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Author: Mrs. Anjum Shahnawaz

  • FBR chairman replaced despite massive collection growth

    FBR chairman replaced despite massive collection growth

    ISLAMABAD: The new coalition government led by Prime Minister Shahbaz Sharif soon after taking oath replaced the chairman of Federal Board of Revenue (FBR) despite massive growth in revenue collection during the current fiscal year.

    The government appointed Asim Ahmed as the new chairman of the FBR replacing Dr. Muhammad Ashfaq Ahmed.

    READ MORE: FBR surpasses collection target for July – April FY22

    Ashfaq Ahmed was appointed by the former PTI government on August 24, 2021. However, Asim Ahmed has been given the charge of the apex tax agency on April 27, 2022.

    Various quarters are now raising questions about the change of top brass at the FBR at a time when only two months left to complete the fiscal year 2021/2022.

    The FBR posted a massive growth in revenue collection during the tenure of Dr. Ashfaq Ahmed. The press release issued by the FBR is self explainatory about the performance of ex-FBR chairman.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    The FBR collected net revenue of Rs 4,858 billion during July, 2021-April, 2022 of current Financial Year 2021-22, which has exceeded the target of by Rs 239 billion. This represents a growth of about 28.6 per cent over the collection of Rs 3,778 billion during the same period, last year.

    The net collection for the month of April, 2022 realized Rs 480 billion representing an increase of 24.9 per cent over Rs 384 billion collected in April, 2021.

    On the other hand, the gross collections increased from Rs 3,981 billion during July, 2020-April, 2021 to Rs 5,122 billion in current Financial Year July, 2021- April, 2022, showing an increase of 28.7 per cent.

    READ MORE: FBR issues sales tax refund rules for tractor manufacturers

    Finance Minister Miftah Ismail acknowledged the growth saying that FBR collected Rs 5122 billion in current FY (Jul 21- Apr 22) up from Rs 3981 billion during Jul 20-April 21, registering 28.7 per cent growth. Refunds of Rs Rs264 billion disbursed during July 2021-April 2022 compared to Rs 203 billion paid last year, up by 30.1 per cent. “The FBR team deserves appreciation”.

    A big factor in the increase however was increased imports. For instance, sales tax at import stage grew by 58 per cent while it declined by 2 per cent for local goods. “With the right mix of policies and tools I am sure this team will perform even better and to the expectations of the nation,” the finance minister added.

    READ MORE: Tax officials warned of strict action for private consultancy

    Shaukat Tarin, the former finance minister of PTI government, responded to the current finance minister, saying: “Miftah Bhai, if FBR has done such a good job, you should not have changed its Chairman.”

  • Tax officials warned of strict action for private consultancy

    Tax officials warned of strict action for private consultancy

    ISLAMABAD: Federal Board of Revenue (FBR) has warned all the officials of the apex tax agency of disciplinary action if found involved in private consultancy.

    The FBR issued a circular dated April 28, 2022 titled bar against indulging in private consultancy / tax practice by officials of the FBR.

    READ MORE: FBR surpasses collection target for July – April FY22

    The Federal Tax Ombudsman (FTO) initiated an own motion investigation regarding private practice by employees of the FBR who joined local chambers or even opened their own law offices and render legal assistance to taxpayers in the evening or even during office hours.

    “Findings were recorded that many of the officers / officials of FBR associate themselves with different taxpayers and provide legal assistance to them in various taxation matters in total disregard of the instructions under the Government Servants (Conduct) Rules, 1964 whereunder no government servant is allowed to engage in any trade or undertake any employment or work, other than his official duties, except with the previous sanction of the government,” the FBR said.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    Furthermore, Estt, Div.’s O.M. No. 1/20/76-D-IV dated 6-3-1976 contains clear prohibitions regarding undertaking of private work by the government servants, it added.

    The FBR further said it had also issued instructions already on July 03, 2019 on the matter and advised all its employees not to indulge in any private consultancy / tax practice.

    READ MORE: FBR issues sales tax refund rules for tractor manufacturers

    FBR chairman took a serious view of the matter and all FBR employees are again directed to completely abstain themselves from private consultancy / tax practice.

    “Inland Revenue Operation Wing is putting in place a strong monitoring mechanism to ensure the compliance of FTO instructions,” the FBR said, adding that in future any officer / official is found involved in such practice, strict disciplinary action would be taken under Civil Servants (E&D) Rules, 2020.

  • Pakistan’s inflation sharply up by 13.4% in April 2022

    Pakistan’s inflation sharply up by 13.4% in April 2022

    ISLAMABAD: Pakistan’s headline inflation based on Consumer Price Index (CPI) increased sharply by 13.4 per cent in April 2022, according to details released on Sunday.

    Pakistan Bureau of Statistics (PBS) said that CPI inflation General, increased by 13.4 per cent on year-on-year basis in April 2022 as compared to an increase of 12.7 per cent in the previous in March 2022 and 11.1 per cent in April 2021.

    READ MORE: Pakistan’s headline inflation increases by 12.7% in March

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 0.8 per cent in March 2022 and increase of 1.0 per cent in April 2021.

    CPI inflation Urban, increased by 12.2 per cent on year-on-year basis in April 2022 as compared to an increase of 11.9 per cent in the previous month and 11.0 per cent in April 2021.

    READ MORE: Food inflation rural increases by 14.6% in February 2022

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 0.7 per cent in the previous month and increase of 1.3 per cent in April 2021.

    CPI inflation Rural, increased by 15.1 per cent on year-on-year basis in April 2022 as compared to an increase of 13.9 per cent in the previous month and 11.3 per cent in April 2021.

    On month-on-month basis, it increased by 1.6 per cent in April 2022 as compared to increase of 1.0 per cent in the previous month and increase of 0.6 per cent in April 2021.

    READ MORE: Pakistan’s inflation climbs up 24-month high in January

    Sensitive Price Indicator (SPI) inflation on YoY increased by 14.2 per cent in April 2022 as compared to an increase of 13.0 per cent a month earlier and an increase of 21.3 per cent in April 2021.

    On MoM basis, it increased by 1.5 per cent in April 2022 as compared to increase of 0.6 per cent a month earlier and increase of 0.4 per cent in April 2021.

    READ MORE: Sales tax exempted on all petroleum products

    Wholesale Price Index (WPI) inflation on YoY basis increased by 28.1 per cent in April 2022 as compared to an increase of 23.8 per cent a month earlier and an increase of 16.6 per cent in April 2021.

    WPI inflation on MoM basis increased by 3.2 per cent in April 2022 as compared to increase of 3.9 per cent a month earlier and a decrease of -0.4 per cent in corresponding month i.e. April 2021.

  • IPS demands implementation of court judgment on Riba

    IPS demands implementation of court judgment on Riba

    ISLAMABAD: The Institute of Policy Studies (IPS) has demanded the authorities to implement the judgment of Federal Shariat Court regarding Riba free banking system and to make interest free economy.

    The much-awaited verdict of the Federal Shariat Court (FSC) on interest-free economy, despite being overly delayed, sets the course in the right direction by cogently answering all reservations put forward earlier. The decision, by validating the practical viability of an interest-free economy, has opened up new opportunities for the realization of this dream, and should be treated as a stepping-stone by the government and all stakeholders collectively to further build upon.

    READ MORE: Court judgment: Riba is Haram in any form

    This was the consensus view of participants of a hybrid roundtable organized by Institute of Policy Studies (IPS), Islamabad to discuss the way forward following the FSC judgment prohibiting and eliminating interest in all its manifestations.

    The session chaired by Khalid Rahman, chairman IPS, was joined by a galaxy of experts, policy practitioners, scholars and Islamic banking and finance industry leaders such as Dr Waqar Masood Khan, former secretary finance and former SAPM on economic affairs; Dr Salman Syed Ali, lead research economist, Islamic Research and Training Institute, Islamic Development Bank, Jeddah; Dr Muhammad Ayub, director research and training, Riphah Center of Islamic Business, Riphah International University (RIU); Dr Atiquzzafar Khan, dean, Social Sciences, Riphah International University; Zafar-ul-Hassan Almas, joint chief economist, Planning Commission of Pakistan; Dr Tahir Mansoori, former vice president, International Islamic University, Islamabad; Muhammad Farhan-ul-Haq Usmani, executive vice president and head of Shariah audit and advisory, Meezan Bank; Azeem Pirani, chief executive officer, Pak-Qatar Family Takaful; Hafiz Dr Atif Waheed, leader of Tanzeem-i-Islami, Saifullah Gondal Advocate, special assistant for legal and parliamentary affairs, Jamaat Islami, Dr Anwar Shah, department of economics, Quaid-i-Azam University, Ghazala Ghalib, lecturer, Shariah & Law department, Int’l Islamic University Islamabad (IIUI); Ameena Sohail, legal consultant and IPS associate; Qanit Khalil, chartered accountant and IPS associate; Imran Shafique, advocate high court and visiting professor, IIUI; Ahsan Shafiq, ILKI Foundation, Istanbul; Naufil Shahrukh, IPS’ GM Operations, and Syed Nadeem Farhat, senior research officer at IPS.

    READ MORE: FSC reserves judgment in Riba free banking case

    The participants appreciated that the FSC has declared the prohibition of Riba absolute in all its forms and manifestations according to the injunctions of Islam, in yet another landmark decision that had remained pending since 2002.

    Chairman IPS was of the view that the FSC has finally given its verdict regarding Riba but there are suspicions about political will in implementing it. If political will is not present, then it will be an even bigger fight than in the case of materializing this judgment.

    “This judgment cannot be considered as an end in itself. It is just a step further towards molding the whole economy and financial sector according to the injunctions of Islam and laying the foundations of a true Islamic society”, he remarked.

    READ MORE: Riba case adjourned to April 04

    Rahman stressed that task forces and working groups need to be formed along with advocacy and awareness campaigns. The role of mainstream and social media, scholars and politicians in creating awareness and support for the move is of critical importance, he added.

    The experts reminded that Islamic economic system does not just mean Riba-free banking, it means that the whole financial and economic system should be interest-free.

    It was mentioned that FSC has given a very reasonable grace period to the federal government and relevant departments till December 31, 2027, for the implementation of the judgment.

    The participants cautioned that some of the banks or even any government department might file for a review of the judgment, which may result in yet another stay order causing further stalemate.

    READ MORE: Court hearing on Riba-free banking in Pakistan

    They demanded that banks should not be allowed to open any new conventional banking branches following the judgment. The grey areas of banking should be identified and converted into Islamic banking. However, there were few banking products for which there are no alternatives in Islamic banking. As such work should begin in earnest for workable solutions. The need is to work out financing products for specific sectors of the economy, e.g., agriculture, industry, SMEs, etc.

    The discussants believed that that FSC judgment has removed any legal resistance in the way of implementing an Islamic economic system and has effectively blocked the way for any review of its judgment.

    The judgment has been delivered in pursuance of a remand order of the Supreme Court and has addressed all points mentioned in the judgment. As such there would be a limited chance of success for the federal government if it files an appeal again in the Supreme Court, it was highlighted.

    Zafar ul Hassan Almas said that the biggest challenge in implementing the FSC judgment will be the seriousness of the government in this regard. The banks and financial institutions will have to carry out product re-engineering. However, there exists a huge lack of awareness how to do it.

    Ameena Sohail expressed that a detailed in-depth critique of the FSC judgement is required to make things clear. “Responsibilities for implementation of this huge exercise to change the fundamentals of the economic and financial system need to be apportioned. It should not be the duty only of the State Bank of Pakistan as it has already done a lot of work in this regard,” she added.

    Dr. Muhammad Ayub viewed that the working of banks can be modified easily to bring them in alignment with Islamic banking, the major issue will be how to handle public debt such as T-Bills, Sukuk, etc. In Pakistan, there is a general lack of financial literacy regarding Islamic finance and economy. SBP must do more work to infuse the essence of Islamic spirit in the financial sector.

    Naufil Shahrukh was of the opinion that the focus of Islamic economy should shift from the banking sector and cover all aspects of state and society. There is an immediate need to create public awareness, and this should be done through local languages so as to make the exercise more effective. He further added that Pakistan is an agri-based country and interest-based transactions, hoarding and speculative practices exist even at the grassroots level on a large scale, which needs to be addressed by Islamic scholars and media.

  • FBR surpasses collection target for July – April FY22

    FBR surpasses collection target for July – April FY22

    ISLAMABAD: The Federal Board of Revenue (FBR) has surpassed revenue collection target for the first 10 months (July – April) 2021/2022 (FY22) and collected Rs4.86 trillion, a statement said on Saturday.

    (more…)
  • FBR issues sales tax refund rules for tractor manufacturers

    FBR issues sales tax refund rules for tractor manufacturers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday April 29, 2022 issued sales tax refund rules for agriculture tractor manufacturers.

    The FBR issued SRO 563(I)/2022 dated April 29, 2022 to insert new rules in the Sales Tax Rules, 2006.

    Refund to Agricultural Tractor Manufacturers

    READ MORE: FBR transfers senior IR officers in major reshuffle

    390. Application.— (1)This Chapter shall apply to existing and future refund claims as filed by the registered agricultural tractor manufacturers engaged in supply of agricultural tractors.

    (2) The provisions of these rules shall apply only if the incidence of tax sought to be refunded has not been passed on to the consumers.

    39P. Definition.— In this chapter, unless there is anything repugnant in the subject or context,-

    (a) “agricultural tractor” means a tractor used by farmers or growers engaged in production of agricultural produce through tractor; and

    READ MORE: IR offices to observe extended working hours for collection

    (b) “eligible person” means manufacturer of agricultural tractors who supplies tractors to a person holding a valid proof of land holding such as agriculture pass book and copy of record of rights of agricultural land duly verified from Provincial Land Revenue Authorities.

    39Q. Condition on supplies of agricultural tractors.— Only eligible persons shall qualify for availing reduced rate under the Sr. No. 25 of Table-1 of the eighth schedule to the Sales Tax Act, 1990.

    39R. Filing of refund application.—The eligible person shall file a refund claim through STARR/RCPS system and refund application to the Commissioner Inland Revenue having jurisdiction, along with the following documents, namely:—

    (a) a copy of tax paid and e-filed sales tax return;

    (b) an undertaking affirming the genuineness of refund as per Sales Tax Act, 1990 and relevant rules made thereunder;

    (c) a revolving bank guarantee valid for at least one hundred and twenty days issued by a scheduled bank, to the satisfaction of the Commissioner Inland Revenue having jurisdiction of an amount not less than the average monthly refund claim during last twelve months; and

    (d) name, CNIC of buyers along with valid proof of land holding, ledger of already purchased agricultural tractors against each buyer.

    39S. Pre-refund audit.— Where the processing officer or the officer-in-charge is of the opinion that any further inquiry or audit is required in respect of refund claim or for any other reason to establish genuineness and admissibility of the claim, he may make or cause to make such inquiry or audit as deemed appropriate, after seeking approval from the concerned Additional Commissioner and inform the refund claimant accordingly. Audit under this rule shall be completed within thirty days of initiation of the proceedings.

    39T. Refund of input tax.— The refund of admissible excess input tax shall be allowed and issued within seven days of the completion of proceedings initiated under rule 39S and in case no pre-refund audit is conducted, within fifteen days of filing of the refund claim. In any case the refund of admissible excess input tax under these rules shall not be processed through FASTER module.

    39U. Filing of complete refund claim.— Within fifteen days of the sanctioning of refund, the eligible person shall file a complete refund claim along with the requisite supportive documents prescribed under Chapter V of the Sales Tax Rules, 2006.

    39V. Post Refund Audit.— Post refund audit of the refund claims processed under these rules shall be carried out by the concerned division based on the documents submitted by the eligible person and any other relevant documents called by the concerned officer to ascertain the admissibility and genuineness of the refund processed and issued under rule 39T. The proceedings under this rule shall be concluded within sixty days of filing of a complete refund claim by the refund claimant under rule 39U.

    39W. Cost Audit.— In order to determine that the incidence of excess input tax claimed as refund under these rules by an eligible person has not been passed on to the consumers,

    (a) annual cost audit will be conducted by a Cost Accountant authorized by the Board; and

    (b) cost audit for a tax year shall be conducted on the basis of twelve sales tax returns for the tax year, documents filed for refund under these rules, and any other documents called by the Cost Accountant.

    39X. Amount if found inadmissible.— In case any amount already sanctioned and paid is found inadmissible, the same shall be recovered within seven days of completion of proceedings initiated under rule 39V by encashing the bank guarantee to the extent of adjudged liabilities.

    39Y. Section 8B not applicable.— The provisions of sub section (1) of section 8B of the Sales Tax Act, 1990 shall not be applicable on refund claims of admissible excess input tax filed under these rules.

    39Z. Repeal.— The refund claims of Recognized Agricultural Tractor Manufacturers Rules, 2012 are hereby repealed.”

  • FBR transfers senior IR officers in major reshuffle

    FBR transfers senior IR officers in major reshuffle

    ISLAMABAD: The Federal Board of Revenue (FBR) has transferred senior officers of Inland Revenue Service (IRS) following change of its chairman.

    The new government appointed Asim Ahmad as FBR chairman, who assumed the charge on April 27, 2022. Asim replaced Dr. Muhammad Ashfaq Ahmed.

    After this key transfer, the FBR made major reshuffle by notifying transfers and postings of senior IRS officers.

    READ MORE: IR offices to observe extended working hours for collection

    The FBR notified transfers of the following officers of BS-19 and BS-20:

    01. Aqeel Ahmed Siddiqui (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, Benami Zone-III, Karachi from the post of Commissioner Inland Revenue (Appeals-V), Karachi.

    The officer will assume charge after charge relinquishment of Najeeb Ahmad Memon, proceeding on NMC w.e.f 09.05.2022.

    02. Adnan Inamullah Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (WHT) Regional Tax Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Sargodha.

    03. Ms. Humaira Maryam (Inland Revenue Service/BS-20) has been transferred as Commissioner Inland Revenue, (Audit-I) Corporate Tax Office, Lahore from the post of Commissioner, (Legal) Corporate Tax Office, Lahore.

    The officer will assume charge of the post on charge relinquishment of Ms. Laila Ghafoor, proceeding on NMC w.e.f 09.05.2022.

    READ MORE: Asim becomes 32nd FBR chairman

    04. Dr. Erfa Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Legal) Corporate Tax Office, Lahore from the post of Chief, (Legal-II) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad.

    05. Zulfiqar Ahmad (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Admin Pool Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Enforcement) Large Taxpayers Office, Islamabad.

    06. Naeem Babar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-II) Corporate Tax Office, Lahore from the post of Commissioner, (Chenab Zone) Regional Tax Office, Faisalabad.

    The officer will assume charge of the post on charge relinquishment of Ms. Iram Shabbir, proceeding on study leave w.e.f 15.05.2022.

    07. Ms. Shabana Mumtaz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement) Large Taxpayers Office, Islamabad from the post of Commissioner, (Legal) Large Taxpayers Office, Islamabad.

    08. Saleem Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Chief (IMC), Federal Board of Revenue (HQ), Islamabad from the post of Commissioner, (Zone-I) Regional Tax Office, Sargodha.

    09. Mohy ud Din Ismail (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue AEOI Zone, Islamabad from the post of Commissioner, (ICTO Zone) Regional Tax Office, Islamabad.

    10. Rehan Safdar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Lyallpur Zone) Regional Tax Office, Faisalabad from the post of Commissioner, (WHT) Regional Tax Office, Faisalabad.

    READ MORE: POS service fee issue hampers sales tax return filing

    The officer is also assigned the additional charge of the post of Commissioner-IR (WHT), Regional Tax Office, Faisalabad, as per Rules.

    11. Sajjad Azhar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Legal) Large Taxpayers Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Islamabad.

    12. Abdul Hameed Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-V), Karachi from the post of Chief, (IR-Formations) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad.

    13. Ms. Sajida Kausar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Admin Pool Federal Board of Revenue (Hq), Islamabad from the post of Commissioner Inland Revenue AEOI Zone, Islamabad.

    14. Murtaza Siddique Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (SPR&S-I) Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Regional Tax Office, Gujranwala.

    15. Fazli Malik (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Chenab Zone) Regional Tax Office, Faisalabad from the post of Additional Commissioner, Regional Tax Office, Peshawar.

    16. Basit Saleem Shah (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (IR-Formations) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.

    The officer is also assigned the additional charge of the post of Chief (OPS) (Analysis), Inland Revenue Operations, FBR (HQ), Islamabad, as per Rules.

    17. Muhammad Asif (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (WHT) Regional Tax Office, Sargodha from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Peshawar.

    READ MORE: IR officers’ bid to deny tax refund adjustment criticized

    18. Pervez Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (WHT) Regional Tax Office, Bahawalpur from the post of Additional Commissioner, Regional Tax Office, Sukkur.

    19. Ms. Adeela Yusuf Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (Reforms) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Rawalpindi.

    20. Attique-ur-Rehman Mughal (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Jhang Zone) Regional Tax Office, Faisalabad from the post of Additional Commissioner, Large Taxpayers Office, Lahore.

    21. Tauqeer Ahmad (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (POS) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Large Taxpayers Office, Islamabad.

    22. Rehmatullah Khan Durrani (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Zone-II) Regional Tax Office, Quetta from the post of Additional Commissioner, Regional Tax Office, Sukkur.

    23. Ihsan Ullah (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Islamabad from the post of Additional Commissioner, Regional Tax Office, Rawalpindi.

    24. Qadir Nawaz (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Faisalabad from the post of Additional Commissioner, Corporate Tax Office, Lahore.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • IR offices to observe extended working hours for collection

    IR offices to observe extended working hours for collection

    The Federal Board of Revenue (FBR) has issued a directive for the extension of working hours at Inland Revenue (IR) offices on April 29 and 30, 2022 (Friday and Saturday) for revenue collection.

    (more…)
  • Court judgment: Riba is Haram in any form

    Court judgment: Riba is Haram in any form

    ISLAMABAD: The Federal Shariat Court has given its judgment declaring Riba as Haram in any form of transaction.

    The Full Bench of the Court comprising of Mr. Justice Muhammad Noor Meskanzai, Chief Justice, Mr. Justice Dr. Syed Muhammad Anwer and Mr. Justice Khadim Hussain M. Shaikh, in exercise of power under Article 203-D of the Constitution of Islamic Republic of Pakistan announced on Thursday its reserved judgment on Riba.

    READ MORE: FSC reserves judgment in Riba free banking case

    The copy of judgment approved for reporting is only available on the official website of the Federal Shariat Court.

    The Court accepted the petitions and declared that prohibition of Riba is complete and absolute in all its forms and manifestations according to the Injunctions of Islam in accordance with the Holy Quran and Sunnah.

    READ MORE: Riba case adjourned to April 04

    Therefore, for all the detailed reasons deliberated in this judgment the charging of any amount in any manner over the principle amount of a loan or debt is Riba which is completely prohibited according to the Holy Quran and Sunnah of the Holy Prophet (SAW).

    It is pertinent to mention that Riba case was remanded by Shariat Appellate bench Supreme Court of Pakistan in 2002.

    READ MORE: Court hearing on Riba-free banking in Pakistan

    The existing Bench of the Federal Shariat Court headed by the Chief Justice Mr. Justice Muhammad Noor Meskanzai took keen and unprecedented interest in this matter.

    During the chairmanship of his lordship of the Bench thirty four hearings are conducted. Petitioners, their Counsels, Jurisconsults, Amicus Curiae, Economists, Experts, Scholars, Chartered Accountants, Attorney General and Advocate Generals advanced their arguments and the Court heard them with patience. They also gave suggestions for conversion of the existing banking system into Riba free Islamic Banking System.

    READ MORE: PMRC, HBL Islamic Banking raise Rs1bn Sukuk

    The State Bank of Pakistan (SBP) defines Riba as:

    The word “Riba” means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money). This definition of Riba is derived from the Quran and is unanimously accepted by all Islamic scholars.

    The meaning of Riba has been clarified in the following verses of Quran (Surah Al Baqarah 2:278-9)

    “O those who believe; fear Allah and give up what still remains of the Riba if you are believers. But if you do not do so, then be warned of war from Allah and His Messenger. If you repent even now, you have the right of the return of your principal; neither will you do wrong nor will you be wronged.”

    “The origination of term interest dates back to 17th century with the emergence of banking system at global level. Interest means giving and/or taking of any excess amount in exchange of a loan or on debt. Hence, it carries the same meaning/value as that of Riba as defined in the previous question. Further, it is narrated that “the loan that draws interest is Riba”.

    There is consensus among the Muslim scholars of all the fiqhs that interest is Riba in all its forms and manifestations.

  • Asim becomes 32nd FBR chairman

    Asim becomes 32nd FBR chairman

    ISLAMABAD: Asim Ahmad has assumed as the 32nd chairman of the Federal Board of Revenue (FBR) from April 27, 2022.

    It is second term of Asim Ahmad to serve the apex tax agency of Pakistan. Prior the present posting, he served as FBR chairman during April 09, 2021 to August 24, 2021. He is the 10th FBR chairman since June 30, 2017.

    Asim Ahmed replaced Dr. Muhammad Ashfaq Ahmed. Ashfaq served the FBR as chairman for eight months. He was chairman during August 24, 2021 to April 27, 2022. Dr. Ashfaq was 7th FBR chairman during PTI government.

    1)Mr. Asim Ahmad (Current Chairman)27.04.2022 .
    2)Dr. Muhammad Ashfaq Ahmed24.08.202127.04.2022
    3)Mr. Asim Ahmad09.04.202124.08.2021
    4)Mr. Muhammad Javed Ghani07.07.202009.04.2021
    5)Ms. Nausheen Javaid Amjad08.04.202006.07.2020
    6)Ms. Nausheen Javaid Amjad (Acting Chairperson)06.01.202008.04.2020
    7)Syed Muhammmad Shabbar Zaidi10.05.201906.01.2020
    8)Mr. Mohammad Jehanzeb Khan29.08.201810.05.2019
    9)Ms. Rukhsana Yasmin02.07.201829.08.2018
    10)Mr. Tariq Mahmood Pasha04.07.201702.07.2018
    11)Dr. Muhamad Irshad19.01.201730.06.2017
    12)Mr. Nisar Muhammad Khan17.11.201518.01.2017
    13)Mr. Tariq Bajwa02-07-201317.11.2015
    14)Mr.Ansar Javed 10-04-201330-06-2013
    15)Mr. Ali Arshad Hakeem10-07-201209-04-2013
    16)Mr. Mumtaz Haider Rizvi21.01.201210-07-2012
    17)Mr. Salman Siddique24.12.201021.01.2012
    18)Mr. Sohail Ahmad18.05.200918.03.2010
    19)Mr. Moinuddin Khan02.01.199806.11.1998
    20)Mr. Hafeezullah Ishaq11.11.199602.01.1998
    21)Mr. Shamim Ahmed28.08.199611.11.1996
    22)Mr. Alvi Abdul Rahim13.07.199528.08.1996
    23)Mr. Sajjad Hasan24.07.199103.10.1991
    24)Mr. Ahadullah Akmal16.08.199024.07.1991
    25)Mr. Ghulam Yazdani Khan22.01.198911.08.1990
    26)Syed Aitezazuddin Ahmed20.08.198802.01.1989
    27)Mr. I.A. Imtiazi11.08.198520.08.1988
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