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  The AMCs shall immediately remove the outdated advertisement from print and social media.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...