Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR allows refund adjustment to facilitate return filing

    FBR allows refund adjustment to facilitate return filing

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday allowed refund adjustment to facilitate taxpayers in filing returns for tax year 2022.

    The FBR said it had received a number of representations from various Tax bars, businesses and other stakeholders on the issue of non-availability of refund adjustment tab in the return forms available in the Iris, an online portal of FBR for return filing.

    READ MORE: FPCCI seeks statutory time for return filing after error removals

    In order to ensure smooth filing of returns and to improve ease of doing business and decrease cost of compliance of taxpayers, the revenue board has enabled refund adjustment tab in the return forms.

    “This facility will enable taxpayers to adjust their pending refund claims against admitted liability of Tax Year 2022 at the time of filing of tax returns who had filed applications to claim their outstanding refunds of previous years,” the FBR said.

    READ MORE: FBR advised to extend tax return filing date for three months

    In this regard it is informed that refunds applications filed up to September 09, 2022 are eligible for adjustment of refunds.

    “This facility is available to all taxpayers who have not claimed excess adjustment against previous years’ refunds,” the FBR added.

    Previously, the Pakistan Tax Bar Association (PTBA) and affiliated tax bars in the country strongly criticized the FBR for denying the right of adjusting past years refunds against current liability.

    READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline

    The PTBA on September 24, 2022 approached the FBR chairman to resolve the issue and the apex tax bar also suggested measures to facilitate taxpayers in this regard.

    It said that adjustment of earlier refunds due, in the cases against admitted tax liability for Tax Year 2022 is a statutory right of a taxpayer, which has always been acknowledged, even by the system of IRIS from years to years.

    Tax Year 2022 is the first Tax Year where for the key to claim adjustment of refund in the return form available on portal, has been blocked without assigning any plausible legal justification.

    The sole stance of the officials of FBR in this respect is that various tax payers claim refunds in their returns which is not admissible.

    READ MORE: Penalties for failure to file return tax year 2022 within due date

    “We wish to bring on record that PTBA would never support any such illegal action of any person and at the same time it is submitted that the responsibility to verify the authenticity of refund was on the field formations of the FBR who never took any pain to verify the claim of refunds at their own,” the apex tax bar said.

    On the other side facility to adjust refund against admitted tax liability for Tax Year 2022 has been taken away due to which the taxpayers have been forced to pay tax in cash, no matter how much refund is due to them.

  • Miftah resigns as finance minister after taking tough decisions

    Miftah resigns as finance minister after taking tough decisions

    Dr. Miftah Ismail has resigned the post of the finance minister on Sunday. Ismail has taken many tough decisions for the country’s economy during his stay since April 2022.

    “In a meeting with Mian Nawaz Sharif and Prime Minister Shehbaz Sharif today [Sunday September 25, 2022], I have verbally resigned as Finance Minister. I will tender a formal resignation upon reaching Pakistan. It’s been an honour to serve twice as Finance Minister,” Miftah Ismail said in a Tweet.

    READ MORE: Pakistan’s forex reserves slip to $14.07 billion

    Miftah Ismail assumed the charge as finance minister as soon the new coalition government led by PML (N) came into the power after the former Prime Minister Imran Khan of Pakistan Tehreek I Insaaf (PTI) was ousted through a vote of confidence.

    During this period Pakistan had seen severe economic crisis, especially the balance of payment, local currency depreciation and negotiations with the International Monetary Fund (IMF).

    READ MORE: ECC approves clearance of banned items landed till August 18, 2022

    The biggest achievement of Miftah Ismail was successful negotiations with the IMF. Although, the government had taken very tough decisions, especially removal of subsidies on petroleum products and energy to achieve the IMF bailout package.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    It is learnt that senator Ishaq Dar is assuming the charge as finance minister. Dar was living abroad for the last many years. However, the present government is believing that Dar was the best choice to face challenges that the country was facing.

    Ahsan Iqbal, Federal Minister Planning and Development has acknowledged the services of Miftah Ismail and said in a Tweet: “You served under most challenging circumstances. You saved default at the cost of personal reputation. Your services will be remembered.”

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

  • Pakistan assures extending tax incentives to Qatari businessmen

    Pakistan assures extending tax incentives to Qatari businessmen

    Pakistan has reaffirmed its commitment to provide tax incentives and collaborative support to Qatari businessmen looking to invest in the country.

    (more…)
  • Dispensation of swift justice priority of Supreme Court of Pakistan

    Dispensation of swift justice priority of Supreme Court of Pakistan

    Pakistan needs a speedy justice system in order to win the confidence of people and take quantum leap to reduce the pendency of cases. The Supreme Court of Pakistan (SCP) has taken various measures to improve the justice system in the country and encourage all the lower and higher courts to enhance efficiency in their workings.

    In order to recognize the efficiency, the SCP distributed awards among model court judges in 2019. Shabana Waheed, Additional District Judge (ADJ) Karachi Central was among the judges, who received the model court award.

    ADJ Shabana Waheed is taking lead in providing speedy justice without hurting the actual essence of the justice system. She is known to resolve disputes in shorter span of time even convincing parties to resolve with the mutual consent to settle out of court.

    In a recent case, ADJ Shabana Waheed helped the parties to mutually resolve the dispute of an immovable property. It was case of real brother and a sister. The sister was claiming that the immovable property was in the name of her mother and the distribution of shares should be within heirs of the mother. On the other hand the brother claimed it was benami property as their mother was a housewife; therefore, the owner of the property would be he himself or his father (late), as the property was purchased after the death of the father.

    During course of discussion, the sister disclosed that her father had purchased another immovable property during his lifetime and the instant disputed property was purchased from the funds received through sale of the previous property that was also sold after the death of the father. The disclosure of the sister cleared the things.

    The brother offered to surrender his benami right if his sister agreed to distribute share amongst all heirs of their father, including step sisters and brothers. The sister also showed positive gesture and agreed to the proposal.

    The role of the ADJ is that, though it was not official court proceeding, she resolved the issue while convincing both the sister and the brother to abide the Sharia Law and protect the rights. She also referred many verses of the Holy Quran to shed light on the importance of rights.

    This quick resolution not only bring closer both brother and sister, who were contesting this case for the past many years, but it also resulted harmony in the society just because of ADJ Shabana Waheed.

    Hon’ble Chief Justice of Pakistan Mr. Justice Umar Ata Bandial at the opening ceremony of New Judicial Year 2022-2023 said that dispensation of swift and economic justice being a priority, the Federal Judicial Academy and the Law and Justice Commission of Pakistan (LJCP), under the guidance of this Court, are resorting to alternative dispute resolution (ADR), which in time shall reduce the pendency of cases in all tiers of courts by around 40 percent, in the next three years.

    The Opening ceremony of New Judicial Year 2022-2023 was held today on 12th September 2022 in Court Room No.1 of Supreme Court of Pakistan, Islamabad. The ceremony was presided over by the Hon’ble Chief Justice of Pakistan Mr. Justice Umar Ata Bandial and was attended by the Hon’ble Judges, law officers and members of the legal fraternity.

    The ceremony was held on the eve of the start of the New Judicial Year, to take stock of performance of the past year and to formulate future policies accordingly not only for advancement of justice but also for protection of the fundamental rights of the people.

    The Hon’ble Chief Justice graced the occasion with the key note address. His lordship informed that during the period from 2nd Feb, 2022 till 9th Sep, 2022 the court has decided 14,943 cases, minimizing the pending cases from 54,134 to 50, 265, accordingly.

    The Hon’ble Chief Justice of Pakistan concluded with a solemn pledge regarding the court’s commitment to defend the Constitution in its entirety.

  • FBR promotes 35 IRS officers to BS-18

    FBR promotes 35 IRS officers to BS-18

    The Federal Board of Revenue (FBR) announced on Friday the promotion of 35 officers from the Inland Revenue Service (IRS) from BS-17 to BS-18 on a regular basis, effective immediately.

    (more…)
  • ECC approves clearance of banned items landed till August 18, 2022

    ECC approves clearance of banned items landed till August 18, 2022

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the customs clearance of banned items, which landed till August 18, 2022.

    Federal Minister for Finance and Revenue Miftah Ismail virtually presided over the meeting of the ECC. Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmmod, Federal Minister for National Health Services, Regulations and Coordination Abdul Qadir Patel, MNA/ex-PM Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Coordinator to the PM on Economy Bilal Azhar Kayani, Chairman NDMA, Chairman FBR, Federal Secretaries and senior officers attended the meeting.

    READ MORE: USC to disburse ration bags worth Rs540 million to flood victims

    The ECC considered a summary of Ministry of Commerce on clearance of stuck up consignments in light of office memorandum dated 22 July, 2022, 19 August, 2022 and 23 August, 2022 issued by Ministry of Commerce.

    The ECC approved the proposal and directed that the consignments of previously banned items that landed in Pakistan till August 18, 2022 may be released at the rate of surcharge.

    Ministry of National Health Services, Regulations and Coordination presented a summary for exemption of Active Pharmaceutical Ingredients (APIs) from Custom Duty and Additional Custom Duty.

    READ MORE: Pakistan State Oil gets Rs30 billion to avoid default

    The ECC after discussion directed Ministry of National Health Services, Regulations and Coordination to withdraw the summary and submit a fresh summary to rationalize price of paracetamol to ensure its availability.

    The summary presented by Ministry of National Food Security and Research regarding import of Wheat through Gwadar sea port was deferred by ECC.

    National Disaster Management Authority (NDMA) presented a summary for allocation of funds for procurement and logistics of relief items for flood affectees and apprised about devastation caused by the recent floods in Pakistan. In order to provide immediate relief to the flood affectees, NDMA started procurement on emergency basis costing Rs. 2.4 billion.

    READ MORE: Pakistan decides to lift ban on imported goods

    Due to colossal damages, the already procured items are not sufficient viz-a-viz relief requirement in the flood affected areas.

    Therefore, NDMA placed orders for procurement of more items at cumulative cost of Rs. 7.113 billion, which are being procured in emergency to provide relief to affectees. Previously, NDMA was allocated Rs. 8 billion for procurement and logistics cost of relief items to the flood affectees.

    READ MORE: 15% surcharge imposed for clearance of banned items

    The amount was insufficient as the cost of only procurement has surpassed Rs. 9.5 billion. Besides procurement, NDMA is also undertaking logistics of all relief goods and materials provided by friendly countries.

    Foregoing in view, the ECC approved allocation of Rs. 10 billion to National Disaster Management Authority (NDMA) with direction to the Finance Division to immediately release Rs. 5 billion to NDMA.

  • Customs appraising officer awarded ‘dismissal from service’

    Customs appraising officer awarded ‘dismissal from service’

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday awarded major penalty of ‘dismissal from service’ upon an appraising officer of Pakistan Customs on the charges of misconduct.

    According to an official notice, the FBR stated disciplinary proceedings were initiated against Syed Imtiaz Hussain Shah, Appraising Officer (BS-16), Directorate of Post Clearance Audit (North), Islamabad by the Authority/Member (Admn/HR) by issuing order under Rule-7 read with Rule-6 of the Civil Servants (Efficiency & Discipline) Rules, 2020 dated July 20, 2022 on account of acts of omission and commission constituting “Misconduct” under Rule- 3(b) read with Rule-2(1)(K) of the Civil Servants (E&D), Rules, 2020.

    READ MORE: Outbound passengers to declare currency above $5,000

    A Show Cause Notice was served upon Syed Imtiaz Hussain Shah, Appraising Officer (BS-16). In response to the Show Cause Notice, the accused submitted defence reply to the Authority on August 16, 2022 along with the request for personal hearing.

    The Member (Admn/HR) / Authority afforded an opportunity of personal hearing to the accused on September 08, 2022.

    READ MORE: Dental practitioners directed to get sales tax registration

    After having gone through the case record including reply to Show Cause Notice, verbal submissions made by the accused during the personal hearing and other relevant record, the Member (Admn/HR) being Authority in this case, is of the considered opinion that the charges of “Misconduct” stand established against the accused.

    READ MORE: Tax rates on profit from bank deposits during year 2022/2023

    Therefore, the Authority Member (Admn/HR) has decided to impose a major penalty of “Dismissal from Service” upon Syed Imtiaz Hussain Shah, Appraising Officer, Directorate of Post Clearance Audit (North), Islamabad under Rule- 4(3)(e) of the Civil Servants (E&D) Rules, 2020.

    The officer will have a right to appeal against this Order to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 within a period of 30 days from the date of communication of this Notification.

    READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023

  • Outbound passengers to declare currency above $5,000

    Outbound passengers to declare currency above $5,000

    Federal Board of Revenue (FBR) Wednesday issued draft rules to make it mandatory for outbound passengers to make declaration of currency amounting above $5,000.

    The FBR issued draft amendment to Baggage Rules, 2006 by issuing SRO 1751(I)/2022 dated September 20, 2022.

    READ MORE: Rupee ends near historic low; Dollar gains to PKR 239.65

    The revenue body said that the draft rules had been published for information of all persons likely to be affected and notice is also given that objections or suggestions may for consideration of the board should be sent within seven days of the draft amendments.

    According to the amendment, in case of accompanied baggage, the outbound passenger who is in possession of foreign currency exceeding $5,000 of equivalent, any other prohibited or restricted item or any other item requiring declaration before Customs, shall file a declaration before or on departure, electronically in the WeBOC or manually.

    READ MORE: PKR falls for 13th session as dollar ends near record high

    Similarly, the incoming passenger who is in possession of foreign currency exceeding $10,000 or equivalent, any other prohibited or restricted item or any other item requiring declaration before customs shall file a declaration.

    Earlier, on September 11, 2022, the FBR issued a clarification stating that a misleading impression has been created in some section of the press that Pakistan has recently imposed currency declaration requirements for passengers coming into Pakistan, which is contrary to facts. Unlike portrayed by some section of the press, the mandatory requirement for passengers coming into Pakistan and bringing currency and/or negotiable instruments was notified by the State Bank of Pakistan more than 10 years ago vide notification no. F.E.1/2012-SB dated 16th June 2012. This requirement came into force on July 01,2012.

    READ MORE: PKR plunges for 12th session; Dollar ends at PKR 237.91

    Subsequently, in order to widen the scope of declaration to include gold jewelry, precious stones and other prohibited/ restricted goods, Pakistan Customs also introduced a comprehensive “Customs Declaration Form for Passengers” which was notified vide SRO 689(I)/2019 dated 29th June, 2019. These rules cover both the incoming and outgoing passengers.

    These requirements for declaration are in line with international standards and the best practices adopted by most of the countries in the world. The passengers can make the declaration either manually at the Customs counter or electronically in the Customs System. In order to increase awareness amongst the international passengers, Pakistan Customs has been collaborating with the Civil Aviation Authority, Airlines, and Immigration Authorities to improve its outreach for both departing and arriving passengers. As a result, the compliance has been steadily increasing.

    READ MORE: Dollar rallies for 11th straight session; ends PKR 236.84 at interbank

    FBR has further reiterated that the currency declaration regime for all international passengers has been in field for more than a decade, rather than being recently introduced on account of any recent FATF review requirements.

  • New petroleum prices in Pakistan effective from September 21, 2022

    New petroleum prices in Pakistan effective from September 21, 2022

    Pakistan on Wednesday revised the prices of petroleum products that are effective from September 21, 2022.

    According to a statement issued by the Finance Division, the government decided to increase prices of petrol by Rs1.45 per liter to Rs237.43 from previous rate of Rs235.98.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    However, the government kept the price of high speed diesel (HSD) unchanged at Rs247.43 per liter.

    The price of kerosene oil has been reduced by Rs8.30 per liter to Rs202.02 from Rs210.32.

    Similarly, the rate of light diesel oil has been reduced by Rs4.26 per liter to Rs198.28 from previous rate of Rs201.54.

    The finance division said that in the wake of fluctuating global oil prices and exchange rate variation, the government had decided to revise the prices of petroleum products.

    The government review the prices of petroleum products every fortnight. The latest rate revision was scheduled for September 15, 2022 for the period starting from September 16, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    However, the government delayed the review which raises concerns amongst the stakeholders as many believed the government deliberately kept the price at higher side despite significant decline in global oil prices.

    A day earlier, Korangi Association of Trade and Industry (KATI) expressed concern over delay in revision of petroleum prices by the government.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    KATI President Salman Aslam expressed concern over the government’s delay in changing the prices of petroleum products.

    He said that there is a trend of continuous decline in oil prices in the global market, and the government should immediately announce a reduction in the price of petrol so that inflation and production costs can be reduced.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

  • Today’s petroleum prices in Pakistan

    Today’s petroleum prices in Pakistan

    ISLAMABAD: Petroleum prices in Pakistan are remained same at the level announced earlier this month as the government has not revised the prices as scheduled.

    Today’s prices as on September 20, 2022 is the same as announced and effective on September 01, 2022 as the government had not revised the prices which were scheduled on September 15, 2022 and effective on September 16, 2022.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Therefore, today’s prices of petroleum products in Pakistan are:

    The price of petrol is Rs235.98 per liter.

    The price of high speed diesel is Rs247.43 per liter.

    The rate of kerosene oil is Rs210.32 per liter.

    The price of light diesel oil is Rs201.54 per liter.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    Experts believe that Pakistan may increase the petroleum prices for the fortnight because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.

    However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.

    The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    Pakistani Rupee (PKR) has plunged by PKR 20 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by PKR 20 to Rs239 to the dollar on September 20, 2022 in midday interbank foreign exchange market.