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  • Rupee ends down by two paisas on import payment demand

    Rupee ends down by two paisas on import payment demand

    KARACHI: The Pak Rupee ended down by two paisas against dollar on Thursday amid demand for import payment.

    The rupee closed at Rs155.42 to the dollar from previous day’s closing of Rs155.40 in interbank foreign exchange market.

    Currency dealers said that the demand for the foreign currency was higher earlier in the day. However, inflows helped the rupee to recovery early day losses.

    The foreign currency market was initiated in the range between Rs155.40/Rs155.45. The market recorded day high of Rs155.47 and low of Rs155.40 and closed at Rs155.42.

    The exchange rate in open market witnessed slight appreciation in rupee value. The buying and selling of dollar was recorded at Rs155.20/Rs155.40 from previous day’s closing of Rs155.20/Rs155.50 in cash ready market.

  • Honda Atlas Cars declares 50 percent drop in after tax profit

    Honda Atlas Cars declares 50 percent drop in after tax profit

    KARACHI: Honda Atlas Cars (Pakistan) Limited on Thursday announced 50 percent drop in net profit for the quarter ended September 30, 2019.

    According to financial results of the company the profit after tax for the quarter (July – September) 2019 fell to Rs509.69 million as compared with the net profit of Rs1,030 million in the corresponding quarter of the last year.

    The sales of the company fell to Rs11.64 billion for the quarter under review as compared with Rs25.81 billion in the corresponding period of the last year, posting 55 percent decline.

    The gross profit of the company declined to Rs1.21 billion for the quarter ending September 30, 2019 as compared with Rs1.65 billion in the same period of the last year.

    The company declared profit of Rs1.1 billion for the half year (April – September) 2019 as compared Rs3.24 billion in the same half of the last year.

    The sales of the company during the half fell to Rs29.52 billion as compared with Rs49.67 billion in the same half of the last fiscal year.

  • FBR, PBA to discuss, resolve access to bank accounts

    FBR, PBA to discuss, resolve access to bank accounts

    KARACHI: Federal Board of Revenue (FBR) and Pakistan Bankers Association (PBA) will discuss and resolve the matter pertaining to information of bank account holders.

    Senior officials at Large Taxpayers Unit (LTU) Karachi said at a press briefing on Wednesday.

    They said that the matter of obtaining financial transactions by account holders had been stayed by the court of law for the past many years.

    However, in the latest hearing on November 07, 2019 the court directed the FBR and PBA to find out solution and present in the next hearing i.e. November 21, 2019, they said.

    Through Finance Act, 2013 Section 165A was inserted to Income Tax Ordinance, 2001 making it mandatory for banks to provide details of transactions made by their account holders.

    As per law the banks are bound to provide details of account holders, included: a list of persons making cash withdrawal of Rs50,000 per day or over Rs1 million in a month; deposits of Rs10 million in a month; credit card payment of Rs250,000 per month; persons receiving profit on debt above Rs500,000 in a year.

    The laws in Income Tax Ordinance, 2001 have superseded other laws including Banking Companies Ordinance, 1962; the Protection of Economic Reforms Act, 1992; the Foreign Exchange Regulation Act, 1947 etc. yet the banks were not providing the details on the grounds of various excuses.

    It is interesting to note that Chairman FBR held many meetings with banks during past three months but the matter was still unresolved.

    FBR chairman Syed Shabbar Zaidi recently asked the banks to provide details of those individuals who invested in government securities through banks.

    The LTU officials said that the issue would be resolved soon and banks would start transmitting details of financial transactions made by bank account holders.

    Pakistan has large undocumented economy and undisclosed money is believed to be parked in banking system.

  • LTU Karachi identifies unregistered 100,000 commercial gas connection holders

    LTU Karachi identifies unregistered 100,000 commercial gas connection holders

    KARACHI: The Large Taxpayers Unit (LTU) Karachi on Wednesday said that it has identified over 100,000 persons having commercial gas connections but not registered with the Federal Board of Revenue (FBR).

    This was disclosed by chief commissioners of LTU Karachi at a press conference. The media interaction is part of the strategy to update about performance of tax machinery.

    Zulfiqar Memon and Girdhari Mal, the chief commissioners of the LTU Karachi, informed that the persons had been identified through data verification obtained from Sui Southern Gas Company Limited (SSGCL) and available record from tax offices.

    They said that the FBR would enforce mandatory sales tax registration on those commercial gas connection holders.

    About measures against tax evasion, they said that in the first four months of current fiscal year the unit examined financial records of companies and issued notices to around 10 companies for concealing Rs100 billion. They said that one company alone evaded Rs23 billion.

    The LTU officers said that the unit registered growth of 16 percent in revenue collection during first four months of current fiscal year. The revenue collection of the unit was Rs402.16 billion during July – October 2019/2020 as compared with Rs346.86 billion in the corresponding period of the last fiscal year.

    They attributed the revenue growth to the recent reforms initiative by the government. They said that the reforms had resulted in economic activities and subsequently rise in revenue collection.

    Sector wise major revenue contributor was banking sector followed by refineries, oil marketing companies and textile etc.

    The LTU Karachi has jurisdiction over 5,056 big turnover units. As per criteria the LTU Karachi will have jurisdiction over a company having over Rs400 million turnover or Rs20 million as tax contribution in a year.

    Talking about the recent reforms initiatives by the government including proposed formation of Pakistan Revenue Authority (PRA), the officials said that the filed units were not against the government plan.

    However, they said, the FBR chairman had assured to address grievances of tax employees related to reform program.

  • Committee directs PTA to take harsh measures against hate speech on social media

    Committee directs PTA to take harsh measures against hate speech on social media

    ISLAMABAD: The Standing Committee on Cabinet Secretariat on Wednesday directed Pakistan Telecommunication Authority (PTA) to take harsh measures against hate speech and religious intolerance on social media.

    The Committee met under the chairmanship of Syed Amin-ul-Haque, MNA in Parliament House and directed PTA to assert its regulatory role on telecommunication sector for improvement in service delivery and coverage in far flung areas.

    The Committee also directed PTA to take stringent measures to address the menace of hate speech and religious intolerance on social media.

    The Committee was given a comprehensive briefing about the regulatory mechanism of PTA and its future initiatives.

    The Chairman PTA apprised the Committee that PTA was actively pursuing its role as regulator on the telecommunication sector.

    He informed that PTA had ensured service delivery in accordance with the terms and conditions specified in the telecommunication licenses, modernization of services, regulate competition between telecom operators besides protecting consumers’ interests.

    Responding to a query of a Member, the Chairman PTA apprised that the Authority also ensures effective compliance of telecom services in far-flung areas by operators through Universal Support Fund (USF).

    He assured that PTA would take up the provision of telecom services through USF in Baluchistan and erstwhile FATA Districts.

    The Chairman PTA further informed that installation of Mobile Towers especially in the residential areas was allowed after a stringent process of verification and compliant to universal health and safety standards.

    The Committee appreciated the performance of PTA, however, directed to take appropriate measures against fraudulent element defrauding people of their money through mobile networks, obscenity, spreading hate speech, sectarianism and religious intolerance.

    He informed that investment conducive environment created by government had resulted in 70 percent rise in mobile devices assembly which would ultimately result in their manufacturing in Pakistan.

    The Committee while reviewing compliance of Committee’s earlier directives/recommendations appreciated the timely response by the Establishment Division.

    The Committee recommended for developing Standard Operation Procedure for disposal of cases of deputation in Federal Government Department under wedlock policy.

    The Committee directed Federal Public Service Commission to conclude inquiry into the alleged unauthorized amendment in FPSC rules within six weeks.

    The meeting was attended by Ali Muhammad Khan, Minister of State for Parliamentary Affairs MNAs; Ali Nawaz Awan, Aamir Talal Gopang, Muhammad Aslam Khan, Ms. Uzma Riaz, Mir Ghulam Ali Talpur, Mohsin Dawar, Additional Secretary, Establishment, Chairman PTA, Secretary Federal Public Service Commission and Senior Officers of the concerned departments.

  • Stock market increases by 401 points; crosses 37,000 points after seven months

    Stock market increases by 401 points; crosses 37,000 points after seven months

    KARACHI: The stock market gained 401 points on Wednesday to cross 37,000 mark after seven months.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 37,167 points from last day’s closing of 36,7666 points.

    Analysts at Topline Securities said that after depicting a flattish trend in last session, KSE-100 index returned to its upward trajectory to record gain of 1.09 percent/401 points to close at 37,167 level.

    The last time the market saw 37,000 was back in Apr-2019 7 months ago.

    Furthermore, today the value traded of Rs10.7 billion was the highest of the year thus far.

    As per rumors in the market, Pension fund has made investment in mutual funds which led the index to rally 401 points.

    Furthermore, (NML) Nishat Mills Limited ,(GATM) Gul Ahmad Textile Mills & FML Feroze Mills Limited closed positively in range of 3-5 percent on recent export based incentives package announced by state bank of Pakistan.

    Top contributors to the Index were HBL (+64), followed by BAHL (+44) , ENGRO (+34) & MARI (+30).

    Investor participation in terms of volume was recorded at 275 million shares down 6 percent; while traded value was up by 8 percent at Rs.10.7 billion.

    UNITY was the market leader followed by WTL & TRG which cumulatively added 24 million shares to total volume.

  • Rupee gains five paisas on dollar inflows

    Rupee gains five paisas on dollar inflows

    KARACHI: The Pak Rupee gained five paisas against dollar on Wednesday owing to inflows of remittances and export receipts.

    The rupee ended Rs155.40 to the dollar from previous day’s closing of Rs155.45 in interbank foreign exchange market.

    Currency dealers said that inflows of workers’ remittances and export receipts helped the rupee to gain value.

    The foreign currency market was initiated in the range between Rs155.47 and Rs155.40 and closed at Rs155.40.

    The exchange rate in open market witnessed stable rupee value.

    The buying and selling of dollar was recorded at Rs155.20/Rs155.50, the same previous day’s closing, in cash ready market.

  • FBR notifies transfers, postings of IR officers

    FBR notifies transfers, postings of IR officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday announced transfers and postings of Inland Revenue (IR) officers in BS-18-20 with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Sajjad Taslim Azam (Inland Revenue Service/BS-20) is presently posted as Commissioner-IR, (Jhang Zone) Regional Tax Office, Faisalabad. He is assigned the additional charge of the post of Commissioner-IR (IP/TFD/HRM), RTO, Faisalabad in addition to his own duties.

    02. Muhammad Saleem (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) (IP/TFD/HRM) Regional from the post of Tax Office, Multan Commissioner-IR, (OPS) (IP/TFD/HRM) Regional Tax Office, Faisalabad.

    03. Sahibzada Umar Riaz (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (IR Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner-IR, Regional Tax Office II, Lahore.

    04. Abdul Rehman Khilji (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Additional Commissioner-IR, Corporate Regional Tax Office, Karachi.

    05. Mehran Khan (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Karachi.

    06. Ms. Birjees Fayyaz (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Deputy Commissioner-IR, Regional Tax Office II, Karachi.

    07. Shah Bahar (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Islamabad from the post of Deputy Commissioner-IR, Regional Tax Office, Islamabad

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • SBP penalizes HBL with Rs35.62 million for violating regulations

    SBP penalizes HBL with Rs35.62 million for violating regulations

    KARACHI: State Bank of Pakistan (SBP) has imposed an amount of Rs35.62 million as penalty on Habib Bank Limited (HBL) for violating foreign exchange regulation and customers due diligence.

    According to details of significant enforcement action by the SBP during the month of October 2019 issued on Wednesday, the central bank imposed the penalty on the bank.

    The SBP said that monetary penalty was imposed mainly on deficiencies in the areas of foreign trade operations and customers due diligence.

    “The bank has been advised timelines to bring improvement in the system/controls to avoid recurrence of such lapses / violations in future.”

    With the latest penal action the total amount of penalty during first four months (July – October) 2019 increased to Rs1,158.62 million.

    The SBP has taken penal action against three banks for violating procedures in the areas of Know Your Customer (KYC) and Customers Due Diligence (CDD) and imposed fine to the tune of Rs133.32 million during the month of September 2019.

    The SBP imposed penalty of Rs56.61 million on Askari Bank, Rs63.805 million on Meezan Bank Limited and Rs12.906 million on MCB Islamic Bank Limited.

    In addition to penal action, the banks have been advised to strengthen its process related to KYC/CDD, in order to avoid occurrence of similar violations in future.

    The SBP imposed penalty amounting Rs805.1 million on 10 banks for violating anti-money laundering, due diligence of customers and foreign exchange regulations during the month of August 2019.

    The central bank issued details on Friday about action taken by the SBP against banks in order to plug loopholes in the banking system.

    The SBP initiated to make public the action taken by the central bank from July 2019 against commercial banks for violating prevailing rules and regulations and amount of penalty imposed on such banks.

    In the latest release of enforcement measures by the SBP also included action against leading banks including Habib Bank Limited and MCB Bank etc.

    The highest amount of penalty of Rs320.08 million has been imposed on Habib Bank Limited followed by MCB Bank of Rs159.152 million, Dubai Islamic Bank of Rs77.97 million.

    Following of are the significant enforcement actions by SBP during August-2019.

    01. Dubai Islamic Bank dated August 01 & 02, 2019:

    Violations in the areas of AML/CFT, Asset Quality

    Monetary penalty of Rs77.974 million was imposed mainly on deficiencies in the areas of AML/CFT. Moreover the bank has been advised timelines to rectify the operational lapses and improve the control environment to avoid recurrence of such lapses/violations in future.

    02. Habib Bank Limited dated August 02 & 03, 2019:

    Violations in the areas of AML/CFT, Consumer Protection

    Monetary penalty of Rs320.08 million was imposed mainly on deficiencies in the areas of AML/CFT and erroneous deduction of service charges from customers. The bank has been advised timelines to bring improvements in its systems/controls to avoid recurrence of such lapses/violations in future.

    03. MCB Bank Limited dated August 03, 2019:

    Violations in the areas of AML/CFT, Asset Quality

    Monetary penalty of Rs159.152 million was imposed mainly on deficiencies in the areas of AML/CFT. The bank has been advised timelines to improve the KYC/CDD processes and integrate eKYC system with core banking system.

    04. Silkbank Limited dated August 03, 2019:

    Violations in the areas of AML/KYC, Asset Quality

    Monetary penalty of Rs53.879 million was imposed mainly on violations of non-surrendering of unclaimed deposits, non-classification of loans and adjustment lending. Moreover, the bank has been advised timelines to classify advances & create provision there against and conduct

    05. Bank Alfalah Limited dated August 03, 2019

    Violations in the areas of FX Operations

    Monetary penalty of Rs52.795 million was imposed mainly on violations of foreign exchange regulations such as restrictions to remit import advance payments, export documentation and non-submission of documents against advance payments.

    06. Allied Bank Limited dated August 03, 2019

    Violations in the areas of AML/KYC, Asset Quality

    Monetary penalty of Rs32.755 million was imposed on breach of various limits of Equity Investment/related party and deficiencies in customer due diligence process. The bank has been advised timelines to bring equity Investment and exposure to related party group within the prescribed limit and revise KYC/CDD process.

    07. Sindh Bank Limited dated August 03, 2019

    Violations in the areas of AML/KYC, Asset Quality, FX Operations

    Monetary penalty of Rs15.088 million was imposed mainly on deficiencies in customer due diligence practices, imprudent lending practices, non-classification of loans. Moreover, in view of the strategic deficiencies in Transaction monitoring system & name screening process, the bank has been advised an action plan/timelines for replacement of their existing TMS and acquiring of name screening solution.

    08. Summit Bank Limited dated August 03, 2019

    Violations in the areas of AML/KYC, Asset Quality

    Monetary penalty of Rs13.072 million was imposed mainly on deficiencies in customer due-diligence process, mis-utilization of loans and non classification of loans. The bank has been advised to timely update customer profiles & properly document the reasons of large value transactions.

    09. JS Bank Limited dated August 05, 2019

    Violations in the areas of AML/KYC, Asset Quality, Corporate Governance

    Monetary penalty of Rs70.307 million was imposed mainly on deficiencies in customer due-diligence process, mis-utilization and non classification of loans etc. The bank has been advised timelines to enhance its systems/process for customer risk profiling (CRP), transaction monitoring and identification of Politically Exposed Persons (PEPs).

    10. Habib Metropolitan Bank Limited dated August 19, 2019

    Violations in the areas of FX Operations

    Monetary penalty of Rs10 million was imposed mainly on a violation of foreign exchange regulations relating to splitting of the import advance payments into smaller transactions.

    The SBP imposed penalty of Rs184.64 million upon four commercial banks for violating laws related to Anti-Money Laundering (AML)/Know Your Customer (KYC) during the month of July 2019.

    The central bank on Thursday said that these penalty amount was imposed during the month of July 2019 against banks included: The Bank of Punjab; JS Bank Limited, Bank Al Habib Limited and Soneri Bank.

    The SBP imposed penalty of Rs13.072 million against The Bank of Punjab on July 15, 2019 for violating in areas of foreign exchange operations.

    In addition to penal action, the bank has been advised to improve its internal processes, the SBP said.

    The Bank of Punjab was again penalized with Rs16.119 million on July 18, 2019 for violating in areas of AML/KYC, unclaimed deposits.

    In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC, the central bank added.

    The SBP penalized JS Bank Limited with penalty amount of Rs48.211 million on July 23, 2019 for violating in areas of AML/KYC.

    In addition to penal action, the bank has been advised to conduct a thorough review of relationship accounts, the SBP said.

    The SBP imposed penalty of Rs51.75 million upon Bank Al Habib Limited on July 25, 2019 for violating in areas of AML/KYC, FX Operations.

    In addition to penal action, the bank has been advised to update its systems and processes, and provide appropriate trainings to the concerned officials, the SBP said.

    The SBP imposed penalty of Rs55.48 million upon Soneri Bank Limited on July 25, 2019 for violating in areas of AML/KYC, Asset Quality, FX Operations.

    In addition to penal action, the SBP advised the bank to improve areas of AML/KYC and credit risk monitoring.

  • Complete list of withholding tax rates for tax year 2020

    Complete list of withholding tax rates for tax year 2020

    ISLAMABAD: Following is the complete list of withholding tax rates applicable for tax year 2020. The rates have been updated by the Federal board of Revenue (FBR) till June 30, 2019.

    The withholding tax card also included the 100 percent higher tax rates for persons not on the Active Taxpayers List (ATL).