The Federal Board of Revenue (FBR) has issued notifications for the immediate transfers and postings of officers within the Pakistan Customs Service (PCS) in BS-19 and BS-20.
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FBR announces prize winners of 7th draw of POS invoices
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday announced winners of seventh balloting of invoices issued through Point of Sale (POS) of retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Zulfiqar Ali on the invoice issued by MALMO.
READ MORE: 101 retailers given July 10 as deadline for integration
The FBR announced winners of two second prizes of Rs500,000 each to Dr. Nasim Safdar on the invoice issued by Cakes and Bakes and Adeem on the invoice issued by SHOPEX Super Market.
Similarly, the four winners of third prize amounting Rs250,000 each are awarded to Tanveer Amir, Zarmina Wahid Jan, Muhammad Latif Zarar and Sultan Haider Malik.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was seventh draw as it was started in January 15, 2022.
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
The FBR previously issued a procedure for participating in the prize scheme.
The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.
In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.
Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.
In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.
READ MORE: FBR issues procedure for restoration of input tax adjustment
The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.
Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.
The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.
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FBR extends sales tax return filing date to July 20, 2022
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday extended the date for filing sales tax return for the month of June 2022 up to July 20, 2022.
The FBR in an official note extended the date of payment and submission of sales tax and federal excise return for the tax period of June 2022, for all taxpayers, up to July 20, 2022.
READ MORE: KTBA seeks date extension for filing statement, tax returns
Earlier, the Karachi Tax Bar Association (KTBA) on July 14, 2022 urged the FBR to extend the date for filing sales tax return and quarterly statement of income tax withholding up to July 31, 2022.
KTBA President Syed Rehan Hasan Jafri in a letter sent to FBR Chairman Asim Ahmad requested to extend the date of filing quarterly income tax withholding statement and monthly sales tax return for June 2022 up to July 31, 2022.
READ MORE: KTBA recommends separate tax fraud proceedings
The KTBA informed the FBR chairman that as business of the whole country was closed due to the Eid holidays from July 08, 2022 to July 12, 2022 whereas the last date for filing the Quarterly Statements under the Income Tax Ordinance, 2001, and Monthly Sales Tax Return under the Sales Tax Act for the Tax Period of June 2022 is due on the 20th July, 2022 and the 15th July, 2022 and the 18th July, 2022 respectively.
READ MORE: FBR urged to remove irritants in sales tax refund
Due to the holidays, few working days are left to feed and put all the data entries in the Quarterly Statement and Monthly Sales Tax Return which may kindly be extended looked into for the sake of facilitation on the genuine taxpayers of the country who are working on behalf of the FBR as withholding agents and contributing a huge amount into the exchequer without any compensation as their legal obligation.
READ MORE: Unified sales tax law for all tax authorities sought
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Tax officials directed to submit asset declarations
ISLAMABAD: The government has directed all tax officials of Federal Board of Revenue (FBR) to submit their declaration of assets for the year ending June 30, 2022 by July 15, 2022.
The FBR in this regard referring a letter of the Establishment Division, on Thursday intimated all the heads of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS).
READ MORE: KTBA seeks date extension for filing statement, tax returns
According to the establishment division letter the declaration of assets and liabilities for the year ending July 30, 2022 are required to be submitted by all the officers / officials of the FBR by July 15, 2022.
READ MORE: KTBA recommends separate tax fraud proceedings
Furthermore, all the officers of IRS and PCS and all concerned serving under respective tax offices and customs stations have been directed to submit their declaration of assets and liabilities for the year ending on June 30, 2022 latest by July 15, 2022. A certificate to this effect may also be provided to the FBR Headquarter by July 25, 2022.
READ MORE: FBR urged to remove irritants in sales tax refund
The FBR warned all the offices that non-compliance of the instructions tantamount to misconduct it terms of the Government Servants (Conduct) Rules, 1964 and therefore conginzable under the Government Servants (Efficiency & Discipline) Rules, 1973.
READ MORE: Unified sales tax law for all tax authorities sought
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KTBA seeks date extension for filing statement, tax returns
Karachi Tax Bar Association (KTBA) on Thursday urged the Federal Board of Revenue (FBR) to extend date for filing statement and returns.
KTBA President Syed Rehan Hasan Jafri in a letter sent to FBR Chairman Asim Ahmad requested to extend the date of filing quarterly income tax withholding statement and monthly sales tax return for June 2022 up to July 31, 2022.
READ MORE: KTBA recommends separate tax fraud proceedings
The KTBA informed the FBR chairman that as business of the whole country was closed due to the Eid holidays from July 08, 2022 to July 12, 2022 whereas the last date for filing the Quarterly Statements under the Income Tax Ordinance, 2001, and Monthly Sales Tax Return under the Sales Tax Act for the Tax Period of June 2022 is due on the 20th July, 2022 and the 15th July, 2022 and the 18th July, 2022 respectively.
READ MORE: FBR urged to remove irritants in sales tax refund
Due to the holidays, few working days are left to feed and put all the data entries in the Quarterly Statement and Monthly Sales Tax Return which may kindly be extended looked into for the sake of facilitation on the genuine taxpayers of the country who are working on behalf of the FBR as withholding agents and contributing a huge amount into the exchequer without any compensation as their legal obligation.
READ MORE: Unified sales tax law for all tax authorities sought
The tax bar urged the FBR to extend the date of filing the quarterly income tax withholding statement and monthly sales tax return for the tax period of June 2022 till July 31, 2022 in order to enable the taxpayers to complete the work and to facilitate them to make compliance.
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Special tax regime for pharma sector introduced
KARACHI: A special sales tax regime has been introduced for pharmaceutical sector through Finance Act, 2022 by making amendments in Sales Tax Act, 1990.
As per the special tax regime manufacture or import of substances registered as drugs under the Drugs Act, 1976 shall be subject to 1 per cent sales tax with the condition that such tax shall be final discharge of tax in the supply chain and no input tax shall be allowed to the importer and manufacturer of such goods.
READ MORE: Defacing sales tax invoice declared as offence
According to explanation of Finance Act, 2022 released by PwC A. F. Ferguson & Co. prior to the amendments made through the Finance (Supplementary) Act, 2022, the entire pharma sector was exempt from levy of sales tax both at input as well as output stage, except for certain packing materials.
The aforesaid exemption regime was converted into a zero-rating regime for import and local supplies for finished items of pharma sector, however, sales tax was imposed at standard rate of 17 per cent on purchase / import of Active Pharmaceutical Ingredients (API).
READ MORE: FBR to collect 3% further tax on supply to inactive taxpayer
As a result, the pharma sector was allowed to claim sales tax refund on all purchases including APIs and provincial sales tax on services. A faster – pharma system for expeditious processing of refund claims for pharma sector was introduced.
These amendments were made with the aim to improve documentation of the pharma sector.
READ MORE: FBR starts online monitoring sales of jewelers
The special tax regime for Pharma Sector has now been introduced whereby manufacture or import of substances registered as drugs under the Drugs Act, 1976 shall be subject to 1 per cent sales tax with the condition that such tax shall be final discharge of tax in the supply chain and no input tax shall be allowed to the importer and manufacturer of such goods.
Furthermore, APIs, excluding excipients, for manufacture of drugs registered under the Drugs Act, 1976 or raw materials for the basic manufacture of Active Pharmaceutical Ingredients shall also be subject to 1 per cent sales tax with no input tax adjustment and subject to certification by DRAP and certain procedural conditions.
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Defacing sales tax invoice declared as offence
KARACHI: Defacing sales tax invoice has been declared as an offence under Sales Tax Act, 1990 as amendment has been made through Finance Act, 2022.
The defacing of sales tax invoice will attract penalties as well as imprisonment.
READ MORE: FBR to collect 3% further tax on supply to inactive taxpayer
According to explanation of amendments made through Finance Act, 2022, issued by PwC A. F. Ferguson, defacing the prescribed invoice number or the barcode or QR code has been introduced as an offence subject to levy of penalty of higher of Rs 500,000 or 200 per cent of the amount of tax involved.
Upon conviction by a Special Judge, a simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both may also be imposed.
READ MORE: FBR starts online monitoring sales of jewelers
Any person who abets commissioning of such offence has also been made liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to one year, or with additional fine which may extend to two hundred thousand rupees, or with both.
Certain penalties were introduced through Tax Laws (Third Amendment) Ordinance, 2021 on failure of Tier-1 retailers to register and integrate business which have now been ratified in the Act.
READ MORE: Tax concessions to pilots withdrawn
The Finance Act, 2022 also amended laws related to powers of the FBR regarding initiating criminal proceedings.
The powers of the FBR to prescribe rules for initiating criminal proceedings against any specified authority for willful or deliberate acts/omissions resulting in personal benefits and undue advantage to authority, person or taxpayer have been withdrawn. Earlier, the FBR was empowered to this effect through Finance Act, 2019.
READ MORE: Pakistan grants tax exemption to charitable organizations
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FBR to collect 3% further tax on supply to inactive taxpayer
KARACHI: The Federal Board of Revenue (FBR) will collect three per cent further sales tax on supply made to a person not an active taxpayer.
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FBR starts online monitoring sales of jewelers
KARACHI: The Federal Board of Revenue (FBR) has started online monitoring the sales of jewelers after amendment made through Finance Act, 2001.
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Tax concessions to pilots withdrawn
KARACHI: Tax concessions on income in the shape of total allowances available to pilots of any Pakistani airlines have been withdrawn from July 01, 2022.
The tax concessions have been withdrawn through Finance Act, 2022 by amending provisions of Income Tax Ordinance, 2001.
READ MORE: Pakistan grants tax exemption to charitable organizations
According to the amendment, tax concessions on total allowances available to pilots of any Pakistani airlines have been withdrawn. Previously, tax concession was available on allowance exceeding the basic pay chargeable to tax at the rate of 7.5 per cent.
READ MORE: New tax rates on car registration from July 01, 2022
Through the Finance Act, 2022 the tax concession has been abolished on flying allowance of persons included: flight engineers; navigators of Pakistan Armed Forces, Pakistani Airlines or Civil Aviation Authority; Junior Commissioned Officer; Other ranks of Pakistan Armed Forces. Previously tax concession was available on these persons on income taxable at 2.5 per cent as a separate block of income in case allowance does not exceed basic salary.
READ MORE: Finance Act 2022 notifies tax rates on disposal of securities
Tax concession on the income from profit on debt from investment in federal government securities has also be abolished in case of person other than a banking or insurance company. Previously, the income was subject to the final tax at 15 per cent.
READ MORE: Finance Act 2022 revises tax rates for salaried persons