Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR further extends date for filing sales tax return

    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.

    READ MORE: Inland Revenue officers promoted to BS-20

  • Stocks fall 94 points amid policy announcement

    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.

    (more…)
  • Tax imposed to protect domestic entertainment industry

    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.

    (more…)
  • Weekly Review: investors to eye policy announcement

    Weekly Review: investors to eye policy announcement

    KARACHI: Investors to keep eye on inflationary pressure and subsequent monetary policy announcement during next week.

    Analysts at Arif Habib Limited said that investors should remain cautious in the upcoming week as the monetary policy committee (MPC) is meeting whereas inflationary pressure is set to rise in the backdrop of augmenting commodity prices.

    READ MORE: Stocks gain on unchanged policy rate expectations

    Moreover, talks with the IMF are expected to resume on January 28, 2022 which could have a positive impact on the market.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.1x (2022) compared to Asia Pac regional average of 13.9x while offering a dividend yield of 8.7 per cent versus 2.3 per cent offered by the region.

    The market commenced on a negative note this week. This trend continued throughout the week due to higher COVID-19 cases and an increase in global commodity prices.

    READ MORE: Bearish trend continues at Pakistan Stocks

    However, the sentiment once again turned positive on Friday as the government revised GDP numbers upwards from 3.94 per cent to 5.4 per cent. Furthermore, FDI increased 20 per cent during the first half of the fiscal year to USD 1,050 million against USD 880 million USD SPLY.

    The Pak Rupee closed below 176 for the first time in over 45 days on Monday but crept up during the week, closing at 176.24.

    Overall the market closed at 45,018 points down 745 points from last week, marking a 1.63 per cent decrease WoW.

    READ MORE: Pakistan’s stocks plunge by 674 points on high oil prices

    Sector-wise negative contributions came from i) Technology & Communication (241 points), ii) Commercial Banks (96 points), iii) Cement (69 points), iv) Refinery (65 points), and v) Fertilizer (63 points). Whereas, sectors which contributed positively were i) Oil & Gas Exploration Companies (36 points), ii) Power Generation & Distribution (7 points) and iii) Real Estate Investment Trust (6 points). Scrip-wise negative contributors were TRG (239 points), CNERGY (31 points), MCB (23 points), DAWH (22 points) and PSO (21 points). Meanwhile, scrip-wise positive contribution came from KAPCO (30 points), MARI (24 points) and BAHL (23 points).

    Foreigners remained net sellers this week, clocking-in at USD 2.09 million compared to a net buy of USD 0.53 million last week. Major selling was witnessed in OMC’s (USD 1.4 million) and Technology & Communication (USD -1.0 million). On the local front, buying was reported by Individuals (USD 12.4 million) followed by Banks (USD 5.9 million). Average volumes clocked-in at 201 million shares (down by 43 per cent WoW) while average value traded settled at USD 42 million (down by 17 per cent WoW).

    READ MORE: Stocks fall 105 points on high oil prices, COVID cases

  • FBR slaps sales tax at 17% on supply of food stuff

    FBR slaps sales tax at 17% on supply of food stuff

    The Federal Board of Revenue (FBR) has instituted a significant change in the tax structure for the supply of food items by restaurants, bakeries, caterers, and sweetmeat shops, imposing a 17% sales tax.

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  • Committee formed to hunt tax evaders in supply chain

    Committee formed to hunt tax evaders in supply chain

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday constituted a committee to hunt for tax evaders in supply chain i.e. manufacturers, importers, distributors, retailers etc.

    According to a FBR notification, the committee shall identify wholesalers, distributors, small, medium and large manufacturers/importers who potentially have taxable income but neither, they have been brought into the tax base of Pakistan nor being part of the tax base but are evading and suppressing taxes and invoices.

    READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

    It will define the potential target market and quantify the size of the target market.

    The committee shall develop a business plan comprising of budget pertaining to project plan, human, IT and infrastructure resources required to bring the potential target market into the tax base, in order to generate incremental tax revenue.

    It will obtain legal and regulatory protection, facilitation and support of stakeholders in order to achieve the objective in collaboration and support of the FBR.

    READ MORE: FBR enhances tax rates on motor vehicle registration

    The committee shall have mandate to define policy and rules for a licensing framework for appointment of intermediaries who will coordinate and facilitate the integration of supply chain to capture and report all sales transactions.

    It will coordinate with various associations and trade bodies to facilitate the integration of supply chains.

    The committee shall have powers of controlling, monitoring and implementation of supply chain capture integration program in coordination with the IRS Operations.

    READ MORE: FBR increases income tax to 15% on cellular services

    It will develop a correlation between invoice and digital/electronic payments for the purpose of audit, in coordination with necessary stakeholders including but not limited to State Bank of Pakistan (SBP).

    The committee shall have mandate to leverage software to capture the entire supply chain from manufacturer, distributor, wholesaler, retailer and customers to capture transactions, withholding tax information and use the developed database to capture potential taxpayers.

    READ MORE: FBR issues new FED rates on motor vehicles

    It further have mandate to leverage data analytics to capture sales tax demand on the input/output at each stage of supply chain from manufacturer to end consumer, thereby bringing unregistered distributors, sub-distributors and retailers into the tax net.

    The committee will develop organizational structure required to deliver on the above Terms of Reference (TORs) based on size of potential target market, physical dispersion of potential target market, and committed time lines for achieving TORs.

  • Budget 2022/2023 to be presented in first week of June

    Budget 2022/2023 to be presented in first week of June

    ISLAMABAD: The government has scheduled the presentation of the budget for fiscal year 2022/2023 in the first week of June 2022, the finance ministry said on Thursday.

    The finance ministry issued budget call circular 2022/2023. According to the circular, after completion of all budget documents and summaries by end of May 2022, the budget will be presented to the cabinet and the parliament in the first week of June 2022.

    The ministry said that in compliance with the Articles of the Constitution of Pakistan, Public Finance Management Act, 2019 and Budget Manual 2020, Finance Division prepares budget for each financial year as a key policy document of the federal government.

    READ MORE: MoC invites tariff proposals for budget 2022/2023

    The budget call circular containing budget calendar, processes, instructions, forms for preparation and submission of detailed budget Actual (FY 2020-21), Revised Estimates (FY 2021-22) and Budget Estimates (FY 2022-23) relating to Receipts, Current and Development Expenditure of the Federal Government is attached herewith.

    The Medium Term Indicative Budget Ceilings (IBCs) issued by Budget Wing, Finance Division in April, 2021, for Current and Development Budget for three years i.e. 2021-22, 2022-23 and 2023-24, may be considered as base line for submission of Budget Estimates.

    READ MORE: FBR invites customs proposals for budget 2022/2023

    Receipts, Current and Development Expenditure Estimates (Forms I – III) may be provided to Budget Wing, Finance Division before 15th March, 2022 by the respective Principal Accounting Officer (PAO). The remaining information may also be provided as per schedule given in Budget Calendar.

    Foreign Exchange Budget Actual (FY 2020-21), Revised Estimates (FY 2021-22) and Budget Estimates (FY 2022-23) may also be provided as per attached FEB Forms (I-VI) in accordance with the specific instructions and general guidelines.

    READ MORE: SRB invites proposals for Budget 2022-2023

  • FBR enhances tax rates on motor vehicle registration

    FBR enhances tax rates on motor vehicle registration

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday notified the enhanced rates of advance tax on those vehicles, which sold prior to first registration.

    The tax rates have been enhanced through Finance (Supplementary) Act, 2022 through making amendment in Section 231(B)(2A) of Income Tax Ordinance, 2001.

    The FBR said that advance tax on vehicle registration under Section 231(B)(2A) of the Ordinance has been increased for the persons who register such motor vehicles which have been sold prior to their first registration.

    READ MORE: FBR increases income tax to 15% on cellular services

    The FBR issued Circular No. 12 of 2012 to explain amendments in the Income Tax Ordinance, 2001 made through Finance (Supplementary) Act, 2022.

    The purpose is to discourage huge ‘on money’ on such vehicles which are booked by investors as a result of which the vehicles remain unavailable to the genuine buyers.

    READ MORE: FBR issues new FED rates on motor vehicles

    New rates under Division VII of Part IV of First Schedule to the Ordinance shall be as following:

    01. Motor vehicle with engine capacity up to 1000CC, the advance tax has been increased to Rs100,000 from Rs50,000.

    02. Motor vehicle with engine capacity between 1001cc to 2000cc, the advance tax has been increased to Rs200,000 from Rs100,000.

    03. Motor vehicle with engine capacity 2001cc and above, the advance tax has been increased to Rs400,000 from Rs200,000.

    READ MORE: Banks to share business account details to FBR

  • FBR increases income tax to 15% on cellular services

    FBR increases income tax to 15% on cellular services

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said the advance income tax on cellular services has been increased to 15 per cent from 10 per cent.

    The FBR issued Circular No. 12 of 2022 to explain amendments to Income Tax Ordinance, 2001 made through Finance (Supplementary) Act, 2022.

    The increase in advance tax rate on cellular service would generate additional 4.5 billion for the FBR.

    READ MORE: FBR issues new FED rates on motor vehicles

    The changes in the withholding tax regime on usage of internet and mobile phones services were introduced through the Finance (Supplementary) Bill, 2021, which was later approved by the national assembly.

    The FBR said that through the Finance Act, 2021 federal excise duty (FED) was levied on telecom services. However, telecom companies challenged the duty and got a favourable decision.

    “A marginal increase in adjustable advance tax has been proposed from 10 per cent to 15 per cent to make up for revenue loss from telecos,” the FBR added.

    READ MORE: Banks to share business account details to FBR

    The FBR collects the advance tax on telephone and internet users under Section 236 of Income Tax Ordinance, 2001.

    According to the ordinance:

    “Telephone and internet users.- (1) Advance tax at the rates specified in Division V Part IV of the First Schedule shall be collected on the amount of – (a) telephone bill of a subscriber; (b) prepaid cards for telephones; (c) sale of units through any electronic medium or whatever form ; and (d) internet bill of a subscriber; and (e) prepaid cards for internet.

    (2) The person preparing the telephone or internet bill shall charge advance tax under sub-section (1) in the manner telephone or internet charges are charged.

    READ MORE: Debt, credit card machines must for POS retailers: FBR

    (3) The person issuing or selling prepaid cards for telephones or the internet shall collect advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards.

    (3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.

    (4) Advance tax under this section shall not be collected from the Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.”

    READ MORE: FBR slashes sales tax rates on petrol, HSD