment.

    Digital payment facility made must for corporate clients