MH Insights

The Securities and Exchange Commission of Pakistan has increased by 10% all the fees to be paid to the registrar and the commission by a Company having a share capital. The Commission declared this in the notification SRO 808 (I) / 2021 dated 28 June 2021. 

Section 3(2)(a) / Eight Schedule. Scope of Tax: Section 3(2)(a) of the Act specifies that goods included in the Eight Schedule shall be charged to tax at such rates and subject to such conditions and limitations which have been mentioned therein. The Finance bill has proposed to exclude some items from Eight Schedule which will be subject to 17% of sales tax after the approval of the bill. Following is the list of items which are used in textile sector: S. No. Description Existing Tax Rate Revised Tax Rate 5 Import of raw cotton and ginned cotton 5% 17% 6 Plant and machinery not manufactured locally and having no compatible local substitutes 10% 17% 50 Import of LNG / RLNG 12% 17% 51 Supply of LNG / RLNG to gas transmission and distribution companies 12% 17% 65 Ginned ...

Securities and Exchange Commission of Pakistan in the Circular No. 16 of 2021 dated 10 June 2021 has prescribed the requirements for Asset Management Companies (AMCs) about the advertisement related to equity schemes of an Open-end Collective Investment Scheme in print and social media. The Circular accompanies a standard format for the advertisement describing in detail the layout and font size of the advertisement.  The Circulars states that calculation of return used in the advertisement shall be based on a minimum period of twelve preceding months on rolling basis. If an AMC launches a new fund, performance data of this CIS shall be presented only if the track record of last six-month performance is available.  The AMCs shall immediately remove the outdated advertisement from print and social media.  Please click here for more details.

Securities and Exchange Commission of Pakistan on 17 June 2021 issued Circular 17 of 2021 in order to allow that investment made by a company out of provident fund or any other employee contributory retirement fund can me made in Exchange Traded Fund (ETF) being the open-end collective investment scheme (CIS) registered as notified entities with the commission. The investment will be subject to following limited and conditions of Employees Contributory Funds (Investment in Listed Securities) Regulations, 2018. Limits for investment in Listed Securities Regulation Reference Description Maximum Limited * 3(1)(a) Total investment in Debt CIS including Debt ETF 50% 3(1)(c) Total investment in equity CIS including equity ETF 30% 3(8) Total investment in Debt CIS including Debt ETF managed by a single asset management company 50% of 3(1)(a) 3(9) Tot...

Snapshot Reference No. SRO 639 (I)/202 1 Description Setting off of Loss on Disposal of Listed Securities (Draft Amendment in Income Tax Rules) Date of Issuance 1 June 20 21 Objective To allow to carry forward the loss against gain on disposal of listed securities Effective date FBR has sought objection or suggestion on the draft to be sent within 15 days of the publication of notice.   Explanation The draft amendments have suggested changes in the following rules of Income Tax Rules, 2002: Rule 13D deals with computation of capital gain or loss. Currently, capital loss arising on the disposal of securities in any tax year is not allowed to be carried to the subsequent years. The draft amendments suggests that any loss on the disposal of listed securities from FY 2019 to onward if could not be set off against the gain on the disposal of other listed securiti...

Federal Board of Revenue (the Board) issued SRO 101(I)/2021 on 28 January 2021 to notify the names of 6 more persons for the panels for Alternate Dispute Resolution Committee (ADRCs) in Multan, Islamabad and Karachi. These six person are in addition to already notified vide SRO 810 (I)/2020 by FBR. Snapshot Reference No. SRO 101 (I)/202 1 Description Constitution of Alternate Dispute Resolution Committee Date of Issuance 28 January 20 21 Objective To increase number of persons on the panel of Alternate Dispute Resolution Committee Effective date Immediate  

  Federal Board of Revenue (the Board) issued SRO 99(I)/2021 on 26 January 2021 in which Federal Government has provided exemption from the provisions of S.148 of Income Tax Ordinance, 2001 for the import of wheat by the Trading Corporation of Pakistan.   Snapshot Reference No. SRO 99 (I)/202 1 Description Import of wheat Date of Issuance 26 January 20 21 Amendment Second Schedule of Income Tax Ordinance , 200 1 Objective To provide the exemption from collection of advance tax on import of three hundred thousand metric tons of wheat through tendering process by the Trading Corporation of Pakistan. Effective date Immediate Explanation Collector of Customs collects advance tax from every importer of goods on the value of goods in accordance with the requirements of S.148 of Income Tax Ordinance, 2001. Since the Cabinet Division has...

Federal Board of Revenue (FBR) issued SRO 78(I)/2021 on 22 January 2021 to introduce the Inland Revenue Reward Rules, 2021. The purpose was to consolidate rewards rules already issued from time to time and make a robust system of incentives to motivate officers of Inland Revenue for enhancing their performance.   The rules also provide incentives to whistle blower and informants not belonging to the office Inland Revenue. Snapshot Reference No. SRO 78 (I)/202 1 Description The Inland Revenue Reward Rules, 2021 Date of Issuance 22 January 20 21 Amendment Consolidation of the Reward Rules, 1980 dated 29 March 1988, The Sales Tax Reward Order dated 30 November 1998, The Unified Reward Rules, 2006 dated 05 December 2006 and SRO 398(I)/2016 dated 05 May, 2016 Objective To consolidate exiting reward rules and introduce a robust reward system for officials and staff ...

Federal Board of Revenue (the Board) issued SRO 82(I)/2021 on 19 January 2021 to introduce draft amendment in Customs Rules, 2001 regarding Afghanistan – Pakistan transit trade. As per rule 631, all vehicles carrying transit cargo from Quetta to Qila Abdullah and back were required to get registered at Baleli Customs check post. Now the route has been proposed to be extended from Quetta to Chaman. The customs check post will also be shifted from Baleli to Yaro.   Snapshot Reference No. SRO 82 (I)/202 1 Description Rule 631. Monitoring of transit cargo from Karachi or Port Qasim to up country Date of Issuance 19 January 20 21 Amendment Customs Rules, 200 1 Objective To extend the route from transit cargos from Quetta to Chaman from existing route from Quetta to Qila Abdullah. To change the customs check post from Baleli to Yaro. Effective date ...