Pkrevenue.com

Blog

  • Car sales come down by 44% in eight months

    Car sales come down by 44% in eight months

    KARACHI: The domestic car sales have declined by 44 percent during first eight months of current fiscal year owing to higher prices and economic slowdown.

    According to data released on Wednesday by Pakistan Automotive Manufacturers Association (PAMA), the total car sales declined to 90,834 units during July – February 2019/2020 as compared with 162,240 units in the corresponding period of the last fiscal year.

    Market experts attributed the decline to higher car prices and unattractive high interest rate. Besides the slowdown in economy is another major reason.

    The sales of Honda Car fell by 61 percent to 12,497 units during first eight months of current fiscal year as compared with 32,077 units in the corresponding period of the last fiscal year.

    The sales of Indus Motors fell by 49 percent to 22,707 units during the period under review as compared with 44,409 units in the same period of the last fiscal year.

    The sales of Pakistan Suzuki fell by 35 percent to 55,630 units during July – February 2019/2020 as compared with 85,754 units in the corresponding period of the last fiscal year.

    Pakistan’s car sales increased by 2 percent MoM in February 2020; led by 12 percent MoM rise in sales of Indus Motor (INDU).

    Pak Suzuki Motor (PSMC) and Honda Car (HCAR) both witnessed decline in sales by 3 percent MoM each.

  • ECC approves electricity subsidy package for export sector

    ECC approves electricity subsidy package for export sector

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet has approved a special relief package for export sector in shape of subsidized electricity.

    Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Wednesday at the Cabinet Division.

    The ECC approved a proposal by Power Division for a special relief package to further continue provision of subsidized electricity until June 2020 to five export oriented sectors.

    ECC has discussed proposal to increase wheat support price to Rs 1400 per 40 kg and will convene a special session tomorrow afternoon to discuss a detailed plan to keep the flour prices at the lowest possible level throughout the year in view of any increase in support price and incidental charges for supply of PASSCO procured wheat to provinces and allied issues related to procurement of wheat by provinces and the private sector.

    ECC also approved a proposal by Ministry of Energy (Power Division) for two amendments aimed at providing ease of doing business to upstream Petroleum sector.

    The amendments are related to extension of exploration licences beyond two years by ECC rather than the Minister in Charge of Petroleum Division and creation of a new Zone-1 (F) for onshore licensing regime and consequent revision in the Zonal Map.

    The ECC also approved National Telecommunication Corporation’s revised budget estimates for 2018-19 and 2019-2020.

    The ECC also gave an in principal approval for a proposal for SAR 22.5 million equity investment abroad by Eastern Products Pvt (Ltd) Pakistan.

  • Equity market declines by 22 points amid selling in E&P sector

    Equity market declines by 22 points amid selling in E&P sector

    KARACHI: The equity market fell by 22 points on Wednesday after witnessed over 600 points gain earlier in the day.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,673 points as against 37,696 points showing a decline of 22 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today and gained 637 points during the session, only to see Saudi and UAE signaling crude production ramp-up in April.

    That caused E&P sector sliding again, with PPL trading near yesterday’s lower circuit breaker.

    Cement sector bore selling pressure due to profit booking, which caused index coming down and erasing all the gains, closing the session 22 points down. Cement sector topped the volume with 65.6M shares, followed by Banks (22.5 million) and O&GMCs (18.8 million). Among scrips, MLCF posted 17.6 million shares, followed by FCCL (15.9 million) and HASCOL (13.4 million).

    Sectors contributing to the performance include Banks (+90 points), Pharma (+20 points), Fertilizer (-26 points), E&P (-25 points), O&GMCs (-19 points).

    Volumes declined from 274.8 million shares to 217.6 million shares (-21 percent DoD). Average traded value also declined by 29 percent to reach US$ 74.7 million as against US$ 105.6 million.

    Stocks that contributed significantly to the volumes include MLCF, FCCL, HASCOL, PPL and BOP, which formed 31 percent of total volumes.

    Stocks that contributed positively include HBL (+27 points), UBL (+25 points), BAHL (+23 points), BAFL (+16 points) and SEARL (+13 points). Stocks that contributed negatively include PPL (-14 points), ENGRO (-11 points), FFC (-11 points), MLCF (-9 points), and LUCK (-9 points).

  • Rupee ends down 98 paisas against dollar

    Rupee ends down 98 paisas against dollar

    KARACHI: The Pak Rupee fell by 98 paisas against dollar on Wednesday owing to outflow of hot money from domestic debt market, currency dealers said.

    The rupee ended at Rs158.43 to the dollar from previous day’s closing of Rs157.45 in interbank foreign exchange market.

    The rupee fell for the third consecutive day and lost around Rs4.19 against the dollar.

    The currency dealers said that the rupee was under pressure due to announcement of monetary policy scheduled for March 17, 2020.

    Currency experts said that the market is expecting a massive policy rate cut in the upcoming monetary policy statement. They said that currently the investment in local debt market was due to higher policy rate of 13.25 percent.

    The foreign currency market was initiated in the range of Rs157.40 and Rs157.70. The market recorded day high Rs158.75 and low of Rs157.30 and closed at Rs158.43.

    The exchange rate in open market also witnessed sharp decline in rupee value. The buying and selling of dollar was recorded at Rs157.00/Rs158.00 from previous day’s closing of Rs156.00/Rs157.00 in cash ready market.

  • Rupee falls by 96 paisas in intraday

    Rupee falls by 96 paisas in intraday

    KARACHI – The Pakistani Rupee witnessed a significant depreciation against the US Dollar, falling sharply by 96 paisas in intraday trading on Wednesday.

    (more…)
  • Tax collection from rental income surges by 68% on better enforcement

    Tax collection from rental income surges by 68% on better enforcement

    The Regional Tax Office (RTO)-II Karachi has reported a remarkable surge in tax collection from property income during the first eight months (July-February) of the current fiscal year, marking a significant increase of 68 percent.

    (more…)
  • FBR to promote IRS, PCS officers from BS-18 to BS-19

    FBR to promote IRS, PCS officers from BS-18 to BS-19

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday announced that it will promote officers of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) from BS-18 to BS-19.

    In an office memorandum, the FBR said that the meeting of Departmental Selection Board (DSB) for promotion from BS-18 to BS-19 is being convened shortly.

    Therefore, the FBR directed all BS-18 officers of IRS/PCS and ex-cadre, who are in promotion zone to get their performance evaluation report (PERs) completed up to June 30, 2019 by March 25, 2020.

    The FBR also directed concerned reporting/countersigning officers to forward the PERs pending with them to the board immediately.

  • Remittances grow by 5.4% in July-February

    Remittances grow by 5.4% in July-February

    KARACHI: The workers’ remittances received during July – February 2019/2020 amounted to $15.126 billion recording an increase $770.7 million or 5.4 percent over remittances received during July – February FY19 ($ 14,355.8 million), State Bank of Pakistan (SBP) said on Tuesday.

    (more…)
  • KTBA highlights difficulties in claiming exemption

    KTBA highlights difficulties in claiming exemption

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday highlighted issues faced by taxpayers in obtaining exemption against import of raw material and plant and machinery.

    The KTBA in a letter to Member Inland Revenue (Operations), Federal Board of Revenue (FBR) highlighted the issues being faced by taxpayers while claiming exemption from income tax deduction on import of raw materials and plant and machinery.

    The desired exemption certificate against tax deduction on import of raw material is though being auto generated by IRIS portal on the basis of annual quota allowed by the Commissioner Inland Revenue, the same however, for the past 6-7 days is not being uploaded on WeBOC portal. Consequently, the Custom authorities are unable to allow any exemption as the same is not being reflected on their WeBOC portal.

    Secondly the IRIS portal has not been enabled to distinguish exemption application applied for raw material and the one applied for exemption on plant and machinery.

    The KTBA said that consignment/LC wise exemption certificate is allowed against tax deduction on import of plant and machinery. However, while trying to apply for the said exemption certificate, following error message pops up on IRIS portal:
    “You are not allowed any quota”

    Any quota related objection can only be relevant in case of import of raw material and not otherwise.

    The issues highlighted above are not more than IT Glitches and can be brought to correction with minimum due attention on the details of the system requirements.

    In view of the foregoing, the KTBA requested the Member to kindly issue directions for resolutions of these issues on urgent basis so as to facilitate taxpayers.

  • Stock market rebounds; gains 637 points

    Stock market rebounds; gains 637 points

    KARACHI: The stock market rebounded on Tuesday after massive losses a day earlier on world oil price fall and coronavirus fear.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,696 points as against 37,059 points showing an increase of 637 points.

    Analysts at Arif Habib Limited said that the market rebounded today erasing most of the losses sustained yesterday.

    Market opened on a positive note today with +145 points, however, dipped again and lost 145 points (intra-day).

    Oil & gas stocks kept the selling pressure on, due to low oil prices that maintained a plateau of around U$34/bbl.

    Interestingly, both OGDC and PPL, which were offered in huge quantities at lower lock yesterday got disposed off at and around today’s lower circuit breakers.

    PSO turned out to be the head turner today with a positive opening, and closing the session at upper circuit.

    Cyclicals, Cement and Steel sector stocks were on back burner in relative terms, although leading stocks managed to post decent volumes.

    Cement sector posted volumes of 86.2 million shares, followed by O&GMCs (43.5 million) and Banks (28.8 million). Among scrips, MLCF realized 27.9 million shares, followed by PPL (23.6 million) and FCCL (16.1 million).

    Sectors showing performance include E&P (-152 points), Banks (+353 points), Fertilizer (+112 points), O&GMCs (+93 points), Chemical (+39 points) and Pharma (+32 points).

    Volumes declined from 307.9 million shares to 274 million shares (-11 percent DoD). Average traded value however, increased by 46 percent to reach US$ 106.7 million as against US$ 73.3 million.

    Stocks that contributed significantly to the volumes include MLCF, PPL, FCCL, OGDC and KEL, which formed 36 percent of total volumes.

    Stocks that contributed positively include HBL (+101 points), BAHL (+64 points), MCB (+60 points), PSO (+50 points) and ENGRO (+45 points).

    Stocks that contributed negatively include PPL (-85 points), POL (-61 points), OGDC (-36 points), LUCK (-19 points), and HMB (-8 points).