Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR deputes officials at jewelry shop for tax monitoring

    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

  • FBR collects Rs11 bn income tax on prize bond winning

    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

  • Customs duty collection from imported vehicles surges by 95%

    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

    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.

    READ MORE: Power of the Board and Commissioner to call for records

    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.

    READ MORE: Inland Revenue officers promoted to BS-20

    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

  • FBR transfers BS-18 to BS-20 IRS officers

    FBR transfers BS-18 to BS-20 IRS officers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday announced transfers and postings of senior officers of Inland Revenue Service (IRS) in BS-18 to BS-20.

    The FBR notified transfers and postings of the following officers:

    01. Abdul Hameed Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Provincial Taxes) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Chief, (ST&FE Policy) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad. (The officer is also assigned the additional charge of the post of Chief (Law & Clarification), Inland Revenue Policy Wing, as per Rules.)

    READ MORE: FBR transfers 36 Customs officers in BS-17 to BS-19

    02. Dr. Sajid Hussain Arain (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (R&SRO) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (PAC-IDT)) Audit & Accounting Federal Board of Revenue (Hq), Islamabad.

    03. Ms. Fakhryia Anjum (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) ( ST&FE Policy) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (STB) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad.

    04. Abdur Razzaq Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Multan from the post of Additional Commissioner, Regional Tax Office, Sahiwal.

    05. Farooq Azmat Chatha (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, ( ST&FE Policy) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Large Taxpayers Office, Lahore.

    READ MORE: FBR notifies transfers of IRS officers in BS-19-20

    06. Ali Muhammad (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (PAC-IDT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (ST&FE Policy) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad.

    07. Naveed Mukhtar (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (ITB) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, IR Large Taxpayers Office, Islamabad. (The officer is also assigned the additional charge of the post of Secretary (ITP), Inland Revenue Policy Wing, as per Rules.)

    08. Tariq Iqbal (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Law & Clarification) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (R&SRO) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad. (The officer is also assigned the additional charge of the post of Secretary (Court Matters), Inland Revenue Policy Wing, as per Rules.)

    READ MORE: FBR announces transfers of senior tax auditors

    09. Mukhtiar Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (STB) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Large Taxpayers Office, Karachi.

    10. Usman Ahmed Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Large Taxpayers Office, Lahore from the post of Additional Director, Directorate General of Training & Research (Inland Revenue), Lahore.

    11. Ms. Naila Ashraf Khan (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (Provincial Taxes-I) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Second Secretary, IR Policy Wing Federal Board of Revenue (Hq), Islamabad. (The officer is also assigned the additional charge of Second Secretary (Law & Clarification), Inland Revenue Policy Wing, as per Rules.)

    12. Fariduddin Khan (AOST/BS-18) has been transferred and posted as Second Secretary, (ITB) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Second Secretary, (Court Matters) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad.

    13. Usman Ahmed (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (Provincial Taxes-II) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad.

    14. Zahid Baig (AOST/BS-18) has been transferred and posted as Second Secretary, (ST&FE Policy) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit) / SS (ST-L&P), Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad.

    READ MORE: Sales tax cases may be transferred from special court

    15. Ansar Majeed (AOST/BS-18) has been transferred and posted as Second Secretary, (STB) Inland Revenue Policy Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), (STB) IR Policy Federal Board of Revenue (Hq), Islamabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • Digital tax monitoring yields Rs32.43bn from sugar sector

    Digital tax monitoring yields Rs32.43bn from sugar sector

    ISLAMABAD: The digital monitoring initiated by the Federal Board of Revenue (FBR) has resulted in a collection of Rs32.43 billion from the sugar sector during the first half of the current fiscal year.

    (more…)
  • Bank Alfalah tops in house financing under MPMG

    Bank Alfalah tops in house financing under MPMG

    KARACHI: Bank Alfalah has secured the top position in house financing under the government’s flagship Mera Pakistan Mera Ghar (MPMG).

    According to a statement issued by the State Bank of Pakistan (SBP), Bank Alfalah secured the top position followed by Meezan Bank Limited and Standard Chartered Bank Limited.

    A ceremony was held on Friday at Prime Minister House, Islamabad to mark Rs 100 billion in home finance approvals of the Governments flagship Mera Pakistan Mera Ghar (MPMG) program under the theme “ Khawab ke tabeer ab tez ter”.

    READ MORE: Financing for Mera Pakistan Mera Ghar gains momentum

    The Prime Minister lauded the leading role of the State Bank of Pakistan and the efforts of the banking industry in the implementation of MPMG. He also witnessed ceremonial keys being handed over to six beneficiaries of MPMG who were from different regions and represented a variety of segments of Pakistan.

    Over 20 other beneficiaries of MPMG also participated in the ceremony. The Prime Minister expressed his pleasure to see that low and middle-income citizens who were completely ignored earlier are now being served by the banks in obtaining home finance. While distributing awards among top-performing banks with respect to approvals and disbursements, he urged banks to accelerate their efforts to help realize the dream of every Pakistani to own their own homes.

    The ceremony was attended by Ali Amin Gandhapur-Federal Minister for Kashmir Affairs & Gilgit Baltistan, Dr. Shahbaz Gill-Special Assistant to Prime Minister on Political Communication, Senator Shaukuat Tareen-Adviser to Prime Minister on Finance & Revenue, Governor State Bank of Pakistan, Chairman NAPHDA, Dr. Amjad Ali-Minister for Housing Khyber Pakhtunkhwa and Presidents/CEOs of banks.

    READ MORE: SBP launches webpage for promoting house financing

    Dr. Reza Baqir, Governor State Bank of Pakistan, shared the progress of MPMG since inception, highlighting that all stakeholders are taking steps in the right direction to translate the Prime Minister’s vision of increasing homeownership into reality. Till December 20, 2021, banks have received applications of Rs. 263 billion while approvals of Rs. 109 billion have already been made. Over the last nine months, the approved amount increased by Rs. 98 billion. Disbursement has also increased from almost zero in March 2021 to Rs. 32 billion by December 20, 2021. While shedding light on the theme of the event, he mentioned that during the last month, banks on average approved Rs. 4 billion and disbursed Rs. 1.6 billion on weekly basis. He underscored the need to maintain and accelerate this momentum. There are six banks that disbursed over Rs. 2 billion each and seven banks have disbursed over Rs. 1 billion each in the span of 9 months under MPMG.

    The Governor said that growth in MPMG is attributed to various measures taken by the Government, SBP, and NAPHDA to provide a conducive environment for the banking industry to enter the untapped market of housing and construction finance. He mentioned the simplification of complex procedures, a significant reduction in documentation requirement, development of a model to assess informal income, effective redressal mechanism as examples of this support. Communication initiatives like Mera Pakistan Mera Ghar Meri Kahani –a series of testimonials of MPMG beneficiaries have also been instrumental in encouraging others to apply.

    READ MORE: PM launches house financing scheme for NRPs

    Earlier, in a meeting of the National Coordination Committee on Housing, Construction, and Development (NCCHCD), Governor SBP apprised the Prime Minister on developments in housing and construction finance. He recalled that in July 2020, in line with the Government’s vision of boosting economic activity, SBP mandated banks to increase their housing and construction finance to at least 5 percent of their domestic private sector advances by December 31, 2021. Five banks have already achieved their December 2021 targets. The best performing banks in this regard were Albaraka Bank followed by Meezan Bank and Dubai Islamic Bank. He highlighted that as of December 17, 2021, banks have lent Rs. 321 billion which is Rs. 173 billion more than their financing as of June 30, 2020, reflecting a growth of 117 percent since June 2020. He praised Bank Al Habib, National Bank, and Bank Alfalah for a significant increase in their housing and construction finance portfolio since June 2020 till date.

    In conclusion, Governor Baqir expressed SBPs confidence that the banking industry will continue to pace up its performance rapidly to meet the objectives of Mera Pakistan Mera Ghar and to reach targets mandated for Housing and Construction Finance.

    READ MORE: Meezan Bank becomes pioneer in Sharia financing for low cost housing

    The MPMG event also witnessed speeches from Senator Shaukat Tareen, Adviser to Prime Minister on Finance & Revenue, and Lt Gen Anwar Ali Hyder, Chairman NAPHDA. The Finance Adviser reiterated the Government commitment to MPMG and assured banks to provide all needed support. Chairman NAPHA requested banks to demonstrate commitment in providing housing finance to individuals in NAPHDAs LDA City and Peri Urban projects.

  • FBR conducts AML training for jewelers, lawyers

    FBR conducts AML training for jewelers, lawyers

    ISLAMABAD: The Federal Board of Revenue (FBR) has organized a training session on Anti-Money Laundering (AML)/Counter Financing for Terrorism (CFT) for jewelers, accountants and lawyers.

    The revenue body conducted the training session in collaboration with United Nations Office on Drugs and Crime (UNODC).

    The session has been aimed at creating awareness among Designated Non-Financial Businesses and Professions (DNFBPs).

    READ MORE: FBR imposes AML condition on immovable properties

    A number of office bearers of various associations were also present in the training sessions. The senior representatives from the Ministry of Foreign Affairs, National Counter Terrorism Authority (NACTA), FBR, Financial Monitoring Unit (FMU)) and Institute of Chartered Accounts of Pakistan (ICAP) were the key speakers.

    In his opening remarks, Mohammad Iqbal, Director General DNFBPs, emphasized on combating Money Laundering in the non-financial sectors of the country. He apprised the participants of the FATF compliance measures and the country’s own requirements to choke the funds and resources for money laundering and financing of terrorism.

    READ MORE: FBR vows to curb money laundering in real estate

    The DG DNFBPs highlighted that FBR as the AML/CFT regulatory authority will continue supervising and facilitating the DNFBPs so that the ill-gotten proceeds of crimes cannot be stashed in gold or precious metals and stones.

    The speakers informed the DNFBPs on various aspects of AML/CFT, such as screening the lists of proscribed or UN-designated persons and organizations, customer’s due diligence, suspicious transaction reporting and the national risk assessment on money laundering and terrorist financing.

    READ MORE: FBR apprises realtors about FATF requirements

    In the end, a question-answer session was held and the DNFBPs raised their queries on various aspects of AML/CFT implementation. The sessions were welcomed and acknowledged by all the participants.

    Jewelers making cash transactions above Rs2 million liable to comply with FATF conditions: FBR
  • FBR exempts customs, regulatory duty on Afghan goods

    FBR exempts customs, regulatory duty on Afghan goods

    ISLAMABAD: The Federal Board of Revenue (FBR) allowed exemption from customs duty, additional customs duty, and regulatory duty on import of various goods from Afghanistan.

    The FBR on Thursday issued three different statutory regulatory orders (SROs) to allow exemptions on various products on import from Afghanistan.

    Through SRO 1609(I)/2021, the FBR exempted the import into Pakistan from Afghanistan from whole of the customs duty on items, included (HS Codes): coal (2701.1900); bituminous coal (2701.1200); talc (2526.1010); marble (crude or roughly trimmed) (2515.1100); plants and parts of plants (including seed and fruit) (1211.9000); seed of cumin neither crushed nor grounded (0909.3100); suphur of all kinds, other than sublimed suplhur (2503.0000); Yams (dioscorea spp.) (0714.3000); and containers (including containers for the transport of fluids) (8609.00000.

    The notification shall be effective till June 30, 2022.

    The FBR through SRO 1610(I)/2021 allowed concessions of regulatory duty. “Regulatory duty on import of marble (crude or roughly trimmed) falling under PCT code 2515.1100 shall be exempted and regulatory duty on import of ground nuts in shell falling under PCT code 1202.4100 shall be reduced from 20 per cent to 10 per cent, if imported from the Islamic Republic of Afghanistan).”

    The notification shall be effective till June 30, 2022.

    Through SRO 1611(I)/2021 exemption of additional customs duty has been granted on: “import of goods falling under PCT codes 0714.3000, 0909.3100, 1211.9000, 2526.1010, 2515.1100, 2701.1200, 2701.1900 and 8609.0000, if imported from Islamic Republic of Afghanistan.”

    The notification shall be effective till June 30, 2021.

    READ MORE: Tarin directs FBR to ensure security of taxpayers’ data

  • RDA: SECP exempts banks from obtaining license

    RDA: SECP exempts banks from obtaining license

    ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has exempted banking companies from obtaining licenses to undertake regulated securities activity as security advisors.

    A notification issued by the SECP stated that it had granted an exemption to the banking companies licensed and authorized by the State Bank of Pakistan (SBP) to open RDA and perform the function of distributing units of Collective Investment Schemes (CIS) and/or Voluntary Pension Schemes (VPS) of multiple Asset Management Companies (AMCs) to their RDA holders, from the requirement of obtaining a license to undertake regulated securities activity as security advisor.

    READ MORE: Overseas Pakistanis deposit $1.56 billion through Roshan Digital Account: SBP

    “Provided that such banking companies shall comply with all other requirements prescribed under the applicable regulatory framework,” the SECP said.

    The regulator said that the measure has been taken to facilitate overseas Pakistanis to invest in mutual funds and private pension funds managed by AMCs, and comes as part of SECP’s efforts to increase investor-base in Pakistan’s capital markets by enabling investments through RDAs.

    READ MORE: PM inaugurates Roshan Digital Accounts for NRPs

    However, the permission is only applicable to banks that are eligible to open RDAs. For transfers to accounts other than RDAs, the license requirement is still applicable under Securities & Future Advisor Regulations, 2017.

    It is expected that this initiative will broaden the range of available investment avenues for Overseas Pakistanis and increase flow of foreign remittances to the country.

    READ MORE: SECP warns against investing in fraudulent schemes