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Govt Likely to Withdraw Majority of Sales Tax Exemptions in Upcoming Budget

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Sales Tax, Pakvsworld, Pakistan

Imposition of 18 Percent Sales Tax on Zero-Rated and Exempt Goods from July 1, 2024

The government is expected to impose an 18 percent sales tax on many currently zero-rated and sales tax-exempt goods starting July 1, 2024. A proposal is being considered to apply this standard rate to items currently charged at zero percent under the Sales Tax Act 1990.

The Federal Board of Revenue (FBR) is evaluating the list of zero-rated and exempt items to potentially charge sales tax on them. Currently, stationary products and dairy items are taxed at a zero percent rate, with some stationary items also being exempt. The new proposal aims to remove these exemptions and zero-ratings, subjecting these goods to an 18 percent sales tax.

There is also consideration for imposing a lower rate of sales tax on these items, though it is more likely that the standard rate will be applied.

Sources informed PakvsWorld that the FBR is reviewing the sales tax exemptions on fertilizers and tractors, but no final decision has been made yet. Currently, Petroleum Crude Oil benefits from zero-rating under the sales tax regime. If this zero-rating is withdrawn, Petroleum Crude Oil could also be subjected to an 18 percent sales tax.

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Pesticides and their active ingredients, registered by the Department of Plant Protection, are presently exempt from sales tax. If this exemption is withdrawn, these items would be taxed at 18 percent unless a specific lower rate is designated.

Similarly, the import and supply of branded iodized salt, regardless of retail packaging, are currently exempt from sales tax. Liquefied natural gas imported by fertilizer manufacturers for use as feedstock also enjoys this exemption.

The government may decide to maintain the zero-rated sales tax for supplies to diplomats, diplomatic missions, privileged persons, and privileged organizations.

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Business

PSX Posts Most noteworthy At any point Single-Day Gain of Just about 4,700 Places, Approaches 100,000 Achievement

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Pak vs World, Pakistan stock Exchange, PSX

A day subsequent to seeing the greatest at any point single-day decline, the benchmark KSE-100 File of the Pakistan Stock Exchange (PSX) rose by 4,695.09 focuses or 4.73 percent on Wednesday to close at 99,269.25 focuses when contrasted with 94,574.16 focuses on the last exchanging day.

Business House Topline Protections said the market’s positive feeling was generally determined by the Pakistan Tehreek-e-Insaf’s (PTI) choice to end its dissent in Islamabad.

Regarding market capitalization, the previous decay of Rs. 480 billion was trailed by an uncommon increment of Rs. 526 billion today, denoting the second-most noteworthy single-day flood ever, it said.

The exchanging floor saw hearty purchasing action, with the file weighty financial area driving the charge. Other critical patrons included auto constructing agents, oil and gas investigation organizations, oil advertising organizations (OMCs), and power age firms, Topline said.

Top supporters of the file’s vertical direction were FFC, HBL, SYS, BAHL, and PPL, altogether adding 1,546 focuses, it added.

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A sum of 1,057,104,968 offers were exchanged during the day when contrasted with 1,113,617,710 offers the past exchanging day, though the cost of offers remained at Rs. 39.556 billion against Rs. 43.165 billion on the last exchanging day.

Upwards of 450 organizations executed their portions in the securities exchange, 354 of them recorded gains and 51 supported misfortunes, while the offer cost of 45 organizations stayed unaltered.

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Economy

Pakistan Received Foreign Loans of $715 Million in Two Months of FY25 

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Pakistan Secures $715M in Foreign Loans FY25 | Pak Vs World

Pakistan borrowed $714.74 million from multiple financing sources during the first two months (July-August) of the current fiscal year 2024-25 (FY25) compared to $3.206 billion borrowed during the same period of 2023-24, revealed the Economic Affairs Division (EAD) data.

The information uncovered that administration has planned evaluations of time stores of $9 billion including $5 billion KSA time store and $4 billion China Safe store for the ongoing financial year, in any case, no cash was gotten in July-August under this head. There is likewise no notice of help from UAE.

The public authority had planned $19.393 billion from numerous funding hotspots for FY25 including $19.216 billion advances and $176.29 million awards. Nonetheless, this incorporates no sum from the Worldwide Money related Asset (IMF).

The information further showed that the public authority planned assessments of $3.779 billion from the unfamiliar business banks for FY24; in any case, no cash was gotten under this head during the initial two months. The public authority has likewise planned evaluations of $1 billion from the issuance of bonds; in any case, as the nation didn’t give the bonds, no sum was gotten during the period.

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The nation got $270.53 million in August 2024 from various sources. The nation got $259.04 million under the top of the “Naya Pakistan Authentication” during the initial two months of FY25 remembering $131.35 million for August.

The nation got $292.99 million from multilaterals and $162.70 million from reciprocal during July-August 2024. The non-project help was $273.12 million including $14.07 million for monetary help and venture help was $441.62 million during the period under survey.

The Asian Development Bank (ADB) dispensed $96.20 million during the period under survey contrasted with the planned $1.651 billion for FY25..

The IDA dispensed $147.86 million in July-August against the planned $1.525 billion for FY25 and IBRD $28.88 million against the planned $550.22 million. The IsDB (Present moment) dispensed no sum in July-August, be that as it may, the public authority has planned evaluations of $500 million for FY25 and AIIB dispensed $8.73 million, while IFAD dispensed $9.59 million against the planned $40.45 million for the financial year 2024-25.

China dispensed $96.76 million in July, but no cash was gotten in August from China. The public authority has planned $134.18 million from China for the monetary year 2024-25.

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Saudi Arabia dispensed $2.69 million in the primary month of financial year 2024-25 against the planned evaluations of $146.54 million for the whole monetary year, but no sum was gotten in August.

The US dispensed $30.94 million in the initial two months against the planned $20.87 million for the financial year 2024-25.

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Economy

PSX Records Highest-Ever Closing After Gaining 615 Points  

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PSX Records Highest-Ever Closing After Gaining 615 Points

The 100-Record of the Pakistan Stock Exchange (PSX) proceeded with its bullish pattern on Friday, acquiring 615.16 focuses, and completing the meeting at its most noteworthy truly shutting of 82,074.45 places.

In a note, business house Topline Protections featured that the KSE-100 Record proceeded with its energy and to a great extent exchanged a positive zone during the exchanging meeting, as the file acquired to make an intraday high of 913 places lastly settled at 82,372 level.

The business house ascribed the energy to lower-than-anticipated selling because of the FTSE rebalance today (FTSE Russell in its audit declared the renaming of Pakistan from Auxiliary Arising to Outskirts Market status).

A sum of 482,373,803 offers were exchanged during the day when contrasted with 459,037,985 offers the earlier day, though the cost of offers remained at Rs. 30.188 billion against Rs. 18.610 billion on the last exchanging day.

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Upwards of 453 organizations executed their portions in the securities exchange, 195 of them recorded gains, and 196 supported misfortunes, while the offer cost of 62 organizations stayed unaltered.

The three top exchanging organizations were First Capital Protections with 31,588,613 offers at Rs. 2.76 per offer, Oil and Gas Improvement with 29,408,063 offers at Rs. 141.29 per share and Fauji Compost Canister Qasim with 28,625,529 offers at Rs. 44.36 per share.

Unilever Pakistan Food varieties Restricted saw a greatest increment of Rs. 107.92 per share cost, shutting at Rs. 17,616.25, though the next in line was Administration Ventures Restricted with Rs. 67.09 ascent in its per share cost to Rs. 1,149.79.

Ismail Businesses Restricted saw a most extreme lessening of Rs. 31.79 per share shutting at Rs. 1,625.94 followed by ZIL Restricted with Rs. 23.53 downfall to close at Rs. 215.70.

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