Pkrevenue.com

Day: July 3, 2021

  • New rates of regulatory duty on imported smart phones

    New rates of regulatory duty on imported smart phones

    ISLAMABAD: Federal Board of Revenue (FBR) has notified new rates of regulatory duty to be imposed on imported mobile phones during.

    The FBR issued SRO 840(I)/2021 dated June 30, 2021 to notify regulatory duty on 599 tariff lines.

    Following are the rates of regulatory duty on mobile phone with effect from July 01, 2021:

    HS CodeDescriptionRegulatory Duty
    8517.1219Other having C&F Value up to US$ 30 per set excluding Smart PhonesRs.300/set
    8517.1219Other (having C&F Value above US$ 30 per set but not exceeding US$ 100 per set, including Smart Phones having C&F value up to US$ 30 per set)Rs.3,000/set
    8517.1219Other (having C&F Value above US$ 100 per set but not exceeding US$ 200 per set)Rs.7,500/set
    8517.1219Other (having C&F Value above US$ 200 per set but not exceeding US$ 350 per set)Rs.11,000/set
    8517.1219Other (having C&F Value above US$ 350 per set but not exceeding US$ 500 per set)Rs.15,000/set
    8517.1219Other (having C&F Value above US$ 500 per set)Rs.22,000/set
  • Tax officials’ power to amend assessment without audit selection withdrawn

    Tax officials’ power to amend assessment without audit selection withdrawn

    KARACHI: Federal Board of Revenue (FBR) has said that the powers of Inland Revenue officers to conduct an inquiry for amendment of assessment without selection of audit have been withdrawn.

    The FBR while explaining major amendments made in Income Tax Ordinance, 2001, through of Finance Act, 2021 stated that tax authorities were authorized to conduct inquiry under section 122(5A) of the Income Tax Ordinance in certain matters regarding amendment of assessment without selection of case for audit under section 177 of the Ordinance.

    “This power to conduct an inquiry has been withdrawn,” the FBR said.

    The law prescribes a time limit of five years for amendment of assessment. Such proceedings were usually dragged for long periods after issuance of show cause notices. Now the time limit of 120 days has been prescribed to conclude these proceedings after issuance of show cause notice. Necessary changes have been made in section 122(9) of the Ordinance.

    The power of the commissioner to reject advance tax estimates has also been withdrawn. Necessary changes have been made in section 147 of the Ordinance.

    Law has not provided any time limitation to complete proceedings in pursuant to the orders of the commissioner under section 122A. Now proceedings shall be concluded within the time limit of 120 days.

  • Sindh Revenue Board fails to achieve annual collection target

    Sindh Revenue Board fails to achieve annual collection target

    KARACHI: The Sindh Revenue Board (SRB) has missed the revenue collection target of Rs135 billion for fiscal year 2020/2021 and collected Rs128 billion during the year.

    However, the collection for 2020/2021 has registered an increase of 21 per cent in revenue collection for fiscal year 2020/2021 despite adverse economic environment due to coronavirus.

    The SRB collected Rs128 billion during fiscal year 2020/2021 as compared with Rs106 billion in the preceding fiscal year, a top official said on Thursday.

    The official said the growth in revenue collection is impressive considering the general economic slowdown and the resurgence of COVID during the year.

    The SRB however missed the revenue collection target of Rs135 billion for the fiscal year under review.

    The official that the collection of Rs128 billion includes record receipts of Rs121 billion of Sindh sales tax, representing a growth of 21 percent over the collection of Rs100 billion during 2019/2020.

    Collection of Sindh Workers Welfare Fund by SRB during 2020/2021 stood at Rs7 billion as compared to the collection of Rs6 billion during the preceding year, which also represents a growth of 17 per cent.

    The official said that the milestone that SRB had reached represented a consistency of achievement since organization’s inception since 2011, courtesy the hard work and steadfastness demonstrated by the workforce beyond the normal call of duty.

    The official said that no new tax was levied in the Sindh Budget 2020/2021. The business environment was also significantly unfavorable for the services sector which was hard hit by the COVID-19 throughout the year, forcing partial lockdowns.

  • Capital gain tax rates enhanced on disposal of immovable properties

    Capital gain tax rates enhanced on disposal of immovable properties

    ISLAMABAD: The Federal Board of Revenue (FBR) has said that the rates of capital gain tax (CGT) on disposal of immovable properties have been slightly enhanced through Finance Act, 2021.

    The FBR in its explanation to changes made through Finance Act, 2021 in Income Tax Ordinance, 2001, said that a separate block of taxation of capital gain on the sale of immoveable property is available under the Ordinance.

    The gain arising on the disposal of immovable property for more than 4 years, is not taxable.

    The capital gain arising on the disposal of immovable properties is taxable to extent of 100 per cent, 75 per cent, 50 per cent and 25 per cent, if property is sold within 1, 2, 3 and 4 years respectively.

    The gain so calculated on the basis of holding period was taxable at the rates ranging from 2.5 per cent to 10 per cent. Now these rates have been slightly enhanced through changes in Division VIII of Part I of First schedule of the Ordinance, however, the holding period concession remains intact.

    ―Division VIII

    Tax on capital gains on disposal of Immoveable Property

    The rate of tax to be paid under sub-section (1A) of section 37 shall be as follows:-

    TABLE S.NoAmount of GainRate of Tax
    (1)(2)(3)
    1.Where the gain does not exceed Rs. 5 million3.5 per cent
    2.Where the gain exceeds Rs. 5 million but does not exceed Rs. 10 million7.5 per cent
    3.Where the gain exceeds Rs. 10 million but does not exceed Rs. 15 million10 per cent
    4.Where the gain exceeds Rs. 15 million15 per cent