In a move aimed at providing flexibility and mitigating financial burdens for taxpayers, Section 183 of the Income Tax Ordinance, 2001 grants the Federal Board of Revenue (FBR) and the Commissioner Inland Revenue (IR) the authority to exempt individuals or classes of persons from penalties and default surcharges.
(more…)Day: September 19, 2021
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Returns filed after due date not to get ATL status
Section 182A of Income Tax Ordinance, 2001 describes that a person failed to file the income tax return by the due date will not get status of Active Taxpayers’ List (ATL) until the payment default surcharge.
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Sales tax on high speed diesel reduced by 31.5%
ISLAMABAD: The federal government has announced a reduction of sales tax rate by 31.5 per cent on supply of High Speed Diesel (HSD). The rate sales tax on HSD has been reduced in order to lower the impact of higher prices pass on to the consumer.
The Federal Board of Revenue (FBR) issued SRO 1225(I)/2021 dated September 18, 2021 to notify the reduction in sales tax on HSD.
According to the SRO the sales tax rate on HSD has been reduced to 11.64 per cent from previous level of 17.00 per cent.
Previously, the FBR issued SRO 1072(I)/2021 dated August 26, 2021 to revise the sales tax on petroleum products.
In the latest SRO only sales tax rate on HSD has been reduced. The sales tax rates on other petroleum products have been kept unchanged. The sales tax rates on petroleum products are: Petrol 10.54 per cent; HSD 11.64 per cent; Kerosene oil 6.70 per cent; Light Diesel Oil 0.20 per cent.
It is worth mentioning that the federal government on September 15, 2021 announced an increase in the prices of petroleum products.
With the announcement the petrol prices have gone up to the all-time high level. However, it is even more important that the sales tax rates are on the lowest side when compared with the rates applicable during year 2015.
The government has increased latest prices owing to fluctuations in petroleum prices in the international market and exchange rate variation.
Following are the rates of petroleum products, which will take effect from September 16, 2021:
The rate of petrol has been increased by Rs5 to Rs123.30 per liter from Rs118.30.
The rate of high-speed diesel has been increased by Rs5.01 to Rs120.04 per liter from Rs115.03.
The rate of kerosene oil has been increased by Rs5.46 to Rs92.26 per liter from Rs86.80.
The rate of light diesel oil has been increased by Rs5.92 to Rs90.69 from Rs84.77.
In the latest SRO 1225(I)/2021 dated September 18, 2021, the sales tax rates on petroleum products are: Petrol 10.54 per cent; HSD 11.64 per cent; Kerosene oil 6.70 per cent; Light Diesel Oil 0.20 per cent.
The present sales tax rates on petroleum products are much lower when compared with sales tax rates prevailed about six years ago. The FBR issued SRO 963(I)/2015 dated September 30, 2015. The sales tax rates under this SRO are: Petrol 26 per cent; Kerosene 30 per cent; High Speed Diesel 50 per cent; Light Diesel Oil 29.50 per cent.
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Provisional valuation disallowed on existing VR
ISLAMABAD: Importers will not be allowed to avail of the facility of provision valuation for goods declaration when the valuation of such goods is already in the field.
An important amendment has been made into Customs Act, 1969 through Tax Laws (Third Amendment) Ordinance, 2021, which was promulgated through presidential order on September 15, 2021.
A proviso has been inserted to Section 81 of the Customs Act, 1969 to disallow provisional valuation.
Following is the amended text of Section 81:
81. Provisional determination of liability.- (1) Where it is not possible for an officer of Customs during the checking of the goods declaration to satisfy himself of the correctness of the assessment of the goods made under section 79 or 131, for reasons that the goods require chemical or other test or a further inquiry, an officer, not below the rank of Assistant Collector of Customs, may order that the duty, taxes and other charges payable on such goods, be determined provisionally:
Provided that the importer, save in the case of goods entered for warehousing, pays such additional amount on the basis of provisional assessment or furnishes corporate guarantee or pay order of a scheduled bank along with an indemnity bond for the payment thereof as the said officer deems sufficient to meet the likely differential between the final determination of duty, taxes and other charges over the amount determined provisionally:
Provided further that there shall be no provisional assessment under this section if no differential amount of duty and taxes and other charges is paid or secured against corporate guarantee or pay order.
Following is the new proviso added to Section 81:
“Provided further that no provisional determination of value shall be allowed in those cases where a valuation ruling (VR) is in the field, irrespective of the fact whether any review or revision against that VR is pending in terms of section 25D or relevant rules, as the case may be.”
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Exchange rates in PKR vs other currencies on Sept 19
KARACHI: The foreign exchange market in Pakistan updated the buying and selling rates for major foreign currencies this morning at 9:40 AM. These rates serve as a crucial benchmark for individuals and businesses engaging in trade, travel, and remittances.
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Customs restricted to reopen assessment of consignment
The Customs authorities have been restricted from reopening the assessment of consignment clearance based on incorrect information after a three-year period.
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Member Customs to make orders in valuation rulings
The Tax Laws (Third Amendment) Ordinance, 2021 has granted enhanced powers to the Member Customs, allowing them to annul or modify orders previously passed by the Director-General of Customs Valuation.
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