Pkrevenue.com

Blog

  • FBR directs withholding agents to clearly mention CNIC of non-ATL persons

    FBR directs withholding agents to clearly mention CNIC of non-ATL persons

    KARACHI: Withholding agents have been directed to clearly mention the Computerized Identity Card Number (CNIC) of persons whose amounts have been withheld under various transactions.

    The withholding agents have been directed to provide CNIC particularly those persons who are not appearing on the Act Taxpayers List (ATL).

    Sources in Federal Board of Revenue (FBR) said that withholding agents will submit biannual statement related to transactions for the period July – December 2019 during this month.

    The FBR officials said that the withholding agents will clearly specify the names, CNIC or any other identification of such persons in the withholding statement so that legal provisions to enforce return can come into effect.

    Where a withholding agent is of the opinion that hundred percent increased tax is not required to be collected on the basis that the person was not required to file return, the withholding agent shall furnish an intimation to the Commissioner setting out the basis on which the person is not required to file return.

    The Commissioner shall accept or reject the contention on the basis of existing law. In case the Commissioner fails to respond within thirty days, permission shall be deemed to be granted to not deduct tax at hundred percent increased rate.

    Where the person’s tax has been deducted or collected at hundred percent increased rate and the person fails to file return of income for the year for which tax was deducted, the Commissioner shall make a provisional assessment within sixty days of the due date for filing of return by imputing income so that tax on imputed income is equal to the hundred percent increased tax deducted or collected from such person and the imputed income shall be treated as concealed income.

    The provisional assessment shall be of no effect if the person files return within forty five days of completion of provisional assessment and the provisions of the Ordinance shall apply accordingly.

    Where return is not filed within forty five days of provisional assessment, it shall be treated as final assessment and the Commissioner shall initiate penalty proceedings for concealment of income.

  • Equity market falls by 214 points on political uncertainty

    Equity market falls by 214 points on political uncertainty

    KARACHI: The equity market fell by 214 points on Wednesday owing to political uncertainty as allies of ruling party are showing disapproval.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,993 points as against 43,207 points showing a decline of 214 points.

    Analysts at Arif Habib Limited said that political uncertainty took controls over sentiment today.

    Allies of PTI are one by one showing disapproval of their policies and hinting a crisis in the making that caused investors to be safe than sorry.

    Investors kept booking profit at current levels which exerted pressure on oil & gas chain (i.e. OMCs, E&P and Refineries).

    Banking sector also remained slow, whereas Cement sector had some buying interest that caused prices to be on the higher side.

    Overall, Cement sector led the volumes with 34.4 million shares, followed by Banks (32.9 million) and Technology (16.2 million).

    Among scrips, BOP led the volumes with 19.6 million shares, followed by MLCF (18.2 million) and TRG (9.2 million).

    Sectors contributing to the performance include E&P (-553 points), Power (-40 points), Fertilizer (-25 points), other (-23 points), Banks (-21 points).

    Volumes declined further from 249.7 million shares to 171.3 million shares (-32 percent DoD). Average traded value also declined by 22 percent to reach US$ 39.6 million as against US$ 50.4 million.

    Stocks that contributed significantly to the volumes include BOP, MLCF, TRG, STPL and UNITY, which formed 37 percent of total volumes.

    Stocks that contributed positively include MCB (+18 points), PAKT (+7 points), DGKC (+7 points), AICL (+7 points) and FML (+6 points). Stocks that contributed negatively include HUBC (-35 points), PPL (-27 points), PSEL (-23 points), DAWH (-14 points), and POL (-12 points).

  • Worst weather halts flight operation at Skardu Airport

    Worst weather halts flight operation at Skardu Airport

    KARACHI: Worst weather conditions have halted flight operations at the world’s highest airports i.e. Skardu Airport, a statement said on Wednesday.

    Worst weather conditions at Skardu Airport, one of the world’s heighest airports, has halted flight operations.

    Skardu Airport is located at 7500 feet high and is considered one of the tallest airports in the world.

    Skardu Airport is also known as Lifeline Airport.

    Skardu Airport has experienced heavy snow fall from Sunday to Wednesday.

    More then 18 inch snow has been accumulated at airfield during the period.

    Snow removal work from car parking area, access road, runway and maneuvering area started on Tuesday at 09.00 hours Pakistan Standard Time (PST) with all available resources including one snow plough machine (Babcat) and 3 tractors.

    4000 feet of runway from threshold runway 14 has been cleared till Wednesday.

    Runway 14/32 is still blocked due to snow. Local administration is also helping Civil Aviation Authority (CAA) in this regard.

  • Rupee gains seven paisas on inflows

    Rupee gains seven paisas on inflows

    KARACHI: The Pak Rupee gained seven paisas against dollar on Wednesday owing to inflows of export receipts and workers remittances, dealers said.

    The rupee ended Rs154.78 to the dollar from previous day’s closing of Rs154.85 in interbank foreign exchange market.

    The dealers said that the rupee was appreciated owing to inflows of export receipts and workers remittances. They said that improved economic indicators helped the rupee to gain.

    The foreign currency market was initiated in the range of Rs154.85 and Rs154.89. The market recorded day high of Rs154.85 and low of Rs154.78 and closed at Rs154.78.

    The exchange rate in open market witnessed stable rupee value. The buying and selling of the dollar was recorded at Rs154.70/Rs155.00, the same previous day’s level, in cash ready market.

  • Income tax return filing hits new record high

    Income tax return filing hits new record high

    KARACHI: Income tax return filing has increased to a new record high of 2.76 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).

    (more…)
  • Uniform income tax rate applied on dividend income

    Uniform income tax rate applied on dividend income

    ISLAMABAD: The income tax rates on dividend income on various shares of companies have been increased to make an uniform rate applicable for tax year 2020 and onwards.

    Sources in Federal Board of Revenue (FBR) said that the various rates of dividend rates had been uniformed at 15 percent.

    Prior to budget 2019/2020 dividend income is not part of income under normal tax regime and is subject to separate taxation. The standard rate of tax on dividend income is now 15 percent.

    The previous tax rate of 7.5 percent on dividend received on shares of a company set up for power generation or on shares of a company supplying coal exclusively to power generation projects has been increased to 15 percent.

    Further, tax rate of dividend which was charged at 25 percent for persons receiving dividend from companies which enjoy exemption of tax on income or where no tax is payable due to availability of tax credits or due to brought forward business or depreciation losses.

    Previously the rate of tax on dividend received by a person from a mutual fund was 10 percent and 12.5 percent. Persons those were receiving dividend from stock fund is also taxed 12.5 percent.

    Furthermore dividend received by a person from a development REIT scheme was reduced by 50 percent of the normal rate.

    Now all these rates are being enhanced to 15 percent, the FBR said.

    For withholding tax on dividend also a standard rate of 15 percent is being applied for persons receiving income.

  • FBR upgrades data entry operators to BS-14

    FBR upgrades data entry operators to BS-14

    ISLAMABAD: Federal Board of Revenue (FBR) has upgraded the post of Data Entry Operators (DEOs) to BS-14 from BS-12 following the approval of the finance ministry.

    The FBR on Tuesday issued an office order stating that in pursuance of Finance Division letter dated December 17, 2019 wherein to standardize the pay scale of DEOs the Finance Division had given concurrence to the upgradation of the post of Data Entry Operators from BS-12 to BS-14 under the federal government as per NOC contained in Establishment Division letter dated September 23, 2019; the post of DEOs of Inland Revenue Department in the field formations and FBR Headquarters stands upgraded to BS-14.

    The competent authority is pleased to appoint all incumbent DEOs (BS-12) to the upgraded post of DEO (BS-14) with effect from December 17, 2019.

  • FBR to impose penalty for not printing retail price on imported goods

    FBR to impose penalty for not printing retail price on imported goods

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that printing of retail price on imported consumer items is mandatory and any violation by importer/manufacturer will attract fine and penalty.

    Through recent Tax Laws (Second Amendment) Ordinance, 2019, penalty has been introduced for importers and manufacturers violating the provision of printing retail price.

    The FBR said that it had received queries from various Customs Clearing Agents and Customs Collectorates regarding application of newly inserted Serial No.26 in Section33 of the Sales Tax Act, 1990, related to penalty.

    In this regard it is clarified that at import stage the mechanism of clearing of goods already defined in STGO 103 of 2019 is to be followed.

    The STGO recognizes that in some situations, the printing of retail price is not possible and allows clearance of goods on payment of Sales Tax in the manner as provided therein subject to furnishing of an undertaking that the retail price shall be duly printed.

    Therefore, the provisions of the STGO be followed by the Customs Authorities.

    However, the aforesaid undertaking shall mention that the importer shall print the retail price within ten days of release/clearance of the consignment and intimate the Commissioner concerned for inspection before further supply.

    However, if inspection is not made within ten days after intimation the importer/manufacturer will be free to supply in the market.

    The newly inserted penal provisions shall be invoked if the manufacturer/importer violates the undertaking or is otherwise non-compliant with requirement of retail price taxation.

  • Measures to ensure transparency in PM relief package

    Measures to ensure transparency in PM relief package

    KARACHI: Utility Stores Corporation (USC) has taken all measures to ensure transparency in provision of subsidized items under the Prime Minister Relief Package, a top official said.

    “Our investigation teams are working across the country to prevent any misuse of the package,” said Zulfiqar Rahat, Zonal Manager, Sindh in a media briefing.

    He said that general public in case identifying any misuse can complaint at the numbers displayed at all the USC outlets across the country.

    The zonal manager said that in the era of social media every person has direct access to the prime minister and the managing director of the USC to make any complaint.

    The zonal manager said that the investigation teams of USC Headquarters Islamabad and zonal teams simultaneously conducting surprise visits at the stores.

    He said that five basic commodities have been provided under the relief package, included: pulses, rice, edible ghee, sugar and wheat flour (Atta).

    On the occasion, Javed Khan, Regional Manager, North said that the corporation had ensured sufficient availability of subsidized items at the stores.

    The regional manager said that the government had granted Rs6 billion for sales of subsidized items through the utility stores.

    He said that a huge demand of those items was expected due to huge gap in prices of subsidized items as compared with the local market.

    Therefore, the region had ensured the sufficient stock at its warehouses as well as at its stores, he added.

    The regional manager also took the media to visit a store which was flooded with subsidized items.

  • SBP imposes penalty on five banks for violation

    SBP imposes penalty on five banks for violation

    KARACHI: State Bank of Pakistan (SBP) has imposed monetary penalty on five banks including Summit Bank, Habib Metropolitan Bank, MCB Bank, National Bank of Pakistan and Bank Alfalah for violating regulatory environment.

    The central bank on Tuesday issued significant enforcement measures by imposing monetary penalty on banks for violating rules, regulations and other regulatory environment.

    The SBP imposed Rs219.138 million as penalty on five banks during the month of December 2019 for violating mainly regulations related to foreign trade operations, Customers Due Diligence (CDD) and Know Your Customer (KYC).

    The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.
    In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions

    With the latest penal action the total amount of penalty during first six months (July – December) 2019 increased to Rs1,569 million.

    According to the highlights of significant enforcement actions by the SBP during December 2019, the central bank imposed Rs219.138 million as monetary penalties.

    The central bank on December 11, 2019 imposed penalty amount of Rs17.422 million on Summit Bank Limited for procedural violations in the area of foreign exchange operations.

    “Monetary penalty was imposed on deficiencies in the area of foreign trade operations,” the SBP said.

    The central bank on December 11, 2019 imposed an amount of Rs34.578 million on Habib Metropolitan Bank Limited for violating CDD/KYC.

    “In addition to penal action, the bank has been advised timelines to bring improvements in its systems/controls to avoid recurrence of such violations in future.”

    The SBP on December 12, 2019 imposed penalty of Rs49.499 million on MCB Bank Limited for procedural violations in the area of foreign exchange operation.

    “Monetary penalty was imposed on deficiencies in the area of foreign trade operations.”

    The SBP on December 18, 2019 imposed monetary penalty of Rs21.544 million on National Bank of Pakistan for violating CDD/KYC.

    “In addition to penal action, the bank has been advised timelines to bring improvements in its systems/controls to avoid recurrence of such violations in future.”

    The SBP on December 23, 2019 imposed monetary penalty of Rs96.095 million on Bank Alfalah Limited for violating KYC/CFT.

    “In addition to penal action, the bank has been advised to conduct an internal inquiry on certain breaches/violation of regulatory requirements. Further, the bank has been advised to strengthen its process related to KYC/CDD, in order to avoid recurrence of such violations in future.”