The Federal Board of Revenue (FBR) has achieved a significant milestone by provisionally collecting Rs2.92 trillion during the first half (July – December) of the fiscal year 2021/2022 (FY22), surpassing the half-year target of Rs2.63 trillion by an impressive Rs287 billion.
(more…)Author: Mrs. Anjum Shahnawaz
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Mini-budget: income tax rates proposed for foreign TV dramas
ISLAMABAD: The government on Thursday presented a mini-budget and introduced income tax rates for foreign produced TV dramas.
The changes have been proposed through the Finance (Supplementary) Bill, 2021 presented before the parliament. Sources in the Federal Board of Revenue (FBR) said that the imposition of tax on foreign TV dramas would general sizeable revenue.
READ MORE: Mini-budget: Advance tax on motor vehicles doubles
The proposed advance tax rates on foreign TV serials, dramas and advertise are:
— On foreign-produced TV serials @ Rs.1 million per episode
— On foreign-produced TV dramas @ Rs.3 million per production
— On advertisement starring foreign actors @ Rs.0.5 million per second
READ MORE: Tax exemptions worth Rs343 billion withdrawn through mini-budget
In order to apply the tax rates, a new Section 236CA to Income Tax Ordinance, 2001 has been proposed through Finance (Supplementary) Bill, 2021.
Following is the text of the proposed section:
“236CA. Advance tax on TV plays and advertisements. – (1) Any licensing authority certifying any foreign TV drama serial or a play dubbed in Urdu or any other language, for screening and viewing on any landing rights channel, shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.
READ MORE: Text of Finance (Supplementary) Bill, 2021
(2) Any licensing authority certifying any commercial for advertisement starring foreign actor, for screening and viewing on any landing rights channel shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.
(3) The tax required to be collected under this section shall be minimum tax in respect of income arising from such drama serial or play or advertisement referred to in sub-section (1) or (2) of this section.”
READ MORE: Annual collection of capital gain tax falls by 26%
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Mini-budget: Advance tax on motor vehicles doubles
In a bid to curb the practice of on-money transactions on motor vehicles and boost advance tax revenues, the government has introduced significant changes in the Finance (Supplementary) Bill, 2021, commonly referred to as the mini-budget.
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Tax exemptions worth Rs343 billion withdrawn through mini-budget
The Pakistani government unveiled a mini-budget on Thursday, signaling the withdrawal of tax exemptions amounting to Rs343 billion.
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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.
READ MORE: USAID conducts training session on Amazon readiness
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