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  • NBMFCs reschedule over Rs17 billion loans of 0.93 million individuals

    NBMFCs reschedule over Rs17 billion loans of 0.93 million individuals

    ISLAMABAD: Non-bank Microfinance Companies (NBMFCs) have rescheduled over Rs17 billion loan portfolios of 932,862 individuals in order to provide relief in the wake of coronavirus outbreak.

    The Securities and Exchange Commission of Pakistan (SECP) in a statement issued on Tuesday said that its permission to NBMFCs to reschedule the loan portfolio not only helped NBFCs to adjust their portfolio at risk but also resulted in extending relief to 932,862 individuals and micro-enterprises who have borrowed over 17 billion rupees from non-bank microfinance companies (NBMFCs), as reported on May 31, 2020.

    Out of these, 796,893 borrowers were facilitated through deferment of principal repayments of over 13.1 billion rupees by six NBMFCs, while 135,969 borrowers benefited through rescheduling of loans of 3.9 billion rupees by four NBMFCs.

    On March 31, 2020, the SECP had relaxed the regulatory requirements for non-bank finance sector allowing them to defer or reschedule the loan repayments to their borrowers. It was part of SECP’s efforts to provide relief for mitigating adverse effects of COVID-19 pandemic and ensuing lockdowns.

    The SECP had also urged the NBMFCs to adopt a considerate approach to accommodate the borrowers who belong to either unprivileged or underprivileged segments of the society.

    The SECP had also allowed NBMFCs to accept borrowers requests made through electronic means or phone calls.

  • FBR to take action against amnesty declarants on failure to make payment

    FBR to take action against amnesty declarants on failure to make payment

    The Federal Board of Revenue (FBR) in Pakistan issued a stern warning on Tuesday, stating that it would invoke provisions related to concealed assets if declarants under the amnesty scheme failed to pay their outstanding dues by June 30, 2020.

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  • FBR constitutes committees to remove anomalies in Finance Bill 2020

    FBR constitutes committees to remove anomalies in Finance Bill 2020

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted two committees for identifying and removing anomalies in the Finance Bill, 2020.

    The FBR issued two separate notifications for constituting the committees, which comprise FBR officials and representatives of business community.

    Chairman of the first anomaly committee is Saqib Shirazi of Atlas Group.

    The co-chairmen of the committee are Muhammad Javed Ghani, Member (Customs-Policy) and Dr. Hamid Ateeq Sarwar, Member (IR-Policy).

    The other members of the committee are:

    01. Ehsan Malik, Pakistan Business Council

    02. Agha Shahab Khan, President, Karachi Chamber of Commerce and Industry (KCCI)

    03. President, Khyber Pakhtunkhwa Chamebr

    04. Abdul Samad, former president, Quetta Chamber of Commerce and Industry

    05. Anjum Nisar, President, Federation of Pakistan Chamber of Commerce and Industry (FPCCI).

    06. Zahid Shinwari, former president, Sarhad Chamber

    07. Irfan Iqbal Sheikh, President, Lahore Chamber of Commerce and Industry (LCCI)

    08. Amir Fayyaz, Former Chairman, All Pakistan Textile Mills Association (APTMA).

    The FBR constituted the other technical anomaly committee. Ashfaq Tola, FCA, FCMA has been appointed as chairman of the committee.

    The co-chairmen of the committee will be the same FBR officials of the first committee.

    Other members of the committee are included:

    01. Ali Jameel, FCA

    02. Asif Haroon, FCA

    03. Abdul Qadir Memon, President, Pakistan Tax Bar Association

    04. Syed Yawar Ali, CEO, Pakistan Business Council

    05. Mrs. Robina Ather, Chairperson, National Tariff Commission (NTC)

    06. Muhammad Shahzad, ex-partner, A. F. Ferguson & Co.

    07. Rashid Ibrahim, A. F. Ferguson & Co.

    08. Khurram Mukhtar, Patron in Chief, PTEA.

    The term of reference (TOR) for the committees is: to review the anomalies identified and submitted; and to advise FBR on removal of anomalies.

    The FBR advised both the committees to submit the anomalies by June 19, 2020.

  • Restriction imposed on revising wealth statement

    Restriction imposed on revising wealth statement

    KARACHI: Taxpayers have been barred from revising their wealth statement after expiry of five years.

    An amendment has been proposed to Income Tax Ordinance, 2001 through Finance Bill, 2020.

    According to interpretation of Finance Bill, 2020 by Deloitte Yousuf Adil Chartered Accountants, presently, revision of wealth statement is allowed without a requirement to obtain approval of the Commissioner Inland Revenue, as is otherwise required for revision of return of income.

    It is now proposed that such revision of wealth statement shall be contingent upon the similar approval of the Commissioner, which shall be granted, in case of bona fide omission or misstatement.

    “However, no such revision is allowed after the expiry of five years from the due date of filing of return of return of concerned tax year.”

    Another amendment has been proposed regarding assessment. The chartered accountants explained that currently where a taxpayer has furnished a return of income, the Commissioner Inland Revenue shall be treated to have made an assessment of taxable income and tax due thereon equal to amounts specified in the return.

    Further, such return shall be taken for all purposes to be an assessment order issued by the Commissioner.

    In order to ensure accuracy of the returns filed by taxpayers, automated adjusted assessment mechanism is being proposed.

    Under this mechanism, the return filed shall be subject to an automatic review and adjustment within six months of filing of return for rectification of any numerical errors or incorrect claims, losses, deductible allowances or tax credit, or wrongful carry forward of losses that are apparent from the return of income.

    In this regard, a notice shall be issued to the taxpayer before the adjustments are effected in the return, which is required to be responded within 30 days of the date of notice.

    Further, where no such adjustments are made within the specified period of six months, the return filed shall be deemed to have been automatically adjusted on the day the return is filed and automatic intimation through IRIS shall be forwarded to the taxpayer.

    The existing provisions as to deemed assessment order will now apply to adjusted return rather than the original return filed by the taxpayer.

    For the purposes of this section, the following definition are proposed to be introduced vide Finance Bill 2021:

    “Arithmetical Error” includes any wrong or incorrect calculation of tax payable including any minimum or final tax payable

    “An incorrect claim apparent from any information in the return” shall mean a claim, based on an entry, in the return

    i. of an item, which is inconsistent with another entry of the same or some other item in such return;

    ii. regarding any tax payment which is not verified from the collection system; or

    iii. in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction.

    The amended provision does not cater for situations where the tax payers have to make adjustments in the return due to inability of the online return form to cater to unique circumstances of the business of the taxpayer.

    Application of this automated adjustment mechanism may create problems for the tax payers unless the online return is amended to cater for all situations that a tax payer may face in line with the provisions of law.

  • Concealed income to be added under business income

    Concealed income to be added under business income

    KARACHI: The Finance Bill 2020 has proposed amendment to laws pertaining to concealed income. Under the amendment the identified concealed income to be added under head of business income.

    The Finance Bill 2020 proposed amendment to Section 111 of Income Tax Ordinance, 2001.

    As per interpretation of Finance Bill, 2020, Deloitte Yousuf Adil Chartered Accountants explained that as per existing law, suppressed amount of production, sales or any amount chargeable to tax or of any item of receipt liable to tax shall be included in the person’s income chargeable to tax under head “Income from Other Sources” to the extent it is not adequately explained.

    The Finance Bill 2020 proposes to tax such amount under head of “Income from Business”.

    Since, such items pertain to business activities of a person, therefore, the same should be liable to tax under head of Income from Business.

    Consequent to proposed amendments, the relevant expenses incurred would then be allowable.

    However, the amount credited, value of the investment, money, value of the article, or amount of expenditure shall still be included in the person’s income chargeable to tax under the head “Income from Other Sources” to the extent it is not adequately explained.

  • Stock market gains 194 points as energy sector recovers

    Stock market gains 194 points as energy sector recovers

    KARACHI: The stock market gained 194 points on Tuesday as energy sector staged recovery on improved international oil prices.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 34,019 points as against 33,824 points showing an increase of 194 points.

    Analysts at Arif Habib Limited said that the market bounced back after realizing a loss of 787 points in yesterday’s session (post budget), and posted recovery of 314 points during the session. International crude prices improved overnight that helped E&P, OMCs and Refineries to stage recovery.

    Cement and Steel sectors also saw renewed buying interest, however, overall stock prices did not cross yesterday’s High. Chemical sector posted highest trading volumes with 28.7 million shares, followed by Technology (27.9 million) and Vanaspati (20.6 million).

    Among scrips, UNITY topped the volumes with 20.6 million shares, followed by AGL (11 million) and TPL (8 million).

    Sectors contributing to the performance include E&P (+65 points), Banks (+32 points), Power (+23 points), O&GMCs (21 points) and Pharma (+12 points).

    Volumes declined from 262.8 million shares to 217.4 million shares (-17 percent DoD). Average traded value also declined by 21 percent to reach US$ 39.5 million as against US$ 50.2 million.

    Stocks that contributed significantly to the volumes include UNITY, AGL, TPL, LOTCHEM and HUMNL, which formed 26 percent of total volumes.

    Stocks that contributed positively to the index include HUBC (+19 points), POL (+18 points), OGDC (+18 points), PPL (+15 points) and MARI (+15 points). Stocks that contributed negatively include FFC (-16 points), NESTLE (-14 points), IGIHL (-12 points), BAFL (-8 points), and LUCK (-8 points).

  • Rupee eases against dollar on import payment demand

    Rupee eases against dollar on import payment demand

    The Pakistani rupee weakened marginally against the US dollar on Tuesday due to rising demand for the foreign currency, primarily driven by import and corporate sector payments.

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  • Punjab announces tax payment relaxation to property, motor vehicle

    Punjab announces tax payment relaxation to property, motor vehicle

    LAHORE: The Punjab government has announce special relaxation on payment of tax for immovable properties and motor vehicle for financial year 2020/2021.

    According to Punjab Finance Bill, 2020 following special relaxations have been offered for tax payment of immovable properties and motor vehicles:

    Special relaxations for financial year 2020-21.

    (1) Notwithstanding anything contained in sections 3 and 12 of the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958), for the financial year 2020-21:

    (a) discount equal to five percent of the tax being paid shall be allowed on payment of tax through e-payment system;

    (b) a rebate equal to ten per cent of the amount of annual tax shall be allowed if the amount of annual tax is paid in lump sum on or before the 30th day of September 2020;

    (c) the tax shall be paid on yearly basis or half yearly basis as the assessee may choose or by such later day as the Government may by notification determine; and

    (d) the late payment surcharge shall not be imposed for the tax amount due.

    (2) Notwithstanding anything contained in sections 3 and 9 of the Punjab Motor Vehicles Taxation Act, 1958 (XXXII of 1958), for the financial year 2020-21:

    (a) discount equal to five percent of the tax being paid shall be allowed on payment of tax through e-payment system;

    (b) a rebate equal to 20 percent of the amount of annual tax shall be allowed if the amount of annual tax is paid in lump sum on or before the 30th day of September 2020; and

    (c) if a person fails to pay any amount of tax due within the period fixed for such payment, he shall not be liable to pay any penalty if he pays the same during the financial year 2020-21.

    (3) This section shall remain in force till 30th day of June 2021.

  • Highlights of Punjab tax relief package; sales tax exempted on insurance, medical treatment

    Highlights of Punjab tax relief package; sales tax exempted on insurance, medical treatment

    LAHORE: The Punjab government has announced a tax relief package amounting over Rs56 billion in the budget 2020/2021. Punjab Finance Minister Makhdoom Hashim Javan Bakht on Monday presented the highlights of the relief package to be provided during next fiscal year.

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  • Punjab allocates Rs337 billion for development programs

    Punjab allocates Rs337 billion for development programs

    LAHORE: The Punjab government has announced an allocation of Rs337 billion for the Annual Development Plan (ADP) for the fiscal year 2020-2021. This significant budget reflects Punjab’s commitment to sustained development and prioritization of ongoing projects.

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