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  • Equity market sheds 163 points in ongoing losses

    Equity market sheds 163 points in ongoing losses

    KARACHI: The equity market ended with decline of 163 points on Thursday in its ongoing loss making trail. The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,385 points as against 38,548 points showing a decline of 163 points.

    Analysts at Arif Habib Limited said that KSE-100 index continued the loss making trail from past several sessions.

    The market turned positive for a brief while in the morning but reverted to selling pressure which saw selling activity in Banks, Cement, Steel, Fertilizer, Autos, & OMCs.

    During the session the news of Supreme Court’s acceptance of Bahria Town deal felt a fresh breathe, however, the wave lived short. By the close of market, selling pressure mounted back resulting in index sliding down by 205 points (unadjusted).

    Sectors contributing to the performance include Fertilizer (-47 points), Power (-36 points), O&GMCs (-22 points), E&P (-13 points), Cement (-12 points).

    Volumes declined slightly from 83mn shares to 81mn shares (-2 percent DoD). Average traded value however, increased by 22 percent to reach US$ 30.4mn from U$ 24.9mn.

    Stocks that contributed significantly to the volumes include BOP, PAEL, HUBC, SSGC and WTL, which formed 24 percent of total volumes.

    Stocks that contributed positively include POL (+21 points), BAHL (+12 points), HBL (+5 points), UBL (+5 points), and KOHC (+4 points). Stocks that contributed negatively include HUBC (-33 points), MARI (-22 points), ENGRO (-20 points), OGDC (-16 points) and PMPK (-12 points).

  • Rupee depreciates by five paisas against dollar

    Rupee depreciates by five paisas against dollar

    KARACHI: The Pak Rupee depreciated by five paisas against the US dollar on Thursday due to import and corporate payments.

    The rupee ended Rs139.49 to the dollar from previous day’s closing of Rs139.44 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs139.48 and Rs139.50. The market recorded day high of Rs139.50 and low of Rs139.49.

    The exchange rate in open market also deteriorated.

    The dollar’s buying and selling was recorded at Rs139.70/Rs140.20 as compared with Rs139.30/Rs139.80 in the cash ready market.

  • FBR notifies promotion of IR officers to BS-16

    FBR notifies promotion of IR officers to BS-16

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified promotions of steno-typists and supervisors/head clerks of Inland Revenue Department to BS-16 with immediate effect.

    Through a notification following steno-typists have been promoted as assistant private secretary (BS-16) on regular basis with immediate effect:

    01. Alamgir Khan, RTO Peshawar

    02. Sirajuddin, RTO Peshawar

    03. Zaheer Iqbal, RTO Rawalpindi (He will actualize promotion with effect from April 14 on retirement of Javaid Mukhtar, APS (BS-16), RTO Rawalpindi.

    04. Khalid Mehmood, RTO Gujranwala

    05. Muhammad Khalid, RTO Gujranwala

    Through another notification, the following supervisors/head clerks of Inland Revenue Department have been promoted to the post of Office Superintend Inland Revenue (BS-16) with immediate effect:

    01. Muhammad Ramazan, Supervisor, RTO Islamabad

    02. Noor Zaman, Supervisor, RTO Peshawar

    03. Muhammad Mukhtiar, head clerk, RTO Peshawar

    04. Muhammad Younis, Supervisor, RTO Sahiwal

    05. Muhammad Mushtaq, Supervisor, RTO Sahiwal

    The FBR said that promotion would take effect subject to the condition that no disciplinary proceedings are pending against them.

  • Investment in registered prize bonds surges by 30pc

    Investment in registered prize bonds surges by 30pc

    ISLAMABAD: The investment into premium prize bonds of Rs40,000 has registered significant increase of 30 percent owing to attractive avenue for persons having legitimate money.

    The investment into the premium prize bonds increased to Rs5.86 billion by January 2019 as compared with Rs4.52 billion in the same period of the last year.

    In order to promote documentation of economy, the registered bonds with denomination of Rs40,000 was launched two years ago.

    The first prize of the premium bond is Rs80 million and the winner of the draw will get the prize money directly to his bank account.

    The registered bond is only issued against Computerized National Identity Card (CNIC) and account maintenance certificate of the account number mentioned in application.

    The bond has bi-annual profit at three percent per annum for all premium prize bond holders.

  • Income Tax Ordinance 2001: return filers can claim tax adjustment paid on educational fee

    Income Tax Ordinance 2001: return filers can claim tax adjustment paid on educational fee

    KARACHI: Income tax return filers can claim adjustment of advance tax paid on educational fee.

    According to updated Income Tax Ordinance, 2001 issued by Federal Board of Revenue (FBR) the advance tax collected on education fee under Section 236I is adjustable against total income tax liability of a taxpayer.

    Section 236I: Collection of advance tax by educational institutions

    Sub-Section (1): There shall be collected advance tax at the rate specified in Division XVI of Part-IV of the First Schedule on the amount of fee paid to an educational institution.

    The rate of collection of tax under section 236I shall be 5 percent of the amount of fee.

    Sub-Section (2): The person preparing fee voucher or challan shall charge advance tax under sub-section (1) in the manner the fee is charged.

    Sub-Section (3): Advance tax under this section shall not be collected from a person on an amount which is paid by way of scholarship or where annual fee does not exceed two hundred thousand rupees.

    Sub-Section (4): The term “fee” includes, tuition fee and all charges received by the educational institution, by whatever name called, excluding the amount which is refundable.

    Sub-Section (5): Tax collected under this section shall be adjustable against the tax liability of either of the parents or guardian making payment of the fee.

    Sub-Section (6): Advance tax under this section shall not be collected from a person who is a non-resident and,—

    (i) furnishes copy of passport as an evidence to the educational institution that during previous tax year, his stay in Pakistan was less than one hundred eighty-three days;

    (ii) furnishes a certificate that he has no Pakistan-source income; and
    (iii) the fee is remitted directly from abroad through normal banking channels to the bank account of the educational institution.

  • Credit Suisse consultants for RLNG plants privatization

    Credit Suisse consultants for RLNG plants privatization

    ISLAMABAD: The government has accorded approval to a consortium led by Credit Suisse to act as financial consultants for the privatization of the RLNG power plants.

    The approval was given at a meeting of the Board of Privatization Commission chaired by Federal Minister of Aviation and Privatization Muhammad Mian Soomro.

    The transparent and appropriately appraised value of privatization of state owned enterprises is one of the major priorities of the current government and shall be successfully undertaken with due regard to every possible minutiae, Soomro said.

    The meeting was attended by Secretary Privatization Rizwan Malik and the board members of the Privatization Commission.

    A number of essential issues were on the agenda. The Minister was briefed about the progress made in the Privatization process of a number of state owned enterprises.

    These enterprises include Mari Petroleum, SME Bank and First Woman’s Bank. Other state owned entities which are to be privatized on priority basis were also discussed. These include Services Hotel and Convention Centre, Islamabad.

    The Minister was apprised of the current status of the process for each entity and the Minister ordered that it should be ensured that every possible step is taken to ensure a transparent and financially feasible privatization.

    The meeting also confirmed the minutes of the Third Meeting (03/2018) of Privatization Commission Board which was held on 18th December, 2018 and also reviewed the status of decisions of the Third Meeting of the PC Board. The appointments of Consultants of the Privatization Commission were also discussed.

    It was also decided in the meeting that a steering committee headed by the Minister for Privatization, including relevant stakeholders shall over see the implementation process of privatization.

  • PTCL promotes digital billing to save environment

    PTCL promotes digital billing to save environment

    KARACHI: In an effort to save environment, Pakistan Telecommunication Company Limited (PTCL) has urged its customers to opt for digital billing instead of monthly paper bills.

    A statement on Wednesday said that this initiative will, not only create awareness on preserving nature but, also gives customers an opportunity to contribute towards this cause.

    On the occasion, Moqeem ul Haque, Chief Commercial Officer, PTCL said, “PTCL, being a national company, takes its responsibility to reduce paper usage throughout our company that can have a significant impact in going green.

    “We strive to provide our customers with easy and convenient options like eBilling that is secure and saves time.”

    The company has taken steps to ensure that numerous avenues are open for customers to opt for eBilling.

    Customers can subscribe online through the PTCL website and through the TouchApp (Android & iOS).

    The customers can also call on the PTCL helpline 1218, subscribe to eBilling and opt out of receiving paper bills. All new customers are now receiving only eBills.

    Furthermore, customers can pay their bills without showing a paper bill using UPaisa. They only need to provide a telephone number with the area code.

    PTCL is contributing towards saving the environment and a greener Pakistan.

  • Informal donations prone to money laundering: SECP

    Informal donations prone to money laundering: SECP

    KARACHI: Pakistan has been rated amongst most charitable nations in the world but most donations are routed informally which makes the whole exercise prone for terror financing and money laundering, Waseem Ahmad Khan, Additional Director, Securities and Exchange Commission of Pakistan (SECP) said on Wednesday.

    He was addressing at a seminar organized by Karachi Tax Bar Association (KTBA) at auditorium of Regional Tax Office (RTO) Karachi.

    He said that SECP and State Bank of Pakistan (SBP) had taken initiatives to fix the issues on Anti Money Laundering (AML)/Countering Financing Terrorism (CFT) pointed out by Financial Action Task Force (FATF).

    He informed the participants that FATF is a 37-member global body established in 1989 with mandate to combat money laundering, terror finance and nuclear non-proliferation. Besides it has also associates observers.

    Pakistan as a member has international obligations to comply with FATF recommendations and correspondingly it had promulgated relevant laws including Anti-Terrorist Act, 1997, Anti-Money Laundering Act, 2010, National Counter Terrorism Act, 2013 etc. and had also devised national action plan.

    Waseem Ahmad said that the SECP was undertaking enhanced due diligence on the basis of territorial / geo-political basis, sectoral lines and channel of donations.

    In order to realize the full impact of spirit of generosity of Pakistan horizontally, he suggested risk management should be set up by every non-profit organization (NPO).

    Khalid Mahmood, President, KTBA, in his welcome address thanked the speaker and audience who attended the seminar in a big number. The even was moderated by KTBA vice president Zeeshan Merchant.

  • FBR outlines sales tax amendments through second supplementary finance act

    FBR outlines sales tax amendments through second supplementary finance act

    ISLAMABAD: Federal Board of Revenue (FBR) has summarized amendments to sales tax regime through Finance Supplementary (Second Amendment) Act, 2019 and directed the officials of Inland Revenue to take necessary action for implementation.

    The FBR said that to liquidate huge amount claimed by taxpayers in refunds which have been accumulated over a long time, the government has decided to pay the same through sales tax refund bonds, which shall have a maturity period of three years.

    Simple profit at 10 percent per annum is also proposed to be paid. The claimants shall also be able to raise the much needed cash by selling these notes in the security market.

    A new Section 67A has been inserted in the Sales Tax Act, 1990 to include enabling provisions for payment of refunds in this manner and also to provide for regulatory mechanism relating to issuance, transfer, redemption and other related matters.

    The FBR said that in the Sixth Schedule, the exemption of sales tax already available in relation to plant, machinery and equipment required for power generation from renewable sources of energy has been guaranteed up to June 30, 2023, to provide for certainty and confidence to investors. Same protection has been ensured on the import side of the similar equipment as covered under the Sixth Schedule.

    The FBR said that keeping in view the difficulties being faced by cancer patients and also on the orders of the Supreme Court, items related to ostomy procedures for treatment of cancer patients, which were not expressly and exhaustively mentioned in Sixth Schedule to Sales Tax Act, 1990, have now been so covered by substituting Serial Number 117 and relating it to heading 99.25 in the First Schedule to the Customs Act.

    The FBR said that presently sales tax exemption on plant and machinery is available only to specified sectors. Others sectors have to pay sales tax on import of plant and machinery.

    This sales tax is adjustable against future output tax but such adjustment takes place after a long time when the industry starts selling its product. This serves as an impediment to investment by increasing initial costs.

    In order to encourage green field investment and industrialization, exemption from payment of sales tax on imported plant and machinery to be used for setting up new industry for production of taxable goods has been provided by amending Sixth Schedule to the Sales Tax Act, 1990, as imported by the persons registered on or after 1st July, 2019 through Sr No 150 in Table 1 of Sixth Schedule to the Sales Tax Act, 1990.

    The FBR said that the new rates on the import of cellular mobile phones have been introduced by substitution in the Ninth Schedule to the Sales Tax Act, 1990.

  • FBR explains FED on motor vehicles under Second Amendment Act

    FBR explains FED on motor vehicles under Second Amendment Act

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday explained the amendment of Federal Excise Duty (FED) on imported and locally manufactured vehicles through Finance Supplementary (Second Amendment) Act, 2019.

    The FBR said that Serial Number of Table 1 of the First Schedule to the FED Act, 2005 had been amended and duty of the imported motor vehicles of 1800 cc to 3000cc had been enhanced to 25 percent ad valorem.

    Further, a new Serial Number 55A has been inserted whereby rate of federal excise duty has been enhanced to 30 percent ad valorem on import of motor cars, SUVs and other motor vehicles of cylinder capacity of 3000cc of above (other than those vehicles as designed for the transport of 10 or more persons.

    The FBR said that federal excise duty on locally manufactured cars SUVs etc. of engine capacity exceeding 1700CC and above at 10 percent ad valorem had also been introduced.