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Category: Taxation

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  • Lahore Customs Intelligence announces auction of motor vehicles on Dec 03

    Lahore Customs Intelligence announces auction of motor vehicles on Dec 03

    Directorate of Intelligence and Investigation (Customs) Lahore has announced auction of motor vehicles to be held on December 03, 2022.

    The auction will be held at State Warehouse, Directorate of Intelligence and Investigation (Customs), 358 Jahanzeb Block, Allama Iqbal Town, Lahore.

    The directorate announced auction of following motor vehicles:

    READ MORE: Tax commission constituted to make pro-economic growth policies

    01. Mercedes Benz Car, Model 2006, and Chassis No. WDB2110652A125731, Color-White, AWV-001.

    02. Nissan Ceferio Car, Registration Plate No.LEE-07-1, Chassis No.GF50-054361, Model 2003, Color Black.

    03. Honda Accord Car, Registration No.LRX-8411, Chassis No.CF3-1200586, Model 2000, Color Silver.

    04. Toyota Mark-X Car, Model 2005 Chassis No.GRX120-0036739, Color-White, FW151/Islamabad.

    05. Honda Civic Car, Model 2006, and Chassis No. FD3-1004939 Engine No. -Could not be traced, Color-Silver.

    06. Toyota Prius car, Model 2010 Registration No. MN-12-4040 Chassis No. ZVW30-1153342 Engine Capacity 1800cc. N/V Color, White.

    READ MORE: FBR notifies circular to allow third extension in date of return filing

    07. Kawasaki Heavy Bike Ch. No. JKAZXT20AAA027919 Model Year 2010, 1200 R.

    08. BMW Heavy Bike Ch. No. WB1021608AZPZ4634 Model Year 2010, 800 S.

    09. Honda Heavy Bike JH2SC6A7YM400905 Model Year 2000 1100 ST.

    10. Toyota Corolla Car, 1992 Reg. No. IDF-5967, Chassis No. CE100-3017915, 1839 cc. (Subject to Lab Report).

    i) Honda Civic Car, 2003 Applied For Chassis No. ES1-1400549 (Subject to Lab Report)

    ii) Honda Civic Car, 2003 REG. No. LED-12-3138, Chassis No. ESI-1401502 (Subject to Lab Report)

    11. Daihatsu Mira Car, Model 2012, Chassis No. LA300S-1090029, Color-Maroon, Fake Registration No. ABW-821/Islamabad.

    12. Daihatsu Mira Car, Model 2012, Chassis No. LA300S-0008381, Color- Silver, Fake Registration No. BGW-399.

    READ MORE: FBR collects Rs2.69 trillion in 5MFY23 despite tax free petroleum products

    13. Toyota Passo Car, Model 2010, Chassis No. KGC30-0011620, Color- Wine Red, Fake Registration No. WY-443/ISB

    14. Hino Dump Truck (10 Wheeler), Model 1995, Chassis No. FS2KKB-10504, Regn. No. TKB-017/Sibi.

    15. Range Rover Model-2013, Color-Black Chassis No. SALVA2AG3DH716417.

    16. Mercedes Benz Car, Model-2013, Chassis No. WDD2220572A089193, Color-Pearl White.

    17. Toyota Land Cruiser Prado, Model 2003 Chassis No. VZJ121-0004619, Color- Pearl White, LV-068/Islamabad

    18. Honda Civic 2007, Chassis No. JHMFD16308S216139, Color- Blue, ARU-969/Islamabad.

    READ MORE: Tax return filing date extended up to Dec 15, 2022

    19. Toyota Hilux Surf, Model-2005, Chassis No. VZN215-0006330, Color- Black, LEH-13-2373.

    20. Toyota Passo Car, Model 2006 (AZD-928/Sindh), Chassis No: KGC10-0124072, Engine No. N/V, Color-White.

    21. Toyota Aqua Car, Model 2012, Chassis No. NHP10-6086977, Color: White BFP-930/Sindh.

    22. Toyota Mark X Car, Model-2010 as per seat belt Chassis No. GRX130-6037989 Color: White Registration Plate No. AKE-250/ICT.

  • Tax commission constituted to make pro-economic growth policies

    Tax commission constituted to make pro-economic growth policies

    ISLAMABAD: Finance Minister Ishaq Dar has constituted a high powered tax commission for identifying bottlenecks in tax system and recommending pro-economic policies.

    The Federal Board of Revenue (FBR) issued a notification on Thursday regarding constitution of Reforms and Resource Mobilization Commission (RRMC).

    The commission comprising following members:

    READ MORE: FBR notifies circular to allow third extension in date of return filing

    01. Ashfaq Tola, Chairman of the commission

    02. Asif Haroon

    03. Haider Ali Patel

    04. Abdul Qadir Memon

    05. Dr. Veqar Ahmed

    06. Saqib Sherazi

    07. Ghazanfar Bilour

    08. President of FPCCI or his nominee

    READ MORE: FBR collects Rs2.69 trillion in 5MFY23 despite tax free petroleum products

    09. President Pakistan Tax Bar Association

    10. Chairman FBR

    11. Member (Reforms & Modernization) FBR Secretary to the Commission

    Subject Experts included:

    12. Nisar Muhammad-Customs

    13. Dr. Muhammad Iqbal-Income Tax

    14. Abdul Hameed Memon-Sales Tax

    According to Terms of Reference (TORs), the commission will advise and made recommendations to the finance minister on the following areas:

    READ MORE: Tax return filing date extended up to Dec 15, 2022

    (i) To review existing revenue policies, evaluate FBR data and macro level, and identify initiatives/measures/policies for resource mobilization, ease of doing business and pro-economic growth.

    (ii) To identify issues/difficulties/snags/risks of the existing tax system and recommend remedial measures.

    (iii) To review the budget proposals, evaluate their consequences on business, and advise the finance minister on practical aspects of budget proposals.

    (iv) To review the proposed amendments in Finance Bill and make recommendations to the finance minister on implications of proposed amendments on businesses.

    (v) To review the complexities of tax legislation and recommend simplification e.g. different compliance level for different categories of taxpayers.

    READ MORE: FBR sets up check posts for monitoring supplies from tax exempt areas

    (vi) To suggest action plan to curb the parallel economy and to make recommendations for improving financial inclusion in the documented system.

    (vii) To review and recommend a robust IT system on modern lines and upgrade existing IT facilities to maximize tax compliance, enforcement, broaden the tax base and provide taxpayer facilitation.

    (viii) To make recommendations for minimizing taxpayer/tax collector interaction and maximizing trust between the FBR and the taxpayers.

    (ix) To revie and advise restructuring of FBR from the following perspectives:

    a. To evaluate the possibility of making FBR autonomous.

    b. To evaluate the possibility of establishing and independent audit system.

    c. To evaluate the possibility of establishing a separate legal department.

    (x) To make recommendations on harmonization of GDT between the Federation and provinces and development of a single portal for filing of sales tax returns.

    (xi) Any other related matter.

    According to the notification, the commission:

    READ MORE: Tax on deemed income from immovable property under Section 7E

    (i) Shall be independent and headed by a full-time chairman; its chairman shall report directly to the finance minister.

    (ii) May interact with stakeholders and form sub-group, and evaluate their proposals for the federal budget.

    (iii) May co-opt any other person with the prior approval of the finance minister.

    (iv) May avail services of any expert (s) on need basis.

    (v) Will have a full-time secretariat at FBR Headquarter, and FBR shall provide logistic and human resource support to the commission.

    (vi) Shall take decision by majority vote of all members.

    (vii) Shall submit its first report by mid of April 2023.

  • SRB posts 23pc growth in revenue collection during November 2022

    SRB posts 23pc growth in revenue collection during November 2022

    Karachi: The Sindh Revenue Board (SRB) has demonstrated a remarkable growth of 23% in its revenue collection during the month of November 2022, overcoming economic challenges, as per an official statement released on Thursday.

    (more…)
  • FBR notifies circular to allow third extension in date of return filing

    FBR notifies circular to allow third extension in date of return filing

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued a circular to notify the third extension in date for return filing tax year 2022.

    The FBR issued Circular No. 18 of 2022 to further extend the date for filing annual return for tax year 2022 up to December 15, 2022 from November 30, 2022.

    Further extension in date for filing tax returns has been granted in view of requests received from various trade bodies and tax bar associations.

    The last date for filing income tax return was September 30, 2022 for all taxpayers except companies, which are required to file their returns up to December 31, 2022.

    However, previously through Circular No. 16 of 2022 and Circular No. 17 of 2022, the FBR granted date extension twice due to current flood situation in the country and request from various trade bodies and tax bar associations.

    According to leading tax practitioners although the FBR had extended the date for return filing and resolved many issues pertaining to the return filing yet the taxpayers are facing problems related to calculation of deemed income under Section 7E of the Income Tax Ordinance, 2001.

    A day earlier, the Karachi Tax Bar Association (KTBA) demanded an extension to file annual return and statement of income for tax year 2022.

    The tax bar in a letter sent to the chairman of Federal Board of Revenue (FBR) on November 29, 2022 informed that neither taxpayers nor the consultants would able to complete return filing task by November 30, 2022.

    KTBA President Syed Rehan Hasan Jafri stated that during recent Karachi visit of the FBR chairman bottlenecks in return filing were discussed. The issue of filing the newly introduced 7E Form was also discussed at length.

    “Our meeting remained very conducive wherein it was ensured that all the issues and concerns and the glitches would be removed at priority basis to ease and expedite preparation and the filing work both for taxpayers and the tax advisors,” the KTBA president said.

    Our meeting was followed by another very successful meeting at your directions, with the following members and the Chief Commissioner, Corporate Tax Office, Inland Revenue, Karachi on November 07, 2022 for the purpose of facilitation and resolution of the issues.

    The FBR chairman has been apprised that all the concerns which were shared, either these were related to return filing in general or filing of 7E form in particular are still pending unsolved.

    The taxpayers and their counsellors both are faced with the stigma of Status Quo. Subsequently a notification has been issued vide SRO 2052 on November 22, 2022 whereby the date for filing 7E annexure has been extended for those who already had filed their return before the form of 7E Annexure was introduced on October 13, 2022.

    This is another task assigned to the Taxpayers / Tax Advisors to complete it as per the stipulated times mentioned therein per SRO cited above and yet the Form to be submitted is still pending issued, which need to be issued as soon as possible in order to facilitate the Taxpayers within the stipulated time given to Taxpayers.

    Therefore, the KTBA urged the FBR chairman to extend the date for all the taxpayers at par instead, along with the resolution of these errors and mistakes.

  • FBR collects Rs2.69 trillion in 5MFY23 despite tax free petroleum products

    FBR collects Rs2.69 trillion in 5MFY23 despite tax free petroleum products

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday announced to collect Rs2.69 trillion during first five months (July – November) 2022/2023 (5MFY23) surpassing revenue target for the period, despite no tax on petroleum products.

    In a statement the FBR said that it had continued to demonstrate excellent performance in revenue collection for the fifth consecutive month of the current financial year and has exceeded both the five months target of Rs2.68 trillion as well as monthly target of Rs537 billion despite import compression and zero rating on POL products.

    READ MORE: Tax return filing date extended up to Dec 15, 2022

    As per provisional figures, Rs2.69 trillion has been collected against Rs 2.33 trillion collected during the corresponding period of the previous year, by recording an increase of over 15.3 per cent.

    The FBR has also issued refunds to the tune of Rs135 billion as against Rs124 billion issued last year.

    Provisional gross revenue collection is recorded as Rs2.82 trillion for the first five months as against Rs2.45 trillion collected during the corresponding period of the previous fiscal year. Collection of direct tax registered maximum growth of 43 per cent.

    READ MORE: FBR sets up check posts for monitoring supplies from tax exempt areas

    The provisional net collection for the month of November, 2022 is Rs538.2 billion which shows an increase of more than 11.5 per cent over the collection of Rs 480 billion for November 2021.

    The revenue body acknowledged the efforts of all field formations and officers for their untiring efforts and commitment to optimize revenue collection in difficult times where sales tax collection on imports is showing negative growth.

    READ MORE: Tax on deemed income from immovable property under Section 7E

    Achievement of targets was made possible due to extraordinary steps taken in the areas of recoveries, monitoring and day to day vigilance.

    Only in the area of Income Tax arrears, FBR collected Rs.24.17 billion during the five-month period as against Rs.11.69 billion collected last year.

    During the month Rs.8.98 billion was collected against Rs.6.65 billion collected last year.

    READ MORE: Supreme Court discourages taxpayers seeking relief in show cause notices

    The revenue collection trends during the first five months of the financial year augurs well towards the achievement of the assigned revenue targets for current financial year. This unprecedented growth in tax revenues underscore the resolve of the Government and FBR to make Pakistan a prosperous nation.

  • Tax return filing date extended up to Dec 15, 2022

    Tax return filing date extended up to Dec 15, 2022

    ISLAMABAD: The federal government on Wednesday extended the last date for filing income tax returns by 15 days to December 15, 2022 from November 30, 2022.

    Finance Minister Ishaq Dar at a press conference announced the extension in return filing date.

    READ MORE: Another tax return filing date extension on the cards?

    A large number of taxpayers have filed their income tax returns for tax year 2022. Yet many taxpayers are stuck up in a complicated calculation of income from property and unable to discharge their liability of return filing.

    The Federal Board of Revenue (FBR) had extended the last date till November 30, 2022 for filing income tax return for tax year 2022. However, tax experts believe that the FBR should have to resolve the matter under Section 7E of Income Tax Ordinance, 2001 before setting deadline for return filing.

    The last date for filing income tax return was September 30, 2022 for all taxpayers except companies, which are required to file their returns up to December 31, 2022.

    However, through Circular No. 16 of 2022 and Circular No. 17 of 2022, the FBR granted date extension twice due to current flood situation in the country and request from various trade bodies and tax bar associations.

    Tax practitioners said that although the FBR had extended the date for return filing and resolved many issues pertaining to the return filing yet the taxpayers are facing problems related to calculation of deemed income under Section 7E of the Income Tax Ordinance, 2001.

    Interestingly, the FBR issued SRO 1955(I)/2022 on October 24, 2022 to amend Income Tax Rules, 2002 and made it mandatory for taxpayers to provide details pertaining to deemed income of immovable property along with the return for tax year 2022.

    Since many taxpayers had filed their income tax returns during July 01 – October 23 so the amendment deprived such taxpayers in providing the required details.

    In order to resolve the issue the FBR issued another SRO 2052(I)/2022 allowing to submit details of deemed income by those taxpayers, who filed their returns before October 24, 2022.

    The tax practitioners said that the FBR should have been allowed relaxation to all the taxpayers the mandatory requirement of deemed income detail. They said that it should be deferred for one year as many taxpayers may not able to fulfil the requirement.

    During his recent visit Karachi, FBR chairman Asim Ahmad had made it clear that no date extension would be granted further beyond November 30, 2022. He however assured the tax practitioners that all the issues pertaining to the return filing would be resolved. Furthermore, tax authorities promised to issue a clarification related to Section 7E.

    Tax practitioners said that so far no such clarification was issued and complications in this regard was also not resolved.

    A month ago, Karachi Tax Bar Association (KTBA) sent a letter to the FBR chairman highlighting many issues related to return filing. At present the issues pertaining to Section 7E still are creating hurdles in return filing.

  • KTBA demands date extension for filing return, statement Tax Year 2022

    KTBA demands date extension for filing return, statement Tax Year 2022

    Karachi Tax Bar Association (KTBA) on Tuesday demanded an extension to file annual return and statement of income for tax year 2022.

    The tax bar in a letter sent to the chairman of Federal Board of Revenue (FBR) on November 29, 2022 informed that neither taxpayers nor the consultants would able to complete return filing task by November 30, 2022.

    READ MORE: Another tax return filing date extension on the cards?

    It is pertinent to mention that the last date for filing income tax return for the tax year 2022 was September 30, .2022. However, the FBR allowed two extensions in return filing since the expiry of first deadline.

    However, through Circular No. 16 of 2022 and Circular No. 17 of 2022, the FBR granted date extension twice due to current flood situation in the country and request from various trade bodies and tax bar associations.

    KTBA President Syed Rehan Hasan Jafri stated that during recent Karachi visit of the FBR chairman bottlenecks in return filing were discussed. The issue of filing the newly introduced 7E Form was also discussed at length.

    “Our meeting remained very conducive wherein it was ensured that all the issues and concerns and the glitches would be removed at priority basis to ease and expedite preparation and the filing work both for taxpayers and the tax advisors,” the KTBA president said.

    Our meeting was followed by another very successful meeting at your directions, with the following members and the Chief Commissioner, Corporate Tax Office, Inland Revenue, Karachi on November 07, 2022 for the purpose of facilitation and resolution of the issues.

    The FBR chairman has been apprised that all the concerns which were shared, either these were related to return filing in general or filing of 7E form in particular are still pending unsolved.

    The taxpayers and their counsellors both are faced with the stigma of Status Quo. Subsequently a notification has been issued vide SRO 2052 on Nov 22nd, 2022 whereby the date for filing 7E annexure has been extended for those who already had filed their return before the form of 7E Annexure was introduced on October 13, 2022.

    READ MORE: Tax on deemed income from immovable property under Section 7E

    This is another task assigned to the Taxpayers / Tax Advisors to complete it as per the stipulated times mentioned therein per SRO cited above and yet the Form to be submitted is still pending issued till today i.e. the 29th November, 2022 which need to be issued as soon as possible in order to facilitate the Taxpayers within the stipulated time given to Taxpayers.

    “We at the KTBA understands that nor the taxpayers neither the tax consultants will be able to complete the task of filing of Tax Returns 2022 on the 30th November, 2022.”

    Therefore, the KTBA urged the FBR chairman to extend the date for all the taxpayers at par instead, along with the resolution of these errors and mistakes pointed out by the bar as discussed with FBR Chairman, Member (Inland Revenue – Policy) and Member (Information Technology).

  • CGT on disposal of securities to be collected on Dec 07

    CGT on disposal of securities to be collected on Dec 07

    The National Clearing Company of Pakistan Limited (NCCPL) announced on Tuesday that it will collect the aggregate amount of Capital Gains Tax (CGT) on disposal of securities for the month of October 2022 on December 07, 2022.

    (more…)
  • FBR sets up check posts for monitoring supplies from tax exempt areas

    FBR sets up check posts for monitoring supplies from tax exempt areas

    KARACHI: Federal Board of Revenue (FBR) has established 16 check posts to monitor supplies from sales tax exempt areas.

    The FBR issued SRO 2061(I)/2022 on Monday to notify the check posts and coverage of areas by the mobile squads.

    READ MORE: Tax on deemed income from immovable property under Section 7E

    Under Section 40D of Sales Tax Act, 1990, a Regional Tax Office (RTO) having jurisdiction may establish check-posts on the routes originating from tax-exempt areas for the purpose of examining the goods carried and the documents related thereto, an officer not below the rank of Inspector, Inland Revenue, as authorized by the Commissioner, Inland Revenue, and assigned to such check-posts, may stop vehicle on such routes as coming from tax-exempt areas and examine documents for ascertaining their validity and conformity to the goods carried.

    Following are details of name and particulars of check posts established, mobile teams, and routes/area covered:

    READ MORE: Another tax return filing date extension on the cards?

    Mobile Squad 01: Karkhano Market Check Post of Khyber District Exit will cover the area of University Road/GT Road Peshawar Leading from Khyber District up to Motorway Entry Point.

    Mobile Squad 02: Sher Garh Check Post for Malakand Division Post for Malakand Division Exit will cover the area of Malakand Mardan Road Covering Mardan / Nowshera routes leading up to Motorway entry point.

    Mobile Squad 03: SodamRustam Check Post Buner for Malakand Division Exit will cover the area of Rustam-Buner Road, Covering area between Mardan and Buner.

    Mobile Squad 04: BakkaKhel (Bannu-MiranShah Road) will cover Miranshah Road Covering area between Miranshah and Bannu leading up to Indus Highway.

    READ MORE: Supreme Court discourages taxpayers seeking relief in show cause notices

    Mobile Squad 05: Katland Check Post for Malakand Division Exit will cover area Katlang Road, covering area between Malakand and Mardan / Swabi leading up to Motorway.

    Mobile Squad 06: Peshawar Motorway Check  Post (outside toll plaza) for Malakand Division Exit will cover area M1 Motorway Entry covering area between Peshawar and Swat Motorway entry.

    Mobile Squad 07: Charsadda Motorway Check Post (outside toll plaza) for Malakand Division Exit will cover area Nisatta Interchange (M1 Motorway) covering area between Charsadda and Malakand.

    Mobile Squad 08: Mardan Motorway Check Post (outside Rashakai toll plaza) for Malakand Division Exit will cover the Rashakai interchange (M1 Motorway) covering the area between Mardan and Malakan.

    Mobile Squad 09: Swabi Motorway Check Post (outside toll plaza) for Malakand Division Exit will cover Karnal Sher Khan Interchange (M1 Motorway) covering the area between Swabi and Malakan.

    Mobile Squad 10: Shabqadar Check Post for Mohmand Exit will cover Shabqadar Road leading up to Mohmand covering the area between Shabqadar and Mohmand.

    Mobile Squad 11: Warsak Road Check Post for Mohmand Exit will cover Warsak Road leading up to Mohmand covering the area between Warsak and Mohmand.

    READ MORE: Member Customs assures swift clearance of export consignments

    Mobile Squad 12: Shahkas Check Post for Khyber District Exit will cover Bara Road leading from Shahkas Khyber District leading up to Peshawar.

    Mobile Squad 13: Matani Check Post for Khyber District Exit will cover Indus-Bara Link Road covering area between Matani (Peshawar) and Khyber.

    Mobile Squad 14: Old Marrie (Boya-Paira) for Orakzai Agency Main Exit will cover Orakzai District Road covering the area between Kohat and Orakzai.

    Mobile Squad 15: Wazirabad on Tank – Waana Road for South Waziristan Exit will cover Tank – Wana – Angoor Adda Road covering area between Tank and South Waziristan leading up to DI Khan.

    Mobiel Squad 16: Kohat Tunnel Exit for Khyber District Exit will cover Road leading from Mattani Peshawar up to Kohat Tunnel covering Dera Adam Kheil.

  • Tax on deemed income from immovable property under Section 7E

    Tax on deemed income from immovable property under Section 7E

    Through Finance Act, 2022 deemed income on immovable property has been imposed from tax year 2022 (July 01, 2021 – June 30, 2022) and declaration has been made mandatory of the deemed income along with annual return by November 30, 2022.

    (more…)