On this day…

Good morning and welcome to The Blue Express! As we step into another day, let's take a moment to reflect on some of the significant historical events that occurred on July 20th:

•  1969 - Apollo 11 Moon Landing: Neil Armstrong and Buzz Aldrin became the first humans to walk on the moon.

• 1944 - Assassination Attempt on Hitler: The July 20 Plot, led by Claus von Stauffenberg, was a failed attempt to kill Adolf Hitler.

• 1976 - Viking 1 Lands on Mars: NASA's Viking 1 became the first US spacecraft to land on Mars and send back images.

• 1923 - Pancho Villa Assassinated: Mexican revolutionary leader Pancho Villa was assassinated in Parral, Chihuahua, Mexico.

Open Market Forex Rates

Data is provided by Link Exchange

Todays Gold and Silver prices

Gold Price (per Tola): 24 Karat: PKR 249,800

Silver Prices (per Tola): PKR 3,133

*These prices are consistent across major cities like Karachi, Lahore, Islamabad, and Rawalpindi with minor variations

Data is provided by Waseem Jewellers

WORLD

Protests in Dhaka, Bangladesh Over Job Quota System

• Defying Ban and Continuing Protests: Students returned to the streets of Dhaka, defying a ban on public rallies after violent clashes left dozens dead. Symbolic funeral processions were held to honor the victims, with at least 33 people reported dead since the protests began.

• Demand to Scrap Job Quota: The protests demand the government abolish a job quota favoring families of veterans from the 1971 independence war. Students argue the system is discriminatory and are calling for recruitment based on merit.

• Heavy Police Presence and Shutdowns: Dhaka saw a heavy police presence, with bus and train services halted, schools and universities closed, and roads blockaded by protesters. The government has imposed a communication shutdown, making it difficult to assess the situation fully.

• Opposition Support and Continued Violence: The main opposition party, Bangladesh National Party, called for further protests and expressed support for the students. Clashes between protesters, police, and government supporters continued, with incidents reported in 26 districts. Attempts at dialogue between the government and protesters

PAKISTAN

PPP Backs PML-N's Review Petition but Questions PTI Ban

• Review Petition Backed: The Pakistan Peoples Party (PPP) has expressed full support for the Pakistan Muslim League-Nawaz's (PML-N) review petition against the Supreme Court's ruling on reserved seats.

• Concerns Over PTI Ban: While the PPP supports the review petition, it has shown concerns regarding the PML-N's plan to ban the Tehreek-e-Insaf (PTI) and invoke Article 6 against opposition leaders. The PPP has proposed further discussions on this issue.

• Consultation Among Allies: Prime Minister Shehbaz Sharif held consultations with allied parties, including the PPP, to discuss the Supreme Court verdict and the potential PTI ban. The PML-N took allies into confidence over its decisions, but the PPP's legal team voiced concerns about the future impacts.

• Future Discussions Planned: The two parties agreed to make decisions about the PTI with consensus and to continue negotiations in the future. The issue of banning the PTI will be discussed at the party level and then brought before parliament and the federal cabinet.

Banks in Pakistan Implement New Tax Deductions on Advertising and Digital Services

In a significant development affecting both businesses and consumers, banks across Pakistan are set to implement new tax deductions on a variety of services. This move is part of the Federal Board of Revenue's (FBR) ongoing efforts to increase tax compliance and revenue collection from the digital economy and advertising sectors.

Starting this month, a 13% provincial sales tax will be deducted on all advertising services. This measure aims to ensure that advertising expenditures are appropriately taxed, aligning with provincial tax regulations. Businesses utilizing advertising services will need to factor in this additional cost, which could impact marketing budgets and strategies.

For consumers, particularly those subscribing to digital streaming services, the financial landscape is also changing. A 3% sales tax will now be applied to Netflix subscription fees when paid via debit or credit card. This new tax requirement highlights the increasing focus on capturing tax revenue from digital services, a sector that has seen substantial growth in recent years. Interestingly, the Telenor payment option previously included tax deductions, making it a less surprising adjustment for some users.

Moreover, international transactions will now be subject to an advance tax of 5% for tax filers and a significantly higher rate of 10% for non-filers. This measure is designed to encourage more individuals and businesses to file their taxes, thereby broadening the tax base and increasing overall compliance.

In addition to these taxes, card transactions will incur a 4% transaction charge, along with the federal excise duty. These combined charges will likely affect consumer spending patterns, especially for those frequently using card payments for their purchases.

In a noteworthy move, the FBR has also issued a demand notice to Netflix, requiring the streaming giant to pay 200 million PKR in taxes for the last two years. This demand stems from the revelation that Netflix earned 1 billion PKR from the Pakistani market in 2021 alone. The substantial tax bill underscores the government's determination to ensure that multinational digital companies contribute their fair share to the national exchequer.

These new tax measures reflect a broader strategy by Pakistani authorities to enhance tax revenues from both traditional and digital economic activities. While they may pose initial challenges for businesses and consumers, they are expected to play a crucial role in strengthening the country's fiscal health in the long term.Banks in Pakistan will implement a 13% provincial sales tax on all advertising services.

• A 3% sales tax will be applied to Netflix subscription fees paid via debit or credit card.

• Telenor payment option for Netflix previously included tax deductions.

• International transactions will be subject to a 5% advance tax for filers and a 10% advance tax for non-filers.

• Card transactions will incur a 4% transaction charge, plus federal excise duty.

• The FBR has demanded 200 million PKR in taxes from Netflix for the past two years.

• Netflix earned 1 billion PKR from the Pakistani market in 2021 alone.

• These tax measures aim to enhance revenue collection and improve tax compliance from both traditional and digital sectors.