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FBR to meet for addressing small traders’ concerns

ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch a series of meetings with representatives of traders associations to address concerns of small traders, sources said on Saturday.

In this regard a combined meeting of traders’ representatives and senior officers of FBR will be held on January 22, at FBR House Islamabad.

In the meeting, the chairperson and other senior officers of FBR will brief the traders about the progress on the agreement with the traders and will take them into confidence.

It is worth mentioning that the FBR and traders associations signed an agreement on October 30, 2019 in which 11-point was agreed by the both sides to bring small traders and shopkeepers into the tax net through introduction of fixed tax and simple income tax return form.

The sources said that representatives of traders and the FBR officers would hold a combined meeting on January 24, 2020 at Regional Office Islamabad/Rawalpindi, January 27, 2020 at Karachi, January 29, 2020 at Multan, January 30, 2020 at Faisalabad and January 31, 2020 at Lahore Regional Office.

The sources said that an important meeting between representatives of Trade Associations and Senior officers of Federal Board of Revenue was held last week at FBR House Islamabad.

The traders’ representatives included Kashif Chaudhry, Naeem Mir and Ajmal Baloch whereas FBR Team was led by Acting Chairperson FBR Nausheen Amjad and included Member IR Policy Dr. Hamid Ateeq Sarwar and DG Retail Hameed Memon.

It was agreed in the meeting that committees established throughout Pakistan will be completed in coming two days.

The meeting had discussed issues arising due to turnover tax and decided the issue would be analyzed afresh in the future meeting with the tyre, mobile, ghee, sugar, pulses etc, cement, fertilizer, electronics, yarn, iron steel, paper, automobile and other sectors.

January 18, 2020
Weekly Review: Positive sentiments likely prevail

KARACHI: Positive sentiments likely prevail in the equity market during next week owing to inflows in debt market and stable exchange rate, analysts said.

Analysts at Arif Habib Limited said expect that the market to be positive in the upcoming weeks as sentiments should reflect improvement in foreign exchange reserves of the State Bank of Pakistan (SBP) and stable Pak Rupee/USD parity amid inflows in T-bills and narrowing Current Account Deficit (CAD).

Albeit, commencement of the financial result season in the coming week will keep certain scrips under limelight.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 7.6x (2020) compared to Asia Pac regional average of 12.5x and while offering DY of around 6.3 percent versus 2.7 percent offered by the region.

The market commenced on a negative note this week with investors resorting to profit-taking.

With coalition partners showing dissatisfaction over policies of the PTI-led government, lackluster momentum prevailed.

Furthermore, concerns over rising inflation kept the sentiment weak. Whereas, overwhelming response to the Treasury Bill Auction (bids over Rs1.1 trillion), cushioned the dip. Albeit, the market closed at 43,168 points, (down by 0.1 percent / 39 points WoW).

Sector-wise positive contributions came from i) Commercial Banks (109 points), ii) Automobile Parts & Accessories (29 points), iii) Automobile Assembler (20 points), iv) Refinery (20 points), and v) Textile Weaving (12 points). Whereas, negative sector-wise contribution came from Oil & Gas Exploration Companies (96 points) and Power Generation & Distribution (55 points). Scrip-wise positive contributions were led by MEBL (31 points), HBL (28 points), THALL (25 points), BYCO (21 points) and HMB (18 points).

Foreign buying continued this week clocking-in at USD 2.8 million compared to a net buy of USD 7.0 million last week. Buying was witnessed in E&Ps (USD 1.4 million) and Fertilizer (USD 1.3 million).

On the domestic front, major selling was reported by Insurance Companies (USD 2.8 million) and Individuals (USD 2.2 million). Average Volumes settled at 246 million shares (down by 19 percent WoW) while average value traded clocked-in at USD 49 million (down by 38 percent WoW).

January 18, 2020
Rate of sales tax on banking services

KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020 which showed banks to pay 13 percent on sales tax regarding various services provided to customers.

According to working tariff the sales tax shall be charged at 13 percent on services provided or rendered by banking companies in relations:

Guarantee including bank guarantee

Brokerage

Letter of credit

Issuance of cheque books, pay order and demand draft

Bill of exchange

Transfer of money including telegraphic transfer, mail transfer and electronic transfer

Commission including bill discounting commission

Safe deposit lockers and safe vaults

Other services not elsewhere specified

Issuance, processing and operation of credit and debit cards

Commission and brokerage of foreign exchange dealings

Automated Teller Machine operations, maintenance and management

Service provided as banker to an issue

Others, including the services provided or rendered by non banking, finance companies, modaraba and musharika companies and other financial institutions.

January 18, 2020
PIA stops persons travelling on fake Canadian visas

KARACHI: The task force of Pakistan International Airlines (PIA) on Friday intercepted two passengers from Canada-bound flight following discovery of travelling on fake electronic visa.

The PIA taskforce at Lahore Airport took timely action and denied the passengers travelling through national carrier to Canada. The passengers later handed over to Federal Investigation Agency (FIA) for further legal process.

According to details, when these two passengers reached PIA counter for boarding pass for their journey to Toronto, Canada, the taskforce examined the electronic visa presented by them.

The examination revealed that those visas were fake. A PIA spokesman said that the timely action prevented huge monetary penalty on the national flag carrier.

The spokesman said that in case those visas found fake at Canadian soil then huge penal amount had to be borne by the PIA.

The FIA will further investigate the fake visa scam to find out persons involved in such crime.

January 18, 2020
Sales tax exemption allowed to certain personal care services

KARACHI: Sindh Revenue Board (SRB) has issued updated working tariff for tax year 2020, which showed certain sales tax exemptions are available on personal care services.

According to the working tariff, services provided or rendered for personal care by beauty parlors, beauty clinics, slimming clinics or centers and other are subject to sales tax at 13 percent.

However, such services are available at reduced rate of 10 percent but with condition that input tax adjustment shall nto be allowed.

The provincial revenue authority, however, allowed exemption with conditions:

01. Persons providing the services of hair cutting, hair dressing and hair dyeing and shaving provided that they do not provide any other beauty treatment, beauty care, beauty parlour or beauty clinic service.

2. Services provided or rendered by beauty parlors/clinics and slimming clinics whose turn over does not exceed Rs2.5 million in a financial year:

Provided that the exemption shall not apply in case of the beauty parlour/clinics and sliming centers:-

(i) which are located within the building premises or precincts of a hotel, motel, guest house or club whose services are liable to tax;

(ii) which are franchisers or franchisees;

(iii) which have any branch or have more than one outlet in Sindh; and

(iv) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.

Provided that the exemption shall not apply in case of the beauty parlor/clinics and sliming centers:-

(v) which are located within the building premises or precincts of a hotel, motel, guest house or club whose services are liable to tax;

(vi) which are franchisers or franchisees;

(vii) which have any branch or have more than one outlet in Sindh; and

(viii) whose total utility (electricity, gas & telephone) bill exceeds Rs25,000/- in any month during a financial year.

January 18, 2020

Three new slabs added for taxation on income from property

ISLAMABAD: Three additional slabs have been added to income from property in order to generate more revenue under this head, sources in Federal Board of Revenue (FBR) said on Friday.

They said that in the last budget 2019/2020, effective from July 01, 2019, three additional slabs have been added to income from property in order to generate more revenue.

Prior to the amendment there were five taxable slabs of income from property with the highest slab’s rate being Rs. 200,000/- plus 20 percent of income exceeding Rs2000,000.

After the amendment said slab has been limited from Rs 2000,000/- to 4,000,000/- and thereafter three additional brackets of income between four to six million, six to eight million and exceeding eight million have been added.

The updated table of tax on income from property is as under:

S.No.	Gross amount of rent	Rate of tax
(1)	(2)	(3)
1.	Where the gross amount of rent does not exceed Rs.200,000.	Nil
2.	Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs.600,000.	5 per cent of the gross amount exceeding Rs.200,000.
3.	Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.1,000,000.	Rs.20,000 plus 10 per cent of the gross amount exceeding Rs.600,000.
4.	Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs.2,000,000.	Rs.60,000 plus 15 per cent of the gross amount exceeding Rs.1,000,000.
5.	Where the gross amount of rent exceeds Rs.2,000,000 but not exceed Rs. 4000,000	Rs.210,000 plus 20 per cent of the gross amount exceeding Rs.2,000,000”
6.	Where the gross amount of rent exceeds Rs.4,000,000 but does not exceed Rs.6,000,000.	Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000.
7.	Where the gross amount of rent exceeds Rs.6,000,000 but does not exceed Rs.8,000,000.	Rs.1,110,000 plus 30 per cent of the gross amount exceeding Rs.6,000,000.
8.	Where the gross amount of rent exceeds Rs.8,000,000.	Rs.1,710,000 plus 35 per cent of the gross amou

(b) The rate of tax to be deducted under section 155, in the case of company shall be 15 percent of the gross amount of rent.

The chargeability of tax on income from property has been explained in Section 155 of Income Tax Ordinance, 2001.

Section 155. Income from property.— (1) Every prescribed person making a payment in full or part (including a payment by way of advance) to any person on account of rent of immovable property (including rent of furniture and fixtures, and amounts for services relating to such property) shall deduct tax from the gross amount of rent paid at the rate specified in Division V of Part III of the First Schedule.

Explanation.- “gross amount of rent” includes the amount referred to in sub-section (1) or (3) of section 16, if any.

(3) In this section, “prescribed person” means –

(i) the Federal Government;

(ii) a Provincial Government;

(iii) Local Government;

(iv) a company;

(v) a non-profit organization or a charitable institution;

(vi) a diplomatic mission of a foreign state;

(via) a private educational institution, a boutique, a beauty parlour, a hospital, a clinic or a maternity home;

(vib) individuals or association of persons paying gross rent of rupees one and a half million and above in a year; or

(vii) any other person notified by the Board for the purpose of this section.

January 17, 2020

PSX appoints FU Hao as non-executive director

KARACHI: Pakistan Stock Exchange (PSX) has appointed FU Hao, a representative of Shanghai Stock Exchange, as non-executive member on the board.

In a communication the stock exchange informed that FU Hao, a representative of Shanghai Stock Exchange, has been appointed as Non-Executive Director on the Board of Pakistan Stock Exchange Limited (PSX) with immediate effect.

The appointment has been made by the Board of PSX at its meeting held on Friday January 17, 2020, in order to fill the casual vacancy created due to resignation of QUE Bo on the Board, as communicated earlier.

January 17, 2020
Stock market gains 103 points amid record inflows

KARACHI: The stock market increased by 103 points on Friday amid record foreign inflows in debt securities. Analysts at Arif Habib Limited said that the week ended nearly where it began, i.e. near 43,000 level.

During the week, the index did slip towards 42800 but closed the week above 43,000.

Among OMCs, PSO made an upward move whereas E&P & Refineries remained largely unchanged and declined respectively.

Throughout the week, political uncertainty reverberated that cautioned otherwise optimistic investors and therefore a halt in index performance.

By the end of session, news of further foreign inflows of $500 million in treasury bills broke that proved to be single highest inflow in a single day yet.

Positive sentiment was observed in the equity market as well but MoC activity pulled the index back. Banking sector again led the pack with 46.9 million shares, followed by Technology (42.7 million) and Cement (20.5 million).

Among scrips, BOP topped the chart with 27.8 million, followed by TRG (23.9 million) and WTL (8.6 million).

Sectors contributing to the performance include Others (+21 points), O&GMCs (+17 points), Autos (+17 points), Fertilizer (+11 points), Textile (-11 points).

Volumes declined from 229.9 million shares to 211.2 million shares (-8 percent DoD). Average traded value also declined by 4 percent to reach US$ 40.7 million as against US$ 42.3 million.

Stocks that contributed significantly to the volumes include BOP, TRG, WTL, KEL and DCL, which formed 35 percent of total volumes.

Stocks that contributed positively include PSEL (+21 points), PSO (+16 points), THALL (+13 points), MEBL (+13 points) and ENGRO (+13 points). Stocks that contributed negatively include MCB (-19 points), DAWH (-9 points), BOP (-5 points), HUBC (-5 points), and NBP (-5 points).

January 17, 2020
Rupee gains nine paisas on foreign inflows in debt market

KARACHI: The Pak Rupee gained nine paisas against dollar on Friday owing to significant foreign inflows in debt market, dealers said.

The rupee ended Rs154.57 to the dollar as compared with previous day’s closing of Rs154.66 in interbank foreign exchange market.

The dealers said that the debt market witnessed record single day investment.

The debt market witnessed investment of $536 million in treasury bills on Friday.

The market was initiated in the range of Rs154.57 and Rs154.62. The market recorded day high of Rs154.62 and low of Rs154.56 and closed at Rs154.57.

The exchange rates in open market also witnessed appreciation in rupee value.

The buying and selling of dollar at Rs154.50/Rs154.80 from previous day’s closing of Rs154.60/Rs154.90 in cash ready market.

January 17, 2020
Pakistan Customs assures eliminating import barriers

KARACHI: Pakistan Customs has assured commercial importers of eliminating import barriers and improve facilitations through online system WeBOC.

Dr. Mohammad Nadeem Memon, Collector of Customs, has assured to solve the problems facing the commercial importers at the import level and also provide all possible facilities.

He was talking to a delegation called by Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman and former Director of Pakistan Stock Exchange, Amin Yousuf BalgamWala. Amjad Yaqoob, Muhammad Idrees and Mohammad Sabir were also present in the meeting.

The meeting discussed the issues with delegation including WeBOC and said that would be tried to resolve the difficulties of the members of the association on priority basis so that there would be no barrier to imports.

Amin Yusuf Balgamwala, Chairman, PCDMA and former Director of Pakistan Stock Exchange informed about problems and said that PCDMA was always helping in customs price valuation for the last 30 years, but at the import level, commercial importers are facing various problems that need to be addressed.

He requested to the collector of customs that PCDMA represents commercial importers across Pakistan and regional offices are established in Lahore and Faisalabad besides headquarters in Karachi, therefore, the recommendations of the association in the WeBOC should be accepted on regular basis and facilitate PCDMA members with regard to ID.

January 17, 2020