Day: December 22, 2019

Sindh issues schedule for announcing budget 2020/2021

KARACHI: Sindh government has announced to present provincial budget for 2020/2021 in first or second week of June 2020.

According to schedule issued by Sindh Finance Department the budget for the fiscal year 2021/2020 likely to be presented to the cabinet and the provincial assembly by the finance minister in the first or second week of June 2020.

According to the schedule by May 28, 2020, the finance department would complete all budget documents, schedules, and summaries for the cabinet.

The planning and development department would present finalized Annual Development Program (ADP) – 2020/2021 by third or fourth week of May 2020.

The meeting of National Economic Council (NEC) is scheduled for first week of May 2020.

The finance department would finalize new taxation proposals and review existing taxes and fees by April 30, 2020.

The meeting of Annual Plan Coordination Committee (APCC) to be held by fourth week of April 2020.

The finance department would finalize Medium Term Budge Framework (MTBF) 2022/2023 by March 31, 2020.

The finance department would finalize of revised estimates for 2019/2020, budget estimates for 2020/2021 and SNE 2020/2021 for recruitment budget by March 31, 2020.

Last date for incorporation of any modification in the ADP 2020/2021 for Annual Plan Coordination Committee by April 20, 2020.

The Sindh government issued budget circular which is integrated the formulation of the Recurrent (non-development) & Development budget and it is being issued in consultation with Planning & Development Department.

Accordingly two additional forms (Form BCC-X and BCC-XI) have been incorporated in the circular for the formulation of development budget.

The Planning & Development Department will have the lead role in development budget formulation, whereas, the Finance department will be formulating the non-development Budget, Receipts and MTBF.

All Administrative Departments are required to submit budgetary proposals on prescribed forms which will be scrutinized by Finance Department and Planning & Development Department in detail, as per prevailing practice.

December 22, 2019
Sindh finalizes action against tax defaulting motor vehicles from Dec 23

KARACHI: Sindh Excise and Taxation Department is finalize arrangements for launching a drive against tax defaulting motor vehicles from December 23, 2019.

Teams have been constituted to launch the drive against tax defaulting motor vehicles across the province.

This decision was made at a meeting, chaired by the Minister of Excise and Taxation and Narcotics Control and Parliamentary Affairs, Mukesh Kumar Chawla.

The meeting was also attended by Secretary Excise and Taxation & Narcotics Control Abdul Haleem Sheikh, Director General Excise and Taxation & Narcotics Control Shoaib Ahmed Siddiqui and other officers.

Giving the briefing to the meeting, Director General Shoaib Ahmed Siddiqui said that a massive public awareness campaign had been launched through media so that they could deposit their taxes in a timely manner and on the occasion of the road checking campaign, tax defaulting vehicles would be confiscated and the vehicles would be returned only after payment of due taxes and the arrears.

Addressing the meeting, the Minister for Excise and Taxation & Narcotics Control and Parliamentary Affairs, Mukesh Kumar Chawla, advised the owners of the vehicles to transfer the vehicles into their names immediately after purchasing the vehicle because driving on open litter is a crime.

He added that if the vehicle was used in a crime, then the person whose name was at that time, would be considered legally the original owner while there were 15 branches of National Bank of Pakistan for the convenience of the people to deposit their due taxes have been assigned and the details of these branches are posted on the department’s website and published in newspapers as well.

On this occasion DG Shoaib Ahmed Siddiqui told that National Bank Branches were at Awami Markaz, Clifton, Site Area, Nazimabad, Shahbaz Building Hyderabad, Millat Road, Korangi Industrial Area, M.A. Jinnah, Dinsu Hall, Fatima Road Jinnah Road Hyderabad, DHA, PIDC, I.I Chandigarh Road, Gulshan and High Court.

In case of any problem, people might contact, Director Karachi 99203671, Director Mirpur Khas 0233-9290211, Director Sukkur 071-9310202, Deputy Director Admin. Karachi 021-99201410, Director Hyderabad 022-9200148, Director Shaheed Benazir Abad 0244-9370178 and Director Larkana 074-9410751.

Provincial Minister Mukesh Kumar Chawla advised the owners of tax defaulting vehicles to deposit their taxes before December 23 to avoid any unpleasant situation on the roads.

He also directed the officers/officials to remain polite with the owners of the vehicles but strict in implementing the law as he would not tolerate any lethargic attitude in this regard.

December 22, 2019
Benami properties with known sources not to attract penal action

KARACHI: A person having known source of income for a property and keeps in someone else name will not attract penal action under Benami Transaction laws, sources in Federal Board of Revenue (FBR) said.
(more…)

December 22, 2019
Final tax regime for certain amount under Income Tax Ordinance

KARACHI: Federal Board of Revenue (FBR) has defined final tax regime for certain income with certain conditions explained under Income Tax Ordinance, 2001.

Following are the income falling under Final Tax Regime under the Ordinance:

Section 5: Tax on dividends

Section 6: Tax on certain payments to non-residents.—

Section 7: Tax on shipping and air transport income of a non-resident person.

Section 5AA: Tax on return on investments in sukuks.

Section 7A: Tax on shipping of a resident person.

Section 7B: Tax on profit on debt.

The Section 8 of the Ordinance explained the scheme and terms and conditions
General provisions relating to taxes imposed under sections 5, 6 and 7
(1)-Subject to this Ordinance, the tax imposed under Sections 5, 5AA, 6, 7, 7A and 7B shall be a final tax on the amount in respect of which the tax is imposed and—

(a) such amount shall not be chargeable to tax under any head of income in computing the taxable income of the person who derives it for any tax year;

(b) no deduction shall be allowable under this Ordinance for any expenditure incurred in deriving the amount;

(c) the amount shall not be reduced by —

(i) any deductible allowance; or

(ii) the set off of any loss;

(d) the tax payable by a person under section 5, 5A, 5AA, 6, 7, 7A and 7B shall not be reduced by any tax credits allowed under this Ordinance; and

(e) the liability of a person under section 5, 6 or 7 shall be discharged to the extent that —

(i) in the case of shipping and air transport income, the tax has been paid in accordance with section 143 or 144, as the case may be; or

(ii) in any other case, the tax payable has been deducted at source under Division III of Part V of Chapter X.

December 22, 2019
IR barred from arresting women on tax default

KARACHI: The offices of Inland Revenue are prohibited for arresting women on charge of tax default. Besides, the offices also cannot arrest a minor.

According to Income Tax Rules, 2002 there is prohibition against arrest of woman or minor.

The commissioner of Inland Revenue shall not order the arrest or detention in the civil prison of: a woman; or any person who, in his opinion, is a minor or of unsound mind.

The rules also envisaged certain conditions on IR officers regarding entry into dwelling house for arresting tax defaulter.

For the purpose of making an arrest under these rules,-

(a) no dwelling house shall be entered after sunset and before sunrise;

(b) no outer door of a dwelling house shall be broken open unless such dwelling house or a portion thereof is in the occupancy of the defaulter and he or any other occupant of the house refuses or in any way prevents access thereto; but, when the person executing any such warrant has duly gained access to any dwelling house, he may break open the door or any room or apartment if he has reason to believe that the defaulter is likely to be found there; and

(c) no room, which is in the actual occupancy of a woman who, according to the custom of the country, does not appear in public shall be entered into unless the officer authorized to make the arrest has given notice to her that she is at liberty to withdraw and has given her reasonable time and facility for withdrawing.

In case of illness of a tax defaulter the commissioner can release by cancelling the warrant for the arrest.

Release on ground of illness.-

(1) At any time after a warrant for the arrest of a defaulter has been issued, the Commissioner may cancel it on ground of the serious illness of the defaulter.

(2) Where a defaulter has been arrested, the Commissioner may release him if, in the opinion of the Commissioner of Tax, he is not in a fit state of mind to be detained in the civil prison.

(3) Where a defaulter has been committed to the civil prison, he may be, released therefrom by the Commissioner on the ground of the existence of any infectious or contagious disease or on the ground of his suffering from any illness.

(4) A defaulter released under this rule may be re-arrested, but the period of his detention in the civil prison shall not in the aggregate exceed that authorized by rule 164.

December 22, 2019