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  • Filing return mandatory for builders, developers under incentive scheme

    Filing return mandatory for builders, developers under incentive scheme

    KARACHI: The filing of income tax return and wealth statement has been made mandatory for builders and developers under new ordinance to provide incentives to construction industry.

    According to Tax Laws (Amendment) Ordinance, 2020, builders and developers under the special tax regime are also required to electronically file annual tax returns (including wealth statements, wherever applicable) to be accompanied by evidence of tax payment.

    Such a tax return will be considered as an assessment order issued under section 120 of the Ordinance, according to commentary on the ordinance issued by PWC A F Ferguson.

    Tax liability for tax year 2020 is required to be discharged with the tax return.

    It further said that a tax return or declaration of a builder or developer is considered void if it is based on misrepresentation or on suppression of facts and all the provisions of the Ordinance will apply unless such misrepresentation is due to a bona fide mistake.

    No action is to be taken without providing an opportunity of being heard and without prior approval of Federal Board of Revenue (FBR).

  • Sindh exempts property tax, motor vehicle tax to ease COVID-19 impact

    Sindh exempts property tax, motor vehicle tax to ease COVID-19 impact

    KARACHI: Sindh government has exempted property tax, motor vehicle tax and professional tax for three months of current fiscal year.

    The decision has been taken in order to provide relief to masses within the jurisdiction of Sindh considering outbreak of coronavirus (COVID-19).

    According to notifications issued on Thursday by Sindh Excise, Taxation and Narcotics Control Department, the provincial government has decided to remit 25 percent (i.e. for three months) of the payment of the property tax dues for the year 2019/2020, including surcharge as on March 31, 2020 from all classes of persons in respect of any category of property.

    The department said that the tax remission has been allowed for all the taxable property units. It further added that assesees who have already discharged their property tax liability for the year 2019/2020 will get an adjustment of 25 percent remission in their tax liability during next financial year i.e 2020-2021.

    Similarly, the provincial government has allowed exemption motor vehicle tax of 25 percent i.e. (for three months). The classes of vehicles have been granted tax exemption, included: loader; MCR (including rickshaw and Qingqi); mini bus; mini truck; pickup; coaster; delivery van; ST Wagon; taxi; and van.

    The provincial government said that the motor vehicle owners who have already discharged their motor vehicle tax liabilities for the year 2019/2020 of the above mentioned class of vehicle will get an adjustment in their motor vehicle tax liability during next financial year i.e. 2020/2021.

    Likewise, the provincial government is also exempted 25 percent (i.e. for three months) for the financial year 2019/2020 from the payment of the tax professions, trades, calling and employment.

    It said that the assessees who have discharged their professional tax liability for the year 2019/2020 will get 25 percent adjustment in their tax liability during the next financial year i.e. 2020/2021.

  • Engro Corp declares Rs5.94 billion after tax quarterly profit

    Engro Corp declares Rs5.94 billion after tax quarterly profit

    KARACHI: Engro Corporation has declared profit after tax at Rs5.94 billion for the quarter ended March 31, 2020. The after tax profit fell by nine percent when compared with Rs6.56 billion in the same quarter last year.

    Engro’s consolidated revenue grew by 11 percent in comparison to the prior period, mainly driven by energy projects in Thar coming online during July 2019 and offset by lower turnover of Fertilizers and Petrochemicals businesses.

    Profit attributable to the owners was recorded at Rs3,317 million compared to Rs4,010 million for the prior period.

    On a standalone basis, the Company posted a profit after tax of Rs780 million against Rs3.832 billion for the same period last year, translating into an earning per share of Rs1.35 per share.

    This decrease is primarily attributed to delays in receipts of dividends from subsidiaries as their Annual General Meetings (AGMs) have been postponed on account of the COVID-19 lockdown.

    This is, therefore, a temporary timing difference between quarters and not reflective of underlying performance of the Company.

    The company announced an interim cash dividend of Rs6 per share for the first quarter. Like in the past, the Board has endeavored to maximize dividends on a quarterly basis, however, the future dividends for the year would be based upon prevailing situation and earnings for the year.

    The portfolio of Engro Corporation is resilient in these difficult times and the Company remains confident that despite challenging circumstances, it will be able to maintain a healthy performance in upcoming quarters.

  • SBP’s reserves fall to $10.889 billion

    SBP’s reserves fall to $10.889 billion

    KARACHI: The official reserves of State Bank of Pakistan (SBP) have reduced by $85 million to $10.889 billion by week ended April 17, 2020, the central bank said on Thursday.

    The SBP attributed this decline to government external debt payments of $145 million.

    The SBP said that on April 20, 2020, it received $1.39 billion from International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI) to address the economic impact of the Covid-19 shock.

    These funds will be part of SBP weekly reserves data as of 24-April-2020, to be released on 30-April-2020.

    The total liquid foreign reserves held by the country stood at $17.300 million on April 17, 2020. The reserves held by commercial banks were at Rs6.41 billion.

  • Stock market gains 387 points in mixed trading

    Stock market gains 387 points in mixed trading

    KARACHI: The stock market gained 387 points on Thursday in mixed trading activities during the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 32,850 points as against 32,464 points showing an increase of 387 points.

    Analysts at Arif Habib Limited said that the market traded range bound for most of the session, with Cement, Banks and Engineering (Steel) sectors facing selling pressure, whereas Oil & gas stocks trading green.

    International crude price rebounded overnight for WTI to trade +15 percent from its previous close and helped OGDC, PPL and HASCOL hitting upper circuits.

    Sentiment on banking sector turned negative due to SBP’s direction to the Banks to conserve capital by not declaring dividends.

    Cement sector, on the other hand, saw profit booking amid poor financial results of some Cement players. Cement sector led the volumes with 70.4 million shares, followed by O&GMCs (28.1 million) and Banks (14.7 million).

    Among scrips, MLCF topped the table with 24.5 million shares, followed by HASCOL (21.9 million) and FCCL (12.1 million).

    Sectors contributing to the performance include E&P (+265 points), O&GMCs (+74 points), Fertilizer (+65 points), Power (+55 points), Pharma (+24 points), Cement (-96 points) and Banks (-58 points).

    Volumes declined from 239.8 million shares to 204.3 million shares (-15 percent DoD). Average traded value also declined by 8 percent to reach SU$ 58.8 million as against US$ 64.2 million.

    Stocks that contributed significantly to the volumes include MLCF, HASCOL, FCCL, DGKC and UNITY, which formed 39 percent of total volumes.

    Stocks that contributed positively to the index include OGDC (+92 points), PPL (+84 points), POL (+51 points), ENGRO (+45 points) and MARI (+38 points). Stocks that contributed negatively include LUCK (-32 points), MCB (-29 points), DGKC (-23 points), CHCC (-15 points), and KOHC (-14 points).

  • SBP issue guidelines to dampen COVID-19 effects, facilitates IBIs customers

    SBP issue guidelines to dampen COVID-19 effects, facilitates IBIs customers

    The State Bank of Pakistan (SBP) has issued comprehensive guidelines to help Islamic Banking Institutions (IBIs) mitigate the economic impact of COVID-19 on their customers.

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  • Rupee gains 38 paisas against dollar on improved external account

    Rupee gains 38 paisas against dollar on improved external account

    KARACHI: The Pak Rupee further appreciated by 38 paisas against dollar on Thursday owing to improved external account.

    The rupee ended Rs159.98 to the dollar from previous day’s closing of Rs161.36 in interbank foreign exchange market.

    Currency dealers said that that improved foreign direct investment and shrinking current account deficit helped the local currency to make gain.

    The inflow of Foreign Direct Investment (FDI) into Pakistan has witnessed sharp growth of 137 percent during first nine months (July – March) 2019-2020.

    The FDI increased to $2.15 billion during first nine months of current fiscal year as compared with $905 million in the corresponding period of the last fiscal year.

    Current account deficit (CAD) has contracted by 73 percent during first nine months (July – March) 2019/2020 due to significant decline in import bill.

    The current account deficit fell to $2.77 billion during first nine months of current fiscal year as compared with $10.28 billion in the corresponding period of the last fiscal year.

  • SECP highlights difficulties in present tax regime

    SECP highlights difficulties in present tax regime

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has highlighted difficulties faced by corporate sector due to prevailing tax regime.

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  • ECC discusses arrest of PNSC ship by South Africa

    ECC discusses arrest of PNSC ship by South Africa

    ISLAMABAD: South Africa has arrested a ship of Pakistan National Shipping Company (PNSC) for alleged payment default by Pakistan Steel Mills.

    The issue was discussed at the Economic Coordination Committee (ECC) of the Cabinet on Wednesday which was chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh.

    A statement said that the ECC considered a proposal by the Ministry of Maritime Affairs regarding arrest of PNSC ships in South Africa on account of alleged claims of M/s Coniston against Pakistan Steel Mills Ltd and asked the Finance Secretary to engage with the PNSC and PSM and seek opinion of the Law Division, if necessary, to resolve the issue having ended up in litigation.

    The ECC approved release of Rs 75 billion from PM’s Relief Package of Rs 200 billion for targeted payments to the low-income groups, especially labourers and daily wagers most severely affected by the lockdown situation in the country.

    Under the decision, disbursement of Rs 12,000/- per selected person would be made using the Ehsaas disbursement mechanisms under a programme called “Mazdoor Ka Ehsaas Programme”.

    For this purpose, a fourth category in addition to already existing three categories in “Ehsaas Kifalat”, would be created and standard filters/checks of Ehsaas Program would be applied for identification of the beneficiaries.

    Earlier, the ECC was told that after the usual filters and checks, up to 6 million low-income people were expected to benefit under the planned 4th category in addition to the 12 million labour population already targeted through category 1-3 of Kifalat.

    “Mazdoor Ka Ehsaas Programme” was aimed at extending much-needed support in the current situation to the low-income labour/daily wagers mostly involved in activities such as loaders, cleaning staff, contract employees, piece rate workers, self-employed street vendors, construction workers, painters, welders, mechanics, carpenters, domestic help, drivers, etc.

    The ECC also asked the Ministry of Industries and Production and the Poverty Alleviation and Social Sector Development Division (PASSD) to jointly work out comprehensive mechanism and modalities to ensure a transparent and efficient disbursement of the support to the deserving people.

    During the meeting, the ECC on two separate proposals approved a technical supplementary grant of Rs 606 million for 19 projects to be implemented by the Government of Balochistan for FY 2019-20 and another technical supplementary grant amounting to Rs 7 million for purchase of spare parts for helicopter maintenance by Frontier Corps Balochistan (North).

    The ECC also approved release as government loan of Rs 1.30 billion in the current financial year and Rs 3.85 billion per annum during the next three years for settlement of the outstanding liabilities of litigants in the case involving Pakistan Steel Mills (PSM).

    On a proposal by the Ministry of Commerce, the ECC approved notification of the Export Policy Order, 2020 and Import Policy Order, 2020 in consolidated form as per the Law Division’s recommendations for the convenience of the business community.

    The ECC also approved a proposal by the Ministry of Overseas Pakistanis and HRD for approval of the budget proposal for the year 2019-20 & revised budget estimate for 2018-19 of EOBI.

    The ECC, on a proposal by the Ministry of Climate Change, approved exemption from the Re-lending Policy of the Government in respect of a USD 188 million World Bank IDA for the Pakistan Hydromet and Ecosystem Restoration Services Project.

    The ECC also accorded principled approval to a proposal by the Ministry of National Health Services for provision of Rs 150 million funds as grant in aid/seed money for Islamabad Healthcare Regulatory Authority, the ECC asked the Secretary Finance and Secretary Health to jointly to work out modalities for the arrangement of funds.

    On a proposal by the Ministry of Industries and Production seeking a supplementary grant of Rs 288 million for payment of salaries to the employees of Pakistan Machine Tool Factory, the ECC asked the Finance Division and the Industries and Production Division to sit together and resolve the issue.