Pkrevenue.com

Category: Budget

This is parent category of budgets presented by Pakistan government. Here you will find year-wise federal and provincial budgets.

  • Income tax credit allowed for real time reporting of sales

    Income tax credit allowed for real time reporting of sales

    ISLAMABAD: The government has granted income tax credit for person who integrates the point of sales machine for real time reporting sales or receipt.

    According to budget 2021/2022 documents, amendment has been proposed to Income Tax Ordinance, 2001 through Finance Bill, 2021.

    A new section 64D has been proposed for the purpose, which states:

    “Tax credit for point of sale machine.– (1) Any person who is required to integrate with Board’s computerized system for real time reporting of sale or receipt, shall be entitled to tax credit in respect of the amount invested in purchase of point of sale machine.

    (2) The amount of tax credit allowed under sub-section (1) for a tax year in which point of sale machine is installed, integrated and configured with the Board’s computerized system shall be lesser of –

    (a) amount actually invested in purchase of point of sale machine; or

    (b) rupees one hundred and fifty thousand per machine.

    (3) For the purpose of this section, the term point of sale machine means a machine meant for processing and recording the sale transactions for goods or services, either in cash or through credit and debit cards or online payments in an internet enabled environment.”

  • Finance Bill amends concealment of income definition

    Finance Bill amends concealment of income definition

    ISLAMABAD: The Finance Bill, 2021 has proposed to redefine the concealment of income by including suppression of receipts liable to tax.

    According to budget 2021/2022 documents, the Finance Bill 2021 proposed to make amendment in the Income Tax Ordinance, 2001 regarding concealment of income.

    The proposed amendment explains concealment of income includes –

    “(a) the suppression of any item of receipt liable to tax in whole or in part, or failure to disclose income chargeable to tax;

    (b) claiming any deduction or any expenditure not actually incurred; and

    (c) any act referred to in sub-section (1) of section 111 of Income Tax Ordinance, 2001.

    Explanation.- For the removal of doubt, it is clarified that where any item of receipt declared by the taxpayer is claimed as exempt from tax, or where any deduction in respect of any expenditure is claimed, mere disallowance of such claim shall not constitute concealment of income or the furnishing of inaccurate particulars of income, unless it is proved that the taxpayer deliberately claimed exemption from tax in respect of the aforesaid item of receipt or claimed deduction in respect of such expenditure not actually incurred by him.”

  • Customs officials to get reward only after realization of duty, taxes

    Customs officials to get reward only after realization of duty, taxes

    ISLAMABAD: The government has amended reward rules and announced that customs officials will get reward money only after realization of duty and tax involved in evasion cases.

    According to budget 2021/2022 documents, amendment to Customs Act, 1969 has been proposed through Finance Bill, 2021.

    The proposed amendment through the bill is as:
    “Reward to officers and officials of Customs and Law Enforcement Agencies.-(1) In cases involving evasion of customs-duty and other taxes and confiscation of goods, cash reward shall be sanctioned to the officers of Customs Service of Pakistan, as defined under the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990 and officials including officers and officials of other law enforcement agencies, who assist Customs officers and officials or are actually instrumental in seizure of smuggled goods and vehicles as confirmed by the respective Collectorate of Customs, for their meritorious conduct in such cases, and to the informer providing credible information leading to such confiscation or detection, as may be prescribed by rules by the Board, only after realization of part or whole of the duty and taxes involved in such cases.”

  • Importers to pay penalty up to Rs250,000

    Importers to pay penalty up to Rs250,000

    The government has proposed amendments to the Customs Act, 1969, introducing monetary penalties for importers who fail to provide mandatory documents electronically.

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  • Importers ID to be blocked for one year on contravening packing list

    Importers ID to be blocked for one year on contravening packing list

    ISLAMABAD:  Pakistan customs has been empowered to confiscate goods and block importers for one year on charges of contravening invoices and packing list inside container or consignment.

    According to budget 2021/2022 documents, the Finance Bill, 2021 proposed penalties for contravening invoices or packing list.

    At present if any person contravenes the requirement of placement of invoice and packing list inside the import container or consignment than such person shall be liable to a penalty not exceeding Rs50,000.

    However, the punishment proposed through Finance Bill, 2021 is:

    such person shall be liable to a penalty as under:-

    1st time Rs 100,000/-

    2nd time Rs 500,000/-

    3rd time Rs1,000,000/-

    4th time outright confiscation of goods and blockage of WeBOC user ID for one year.

  • Pakistan Customs authorized to license public, common and private warehouses

    Pakistan Customs authorized to license public, common and private warehouses

    ISLAMABAD:  Pakistan Customs has been authorized to appoint or license public, common and private warehouses for shifting of dutiable goods without payment of customs duty.

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  • Nuclear detection, marine directorates set up in Pakistan Customs

    Nuclear detection, marine directorates set up in Pakistan Customs

    ISLAMABAD: Two new directorates including national nuclear detection architecture and marine will be established in Pakistan Customs.

    According to budget 2021/2022 documents, the Finance Bill 2021 has proposed establishment of Directorate General of National Nuclear Detection Architecture

    The Directorate General of National Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;

    Similarly, the Finance Bill 2021 also proposed to establish Directorate General of Marine.

    The Directorate General of Marine shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

  • Condition of updating tax profile withdrawn

    Condition of updating tax profile withdrawn

    ISLAMABAD: The government has withdrawn the mandatory requirement of profile update by all taxpayers on IRIS portal.

    In budget 2021/2022 speech, Finance Minister Shaukat Tarin announced to withdraw the condition.

    He said that taxpayers are subject to multiple compliance.

    Currently they are required to update their profile periodically. This requirement costs time, energy, and resources.

    In view of the fact that significant information is already available through tax returns, and to facilitate taxpayers in line with ease of doing business, the requirement to update tax payers profile is proposed to be withdrawn.

    Through Finance Act, 2020 a new section 114A was introduced to Income Tax Ordinance, 2001, under which following persons were required to furnish a profile, namely:

    (a) every person applying for registration under section 181;

    (b) every person deriving income chargeable to tax under the head, “Income from business”;

    (c) every person whose income is subject to final taxation;

    (d) any non-profit organization as defined in clause (36) of section 2;

    (e) any trust or welfare institution; or

    (f) any other person prescribed by the Board.

    (2) A taxpayer’s profile-

    (a) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;

    (b) shall fully state, in the specified form and manner, the relevant particulars of –

    (i) bank accounts;

    (ii) utility connections;

    (iii) business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

    (iv) types of businesses; and

    (v) such other information as may be prescribed;

    (c) shall be signed by the person being an individual, or the person’s representative where section 172 applies; and

    (d) shall be filed electronically on the web prescribed by the Board.

    The taxpayers were required to update profile by December 30, 2020. However, the deadline was extended up to June 30, 2021.

  • Budget 2021/2022: Inquiry powers of Commissioner Inland Revenue withdrawn

    Budget 2021/2022: Inquiry powers of Commissioner Inland Revenue withdrawn

    ISLAMABAD: The federal government has withdrawn the discretionary powers of conducing inquiry in certain tax matters by Commissioners Inland Revenue.

    Finance Minister Shaukat Tarin while presenting budget 2021/2022 on Friday announced curtailing the discretionary power of the tax authorities.

    He said that the discretionary powers of the income tax authorities are proposed to be curtailed:

    (1) Tax authorities can conduct inquiry in certain matters regarding amendment of assessment without selection of case for audit. The power to conduct inquiry is proposed to be withdrawn;

    (2) Time limit for disposal of show cause notices is proposed to be 120 days; and

    (3) The power of the commissioner to reject advance tax estimates has also been proposed to be withdrawn.

  • Budget 2021/2022: sales tax on sugar to be imposed on retail price

    Budget 2021/2022: sales tax on sugar to be imposed on retail price

    ISLAMABAD: The government has announced to bring sugar in the third schedule of Sales Tax Act, 1990 to impose sales tax on actual retail price.

    Finance Minister Shaukat Tarin while presenting budget 2021/2022 on Friday announced inclusion of sugar in the third schedule.

    He said that sugar, although not a staple food, is still a source of daily caloric intake for millions of people in Pakistan.

    Recently, an unprecedented increase in the prices of sugar has been witnessed; however, this increase has not resulted in corresponding increase in revenue due to that fact that for the purposes of sales tax the value of sugar is not ad-valorem but specific that is Rs.60 per kg, which is considerably below the actual market price of the commodity.

    To address this anomaly, sugar is proposed to be included in the Third Schedule to the Sales Tax Act so that tax is charged on actual retail price of the product.

    This measure would not only ensure due payment of tax but also help in putting a more effective price control mechanism.