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  • FBR stops public auction of confiscated foreign origin cigarettes

    FBR stops public auction of confiscated foreign origin cigarettes

    ISLAMABAD: Federal Board of Revenue (FBR) has stopped public auction of foreign origin smuggled cigarettes as those goods do not comply with the national health regulations.

    In a statement issued on Saturday, the FBR clarified that the auction of confiscated smuggled cigarettes of foreign origin have been stopped which were earlier decided to hold by field formations.

    The decision to stop the auction of confiscated cigarettes of foreign origin has been taken as the packing of the aforementioned cigarettes do not comply with the national health regulations, FBR added.

    As per conditions imposed by the Ministry of National Health Services, Regulations and Coordination, warning of serious health hazards must be printed both graphically as well as textually in Urdu language for bewaring the general public as laid down in SROs 127(KE)/2017 & 128(KE)/2017 both dated 19-12-2017 and SRO DE/2019 dated 22-1-2019.

    In order to avoid carrying out any inadvertent act or procedure that is inconsistent with the national health laws and regulations, confiscated cigarettes of foreign origin have been excluded from the public auction through an amendment issued vide notification N. SRO 638(I)/2020 dated 23-7-2020 in the relevant provisions of the Customs Rules, 2001 (Rule 58(3) in Chapter V).

    FBR further added that the confiscated cigarettes shall not be put to auction and shall be destroyed in the manner as prescribed by Board.

  • Weekly Review: market likely maintain buoyancy

    Weekly Review: market likely maintain buoyancy

    KARACHI: The stock market likely to maintain upward trend as many corporate entities set to declare better results.

    Analysts at Arif Habib said that with commencement of the result season certain sectors / scrips may come under limelight in the upcoming week.

    Although pre-Eid jitters cannot be ruled out amid profit-taking at current levels. However, funds continue to flow in the bourse and economic activity shows signs of revival.

    Hence, our long term stance on the market remains positive.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 6.9x (2021) compared to Asia Pac regional average of 13.1x and while offering DY of ~6.7 percent versus ~2.7 percent offered by the region.

    The outgoing session marks end of a fifth consecutive positive week at the KSE-100 index.

    Although the rally lost stream mid-week amid profit taking and selling pressure from individuals, the bourse moved up 276 points WoW to close at 37,608points.

    To recall, sentiments have been rejoiced by several rate cuts by the SBP (625bps in total) which have once again brought equities to the forefront as the preferred asset class, while improvement in the domestic COVID-19 recovery rate, end of lockdown as well as reinstatement of pre-corona market hours aided volumes and attracted investment in the market.

    Sector-wise positive contributions came from i) Commercial Banks (253 points), ii) Power generation and distribution (76 points), iii) Automobile Assembler (31 points), iv) Textile composite (28 points), and v) Technology and communication (17 points).

    Whereas negative contributions came from i) Cements (60 points), Oil & Gas Exploration Companies (38 points), and Chemical (19 points). Scrip-wise positive contributions were led by HBL (128 points), MCB (64 points), HUBC (58 points), BAHL (35 points), and MTL (31 points).

    Foreign selling continued this week clocking-in at USD 9.3 million compared to a net sell of USD 27.4 million last week.

    Selling was witnessed in Commercial Banks (USD 2.9 million) and E&P (USD 1.7 million). On the domestic front, major buying was reported by Companies (USD 7.3 million and Insurance Companies (USD 7.0 million).

    Average volumes settled at 413 million shares (down by 3 percent WoW) while average value traded clocked-in at USD 97 million (down by 2 percent WoW).

  • PSX to collect 3pc income tax on payments to non-residents

    PSX to collect 3pc income tax on payments to non-residents

    The Pakistan Stock Exchange (PSX) has been mandated to apply a reduced rate of three percent income tax on payments to non-residents, according to officials from the Federal Board of Revenue (FBR).

    (more…)
  • SBP allows business to avail loan scheme for early payment of salary, wages

    SBP allows business to avail loan scheme for early payment of salary, wages

    KARACHI: State Bank of Pakistan (SBP) has allowed businesses to avail loan scheme for early payment of salary and wages in the wake of Eid-ul-Azha.

    The SBP also relaxed condition for obtaining loans from more than one bank for the payment of salary and wages.

    The central bank in a notification issued on Friday said that in order to facilitate businesses facing problems in availing financing under the above schemes from one bank due to their credit limits or for any other reason, it has been decided to allow them to avail financing from more than one bank.

    However, a business cannot avail financing for a specific month from more than one bank.

    Further, businesses may avail financing under above schemes for early payment of wages/salaries for the month of July, 2020 before Eid-ul-Azha.

    Businesses may also avail reimbursement of wages/salaries of July, 2020 in case they make early disbursements from their own resources to their workers/employees due to Eid-ul-Azha.

    The central bank in April 2020 introduced loan scheme at reduced rate for businesses to ensure no layoff of employment and payment of salary and wages in the wake of spread of coronavirus.

  • Stock market recovers early day losses on above expectation result of HBL

    Stock market recovers early day losses on above expectation result of HBL

    The stock market gained 29 points on Friday, recovering from earlier losses of 319 points, thanks to the strong performance of Habib Bank Limited (HBL).

    (more…)
  • SBP not to hold regular monetary policy committee meeting

    SBP not to hold regular monetary policy committee meeting

    KARACHI: State Bank of Pakistan (SBP) on Friday decided not to hold regular meeting of monetary policy committee meeting scheduled for July 2020.

    Given the number of MPC meetings that have taken place in recent months, and actions taken in those meetings, the MPC does not consider it necessary to hold the regular meeting of July 2020.

    The next regular meeting of the MPC will now be held in September 2020, the SBP said.

    The MPC continues to observe economic conditions and stands ready to take whatever further actions may become necessary in response to any adverse impact on the economy because of the pandemic or any other factor.

  • Rupee gains 36 paisas against dollar on improved inflows

    Rupee gains 36 paisas against dollar on improved inflows

    KARACHI: The Pak Rupee gained 36 paisas against dollar on Friday owing to improved inflows of export receipts and remittances.

    The rupee ended Rs167.26 to the dollar from previous day’s closing of Rs167.62 in interbank foreign exchange market.

    Currency experts said that sufficient foreign currency was available in the market to meet import payment demand.

    The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

    Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

    According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

    This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

  • HBL announces 287 percent surge in half year profit

    HBL announces 287 percent surge in half year profit

    KARACHI: Habib Bank Limited (HBL) on Friday declared massive increase of 287 percent in half-year profit tax for the period ended June 30, 2020.

    The bank, one of the largest bank in Pakistan, declared Rs15.188 billion profit after tax for the period January 01 to June 30, 2020 as compared with Rs3.927 billion in the same period of the last fiscal year.

    The bank also declared earning per share of Rs10.32 for the period under review as compared with EPS Rs2.53 declared in the same period of the last year.

    The net mark-up income/interest income of the bank surged by 32 percent to Rs63.075 billion during first half for the period ended June 30, 2020. The bank declared Rs47.7 net interest income in the same period of the last year.

    The bank also paid income tax amounting Rs10.64 billion during January – June 2020 as compared with Rs5.96 billion in the corresponding period of the last fiscal year.

    The HBL declared Rs11.08 billion net profit for the quarter April – June 2020 as compared with Rs749 million declared in the same quarter of the last year.

    Net interest income of the bank increased to massive Rs10.86 billion during the quarter under review as compared with Rs1.3 billion in the corresponding period of the last year.

  • Rate of capital gains tax on disposal of securities

    Rate of capital gains tax on disposal of securities

    KARACHI: Following is the rate of capital gains tax on disposal of securities after the amendment made through Finance Act, 2020.

    Officials at the Federal Board of Revenue (FBR) said that the rate of capital gains tax had been kept unchanged for tax year 2021 and subsequent years.

    cgt on disposal of securities.jpg

    Provided that the rate of tax on cash settled derivatives traded on the stock exchange shall be 5 percent for the tax years 2018 to 2020.

    Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities;

    Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:—

    CategoryRate
    Individual and association of persons10 percent for stock funds 10 percent for other funds
    Company10 percent for stock funds 25 percent for other funds

    Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5 percent:

    Provided further that no capital gains tax shall be deducted, if the holding period of the security is more than four years.”

    Explanation.- For removal of doubt, it is clarified that, the provisions of this proviso shall be applicable only in case of a mutual fund or collective investment scheme or a REIT scheme.

  • KE starts updating information of industrial, commercial consumers for tax purpose

    KE starts updating information of industrial, commercial consumers for tax purpose

    KARACHI: K-Electric has launched updating details of industrial and commercial consumers, which is mandatory under income tax law.

    The company, which is providing electricity to 2.5 million consumers including residential, commercial, industrial and agriculture, has asked the consumers to update their details through an electronic form along with providing details of CNIC and NTN.

    The K-Electric said that pursuant to Section 181AA of Income Tax Ordinance, 2001 all entities with industrial and commercial electricity connections are required to maintain a National Tax Number (NTN) issued by the Federal Board of Revenue (FBR).

    In order to comply with the above-mentioned law, KE is updating its customer information database and in this regard we request you to share your NTN and CNIC numbers at earliest for our record.

    The power utility asked the consumers to provide details, included: name, CNIC, consumer number, mobile number, NTN, email address and occupancy.