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  • FBR notifies sales tax rates on petroleum products for May 2019

    FBR notifies sales tax rates on petroleum products for May 2019

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday notified sales tax rates for petroleum products for the month of May 2019.

    The FBR issued SRO 507(I)/2019 on May 04, 2019 to amend the rates issued on April 30 and also amend the SRO 57(I)/2016 dated January 29, 2016.

    Following sales tax rates on petroleum products will be applicable for the month of May 2019:

    Petrol 12 percent ad valorem

    High Speed Diesel oil 17 percent ad valorem

    Kerosene 17 percent ad valorem

    Light Diesel Oil 17 percent ad valorem

    Earlier, the FBR issued SRO 499(I)/2019 issued on April 30, 2019 and reduced temporarily till May 05 at the rates: petrol 2 percent, HSD 13 percent, kerosene 8 percent and light diesel oil 9 percent.

  • Rupee gains 20 paisas in open market on monitoring to prevent money laundering

    Rupee gains 20 paisas in open market on monitoring to prevent money laundering

    KARACHI: The Pak Rupee gained 20 paisas against dollar on Saturday amid improved inflows in the open market and tight monitoring of law enforcement agency to prevent money laundering.

    The buying and selling of dollar was recorded at Rs141.30/Rs141.80 as compared with previous day’s closing of Rs141.50/Rs142.00 in cash ready market.

    Currency dealers said that the steps taken by the government to curb money laundering through money exchanges had resulted in availability of greenback for general public.

    The dealers said that during past few months the regulators and law enforcement agencies had taken various measures to stop money laundering and Hawala and Hundi.

  • Market Review: IMF loan program to move trading pattern

    Market Review: IMF loan program to move trading pattern

    KARACHI: The staff level agreement of the IMF program is expected to restore confidence of the market, analysts said on Saturday.

    Volumes usually dry out in the month of Ramzan given shorter trading hours. Albeit, with budgetary proposals following in, we believe certain sectors / scrips may come under limelight.

    Analysts said that while the outgoing quarter remained positively surprising with sectors such as Commercial Banks, Cements, and Chemicals unveiling above street consensus result outcomes, investors continued to remain wary owing to persisting economic despondency.

    This has contributed to ambiguity over future corporate earnings growth, and coupled with a lack of clarity over the finalization of the IMF program, the KSE-100 index has continued to remain under pressure. This week the bourse ended at 36,123 points, shedding 1,008 points (down by 2.7 percent) WoW.

    Negative sector-wise contributions came from i) Oil & Gas Exploration Companies (308 points) amid fall in international oil prices, ii) Commercial Banks (171 points), iii) Fertilizers (148 points), iv) Power Generation & Distribution (89 points) and Oil & Gas Mareting Companies (70 points). On the flip side, sectors that contributed positively include i) Tobacco (27 points) and ii) Insurance (5 points).

    Scrip-wise negative contribution came from PPL (125 points), OGDC (90 points), POL (78 points) and HBL (73 points). Whereas, positive scrip-wise contributions came from PSMC (24 points), PMPK (20 points), HMB (12 points) and PAKT (7 points).

    Foreign buying continued this week clocking-in at USD 4.8mn compared to a net buy of USD 9.3mn last week. Buying was witnessed in Cements (USD 3.9mn) and Commercial Banks (USD 2.0mn). On the domestic front, major selling was reported by Mutual Funds (USD 13.4mn) and Broker Proprietary Trading (USD 0.6mn). Volumes settled at 105mn shares (down by 14 percent WoW) while value traded clocked in at USD 29mn (down by 13 percent WoW).

    Other major news: i) Cabinet committees dealing with economic matters reconstituted, ii) FTA Phase-II signed with China, iii) Rs14.38 per litre increase in petrol price recommended by Ogra, iv) Talks on $8 billion bailout: Government, IMF in final round, v) CPI-based inflation recorded at 8.8 percent in April on YoY basis, and vi) Foreign exchange: SBP reserves dip 2.4 percent to stand at $8.8 billion.

  • SBP governor, FBR chairman removed as IMF team visiting

    SBP governor, FBR chairman removed as IMF team visiting

    ISLAMABAD: The federal government on Friday removed governor of the central bank and chief of the tax collecting agency in the wake of dismal fiscal position of the country and in the presence of visiting IMF mission, reports said.

    The removal of the heads of top organizations has come at a time when the fiscal year is about to end and the government is finalizing budget preparation.

    The media reported quoting sources said that Tariq Bajwa, governor, State Bank of Pakistan (SBP) had tendered his resignation after the federal government had sought his removal from the post of central bank governor.

    However, the government removed Muhammad Jehanzeb Khan from the post of the chairman of Federal Board of Revenue (FBR).

    The removal has come at a time when IMF team is visiting Pakistan on new loan program. The heads of SBP and FBR have important role in any IMF loan program.

    The reports said that decision for removing was taken when Asad Umar was Finance Minister.

  • Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has issued updated withholding tax rates on purchase and registration of motor vehicles.

    The withholding tax rates have been updated through Finance Supplementary (Second Amendment) Act, 2019 as on March 09, 2019.
    The withholding tax rate on registration of motor vehicle to be collected by excise and taxation department of provincial government under Sub-Section 1 of Section 231B of Income Tax Ordinance, 2001:
     

    Registration of Motor VehicleFilerNon-Filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000

     
    Every leasing company or a scheduled bank or a non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a non-filer, either through ijara or otherwise, shall collect advance tax at the rate of four per cent of the value of the motor vehicle under Sub-Section 1A of Section 231B of Income Tax Ordinance.

    Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the following rates under Sub-Section 2 Section 231B of Income Tax Ordinance, 2001:
     

    Engine CapacityTax for FilerTax for Non-Filer
    Up to 850CCRs 0Rs5,000
    851CC to 1000CCRs5,000Rs15,000
    1001CC to 1300CCRs7,500Rs25,000
    1301CC to 1600CCRs12,500Rs65,000
    1601CC to 1800CCRs18,750Rs100,000
    1801CC to 2000CCRs25,000Rs135,000
    2001CC to 2500CCRs37,500Rs200,000
    2501CC to 3000CCRs50,000Rs270,000
    Above 3000CCRs62,500Rs300,000

     
    Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicle after five year from the date of first registration in Pakistan.

    Every manufacturer of a motor vehicle shall collect, at the time of sale of a motor car or jeep, advance tax at the following rates under Sub-Section 3 of Section 231B of Income Tax Ordinance, 2001 from the person to whom such sale is made:
     

    Engine CapacityTax for FilerTax for Non-filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000
  • ECC reduces sales tax on petrol by 5 percent

    ECC reduces sales tax on petrol by 5 percent

    Islamabad: The Economic Coordination Committee of the Cabinet (ECC) has taken a significant step towards providing relief to the masses by approving a reduction of sales tax by five percent.

    (more…)
  • Total number of registered companies increases to 99,291: SECP

    Total number of registered companies increases to 99,291: SECP

    ISLAMABAD: The total number of registered companies has increased to 99,291 by end of April 2019, Securities and Exchange Commission of Pakistan (SECP) said on Friday.

    The SECP said that it registered 1,460 new companies in April 2019 and the majority of them were registered within four hours.

    As compared to the corresponding month of last financial year, the growth in incorporation of companies is noticed as 29 percent, raising the number of registered companies to 99,291.

    The massive increase in the new incorporations is the result of the SECP’s reforms in the ease of doing business, i.e. introduction of simplified combined process for name reservation and incorporation, one window facility for company incorporation and NTN generation, reduction in fee and enhanced assistance of investors by facilitation wings established by the SECP.

    The SECP has upgraded browser’s compatibility and now in addition to Internet Explorer, other browsers such as Google Chrome, Mozilla Firefox and Microsoft Edge can be used for name reservation and company incorporation processes. Consequently, 95 percent companies were registered online.

    During the month 73 percent companies were registered as private limited companies, while 24 percent were registered as single-member companies.

    Three percent were registered as public unlisted companies, not for profit associations, foreign companies and limited liability partnerships (LLP).

    The trading sector took the lead with the incorporation of 260 companies, services with 174, I.T. with 163, construction with 154, tourism with 81, real estate development with 67, food and beverages with 61, marketing and advertisement with 42, education with 41, corporate agricultural farming with 38, textile with 33.

    Thirty companies belong to engineering, 26 to transport, 25 to healthcare, 21 each to pharmaceuticals, and fuel and energy, 20 to mining and quarrying, 19 to communication, 17 to cosmetics and toiletries, 16 each to auto and allied, and logging, 15 to chemicals, 14 each to broadcasting, and paper and board, 13 to cable and electric goods. Seventy-nine companies were registered in other sectors.

    Foreign investment has been reported in 66 new companies. These companies have foreign investors from Canada, China, Denmark, Germany, Jordan, Korea South, the Netherlands, Nigeria, Norway, Oman, Saudi Arabia, Singapore, Turkey, UAE, UK, Ukraine and the US.

    The highest numbers of companies, i.e. 503 were registered in Islamabad, followed by 406 and 311 in Lahore and Karachi respectively.

    The CROs in Peshawar, Multan, Gilgit-Baltistan, Faisalabad, Quetta, and Sukkur registered, 79, 58, 38, 38, 21 and 6 companies respectively.

  • Immediate reduction up to 75 percent in drug prices announced

    Immediate reduction up to 75 percent in drug prices announced

    ISLAMABAD: The federal government has announced immediate reduction in prices of drugs up to 75 percent, which were increased since December 2018.

    (more…)
  • FBR imposes ban on transfers and postings

    FBR imposes ban on transfers and postings

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday imposed ban on postings and transfers with immediate effect till June 30, 2019.

    The FBR said that the revenue collection had entered the last quarter of the current fiscal year and preparation of federal budget for the year 2019/2020 was in full swing.

    Therefore, it has been decided that no further transfer/posting of officers/officials in the field formation of FBR would be made till June 30, 2019.

    The FBR further said that in the cases of hardship or of extreme necessity, the concerned heads of the field formations would be requested to seek board’s prior approval for such transfers/postings.

    The notification has been sent to all heads of field formations of Inland Revenue Service and Pakistan Customs Service.


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  • Equity market plunges by 425 points on selling

    Equity market plunges by 425 points on selling

    KARACHI: The equity market plunged by 425 points on Friday owing to across the board selling.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 36,122 points as against 36,547 points showing a decline of 425 points.

    Analysts at Arif Habib Limited said that the market opened on a negative note with -3 points and a dull outlook.

    After a negligible move of +9 points, the index continued down trodding and by end of first session, the market was down 315 points with a paltry 26 million shares in trading volume.

    Second session saw further attrition and the index slid by a total of 476 points and ended -425 points.

    Selling was observed across the board and contributed by mainly Banks and E&P sectors. Declining international crude prices caused the onslaught of E&P scrips, with OGDC regressing 1.8 percent with a volume of 2.4 million shares. Amongst Cement sector, FCCL and MLCF contributed in top 10 stocks.

    Sectors contributing to the performance include E&P (-128 points), Banks (-95 points), Fertilizer (-60 points), O&GMCs (-30 points), Cement (-24 points).

    Volumes remained low at 64 million shares as against 68 million shares yesterday (-5 percent DoD).

    Average traded value on the contrary increased by 18 percent to reach US$ 20.7 million as against US$ 17.5 million.

    Stocks that contributed significantly to the volumes include UNITY, FCCL, BOP, LOTCHEM and OGDC, which formed 32 percent of total volumes.

    Stocks that contributed positively include BAHL (+13 points), PSMC (+6 points), COLG (+6 points), IGIHL (+5 points), and NATF (+4 points). Stocks that contributed negatively include HBL (-57 points), PPL (-55 points), POL (-37 points), OGDC (-33 points) and ENGRO (-29 points).