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  • Customs auction of confiscated vehicles to be held on July 20 at Gwadar

    Customs auction of confiscated vehicles to be held on July 20 at Gwadar

    KARACHI: Pakistan Customs announced auction of confiscated vehicles to be held on July 20, 2020 at Gwadar Custom House.

    Following vehicles to be presented for the auction:

    01. Toyota Hilux Surf SSR-X, Model 2000, Engine Capacity 2700CC, Chassis No. VZN185-9041829

    02. Toyota Land Cruiser, Model 1998, Engine Capacity 4700CC, Chassis No UZJ100-0003462

    03. Toyota Corola X, Model 2006, Engine Capacity 1500CC, Chassis No NZE120-0123636

    04. Toyota Hilux Surf, Model 1992, Engine Capacity 3000CC, Chassis No LN130-0105065

    05. Toyota Premio, Model 2005, Engine Capacity 1800CC, Chassis No ZZT240-0061952

    06. Toyota Raum, Model 2004, Engine Capacity 1600CC, Chassis No NCZ20-0042911

    07. Toyota Premio X, Model 2003, Engine Capacity 1800CC, Chassis No ZZT240-5006935

    08. Toyota Raum, Model 2004, Engine Capacity 1600CC, Chassis No NCZ20-0064404

    09. Launch without Engine

    10. Toyota Vitz, Model 2003, Chassis No NCP10-0189243

    11. Toyota Mark-X, Model 2005, Engine Capacity 2499CC, Chassis No GRX120-0016505

    12. Toyota Hilux Pickup, Model 2002, Chassis No MROIUNE90500132

    13. Toyota Surf, Model 2000, Chassis No RZN185-9036240

    14. Toyota Hilux Surf (SSRG), Model 2003, Engine Capacity 3400CC, Chassis No VZN215-0004806

  • FBR empowered to recover income tax on sectoral benchmark basis

    FBR empowered to recover income tax on sectoral benchmark basis

    ISLAMABAD: The officials of Federal Board of Revenue (FBR) have been authorized to recover income tax on sectoral benchmark ratio basis where a taxpayer fails to provide record or required details.

    The concept of sectoral benchmark ratios has been introduced through Finance Act 2020 for making recovery of unexplained income by taxpayers. In this regard an amendment has been made to Section 177 of Income Tax Ordinance, 2001.

    A new subsection 2AA has been introduced to Section 177, under which, where a taxpayer

    (a) has not furnished record or documents including books of accounts;

    (b) has furnished incomplete record or books of accounts; or

    (c) is unable to provide sufficient explanation regarding the defects in records, documents or books of accounts,

    Is shall be construed that taxable income has not been correctly declared and the commissioner shall determine taxable income on the basis of sectoral benchmark ratios prescribed by the FBR.

    An explanation has been added to sub-section, stating that the expression ‘sectoral benchmark ratios’ means standard business sector ratios notified by the board on the basis of comparative cases and includes financial ratios, production ratios, gross profit ratio, net  profit ratio, recovery ratio, wastage ratio and such other ratios in respect of such sectors as may be prescribed.

  • Input tax credit against services provided by non-resident available with conditions: SRB

    Input tax credit against services provided by non-resident available with conditions: SRB

    KARACHI: Sindh Revenue Board (SRB) on Friday said that input tax credit for resident taxpayers receiving services from resident outside is available with certain condition.

    The provincial revenue body said that the SRB-registered service recipients who receive taxable services from a foreign service provider (not registered with SRB) shall be entitled to claim input tax credit if:

    (i) such SRB-registered person receives the taxable services against an invoice issued by that foreign service provider;

    (ii) pays, to the foreign service provider, the consideration for the services so received by the resident service recipient; and

    (iii) e-deposits the amount of Sindh sales tax, on such services in Sindh Government’s head of account “B-02384” in the prescribed manner.

    The entitlement of input tax credit shall be in terms of the provisions of section 15 of the Act-2011, subject to the conditions, limitations and restrictions prescribed under the Act-2011 and the rules or notifications made thereunder (including the provisions of sections 15A and 15B of the Act-2011, rules 21, 22 and 22A of the Sindh Sales Tax on Services Rules, 2011(Rules-2011) and other provisions of various rules and notification issued thereunder).

    The SBP said that a question had arisen whether input tax credits were admissible [where not otherwise inadmissible under the provisions of the Sindh Sales Tax on Services Act, 2011(Act-2011) or the rules/notifications issued thereunder] against an invoice issued by such a non-resident service provider who is resident outside Pakistan and does not hold Sindh Sales Tax Registration Number (SNTN). Also, in case it is admissible, the question is that what shall be the procedure in this regard.

    The SBP further said that as regards the procedure for input tax credit claims, the resident SRB-registered person (service recipient, in this case) shall e-deposit (in Sindh Government head of account “B-02384” in the prescribed manner) the amounts of Sindh sales tax on such services as are received by him from a foreign service provider (not registered with SRB) against the SNTN of the service recipient himself.

    Thereafter, the resident SRB-registered service recipient shall declare:

    (i) his own (resident SRB-registered service recipient) name and SNTN in the column “Particulars of Buyer”; and

    (ii) the date and number of the invoice issued by the foreign service provider in the column “Document/invoice” of Annex-C of his return SST-

    For claiming input tax credit, he shall enter corresponding entries in Annex-A of his Form SST-03 and shall also declare the “Non-creditable input”, if any, in the relevant column of such Annex-`A’.

    The invoice of the foreign service provider and the associated documents, including the document of evidence of payment of consideration through banking channel, shall form a part of the prescribed records for the purposes of section 26(1) of the Act-2011 and the rules made thereunder including rule 29 of the Rules-2011.

  • Stock market witnesses range bound session

    Stock market witnesses range bound session

    KARACHI: The stock market gained 48 points on Thursday as range bound session was observed during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,190 points as against previous day’s closing of 36,142 points, showing an increase of 48 points.

    Analysts at Topline Securities said that range bound session was observed at the local bourse as the index juggled between positive and negative zone to close at that 36,190 level.

    Major positive contribution came from LUCK, NBP and ENGRO as they cumulatively contributed 54 points to the index, whereas PPL, TRG and OGDC lost value to weigh down on the index by -34 points.

    Traded volume and value for the day stood at 292 million shares and Rs.9.57 billion respectively.

    UNITY was today`s volume leader with around 28 million shares.

  • SBP notifies amendments to consumer financing regulations

    SBP notifies amendments to consumer financing regulations

    KARACHI: State Bank of Pakistan (SBP) on Friday notified amendment in the Regulation R-4 of Prudential Regulations for Consumer Financing.

    Following are the amendments notified by the central bank:

    REGULATION R-4: GENERAL PROVISION AGAINST CONSUMER FINANCE

    The term “general reserve” used in the Regulation R-4 of Prudential Regulations for Consumer Financing shall henceforth be read as “general provision”.

    The Banks/DFI, subject to conditions prescribed below, can release and use the general provision maintained, in terms of Regulation R-4 of Prudential Regulations for Consumer Financing, against the secured and unsecured consumer finance portfolio:

    The general provision will only be available for use to make good the specific provision requirement of the consumer financing portfolio; and,

    The aforesaid treatment will expire on December 31, 2021. Thereafter, the general provision against the consumer financing portfolio will be maintained as per the method prescribed in the Regulation R-4 of Prudential Regulations for Consumer Financing prevailing on July 09, 2020.

    The Banks/DFIs may, as per their own discretion and in terms of relevant internal policies, maintain the general provision against consumer financing.

    The SBP said that all other instructions on the subject shall, however, remain unchanged. The Banks/DFIs are advised to follow the regulations in letter and spirit.

    Any deviation or non-compliance of the same shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962, the SBP said.

  • Industry rejects cut in gas supply; terms anti-business move

    Industry rejects cut in gas supply; terms anti-business move

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday strongly rejected the cut in gas supply for industrial consumers and CNG stations.

    Chairman Businessmen Group (BMG) and Former President KCCI Siraj Kassam Teli and President (KCCI) Agha Shahab Ahmed Khan, while totally rejecting SSGC’s load shedding schedule for Industrial Consumers and CNG Stations, stated that this unjust and anti-business move would completely destroy the industries who are already going through the toughest time and questing really hard for survival particularly in an extraordinary situation caused by coronavirus pandemic.

    In order to overcome the ongoing electricity load shedding, SSGC has announced to carry out gas load shedding for three days to be suffered by industrial consumers, captive power plants and CNG stations which would prove detrimental for the industries who are already in deep crises and at the verge of complete collapse due to negative impact of lockdown imposed since March 2020, Siraj Teli and Agha Shahab said while terming SSGC’s load shedding as ‘sheer injustice’ and ‘conspiracy’ against the city of lights which is deliberately being plunged into darkness.

    They pointed out that the government has always reiterated its resolve to provide uninterrupted electricity and gas supply to five export-oriented zero-rated sectors which hardly cover up around 1300 to 1500 industries but what about the rest of 14,500 industries, out of a total number of 16,000 industries in Karachi which continue to remain deprived as no relief has ever been given and they, despite being taxpayers, have to bear all the anguish and go through gas and electricity load shedding, exorbitant tariffs, infrastructure and other civic issues.

    Instead of providing relief to all the industries in the ongoing extraordinary situation, the ECC recently approved Rs2.89 per unit tariff hike in KE Bills and now the hardships would aggravate further as the business community is being compelled to face gas load shedding for three days a week which is unacceptable, they added.

    They criticized that if the government has to create so much trouble through such anti-business policies then they should formally make an announcement once and for all that all the industrialists should immediately shut down their factories forever and go somewhere else.

  • SBP issues revised features of PM’s youth business loan

    SBP issues revised features of PM’s youth business loan

    KARACHI: State Bank of Pakistan (SBP) on Friday issued revised features of Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme.

    The SBP said that the government had approved revision in key features of loan program under Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme.

    The revised features of the scheme as approved by the government are reproduced below:

    S. NoParticularsKamyab Jawan Program

    1
      Eligibility Criteria    		  All men/women holding CNIC, aged between 21 and 45 years with entrepreneurial potential are eligible. For IT/ E-Commerce related businesses, the lower age limit will be 18 years. Small and medium enterprises (startups and existing businesses) as per definition of SBP and owned by youth as per above mentioned age brackets are also eligible.

    For IT/E-Commerce related businesses, at least matriculation or equivalent education will be required.  

    2
      Loan size    		  Size of the loan is segregated into three tiers, as under:
    Tier 1 (T1) loans- Rs 100,000 to Rs. 1 million
    Tier 2 (T2) loans- Above Rs 1 million and upto Rs 10 million Tier 3 (T3) loans-Above Rs 10 million and upto Rs 25 million


    3
     Loan type    		  Long Term Loan for Machinery and Equipment / Working Capital Loan/ Running Finance, and Leasing of Business on wheels on 2/3/4 wheel locally manufactured vehicles.
    4 Loan TenorUpto 8 years with maximum grace period of upto one year.

    5
      Debt: Equity ratio    		  For New Businesses:
    Tier 1 – 90:10
    Tier 2 & 3 – 80: 20
    For Existing Businesses:
    Nil for all tiers
    The Borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of loan.

    6 Focus on Women25% of the loans will go to women borrowers.

    7
      Security Requirements    		  Security arrangements will be as under:
    T1 loans: Clean; however only personal guarantee of the borrower
    T2 & T3 loans: As per bank’s own credit policy

    8
      Risk Mitigation    		  Government will bear credit losses (principal portion only) on the disbursed portfolio of the banks as under:
    T1 loans: Upto 50%
    T2 loans: Upto 20%
    T3 Loans: Upto 10%



    9
      Allocation in Budget    		  Finance Division shall allocate funds in each fiscal year’s budget as per estimates provided by SBP. Payment will be made on submission of consolidated claims of all banks by the SBP on quarterly basis.

    10
      Pricing    		  Pricing for Working Capital & Term Loans: Product Customer Pricing Bank Pricing Tier 1 3% KIBOR+400 BPS Tier 2 4% KIBOR+400 BPS Tier 3 5% KIBOR+400 BPS
    11 Executing AgencyAll Commercial, Islamic and SME banks are advised to come on board.
    12 Sectors and ProductsAll sectors and products including agriculture.

    13
      Application Form    		  The Form would be both in English and Urdu and require minimum essential information with simple format available on Government provided Kamyab Jawan portal. The processing time will not exceed 30 days and will be stated clearly in the application form. Non-refundable form processing fee will be Rs. 100/- inclusive of NADRA online CNIC verification fee.

    14
     Monitoring


    		  SBP will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website.

    15
     Geographical distribution    		  Whole of Pakistan. In case of Balochistan, at least one branch of NBP will be designated per Division. All non-designated NBP branches will also provide and receive filled application forms and dispatch them to the nearest branches.

    16
     Additional Measures    		  Executing Agencies (EAs) under this program should ensure following additional measures: Criteria for assessing entrepreneurial potential should be developed and implemented. In case of loan for existing businesses, a robust independent verification mechanism may be introduced to ensure proper utilization of loans. Further, for new businesses, a robust mechanism for ongoing monitoring of the loans’ utilization should be developed and implemented. All loans previously disbursed or approved under this scheme will be converted into the new parameters with effect from July 01, 2020.

    The SBP directed the banks to gear up their systems for successful implementation of this scheme and to avoid any misuse of the scheme. Eligible borrowers may apply for the loans immediately after formal launch of the scheme by the Prime Minister’s Office.

  • Rupee gains 23 paisas against dollar on improved inflows

    Rupee gains 23 paisas against dollar on improved inflows

    KARACHI: The Pak Rupee strengthened by 23 paisas against dollar on Friday owing to better inflows and improved foreign exchange reserves of the country.

    The rupee ended 166.35 to the dollar from previous day’s closing of Rs166.58 in interbank foreign exchange market.

    Currency experts said that the improved foreign inflows helped the helped the rupee to gain value.

    The liquid foreign exchange of the country increased by $819 million to $18.79 billion by week ended July 03, 2020, State Bank of Pakistan (SBP) said a day ago.

    The foreign exchange reserves of the country were at $17.971 billion a week ago ended on June 26, 2020.

    The official reserves held by the SBP increased by $811 million to $12.042 billion by week ended July 03, 2020 as compared with $11.231 billion a week ago.

    The SBP attributed the increase in reserves to proceeds of $1,000 million as GOP loan disbursement from China.

    During the week, SBP also made government external debt payments of $ 231.2 million.

    The currency experts said that the lower import bill also helped the rupee to make gain.

    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.

  • FBR issues draft rules for allowing reduced income tax rate on import of raw materials

    FBR issues draft rules for allowing reduced income tax rate on import of raw materials

    ISLAMABAD: Federal Board of Revenue (FBR) has issued draft rules for grant of concessional tax rate on import of raw materials and capital goods by manufacturers and exporters.

    (more…)
  • KSE-100 keeps positive momentum for 10th consecutive session

    KSE-100 keeps positive momentum for 10th consecutive session

    KARACHI: Benchmark KSE-100 of Pakistan Stock Exchange (PSX) continued its positive momentum for the 10th consecutive session to close at 36,142 level on Thursday.

    These past 10 days have returned 7.2 percent (2,423 points), analysts at Topline Securities said.

    Market was led by financial and E&P sectors while Pharmaceutical and Cement sector saw profit taking. Investor interest was also observed in technology sector where AVN and NETSOL closed 7.5 percent higher as the sector is doing well given IT service demand has increased during the COVID-19 pandemic.

    Traded volume and value for the day increased by 47 percent and 20 percent on DoD basis to 467 million shares (highest volume of 2020) and Rs.15.6. billion (highest since 21 April-2020) respectively. UNITY was today`s volume leader with 40.6 million shares.