Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Rupee ends down by 22 paisas on demand for import payments

    Rupee ends down by 22 paisas on demand for import payments

    KARACHI: The Pak Rupee ended down by 22 paisas against the dollar on Monday owing to demand for import and corporate payments.

    The rupee ended Rs160.39 to the dollar form last Friday’s closing of Rs160.17 in the interbank foreign exchange market.

    Currency experts said that the market opened after two weekly holidays which resulted in pressure on dollar demand.

    The said that the market witnessed inflows of export receipts and workers’ remittances during the day. However, inflows were not sufficient to meet the payment demand.

  • Income tax return filing touches new peak at 3.03 million

    Income tax return filing touches new peak at 3.03 million

    ISLAMABAD: Income tax return filing hit record high at 3.03 million for tax year 2019, according to weekly Active Taxpayers List (ATL) updated on Monday.

    The FBR issued the weekly ATL – 2019 updated on the basis of returns filed up to January 10, 2021.

    The ATL-2019 will remain applicable till February 28, 2021 as the FBR will issue new ATL for tax year 2020 on March 01, 2021.

    The return filers including salaried persons, business individuals, Association of Persons (AOPs) and companies can check their names on the ATL by visiting How to check ATL status?

    The filing of income tax return is mandatory for persons driving taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

    The appearance of names on the ATL is only possible after filing income tax returns within due date. In case persons are not on the ATL then the rate of withholding tax shall be increased by 100 percent on various transactions.

    Persons fail to file their returns by due date but file after the date will also not qualify to enlist their name on the ATL until fine is not paid to the Federal Board of Revenue (FBR).

    A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.

  • Process initiated to assess, evaluate retirement benefit scheme

    Process initiated to assess, evaluate retirement benefit scheme

    ISLAMABAD, July 12, 2024 – In a significant move aimed at managing fiscal responsibilities, the federal government of Pakistan has launched an initiative to evaluate and assess liabilities pertaining to its retirement benefit schemes.

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  • FBR launches mega crackdown against illegal petrol pumps

    FBR launches mega crackdown against illegal petrol pumps

    ISLAMABAD: Federal Board of Revenue (FBR) has launched massive crackdown against illegal petrol pumps from Monday (January 11, 2021) on the directives of Prime Minister Imran Khan.

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  • PM reviews ongoing tax reforms

    PM reviews ongoing tax reforms

    ISLAMABAD: Prime Minister Imran Khan reviewed ongoing tax reforms program in the country which resulted in significant revenue collection during the first half of the current fiscal year, a statement said on Sunday.

    Prime Minister Imran Khan was told that tax receipts had surpassed Rs2,205 billion during first six months of current fiscal, manifesting the fruition of government’s taxation reforms.

    Chairing a meeting to review the tax reforms, the prime minister was briefed that owing to tax reforms, a growth in number of taxpayers had been witnessed.

    Federal Minister Abdul Hafeez Shaikh, Shibli Faraz and Hammad Azhar, Advisor to PM Dr. Ishrat Hussain, Special Assistant on Revenue Dr. Waqar Masood, Chairman of Federal Board of Revenue Javed Ghani and relevant senior officers attended the meeting.

    It was told that the tax collection was being automated and taxpayers were being given incentives.

    The automation of the taxation system would enhance transparency and reduce corruption and tax evasion.

    The meeting was told that tax form had been made far easier for the small and medium enterprises by reducing its pages from five to one and entries from 200 to just 24.

    The prime minister was told that owing to the introduction of direct link between FBR’s system and company through point of sale system, the receipt of sales tax had also increased.

    The prime minister appreciated the federal ministers, SAPM on revenue and FBR chairman for bringing about taxation reforms.

    He viewed that the taxpayers were in fact the benefactors for the country who deserved applause.

    Moreover, he also called for measures to introduce measures for encouragement of the taxpayers.

  • E-payment made mandatory for duty, taxes above Rs one million for customs clearance

    E-payment made mandatory for duty, taxes above Rs one million for customs clearance

    KARACHI: Pakistan Customs has announced that payment of duty and taxes above Rs one million will only be made electronically (Alternate Deliver Channels).

    According to an announcement on Saturday, consignments through WeBOC system will be cleared on e-payment of duty and taxes above Rs one million. The payment threshold shall apply from January 15, 2021.

    Pakistan Customs said that Payment System is a modern way of collecting tax payments through internet. Banks, Taxpayers, Withholding Agents and e-Intermediaries are beneficiaries of this system. Taxpayers can create their electronic payments from anywhere and can also schedule their payments to be credited to Government of Pakistan (GoP) accounts on any future dates.

    Payment System decreases the workload on Bank staff. Payments made through PAYSYS are instantly communicated to electronic systems of FBR and Banks. It’s very easy to use this system and generate various informative reports for daily branch level operations. Payment System provides you electronic payment documents in hard copy as well as electronic copy in PDF format for subsequent utilization.

    Following are the E-Payment System overview in general terms:

     Round-the-clock facility is being provided to importers / exporters to pay Customs Duties, taxes and other dues electronically from their bank accounts through internet banking and automated teller machines (ATM) for clearance of consignments through WeBOC system.

     Trader/Clearing Agent shall login to WeBOC system for filing of Goods Declaration in WeBOC.

     Trader/Clearing Agent will click on the “Submit” button of Goods Declaration. Upon click on the Submit button system will display the Goods Declaration Payment Information Screen to Trader/Clearing Agent.

     In the drop down menu for Payment Mode, the Trader/Clearing Agent shall select the Payment Mode of “E-Payment” and click on the “Submit” button. Upon click on the submit button, WeBOC system will submit the GD successfully and display the link “Pay duty and taxes via 1Link”.

     Trader/Clearing Agent will click on the above link and WeBOC system will generate a unique 20 digit Payment Slip ID (PSID). The system will display the duty and taxes breakup along with PSID.

     The trader shall login to the online banking system of his bank through computer or mobile phone or visit ATM facility. The bill payment screen of the bank shall reflect “FBR” as biller. The trader shall click the option “FBR”. The bank / ATM screen shall require the trader to enter PSID generated by WeBOC system.

     By entering PSID, the payment details shall be visible to the trader for approval of the payment of duty & taxes. Upon confirmation, the bank account of trader shall be debited and a message of successful transaction shall be visible on the screen.

     WeBOC system will accordingly process the Goods Declaration filed by the trader.

     For any subsequent payment of dues in relation to the processing of Goods Declaration as a result of any reassessment made by Customs, the trader shall click “Payment Management” from his WeBOC home screen and click the link “Pay duty and taxes via 1Link”. A sub menu “Payment against GD” shall be opened. Upon clicking the same, a new screen shall appear in which option will be available to search GD against which payment is require to be made. Upon clicking the specific GD, the system will provide “Generate PSID” option. Upon clicking the same, a new unique PSID shall be generated which can be utilized by the trader to pay duty / taxes in the same manner.

     On the basis of unique transaction ID issued by the SBP/BSC, WeBOC will issue e-CPR to importer / tax payer through WeBOC System.

  • Customs valuation issued for Afghan origin goods

    Customs valuation issued for Afghan origin goods

    KARACHI: The Directorate General of Customs Valuation has issued valuation advice for Afghan origin goods on recommendations received from Peshawar and Quetta collectorates.

    Previously a valuation advice was issued on December 12, 2020 in the light of values worked out and recommendations by MCC (Appraisement and Facilitation), Peshawar and Quetta, for Afghan origin goods imported via land route and cleared by said collectorates.

    “However, both the collectorates approached the directorate and proposed new values for certain items, agreed and worked out by them and requested for modification of valuation advice accordingly.”

    The directorate said that the new valuation advice has been issued on December 31, 2020 for a period of three months and the values are only for the purpose of assessment of duty and taxes for Afghan origin goods.

    Following is the valuation advice:

  • Federal Budget 2021/2022 to be announced during first week of June

    Federal Budget 2021/2022 to be announced during first week of June

    ISLAMABAD: The government on Saturday said it will present the federal budget 2021/2022 before the Parliament during the first week of June 2021.

    According to the budget call circular issued by the finance ministry, the presentation of budget to the cabinet and the parliament would be in the first week of June 2021.

    The finance division shall complete all budget documents, schedules and summaries for the cabinet by end of May 2021.

    The ministry issued timelines for budget preparation process under which by March 15, 2021 PAOs would provide revised estimates for current fiscal year and budget estimates for 2021/2022 for federal government receipts. On the same date PAOs will also be required to forward budget proposals relating to tax and non-tax revenues for inclusion in Finance Bill 2021/2022.

    The PAOs will also comply March 15, 2021 for submission of current and development expenditure budget estimates.

    The finance division shall finalize development of budget strategy paper by second week of March 2021. The budget strategy paper shall be submitted to the cabinet by first week of April 2021.

    APCC and NEC may hold meeting in April 2021.

    Submission of NO/NIS forms for current budget shall be by April 26 to May 14, 2021.

    Submission of BO/NIS Forms by ministries / divisions for development budget during May 10 –21, 2021.

  • Three years imprisonment for sales tax registration failure

    Three years imprisonment for sales tax registration failure

    ISLAMABAD: A person who makes taxable supplies but fails to get sales tax registration shall be liable to pay fine and penalties besides the person is also liable to imprisonment up to three years.

    Sources in the Federal Board of Revenue (FBR) said that the tax offices had launched operations to identify persons making taxable supplies but are not in the sales tax net.

    The sources said that under Sales Tax Act, 1990, any person who is required to apply for registration under the Act fails to make an application for registration before making taxable supplies:

    “Such person shall pay a penalty of Rs10,000 or five percent of the amount of tax involved, whichever is higher;

    “Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to amount of tax involved, or with both.”

    Section 14 of the Sales Tax Act, 1990 requires a person to get registration under this Act, who is making taxable services.

    Following is the tax of the Section 14:

    Section 14: Registration

    (1) Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-

    (a) a manufacturer who is not running a cottage industry;

    (b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;

    (c) an importer;

    (d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;

    (e) a wholesaler, dealer or distributor; and

    (f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.

    (2) Persons not engaged in making taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.

    (3) The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.

  • Weekly Review: Bull Run likely to continue

    Weekly Review: Bull Run likely to continue

    The Pakistan stock market is anticipated to continue its bullish trend in the upcoming week, spurred by promising advancements on the COVID-19 vaccine front and its gradual rollout globally, which are expected to maintain strong investor interest in equities.

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