Islamabad, January 21, 2024 – The Federal Board of Revenue (FBR) issued a clarification in response to recent news reports, asserting that the tax collection on services provided by foreign exchange companies falls under the jurisdiction of provinces.
(more…)Author: Mrs. Anjum Shahnawaz
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FBR issues updated rates of duty, taxes on mobile phones
ISLAMABAD: The Federal Board of Revenue (FBR) has issued the updated applicable rates of duty and taxes for clearance of mobile phones.
The FBR said that following rate of duty and taxes for the clearance of mobile phones shall be applicable during (2021-2022) (with passport applied within 60 days of arrival in Pakistan):
READ MORE: FBR collects mobile phone tax, PTA clarifies
Mobile Phones having cost and freight (C&F) value up to $30, the rate of duty and tax has been fixed at Rs430.
Mobile Phones having C&F value above $30 and up to $100, the rate of duty and tax has been fixed at Rs3,200.
Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs9,580.
Mobile Phones having C&F value above $200 and up to $350, the rate of duty and taxes shall be Rs12,200 + 17 per cent Sales Tax Ad Valorem.
READ MORE: FBR increases income tax to 15% on cellular services
Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs17,800 + 17 per cent Sales Tax Ad Valorem.
Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs27,600 + 17 per cent Sales Tax Ad Valorem.
Rate of duty and taxes on mobile phones 2021/2022 (Applied with CNIC):
Mobile Phones having C&F value up to $30, the rate of duty and tax has been fixed at Rs550.
READ MORE: FBR issues new FED rates on motor vehicles
Mobile Phones having C&F value above $30 and up to $100, the rate of duty and taxes has been fixed at Rs4,323.
Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs11,561.
Mobile Phones having C&F value above $200 and up to $350, the rate of duty and tax shall be Rs14,661 + 17 per cent Sales Tax Ad Valorem.
Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs23,420 + 17 per cent Sales Tax Ad Valorem.
READ MORE: Banks to share business account details to FBR
Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs37,007 + 17 per cent Sales Tax Ad Valorem.
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FBR eyes Rs6 trillion collection in current fiscal year
ISLAMABAD: Dr. Ashfaq Ahmed, Chairman, Federal Board of Revenue (FBR) on Wednesday hoped that the revenue collection for the current fiscal year will increase to Rs6 trillion – surpassing the target of Rs5.83 trillion.
“Our revenue target is Rs 5.830 trillion which is expected to increase till Rs6 trillion by June 2022. We have collected Rs 300 billion more revenue than our target till December 31,” Dr. Ashfaq said.
READ MORE: DG Customs Valuation powers strengthened
He expressed his hope that this year, the FBR would achieve all its revenue targets and would further play its role in the country’s economy.
The FBR chief hinted for achieving revenue target of Rs 8 trillion by 2023 as it would set the country’s economy in a new direction.
He said that Prime Minister Imran Khan has his own vision for revenue collection and economic development in the country, in which, achieving revenue target of up to Rs 8 trillion is one of top priorities.
READ MORE: Tax imposed to protect domestic entertainment industry
Chairman expressed these views while talking to the journalists here.
Replying to a question, he said that Pakistan Customs was the protector of economic borders of the country and that they have always been playing its role for trade promotion.
He said that Pakistan Customs was playing its best role in enforcing trade laws at Chaman and Torkham borders.
He said that transparent trade brought prosperity and development in the country.
READ MORE: FBR slaps sales tax at 17% on supply of food stuff
He vowed that, “we would digitalize every FBR’s agency”.
He said that FBR currently has the largest data portal which is in a dire need of digitization.
This data can be very important in the trade and economic development of the country.
He said that at present, the role of FBR was very important in all three trade corridors including Chaman and Torkham, which would be strengthened with China Pakistan Economic Corridor (CPEC).
READ MORE; FBR enhances tax rates on motor vehicle registration
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DG Customs Valuation powers strengthened
ISLAMABAD: The powers of Director General Customs Valuation have been strengthened through amendments made through Finance (Supplementary) Act, 2022.
The powers of Customs Collector to determine customs valuation have been withdrawn through Finance (Supplementary) Act, 2022.
Sources in Federal Board of Revenue (FBR) on Tuesday said that through the Finance (Supplementary) Act, 2022 amendment had been made in Section 25A of the Customs Act, 1969.
READ MORE: Tax imposed to protect domestic entertainment industry
Prior to the amendment the power to determine the customs value was with the collector of customs and the director of customs valuation.
The collector of customs was given power to determine the valuation through Finance Act, 2021. However, after only six months the legislators had abolished the power of customs collector.
Following the latest amendment the power to determine the customs valuation is now with the Director General of Valuation.
READ MORE: FBR slaps sales tax at 17% on supply of food stuff
Another important amendment has been made to Section 25D of the Customs Act, 1969 through Finance (Supplementary) Act, 2022. Prior to the amendment, the Section 25D allowed an aggrieved person to file an appeal before the Member Customs (Policy) against the value determine by the Director General Valuation.
READ MORE; FBR enhances tax rates on motor vehicle registration
Through the Finance (Supplementary) Act, 2022, the proviso in the Section 25D has been omitted so that appeal against the decision of Director General Valuation should not be filed before the Member Customs (Policy) and should be taken up at an appropriate judicial forum to redress the grievances.
The supplementary act further provided that an order passed in revision by the Director General Customs Valuation under section 25D, provided that such appeal shall be heard by a special bench consisting of one technical member and one judicial member.
READ MORE: FBR increases income tax to 15% on cellular services
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Jazz Digital Park inaugurated in Islamabad
VEON Group CEO, Kaan Terzioğlu on Monday inaugurated the Jazz Digital Park (JDP) that was established with an investment of over $8 million.
Located in Islamabad, JDP will accelerate the country’s digital transformation ambition by significantly improving the existing level of IT services being provided to various sectors.
READ MORE: Jazz’s investment in Pakistan crosses $10 billion
With a current capacity of more than 300 racks, expandable up to 450 racks, and a 3-megawatt power infrastructure, JDP is Pakistan’s largest Telecommunications Industry Association (TIA) Tier-III certified data center in terms of white space and power capacity. Jazz will utilize this digital park to offer secure IT infrastructure and hardware hosting facilities to businesses as well as local startups.
JDP will also be hosting the new cloud platform about to be launched by Jazz. The onshore cloud will be a significant step forward in ensuring that data created in Pakistan is hosted within the country.
Speaking at the inauguration, Kaan Terzioğlu said, “Utilising our leadership position in Pakistan and global expertise, we are focused on creating a flourishing digital ecosystem in Pakistan. Jazz Digital Park will serve as a key enabler of our digital operator strategy and is in line with our mission to simplify digital infrastructure challenges for local and regional enterprises.”
READ MORE: PTA renews Jazz license for $449.2 million
According to Aamir Ibrahim, CEO, Jazz: “Since the pandemic and the subsequent acceleration to digital platforms, businesses across various sectors are re-assessing their cloud adoption strategies and cloud readiness. The Jazz Digital Park represents a milestone for the country’s ICT industry as it is expected to simplify digital infrastructure challenges local businesses face. This facility is at the heart of our business strategy and validates our commitment to our customers as they continue their digital transformation journey.”
READ MORE: Jazz awarded contract worth Rs154 million
Jazz also plans to facilitate the Pakistani startup ecosystem by offering cloud credits under its premium startup accelerator program Jazz xlr8 at the National Incubation Center. The cloud infrastructure is not only expected to reduce the entry barrier for upcoming Pakistani startups, but is also expected to enable existing startups to accelerate their scaling up programs.
Jazz Digital Park provides one of the largest IT capacities, enabling businesses, including service providers to co-locate their critical IT infrastructure. It is equipped with four-directional fiber connectivity, 100 per cent. redundancy for all power and cooling systems, a Bus Trunking System, a VESDA smoke detecting system, and a Performance Optimized Data Center solution to reduce its carbon footprint. These state-of-the-art features fulfill all operational requirements for a business, including 24/7 customer service, security, and system backups.
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FBR collects mobile phone tax, PTA clarifies
In response to the recent surge in taxes and duties on the registration of cellular mobile devices and handsets, the Pakistan Telecommunication Authority (PTA) issued a clarification on Monday, emphasizing that the applicable duty and taxes are solely collected by the Federal Board of Revenue (FBR).
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FBR further extends date for filing sales tax return
ISLAMABAD: Federal Board of Revenue (FBR) on Monday further extended the last date for filing sales tax and federal excise return for the month of December 2021 up to January 28, 2022.
The FBR issued an office order to further extend the date of payment and filing of sales tax and federal excise return for the tax period of December 2021. Previously, the FBR issued an office order on January 17, 2022 to extend the date.
The taxpayers are required to file their sales tax returns for the month of December 2021 through the Single Sales Tax Portal.
READ MORE: FBR launches sales tax return filing through single portal
The FBR on December 27, 2021 issued a notification under which it directed the taxpayers to file their sales tax returns for month of December 2021 through Single Sales Tax Portal.
The payment of sales tax and federal excise duty, which was due on January 15, 2022 had been extended up to January 21, 2022. The FBR further extended the date for payment up to January 25, 2022.
READ MORE: Power of the Board and Commissioner to call for records
Similarly, the last date for filing sales tax and federal excise return for the month of December 2021 was due on January 18, 2022, which was extended up to January 24, 2022. The FBR further extended the date for filing the return for the month of December 2022 up to January 28, 2022.
The single portal for sales tax returns has been launched to facilitate taxpayers, promote ease of doing business and reduce compliance cost.
The FBR said that through this portal, sales tax registered persons shall be able to file a single sales tax return instead of having to file separate returns to the FBR and each of the different provincial sales tax authorities.
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Stocks fall 94 points amid policy announcement
Pakistan stocks saw a decline of 94 points on Monday as investors reacted cautiously to the impending monetary policy announcement. The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 44,924 points, down from Friday’s closing of 45,018 points.
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Tax imposed to protect domestic entertainment industry
The Federal Board of Revenue (FBR) has introduced taxes on foreign-produced TV dramas and advertisements as part of its efforts to safeguard and promote the domestic media industry.
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Pakistan’s current account deficit balloons to $9.1 bn
KARACHI: Pakistan’s current account deficit ballooned to $9.1 billion during first half (July – December) 2021/2022 as compared with a surplus of $1.25 billion in the corresponding half of the last fiscal year, State Bank of Pakistan (SBP) said on Saturday.
READ MORE: Pakistan’s CAD balloons to $7.1 billion in five months
The significant current account deficit was due to sharp rise in import bill. The country’s import bill sharply increased by 66.23 per cent to $40.65 billion during first half (July – December) 2021/2022 as compared with $24.45 billion in the same period of the last fiscal year.
READ MORE: July-Oct current account deficit widens to $5.08 billion
Meanwhile, the exports of the country also increased by 25 per cent to $15.127 billion during the period under review as compared with $12.11 billion in the same period of the last fiscal year, Pakistan Bureau of Statistics (PBS) said.
This resulted in massive widening of trade deficit of 107 per cent to $25.52 billion during July – December 2021/2022 as compared with the deficit of $12.34 billion in the corresponding half of the last fiscal year.
READ MORE: Current account deficit swells to $3.4 billion in 1QFY22
Remittances sent by overseas Pakistanis have increased by 11.26 per cent to $15.8 billion during the first half (July – December) of the fiscal year 2021/2022. The inflow of remittances was $14.2 billion in the same half of the last fiscal year.