Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR tightens monitoring to prevent currency smuggling

    FBR tightens monitoring to prevent currency smuggling

    ISLAMABAD: The Federal Board of Revenue (FBR) has tightened monitoring to prevent currency smuggling in the wake of free-fall in rupee value against the foreign currencies.

    A statement issued on Sunday stated that FBR Chairman Asim Ahmad had instructed customs field formations for stepping up vigilance to ensure monitoring of passengers to stop currency smuggling.

    “Building further on its policy of zero tolerance against currency smuggling, Chairman FBR has instructed Customs field formations for stepping up vigilance at airports and land border stations. Concerned Collectorates to ensure monitoring of all inbound and outbound passengers,” according to a Tweet.

    The US dollar has continued momentum of appreciation against the Pakistan Rupee (PKR) in the interbank foreign exchange market.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    The rupee fell for the eight straight days to the record low of Rs192.53 to the dollar on May 13, 2022. The fall in rupee value may be attributed to fall in foreign exchange reserves and high payments for imports. However, some believed the unrecorded outflow of foreign currency also depressed the foreign exchange market.

    Previously, the FBR on September 24, 2021 issued a clarification rebutting the reports of currency smuggling from Pakistan to Afghanistan.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    In the statement, the FBR categorically rebutted the unfounded, malicious intent and misleading in content propaganda being advanced by some irresponsible elements that there was a huge flight of dollars from Pakistan.

    It is further clarified that previously the bilateral trade between Pakistan and Afghanistan was carried out in US Dollars but now the same is being conducted in Pak Rupees (PKR).

    Furthermore, FBR has taken very stringent enforcement measures at the Airports to eliminate the possibility of any such an unethical practice.

    Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    It is most likely that Chairman FBR and Member (Customs Operations) will visit the Pak-Afghan border to oversee the functioning of the above mechanism on the ground.

    It is further reiterated that this transparent and efficient mechanism being adopted at all the airports across Pakistan is facilitating the smooth and easy movement of outbound passengers, thus significantly reducing their time and cost.

  • FBR issues procedure for restoration of input tax adjustment

    FBR issues procedure for restoration of input tax adjustment

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued procedure to restore input tax adjustment claimed by Tier-1 retailers.

    The FBR on Friday issued Sales Tax General Order (STGO) No. 17 of 2022 dated May 13, 2022 regarding Tier-1 retailers – integration with FBR POS System.

    The procedure for reversal of bar on input tax adjustment by 60 per cent (i.e. the exclusion), as provided for in STGO No. 1 of 2022 dated August 3, 2022 has been automated. The STGO No. 1 has now been amended to the extent of reversal of bar on input tax adjustment by 60 per cent / issuance of exclusion certificates.

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

    The FBR said a registered person whose adjustable input tax has been reduced by 60 per cent under Section 8B(6) of the Sales Tax Act, 1990, by inclusion in STGO shall file application for removal of this bar / for restoration of input tax adjustment. Application shall be filed through the system (IRIS) by selecting the relevant reason for the exclusion from the purview of the said section, along with any proof / evidence in support of the application.

    Once an application is submitted, the FBR said, adding that it shall be examined and an order (exclusion certificate) shall be passed by the concerned commissioner IR in the system, after such inquiries and examination of such record, as deemed necessary by him/her, as under:

    READ MORE: FBR issues list of 185 retailers for mandatory integration

    A. Acceptance of application (i.e. Exclusion Certificate allowed):

    In the event of acceptance of the application (i.e. exclusion certificate allowed) by the concerned commissioner IR, the system shall automatically restore the input tax adjustment as per law as under:

    i. Application accepted by the concerned commissioner IR for the reason of ‘integration with FBR’s POS system’: Restoration of input tax adjustment shall apply with effect from the tax period next following the tax period(s) during which the Tier-1 Retailer remained non-integrated. As already clarified by the Board, the 60 per cent reduction in input tax adjustment (disallowance) shall apply to the tax period in which the Registered Person integrated with FBR’s system, as well as, to the prior tax period(s) during which the registered person remained non-integrated or remained partially integrated (i.e. not all the terminals and / or branches were integrated).

    READ MORE: Adjustment restrictions hamper return filing by retailers

    Concerned Commissioner – IR, at the time of passing the order in the system shall provide the date of integration and the system shall restore the input tax adjustment accordingly, as above.

    ii. Application accepted by the concerned Commissioner-IR for the reason ‘Not a Tier-1 Retailer as defined under Section 2(43A) of the Sales Tax Act, 1990: In this scenario the reduction in input tax adjustment (disallowance) by 60 per cent, shall be reversed with effect from the date this bar was placed on and no tax period shall remain subjected to reduction in input tax adjustment (which was originally placed under section 8B(6) of the Sales Tax Act, 1990).

    READ MORE: FBR announces winners of third POS invoice draw

    B. Rejection of Application (i.e. Exclusion Certificate disallowed): In the event of rejection of the application, this reduction (disallowance) in input tax adjustment shall continue in all subsequent tax period(s) as before,

    The FBR said the procedure of automation in the hands of concerned commissioner-IR will be effective from May 10, 2022 and cases for restoration of 60 per cent reduction (disallowance) of input tax adjustment (excluded cases) as already communicated to PRAL by the Board, shall be managed/implemented in the system by PRAL.

  • Pakistan gives no trade relaxation to India

    Pakistan gives no trade relaxation to India

    ISLAMABAD: Pakistan on Wednesday clarified that it has not given any relaxation in trade with India. The clarification has been issued by the ministry of commerce.

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  • FBR imposes ban on leaves of tax officials

    FBR imposes ban on leaves of tax officials

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday imposed ban on leaves of tax officials during last quarter of the current fiscal year in order to ensure maximum revenue collection for the year.

    The FBR in an office order stated that the last quarter of the fiscal year is of paramount importance for tax collection.

    READ MORE: FBR chairman replaced despite massive collection growth

    All field formations of the FBR are expected to perform at their optimum capacity which entails presence on duty of all available human resources.

    However, it has been observed that some field formations are still forwarding leave requests of officers and officials which is prejudicial to the achievement of target assigned to the FBR during the current fiscal year.

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

    The FBR said that foregoing in view, it is decided that competent authorities shall not grant leaves to FBR officers/officials till June 30, 2022 except in the cases: Hajj; extreme hardship cases; and study leaves for officers and officials, who are already selected and have obtained NOCs.

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

    The revenue body further said that leaves forwarded to competent authorities at FBR (HQRs) shall only be considered and granted in the above mentioned cases till June 30, 2022 on case to case basis.

    All field formations are required to strictly adhered to the instructions and play their part in optimization of revenue collection and achievement of revenue target.

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

  • FBR raises CNG value for charging sales tax

    FBR raises CNG value for charging sales tax

    The Federal Board of Revenue (FBR) has issued SRO 587(I)/2022 dated May 10, 2022, announcing an increase in the valuation of Compressed Natural Gas (CNG) for the purpose of charging sales tax on sales to consumers.

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  • Pakistan’s imports hit record high at $65.47 bn in 10 months

    Pakistan’s imports hit record high at $65.47 bn in 10 months

    ISLAMABAD: Pakistan’s imports reached to record high at $65.49 billion during first 10 months (July – April) 2021/2022, according to data released by Pakistan Bureau of Statistics (PBS).

    The import bill increased by 46.41 per cent to $65.47 billion during first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the current fiscal year.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    On the other hand, the exports of the country registered a growth of 25.46 per cent to $26.23 billion during the period under review as compared with $20.9 billion in the same period of the last fiscal year.

    The trade deficit sharply widened by 64.79 per cent to $39.26 billion during July – April 2021/2022 as compared with $23.83 billion in the corresponding period of the last fiscal year.

    READ MORE: Pakistan’s trade deficit widens to $32 billion in 8MFY22

    The exports of the country recorded an increase of 29.53 per cent to $2.87 billion in the month of April 2022 as compared with $2.22 billion in the same month of the last year.

    The import bill in April 2022 recorded an increase of 26.19 per cent to $6.62 billion as compared with $5.42 billion in the same month last year.

    The trade deficit ballooned by 23.74 per cent to $3.74 billion in April 2022 as compared with $3.02 billion in April 2021.

    READ MORE: Pakistan’s trade deficit widens by 92% in seven months

    Similarly, the exports recorded an increase of 3.27 per cent to $2.87 billion in April 2022 when compared with $2.78 billion in March 2022.

    The import bill recorded an increase of 2.96 per cent to $6.62 billion in April 2022 as compared with $6.43 billion in the preceding month.

    The trade deficit widened by 2.72 per cent to $3.74 billion in April 2022 when compared with $3.64 billion in March 2022.

    READ MORE: Pakistan’s trade deficit swells by 100% in 1HFY22

  • Eid ul Fitr 2022 Mubarak

    Eid ul Fitr 2022 Mubarak

    PkRevenue.com wishes Happy Eid-ul-Fitr 2022 Mubarak to all valuable readers and followers.

    May the light of the moon fall directly on you and Allah bless you with everything you desire this day. Happy Eid! May Allah flood your life with love and happiness on this occasion, your heart with care and your mind with wisdom, wishing you Eid Mubarak. The most beautiful thing for me is to see you smiling

  • Pakistan considers fixing locally assembled car prices

    Pakistan considers fixing locally assembled car prices

    ISLAMABAD: The government of Pakistan is considering to fix prices of locally assembled cars in to order discourage abnormal price hike.

    According to an official statement on Monday, apropos frequent price hike of locally manufactured and assembled automobiles in past few months.

    READ MORE: OICCI suggests duty cut on locally manufactured cars

    Spokesperson has expressed concern over price surge and has taken a serious view about the frequent price increases by local automobile manufacturers/ assemblers.

    READ MORE: Return filing be made mandatory for account holders

    The spokesperson said that the situation was unacceptable, and the government might consider to initiate regulatory measures which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977.

    READ MORE: Unjustified audit notices annoy taxpayers

    Furthermore, he said that the cost structure and justification of price increase had been sought from local manufacturers and assemblers.

    READ MORE: Foreign investors demand inter-adjustment of tax refunds

  • 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.