The Pakistani government unveiled a mini-budget on Thursday, signaling the withdrawal of tax exemptions amounting to Rs343 billion.
(more…)Author: Mrs. Anjum Shahnawaz
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Text of Finance (Supplementary) Bill, 2021
ISLAMABAD: The federal government on Thursday presented the Finance (Supplementary) Bill, 2021 which is called mini-budget by many quarters due to changes in taxation system.
According to Finance Minister Shaukat Tarin the government has reviewed tax exemptions. This withdrawal of tax exemption will not affect the common men.
Following is the text of the Finance (Supplementary) Bill, 2021:
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Amazon Software Technology Park inaugurated
ISLAMABAD: Amazon Software Technology Park, which is established in collaboration with Pakistan Software Export Board and Amazon Mall, has been inaugurated on Wednesday.
Federal Minister for IT and Telecommunication Syed Amin Ul Haque inaugurated the technology park.
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MD Pakistan Software Export Board (PSEB) Osman Nasir, Chairman Amazon Software Technology Park Shafiq Akbar, officers of Ministry of IT & Telecom and PSEB were also present in the ceremony.
Addressing the inaugural ceremony, Federal Minister for IT and Telecommunication Syed Amin Ul Haque said that Pakistan’s IT companies were providing services to world institutions in over 120 countries.
READ MORE: FPCCI organizes seminar for using Amazon platform
He said that Pakistan’s IT industry was rapidly progressing and our IT exports are also increasing. He said that technology was changing with every passing day, adding that we have to equip our youth with modern technology.
He said youth are country’s asset, adding that steps are being taken to connect the masses in rural areas with digital world. Connectivity is the topmost priority of the government and it is because of broadband facility we can connect with digital world, he said.
READ MORE: Commerce ministry issues guidelines for joining Amazon
The Federal Minister for IT said that presently 22 Software technology parks were operative in small cities and we have set the target of taking the number of technology parks up to 40 by December 2022.
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KSE-100 index up 216 points in range-bound trading
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a modest gain of 216 points on Wednesday, closing at 44,260 points, up from the previous day’s closing of 44,044 points.
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Rupee falls to new historic low of Rs178.24 to dollar
KARACHI: The Pak Rupee (PKR) fell to new historic low of Rs178.24 to the dollar on Wednesday owing to higher demand for import and corporate payments.
The rupee fell by five paisas against the dollar from last day’s closing of Rs178.19, the previous record low of the rupee, in the interbank foreign exchange market.
Currency experts said that due to last days of month of December and year closing the dollar demand was high for import and corporate payments.
The experts said that the rising prices of oil in international markets and corporate payment pushed the demand for dollars.
They said that surge in import bill and widening current account deficit are major challenges for the rupee in coming days.
The import bill of the country surged to $33 billion during the first five months (July – November) 2021/2022.
This resulted in widening of trade deficit resulted in $7 billion current account deficit during the first five months (July – November) 2021/2022.
READ MORE: SBP sets limits for sale of foreign exchange to individuals
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Annual collection of capital gain tax falls by 26%
Official data reveals a significant decline of 26% in the annual collection of Capital Gain Tax (CGT) from the disposal of securities during the fiscal year 2020/2021.
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FBR deputes officials at jewelry shop for tax monitoring
ISLAMABAD: The Federal Board of Revenue (FBR) has deputed officials of Inland Revenue (IR) at a jewelry shop on suspects of underreporting and non-compliance of integration.
The FBR invoked Section 40B of the Sales Tax Act, 1990, and deputed tax officials at a retail outlet of a leading jeweler in Lahore.
The FBR issued orders for action under section 40B of the Sales Tax Act, 1990 on DAMAS Jewelers, Lahore which is a large retail outlet of gems and jewelry, located on MM Alam Road, Lahore.
READ MORE: Point of sale machines allowed tax credit
The retail outlet was required to integrate with the POS system but despite repeated reminders, it didn’t integrate its business with the Point of Sale System (POS) of FBR. It was prima facie involved in underreporting of the sales, causing substantial loss to the national exchequer.
It is important to mention that FBR has decided to impose Section 40B at retail outlets of Tier-1 retailers which either haven’t integrated with POS system or continue to flout the law by engaging in fraudulent sales despite opting for integration. The law must be implemented by all means possible.
READ MORE: Metro Pakistan integrates point of sale with FBR
Therefore, a team of the Zone-II, Regional Tax Office, Lahore reached the business premises of the Registered Person on 25-12-2021 for action U/S 40B, and started the real-time monitoring of its Sales.FBR will continue with such actions to ensure that the POS integration of all Tier-1 retailers is ensured in letter and spirit.
This innovative digital initiative aims at monitoring real-time sales and thereby making sure that the tax collected from buyers on the point of sales is deposited in the state exchequer.
READ MORE: Persons may be appointed for filing e-return
It is pertinent to mention that FBR has launched a comprehensive campaign on both electronic and print media to educate customers about the scope and significance of the POS system and a lucrative prize scheme worth Rs.53 Million. The lucky 1007 winners will be given away prizes every month through a computer ballot to be held on 15th of every month at FBR Headquarters, Islamabad.
The first lucky draw will be conducted on January 15, 2022.
READ MORE: FBR announces first POS prize scheme draw on Jan 15
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FBR collects Rs11 bn income tax on prize bond winning
ISLAMABAD: The Federal Board of Revenue (FBR) has collected around Rs11 billion as income tax on the amount paid from winning of prize bonds during fiscal year 2020/2021, according to official data released on Monday.
The collection of income tax grew by only one per cent during the fiscal year 2020/2021 as compared with Rs10.89 billion in the preceding fiscal year.
READ MORE: SBP directs banks to accept bearer prize bonds
On the other hand, the income tax collection on winning from prizes, raffles, or lottery has increased by 97 per cent to Rs518 million during the fiscal year 2020/2021 as compared with Rs263.7 million in the preceding fiscal year.
The FBR collects income tax under Section 156 of the Income Tax Ordinance, 2001.
According to the FBR, every person paying prize on a prize bond, or winnings from a raffle, lottery, prize on winning a quiz, the prize offered by companies for promotion of the sale, or cross-word puzzle shall deduct tax from the gross amount paid at the rate specified in Division VI of Part III of the First Schedule.
READ MORE: History of Prize Bonds in Pakistan
Where a prize, referred to in sub-section (1), is not in cash, the person while giving the prize shall collect tax on the fair market value of the prize.
The tax-deductible under sub-section (1) or collected under sub-section (2) shall be a final tax on the income from prizes or winnings referred to in the said sub-sections.
READ MORE: Income tax on prize bonds, lottery winning
The tax rate for Tax Year 2022 is:
(1) The rate of tax to be deducted under section 156 on a prize on prize bond or cross-word puzzle shall be 15 per cent of the gross amount paid.
(2) The rate of tax to be deducted under section 156 on winnings from a raffle, lottery, prize on winning a quiz, a prize offered by a company for promotion of the sale, shall be 20 per cent of the gross amount paid.
The total income tax collection under Section 156 of the Income Tax Ordinance, 2001 during the fiscal year 2020-2021 was Rs11.42 billion as compared with Rs11.16 billion in the preceding fiscal year.
READ MORE: 4th draw of Rs25,000 premium prize bonds announced
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Customs duty collection from imported vehicles surges by 95%
Official data released on Monday indicates a remarkable upswing in the collection of customs duty from imported vehicles during the fiscal year 2020/2021, reflecting a staggering 95 percent growth, reaching Rs111 billion. This surge is in stark contrast to the Rs56.85 billion recorded in the preceding year.
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FBR launches sales tax return filing through single portal
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday said the sales tax return for the month of December 2021 will be filed through single portal.
The FBR in a memorandum said that sales tax return for the tax period of December 2021, which is scheduled to be filed in January 2022, will be filed through the Single Sales Tax Portal.
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In order to allow the registered persons to familiarize themselves with the new system, the uploading of sales tax invoice of December 2021 has been enabled, the FBR said. The old sales tax return will not be available for filing the return for December 2021, it added.
Therefore, all sales tax registered persons and their representatives have been advised to familiarize themselves with the single sales tax portal.
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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.
READ MORE: PM to launch single sales tax portal this month
By filing sales tax on the portal, it will save time and effort besides simplifying the return filing process, the FBR added.
The portal will minimize data entry and address the issue of data and calculation errors. It will also automatically apportion input tax adjustment as well as payments across the sales tax authorities, eliminating the need for reconciliation and payment transfers.
The single portal will encourage harmonization of tax procedures, definitions and principals between the federal and provincial governments, which will promote national unity, the FBR said.
READ MORE: Single sales tax portal to start functioning by month-end