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  • SBP imposes penalty on four banks for violating AML/KYC

    SBP imposes penalty on four banks for violating AML/KYC

    KARACHI: The State Bank of Pakistan (SBP) has imposed penalty of Rs184.64 million upon four commercial banks for violating laws related to Anti-Money Laundering (AML)/Know Your Customer (KYC).

    The central bank on Thursday said that these penalty amount was imposed during the month of July 2019 against banks included: The Bank of Punjab; JS Bank Limited, Bank Al Habib Limited and Soneri Bank.

    The SBP imposed penalty of Rs13.072 million against The Bank of Punjab on July 15, 2019 for violating in areas of foreign exchange operations.

    In addition to penal action, the bank has been advised to improve its internal processes, the SBP said.

    The Bank of Punjab was again penalized with Rs16.119 million on July 18, 2019 for violating in areas of AML/KYC, unclaimed deposits.

    In addition to penal action, the bank has been advised for improvements in the areas of AML/KYC, the central bank added.

    The SBP penalized JS Bank Limited with penalty amount of Rs48.211 million on July 23, 2019 for violating in areas of AML/KYC.

    In addition to penal action, the bank has been advised to conduct a thorough review of relationship accounts, the SBP said.

    The SBP imposed penalty of Rs51.75 million upon Bank Al Habib Limited on July 25, 2019 for violating in areas of AML/KYC, FX Operations.

    In addition to penal action, the bank has been advised to update its systems and processes, and provide appropriate trainings to the concerned officials, the SBP said.

    The SBP imposed penalty of Rs55.48 million upon Soneri Bank Limited on July 25, 2019 for violating in areas of AML/KYC, Asset Quality, FX Operations.

    In addition to penal action, the SBP advised the bank to improve areas of AML/KYC and credit risk monitoring.

  • FBR streamlines anti-benami regime to stop white collar crimes

    FBR streamlines anti-benami regime to stop white collar crimes

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued official note to streamline Anti-Benami Regime to stop white collar crimes.

    The FBR said that Benami Transactions, entailing the phenomenon of Benami moveable and immoveable properties, Bank A/Cs, Luxury Vehicles, off shore investments and stocks & shares is one of the biggest economic and financial threats, currently camouflaging the rampant corruption in our society, deadly confronting Pakistan’s taxation system and practically compromising the economic viability of the country.

    Due to non existence of a special Law and Rules on Benami all Anti-corruption agencies have so far failed in tracing and documenting the real/beneficial owners and criminals went scot free.

    In order to combat the menace of Benami and take the spirit of accountability forward Federal Government has operationalized Benami Transaction (Prohibition), Act, 2017, which was dormant since February, 2017.

    Federal Board of Revenue has been assigned the administration and implementation of this new stream of Financial Crime Investigation & Enforcement.

    This office order is aimed at streamlining of newly introduced Anti-Benami Regime in Pakistan.

    I. Organizational Framework: Anti Benami Regime Pakistan.

    FBR, as the parent/administering department envisages two distinct streams of functions for this White Collar Crime Investigation Agency: independent Authorities and supporting Administrative Oversight.

    Both streams shall co-exist, though mutually exclusive yet complementing each other. For the legal functions, to be conducted by different Anti-Benami Authorities, their operational independence is fully protected under Benami Transaction (Prohibition) Act, 2017.

    However FBR’s administrative facilitation, financial support and organizational oversight are essential for sustainable field operations, development and strengthening of this newly launched regime.

    AuthoritiesCore FunctionsSupport Functions
    Initiating Officer (BS-18)-Initiation of Anti-Benami Proceedings

     

    -Attachment of Benami Properties -Inquiries and Investigations

    -Filing of Reference to Adjudication Authority.

    -Filing of Appeals

    -Enforcement of various provisions of said Act.

    		-Examination and Analysis of

     

    complaints and references by

    different agencies

    – Development of Research &

    Analysis Cells

    -Data Archiving

    -Services of Notices

    -Litigation Management

    Approving Authority (BS-20)-Highest Legal Authority at Anti-Benami Field formations

     

    -Supervisory/Administrative authority at Benami Zones

    -Granting approval of all major legal and Enforcement functions

    -Inherent powers u/s 16

    -Confiscation of benami properties

    		-Administrative and Financial head of Anti-Benami Zone

     

    -Focal office for all correspondence with FBR and other Anti-Benami authorities

    -Addressing genuine grievances and complaints

    -Performance Management and Reporting

    -Reposing officer in the cases of Initiating officers and Administrators

    -Linkages with FBR portal and other economic & financial data bases

    Administrator (BS-17)-Management of Attached properties -Management of Confiscated properties

     

    -Possession of benami properties

    -Confiscation of benami properties

    -Disposal of Confiscated properties

    -Ware Housing in the cases of attached/confiscated movable properties

    		-Intelligence & Vigilance function of benami Zones

     

    -Spear heading all enforcement activities

    -Maintenance of Discipline and motivation in field workforce

    Adjudicating Authorities (BS-21/22)-Adjudication of References filed by Initiating Officers

     

    -Inquiries and investigation

    -Attachment powers

    -Statutory powers to add or delete any person arrayed as accused or property labeled as benami

    – Passing Confiscation Order

    -Constitution of Adjudication benches

    -Administration of Officers and

    Employees of Adjudication Authority

    -Advice to the Federal Government

    on Adjudication related matters

    		-Development of Case Studies

     

    -Critical References filed by Benami Zones

    -Administration of justice

    -Periodical Review of Law, Rules and patterns of crime

    A. Authorities: Benami Transaction (Prohibition) Act, 2017 provides detailed description and powers & functions of various authorities. FBR has already notified the jurisdiction and appointment of field authorities at Islamabad, Lahore and Karachi.

    In addition to their statutory functions, FBR deems it necessary to assigns field Benami authorities some support functions as well.

    These support functions would help in realizing the desired results of this legislation and seamless implementation of this new regime.

    B. Administrative Oversight: Director General-Anti Benami Initiative (DG- ABI)

    In order to facilitate the Authorities and to ensure efficient and effective implementation of Anti-Benami law the office of DG-ABI is being raised to ensure smooth and effective implementation and enforcement of Anti-Benami Act, 2017. Without any interference in their respective legal domains, this administrative structure would provide the following support to Anti-Benami Zones.

    i) DG-ABI would act as FBR’s focal office for proper implementation of Benami Transaction (Prohibition) Act, 2017. DG-ABI would act as a bridge between Anti-Benami Zones and FBR, between Zones and Adjudication Authorities and among all the Anti-Benami Zones as well.

    ii) Establishment of Administrative hierarchy for the newly created Anti-benami Zones at Islamabad, Lahore and Karachi.

    iii) Logistic Support, Financial Back up & autonomy and capacity building for Anti-Benami Zones.

    iv) Development of uniform operational SOPs for transparent functioning of field authorities.

    v) Contact point for all external agencies interacting with FBR in Benami related matters. Receipt, analysis and dissemination of benami related complaints, data, information and reference from all external Quarters.

    vi) Development of linkages between Anti-benami authorities and FBR’s portal and external Data Bases. Central Data Bank on Benami.

    vii) Quantitative Performance Evaluation of Anti-Benami Zones.

    Qualitative Evaluation shall be made only after obtaining input from the concerned Adjudication Authority.

    viii) Addressing all jurisdiction related issues in the light of FBR’s relevant notifications.

    ix) Recommendations for review and amendments in Law, Rules and Procedure, covering Anti-Benami Regime

    x) Personnel Management and Litigation

    II. Directorate General-ABI: The Organizational structure

    i) Directorate General-ABI would comprise a Director General, Director HQs and three Commissioners, Anti Benami Zones at Islamabad, Lahore and Karachi, responsible for their notified jurisdictions.

    ii) Directorate General-ABI and its formations would be manned by officers of IRS and staffed by IR Department

    III. Reporting Mechanism
    i) Administrators and Initiating Officers shall report to their respective Commissioners, Anti-Benami Zones.

    ii) Commissioners, Anti Benami Zones would be independent in their Legal jurisdictions. For all administrative matters they will be reporting to DG-ABI Islamabad.

    iii) DG-ABI would report to the National Coordinator for implementation of Benami Transactions (Prohibition) Act, 2017.

  • FBR promotes 30 appraising officers of customs department

    FBR promotes 30 appraising officers of customs department

    ISLAMABAD: Federal Board of Revenue (FBR) has promoted 30 appraising officers to the post of principal appraisers (BS-16) with immediate effect and until further orders, a notification said on Wednesday.

    According to notification made available to PkRevenue.com, the following Appraising Officer of Pakistan Customs Department are promoted to the post of Principal Appraiser (BS-16)with immediate effect and until further orders:

    Following officers have been promoted to the post of principal officers:

    01. Junaid Malik, MCC, Appraisement (East), Karachi

    02. Shahrukh Akhlaq Siddiquie, MCC, Appraisement (East), Karach

    03. MuhammadNazir Khan, MCC, Gilgit-Baltistan

    04. Syed Masoom Raza, MCC, (JIAP), Karachi

    05. MuhammadNadeem Butt, MCC, Appraisement (West), Karachi

    06. Ghulam Yasin Sabri, MCC, PMBQ, Karachi

    07. Altaf Ali Chandio, MCC, Preventive, Karachi

    08. Ashique Ali Memon, MCC, Appraisement (East), Karachi

    09. Mohammad Yaqoob, MCC, Appraisement (West), Karachi

    10. Vaqas Jilani, MCC, Preventive, Lahore

    11. Malik Naveed Anwar, Dte. of Post Clearance Audit, Lahore

    12. Adnan Khurshid Cheema, MCC, Appraisement (East), Karachi

    13. Azeem Manzoor, MCC, Islamabad (He will actualize promotion on return from Ex-Pakistan leave).

    14. Saifuddin Khan, MCC, Appraisement, Lahore

    15. Muhammad Iftikhar Hussain, MCC, Appraisement (East), Karachi

    16. Tariq Aziz S/o Abdul Aziz, MCC, Appraisement (West), Karachi

    17. Ms. Nudrat Nawaz, Dte.Gen. of PCA, Islamabad

    18. Amir Nasir Ali Khan, MCC, Appraisement (East), Karachi

    19. Sarfraz Bangulzai, MCC, Appraisement (East), Karachi

    20. Amjad Iqbal, MCC, Appraisement (West), Karachi

    21. Raja Waseem Ahmad, MCC, PMBQ, Karachi

    22. Zafar Shabbir, MCC, Appraisement (East), Karachi

    23. Imtiaz Hussain Khan, Dte. Gen of Valuation, Karachi

    24. Farooq Ahmad, MCC, Appraisement (West), Karachi

    25. Abdul Hameed, MCC, (Preventive), Lahore

    26. Muhammad Afzal, MCC, (Preventive), Lahore

    27. Tabasum Shahzad, Dte. of Post Clearance Audit, Lahore

    28. Muhammad Ejaz Cheema,Dte. of Intelligence & Investigation (Customs), Lahore

    29. Muhammad Yousaf Ansari, MCC, Appraisement, Lahore

    30. Ghulam Nabi Zafar, Dte. of Internal Audit(Customs), Lahore

    The FBR said that their promotion will take effect from the date of their joining, subject to the condition that no disciplinary proceedings/enquiry is pending against them.

    The officers will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order

    The officers already drawing Performance Allowance equal to 100 percent of basic pay will continue to draw it on their promotion.

  • SRB suspends sales tax registration of stock broker firm

    SRB suspends sales tax registration of stock broker firm

    The Sindh Revenue Board (SRB) has taken stringent action against a stock broker firm M/s. Reliance Securities Limited, suspending its sales tax registration due to a failure to fulfill tax payment obligations and non-compliance with filing monthly returns.

    (more…)
  • FBR issues withholding tax rates for sale, purchase of immovable properties

    FBR issues withholding tax rates for sale, purchase of immovable properties

    KARACHI: Federal Board of Revenue (FBR) has notified withholding tax rate for active and non-active taxpayers at the time of sale and purchase of immovable properties as amended through Finance Act, 2019 and applicable from July 01, 2019.

    (more…)
  • Withholding Tax Card: Non-ATL to pay up to 30pc tax on profit from bank deposits, saving schemes

    Withholding Tax Card: Non-ATL to pay up to 30pc tax on profit from bank deposits, saving schemes

    ISLAMABAD: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which persons receiving profit from bank deposits or investment in national saving schemes shall pay up to 30 percent, if not on the Active Taxpayers List (ATL).

    (more…)
  • Withholding Tax Card: Tax rates on salary income

    Withholding Tax Card: Tax rates on salary income

    KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which every employer paying salary to employees above threshold income shall deduct withholding tax.

    According to official documents made available to PkRevenue.com, the FBR said that every person responsible for paying salary to an employee shall deduct tax from the amount paid under Section 149 of Income Tax Ordinance, 2001.

    As per Finance Act, 2019, the provisions of newly inserted 10th schedule of the Income Tax Ordinance, 2001 shall not apply on tax deducted under section 149. Under the Tenth Schedule the withholding tax so collected shall be increased by 100 percent in case of persons not appearing on the Active Taxpayers List (ATL).

    As per Finance Act, 2019, the salary slabs as well as tax rates have been revised with effect from 01.07.2019. As such all withholding tax agents disbursing salary are required to implement the revised tax rates from the same date.

    Following are the salary slabs and rates on annual salary income:

    1. Where taxable income does not exceed Rs. 600,000: the tax rate shall be 0 percent

    2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000: the tax rate shall be 5% of the amount exceeding Rs. 600,000

    3. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000: the tax rate shall be Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000.

    4. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000: the tax rate shall be Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000

    5. Where taxable income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000: the tax rate shall be Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000

    6. Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000: the tax rate shall be Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000

    7. Where taxable income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000: the tax rate shall be Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000

    8. Where taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000: the tax rate shall be Rs.1,345,000 plus 25% of the amount exceeding Rs. 8,000,000

    9. Where taxable income exceeds  Rs. 12,000,000 but does not exceed Rs.30,000,000: the tax rate shall be Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000

    10. Where taxable income exceeds Rs. 30,000,000 but does not exceed Rs.50,000,000: the tax rate shall be Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000

    11. Where taxable income exceeds Rs. 50,000,000 but does not exceed Rs.75,000,000: the tax rate shall be Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000

    12. Where taxable income exceeds Rs.75,000,000: the tax rate shall be Rs. 21,420,000 plus 35% of the amount exceeding Rs 75,000,000″;

    The FBR said that every person responsible for making payment for directorship fee or fee for attending board meeting or such fee by whatever name called under Section 149(3) of Income Tax Ordinance, 2001 shall collect 20 percent of gross amount paid.

  • Withholding Tax Card: non-ATL persons to pay 30pc tax on dividend income

    Withholding Tax Card: non-ATL persons to pay 30pc tax on dividend income

    KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019/2020 effective from July 01, 2019 under which person not appearing on the Active Taxpayers List (ATL) shall pay up to 30 percent on dividend income.

    According to documents made available to PkRevenue.com, the FBR said that every person paying dividend shall collect withholding tax under Section 150 of the Income Tax Ordinance, 2001 at the time the dividend is actually paid.

    The following rates shall be applicable for tax year 2019/2020:

    (a) In the case of dividend paid by Independent Power Purchasers (IPPs) whereas such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity:

    The tax rate shall be 7.5 percent and in case persons not appearing in the ATL the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 15 percent.

    (b) In cases other than mentioned at (a) above the tax rate shall be 15 percent and if persons not appearing in the Active Taxpayers’ List the rate of tax required to be deducted/collected, as the case may be, is to be increased by 100 percent of the above (as specified in the First Schedule to the Income Tax Ordinance, 2001 (updated as per Finance Act, 2019), i.e. 30 percent.

    The FBR further said that special purpose vehicle, company shall collect withholding tax under Section 150A of Income Tax Ordinance, 2001 from Sukuk holders on payment of gross amount of return on investment.

    On Payment of return on investment in Sukuks:

    a) In case the Sukuk- holder is a company, the tax rate shall be 15 percent and if persons not appearing in the Active Taxpayers’ List the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 30 percent.

    b) In case the Sukuk – holder is an individual or an association of person, if the return on investment is more than one million, the tax rate shall be 12.5 percent and if persons not appearing in the Active Taxpayers’ List then the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 25 percent.

    c) In case the Sukuk – holder is an individual and an association of person, if the return on investment is less than one million, the tax rate shall be 10 percent and if persons not appearing in the Active Taxpayers’ List then the applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 20 percent.

    Related Posts:

    Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

  • Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

    Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

    KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates on imports of goods for persons appearing on Active Taxpayers List (ATL) and for persons not on ATL under Section 148 of Income Tax Ordinance, 2001 for tax year 2019/2020 effective from July 01, 2019.

    According to documents made available to PkRevenue.com the FBR said that the collector of customs shall collect the withholding tax rate at the prevailing rates from persons on the Active Taxpayers List (ATL) and double amount of tax from those persons, who are not on the ATL.

    The FBR said that 1 percent of the import value increased by Custom duty, sales tax and federal excise duty shall be collected. And in case persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 2 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    Tax to be collected from every importer of goods on the value of goods.

    1 (i) Industrial undertaking importing remeltable steel (PCT Heading 72.04) and directly reduced iron for its own use;

    (ii) Persons importing potassic of Economic Coordination Committee of the Cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004

    (iii) Persons importing Urea;

    (iv) Manufactures covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated 31st December, 2011.

    (v) Persons importing Gold; and

    (vi) Persons importing Cotton

    (vii) Persons importing LNG.

    Minimum Tax [Section 148(7)]
    The tax required to be collected under this section shall be minimum tax on the income of importer arising from the imports subject to sub-section (1) of this section and this sub-section shall not apply [i.e Adjustable] in the case of Import of:

    a. Raw material, plant, equipment & parts by an industrial undertaking for its own use;

    b. [motor vehicle] in CBU condition by manufacturer of motor vehicle].

    c. Large import houses as defined / explained in 148(7)(d)

    d. A foreign produced film imported for the purposes of screening and viewing]

    The tax collected under this section at the time of import of ships by ship-breakers shall be minimum tax. [Section 148(8A)]

    Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use, the tax rate shall be

    1.75 percent of the import value as increased by Custom-duty, sales tax and federal excise duty

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 3.5 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    2. Persons importing pulses shall pay 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 4 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    3. Commercial importers covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011, shall pay 3 percent of the import value as increased by custom-duty sales tax and federal excise duty.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 6 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    Commercial Importer importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 4.5 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    4. Persons importing coal shall pay 4 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    5. Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan as certified by the Drug Regulatory of Pakistan, shall pay 4 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    6. Ship breakers on import of ship shall pay 4.5 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    7. Industrial undertakings not covered under S.No 1 to 6 shall pay 5.5 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    8. Companies not covered under S. Nos. 1 to 7 shall pay 5.5 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    9. Persons not covered Under S.Nos1 to 8 shall pay 6 percent.

    Persons not appearing in the Active Taxpayers’ List :

    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 12 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

    On Import of Mobile Phones by any Person (individual, AOP, Company) :

    C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)
    1. Up to $30 the tax rate shall be Rs. 70

    2. Exceeding $30 & up to $100 the tax rate shall be Rs. 730

    3. Exceeding $100 & up to $200 the tax rate shall be Rs. 930

    4.Exceeding $200 & up to $350 the tax rate shall be Rs. 970

    5.Exceeding $350 & up to $500 the tax rate shall be Rs. 3,000

    6.Exceeding $500 the tax rate shall be Rs. 5,200.

    Persons not appearing in the Active Taxpayers’ List :
    The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e.

    C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)

    1. Up to $30 the tax rate shall be Rs. 140

    2. Exceeding $30 & up to $100 the tax rate shall be Rs. 1,460

    3. Exceeding $100 & up to $200 the tax rate shall be Rs. 1,860

    4.Exceeding $200 & up to $350 the tax rate shall be Rs. 1,940

    5.Exceeding $350 & up to $500 the tax rate shall be Rs. 6,000

    6.Exceeding $500 the tax rate shall be Rs. 10,400.

  • FBR probes concealment in land, immovable property purchases

    FBR probes concealment in land, immovable property purchases

    ISLAMABAD: Federal Board of Revenue (FBR) has obtained data of land and immovable property transactions from provincial registrar offices and started proceedings against those who concealed the actual amount to purchase the assets.

    FBR sources said that the data had been obtained on the basis of withholding tax deduction by the property registrars. The sources said that the FBR was probing the lower values declared by the purchasers against the fair market values.

    The FBR is also probing those people who have such immovable properties where filing of income tax returns is mandatory.

    As per Section 114 of Income Tax Ordinance, 2001 following persons are required to annual income tax returns:

    — owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

    — owns immovable property with a land area of five hundred square yards or more located in a rating area;

    — owns a flat having covered area of two thousand square feet or more located in a rating area.

    The sources said the FBR has been allowed to investigate transactions of past six years.

    The sources said that the FBR through Finance Act, 2018 notified Directorate General of Immovable Property for determination of fair market values and authorized this directorate with immense powers.

    The Directorate-General may, subject to the provisions and conditions as may be prescribed, initiate proceedings for the acquisition of property for the reasons to believe that any immovable property of a fair market value has been transferred by a person, hereinafter referred to as the transferor, to another person, hereinafter referred to as the transferee, for a consideration which is less than the fair market value of the immovable property and that the consideration for such transfer as agreed to between the transferor and transferee has been understated in the instrument of transfer for the purposes of ─

    (a) the avoidance or reduction of withholding tax obligations under this Ordinance;

    (b) concealment of unexplained amount referred to in sub- section (1) of section 111 representing investment in immovable property; or

    (c) avoidance or reduction of capital gains tax under section 37.

    The sources said that the FBR had extended the filing of income tax returns for tax year 2018 up to August 2, 2019 to facilitate persons to file their returns, especially in those cases where immovable properties had been purchased but not declared.