The Directorate of Customs Intelligence and Investigation (I&I) in Multan has announced an upcoming auction scheduled for May 18, 2022, featuring a significant quantity of seized smuggled high-speed diesel (HSD) oil.
(more…)Category: Taxation
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FBR issues procedure for restoration of input tax adjustment
ISLAMABAD: The Federal Board of Revenue (FBR) has issued procedure to restore input tax adjustment claimed by Tier-1 retailers.
The FBR on Friday issued Sales Tax General Order (STGO) No. 17 of 2022 dated May 13, 2022 regarding Tier-1 retailers – integration with FBR POS System.
The procedure for reversal of bar on input tax adjustment by 60 per cent (i.e. the exclusion), as provided for in STGO No. 1 of 2022 dated August 3, 2022 has been automated. The STGO No. 1 has now been amended to the extent of reversal of bar on input tax adjustment by 60 per cent / issuance of exclusion certificates.
READ MORE: POS service fee issue hampers sales tax return filing
The FBR said a registered person whose adjustable input tax has been reduced by 60 per cent under Section 8B(6) of the Sales Tax Act, 1990, by inclusion in STGO shall file application for removal of this bar / for restoration of input tax adjustment. Application shall be filed through the system (IRIS) by selecting the relevant reason for the exclusion from the purview of the said section, along with any proof / evidence in support of the application.
Once an application is submitted, the FBR said, adding that it shall be examined and an order (exclusion certificate) shall be passed by the concerned commissioner IR in the system, after such inquiries and examination of such record, as deemed necessary by him/her, as under:
READ MORE: FBR issues list of 185 retailers for mandatory integration
A. Acceptance of application (i.e. Exclusion Certificate allowed):
In the event of acceptance of the application (i.e. exclusion certificate allowed) by the concerned commissioner IR, the system shall automatically restore the input tax adjustment as per law as under:
i. Application accepted by the concerned commissioner IR for the reason of ‘integration with FBR’s POS system’: Restoration of input tax adjustment shall apply with effect from the tax period next following the tax period(s) during which the Tier-1 Retailer remained non-integrated. As already clarified by the Board, the 60 per cent reduction in input tax adjustment (disallowance) shall apply to the tax period in which the Registered Person integrated with FBR’s system, as well as, to the prior tax period(s) during which the registered person remained non-integrated or remained partially integrated (i.e. not all the terminals and / or branches were integrated).
READ MORE: Adjustment restrictions hamper return filing by retailers
Concerned Commissioner – IR, at the time of passing the order in the system shall provide the date of integration and the system shall restore the input tax adjustment accordingly, as above.
ii. Application accepted by the concerned Commissioner-IR for the reason ‘Not a Tier-1 Retailer as defined under Section 2(43A) of the Sales Tax Act, 1990: In this scenario the reduction in input tax adjustment (disallowance) by 60 per cent, shall be reversed with effect from the date this bar was placed on and no tax period shall remain subjected to reduction in input tax adjustment (which was originally placed under section 8B(6) of the Sales Tax Act, 1990).
READ MORE: FBR announces winners of third POS invoice draw
B. Rejection of Application (i.e. Exclusion Certificate disallowed): In the event of rejection of the application, this reduction (disallowance) in input tax adjustment shall continue in all subsequent tax period(s) as before,
The FBR said the procedure of automation in the hands of concerned commissioner-IR will be effective from May 10, 2022 and cases for restoration of 60 per cent reduction (disallowance) of input tax adjustment (excluded cases) as already communicated to PRAL by the Board, shall be managed/implemented in the system by PRAL.
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FBR imposes ban on leaves of tax officials
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday imposed ban on leaves of tax officials during last quarter of the current fiscal year in order to ensure maximum revenue collection for the year.
The FBR in an office order stated that the last quarter of the fiscal year is of paramount importance for tax collection.
READ MORE: FBR chairman replaced despite massive collection growth
All field formations of the FBR are expected to perform at their optimum capacity which entails presence on duty of all available human resources.
However, it has been observed that some field formations are still forwarding leave requests of officers and officials which is prejudicial to the achievement of target assigned to the FBR during the current fiscal year.
READ MORE: FBR surpasses collection target for July – April FY22
The FBR said that foregoing in view, it is decided that competent authorities shall not grant leaves to FBR officers/officials till June 30, 2022 except in the cases: Hajj; extreme hardship cases; and study leaves for officers and officials, who are already selected and have obtained NOCs.
READ MORE: LTO Karachi posts 41% collection growth in 10 months
The revenue body further said that leaves forwarded to competent authorities at FBR (HQRs) shall only be considered and granted in the above mentioned cases till June 30, 2022 on case to case basis.
All field formations are required to strictly adhered to the instructions and play their part in optimization of revenue collection and achievement of revenue target.
READ MORE: FBR issues sales tax refund rules for tractor manufacturers
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Peshawar Customs auctions motor cars on May 16, 2022
PESHAWAR: Collectorate of Customs (Enforcement), Peshawar has announced auction of motor cars to be held on May 16, 2022 at state warehouse godown, Peshawar.
The collectorate announced auction of following motor vehicles:
01. Mercedes Benz (Bullet Proof) Model 1982, Chassis No. WDB-12603312037551
02. Toyota Corolla Car Model 1987 (As per Website), Chassis No. CE90-3002413
03. Toyota Hilux Surf Model 1993 (As per Website), Chassis No. LN130-7044977
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04. Toyota Hilux Surf Model 1991 (As per Website), Chassis No. LN130-0086048
05. Toyota Hilux Surf Model 1992 (As per Website), Chassis No. LN130-7013150
06. Toyota Crown Car Model 2000 (As per Website), Chassis No. GS171-0001109
07. Toyota Hilux Surf Model 1997 (As per Website), Chassis No. LN147-0001826
08. Toyota Hilux Surf Model 1990 (As per Website), Chassis No. LN130-0018395
09. Toyota Hilux Pick Up Model 1993 (As per Website), Chassis No. LN130-7046749
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10. Toyota Hilux Surf Model 1993 (As per Website), Chassis No. LN85-0120174
11. Toyota Hilux Surf Model 1990 (As per Website), Chassis No. LN85-0034633
12. Toyota Hilux 4Runner Pickup Model 1996 (As per Website), Chassis No. LN106-0146897
13. Toyota Pick Up S/Cabin Model 1993 (As per Website), Chassis No. LN85-0120634
14. Toyota Corolla Car Model 1994 (As per Website), Chassis No. AE100-3215668
15. Toyota Premio Car Model 2002 (As per Website), Chassis No. ZZT240-0020192
16. Toyota State Car Model 1990 (As per Website), Chassis No. CE96-0106867
17. Toyota State Car Model 1990 (As per Website), Chassis No. CE96-0089577
18. Toyota State Car Model 1988 (As per Website), Chassis No. CE90-0023670
19. Toyota Twoance Model 1990 (As per Website), Chassis No. CR30-5071954
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20. Toyota Pick Up Model 1985 (As per Website), Chassis No. LN56-0034679
21. Toyota Pick Up Model 1988 (As per Website), Chassis No. LN51-0013906
22. Toyota State Car Model 1993 (As per Website), Chassis No. CE106-0047961
23. Toyota Corolla Car Model 1987 (As per Website), Chassis No. EE90-5007972
24. Toyota State Car Model 1990 ( As per Website), Chassis No. CE96-0106153
25. Toyota Corolla Car Model 1992 (As per Website), Chassis No. CE100-3025153
26. Toyota Estate Car Model 1997 (As per Website), Chassis No. CE100-0073091
27. Toyota Corolla “X” Car Model 2005 (As per Website), Chassis No. NZE121-0358052
28. Toyota Corolla “G” Car Model 2003 (As per Website), Chassis No. NZE121-3189548
29. Toyota Premio Car Model 2003 (As per Website), Chassis No. NZT240-5007085
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30. Toyota Corolla Car Model 1995 (As per Website), Chassis No. CE110-5001735
31. Toyota Rush Jeep Model 2007 (As per Website), Chassis No. J200E-0017143
32. Toyota Fielder “X” Car Model 2002 (As per Website), Chassis No. NZE121-0178782
33. Suzuki Alto Car Model 2005 (As per Website), Chassis No. HA24V-112365
34. Toyota Land Cruiser Model 1991 (as per Website), Chassis No. LJ78-0009228 (Abbotabad)
35. Toyota Corolla Car Model 1973 (As per documents), Chassis No. RT81-053350
36. Mitsubishi Motor Car Model 1982 (As per documents), Chassis No. A171A-8024009
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FBR raises CNG value for charging sales tax
The Federal Board of Revenue (FBR) has issued SRO 587(I)/2022 dated May 10, 2022, announcing an increase in the valuation of Compressed Natural Gas (CNG) for the purpose of charging sales tax on sales to consumers.
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FBR lists mandatory documents for customs clearance
KARACHI: The Federal Board of Revenue (FBR) on Monday issued a list of documents that is mandatory for filing goods declaration at Pakistan customs for consignment clearance.
The FBR issued SRO 567(I)/2022 dated April 27, 2022 to amend the Customs Rules, 2001.
READ MORE: Tax officials warned of strict action for private consultancy
The FBR said that it is mandatory for importer to upload following documents with every declaration in relation to each consignments, namely:
(i) Master bill of lading and house bill of lading or master airway bill and house airway bill as the case may be;
(ii) Commercial invoice;
(iii) Letter of credit or bank contract;
READ MORE: FBR surpasses collection target for July – April FY22
(iv) Packing list – container-wise in case of containerized cargo and package wise in case of miscellaneous goods consignments;
(v) Previous chemical analysis and lab test report, if any;
(vi) Mill test certificate issued by the manufacturer in case of p rime quality steel products;
(vii) Certification as per requirement of Import Policy Order;
(viii) Preferential Trade Agreement (PTA) or Free Trade Agreement (FTA) certificate of origin, if claimed; and
(ix) Any other documents or requirements specified by the FBR from time to time.
READ MORE: LTO Karachi posts 41% collection growth in 10 months
In addition to above, for shipments originating from UAE and China (excluding imports under PTA and FTA regime) certificate of origin shall be uploaded as:
(i) For shipments of fabric (all types i.e. finished, unfinished and grey etc.) and artificial jewellery originating from UAE and China (excluding import under PTA and FTA regime) certificate of origin issued by the manufacturer; and
READ MORE: FBR issues sales tax refund rules for tractor manufacturers
(ii) For shipments originating from Iran and Afghanistan and arriving through land customs-station, the certificate of origin issued by the relevant Iranian government agency and by Afghan Chamber of Commerce and Industry respectively.
The FBR said that the notification shall come into force on and from June 01, 2022.
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Customs auctions confiscated vehicles on May 11, 2022
MULTAN: Directorate of Customs Intelligence and Investigation, Multan has announced auction of confiscated vehicles to be held on May 11, 2022 at Customs Dry Port, near Sher Shah Bypass, Multan.
The announced auction of following vehicles:
READ MORE: Pakistan considers fixing locally assembled car prices
01. Hino Truck HTV, Model 1994, registration no. SBA-775, Chassis No. FF176-18107 (manually punched).
02. Hummer H3 Jeep, Model 2003, registration no. LEE-7444, Chassis No. 5GTDN136768328080.
03. Suzuki Alto Car, Model 2001, registration no. ANR-771 / Sindh, Chassis No. HA12S-610374.
04. Toyota Prius Car, Model 2009, registration no. ZY-442/ISB, Chassis No. ZVW30-1012665.
05. Toyota Mira Car, Model 2009, registration no. AYD-761/Sindh, Chassis No. L275S-0006309.
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06. Suzuki Swift Car, Model 2009, registration no. BCU-338/Sindh, Chassis No. ZC71S-477228.
07. Honda Civic Car, Model N/A, registration no. NF-004 / Islamabad, Chassis No. JHMFD46208S202263.
08. Honda Insight Car, Model 2010, registration no. zZ-998 / ICT, Chassis No. ZE2-1201090
09. Suzuki Swift Car, Model 2011, registration no. RE-527/ICT, Chassis No. JSAFZC82S00107384.
10. Toyota Vitz Car, Model 2008, registration no. VC-294. Chassis No. SCP90-5097652.
READ MORE: Return filing be made mandatory for account holders
11. Toyota Corolla Car, Model 2002, registration no. AJX-030/Sindh, Chassis No. NZE121-3201700.
12. Toyota Aqua Hybrid Car, Model 2014, registration no. LEB-17-2328, Chassis No. NHP10-2378804.
13. Toyota Vitz Car, Model 2007, registration no. ADY-910/ICT, Chassis No. SCP90-0036782.
14. Toyota Fielder Car, Model 2004, registration no. VE-112, Chassis No. NZE121-0307673.
15. Toyota Hilux Surf, Model 1994, registration no. WAG-496/Quetta, Chassis No. LN130-7024272.
The directorate said the vehicles may be inspected before two days of the auction date.
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Customs auctions imported vehicles on May 10, 2022
LAHORE: Directorate of Customs Intelligence and Investigation (I&I), Lahore has announced auction of imported vehicles to be held on May 10, 2022 at State Warehouse Iqbal Town, Lahore.
Following is the list of imported vehicle which will be presented at the auction:
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01. Toyota Camry Car, Model-2010, Chassis No. MR053FK4000013686, Colour White, ABT-774.
02. Used Honda Civic Hybrid Car, Model 2007, Chassis No. JHMFD36207S211415 Colour: Silver.
03. Used Audi A8 Car, Chassis No. WAUZZZ4E29N013000, Colour- Black, Model-2009, Registration No. ART-956/Sindh.
04. Used F/O Toyota Mark-X Car, Chassis No. GRX121-1000149, Model-2004, Colour: Silver PD-257 /ICT.
READ MORE: OICCI suggests duty cut on locally manufactured cars
05. Used F/O Toyota Mark-X Car, Chassis No. GRX121-1005657, Model-2005, Colour: White, BU-862 (Islamabad).
06. Mercedez Benz Car, Model 2006, Chassis No. WDB2110652A125731, Colour-White, AWV-001.
07. Toyota Land Cruiser ZX, Model-2016, Chassis No. URJ202-4120354.
08. BMW X5 Jeep, Registration Plate No.SS-765 (Islamabad), Chassis No.WBAFE42010LK99381, Model 2009, Colour Black.
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09. BMW Car 750LI, Registration Plate No.LEE-13-3450 Chassis No. WBAHN82010DE37384, Model 2005, Colour Silver.
10. Nissan Ceferio Car, Registration Plate No.LEE-07-1, Chassis No.GF50-054361, Model 2003, Colour Black.
11. Honda Accord Car, Registration Plate No.LWP-91, Chassis No.CL7-3201974, Model 2006, Colour Silver.
12. Honda Accord Car, Registration Plate No.LED-07-3756, Chassis No. CL7-3003318, Model 2002, Colour Silver.
13. Honda Accord Car, Registration No.LRX-8411, Chassis No.CF3-1200586, Model 2000, Colour Silver.
READ MORE: Unjustified audit notices annoy taxpayers
14. Toyota Hiace Van, Registration No.LES-17-333, Chassis No.TRH200-0083247, Model 2008, Colour Silver.
15. Mercedez Benz Car, Model 2006, Chassis No. WDD2211562A164356, Colour-White, LD-022, Engine Capacity 3500CC.
16. Toyota Surf, Model-2003, Chassis No. RZN2150002195, ABY-396(Islamabad).
17. Audi A4 Car, Model-2013, Chasssi No. WAUZZZ8K6DA254235, AFR-022.
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FBR chairman replaced despite massive collection growth
ISLAMABAD: The new coalition government led by Prime Minister Shahbaz Sharif soon after taking oath replaced the chairman of Federal Board of Revenue (FBR) despite massive growth in revenue collection during the current fiscal year.
The government appointed Asim Ahmed as the new chairman of the FBR replacing Dr. Muhammad Ashfaq Ahmed.
READ MORE: FBR surpasses collection target for July – April FY22
Ashfaq Ahmed was appointed by the former PTI government on August 24, 2021. However, Asim Ahmed has been given the charge of the apex tax agency on April 27, 2022.
Various quarters are now raising questions about the change of top brass at the FBR at a time when only two months left to complete the fiscal year 2021/2022.
The FBR posted a massive growth in revenue collection during the tenure of Dr. Ashfaq Ahmed. The press release issued by the FBR is self explainatory about the performance of ex-FBR chairman.
READ MORE: LTO Karachi posts 41% collection growth in 10 months
The FBR collected net revenue of Rs 4,858 billion during July, 2021-April, 2022 of current Financial Year 2021-22, which has exceeded the target of by Rs 239 billion. This represents a growth of about 28.6 per cent over the collection of Rs 3,778 billion during the same period, last year.
The net collection for the month of April, 2022 realized Rs 480 billion representing an increase of 24.9 per cent over Rs 384 billion collected in April, 2021.
On the other hand, the gross collections increased from Rs 3,981 billion during July, 2020-April, 2021 to Rs 5,122 billion in current Financial Year July, 2021- April, 2022, showing an increase of 28.7 per cent.
READ MORE: FBR issues sales tax refund rules for tractor manufacturers
Finance Minister Miftah Ismail acknowledged the growth saying that FBR collected Rs 5122 billion in current FY (Jul 21- Apr 22) up from Rs 3981 billion during Jul 20-April 21, registering 28.7 per cent growth. Refunds of Rs Rs264 billion disbursed during July 2021-April 2022 compared to Rs 203 billion paid last year, up by 30.1 per cent. “The FBR team deserves appreciation”.
A big factor in the increase however was increased imports. For instance, sales tax at import stage grew by 58 per cent while it declined by 2 per cent for local goods. “With the right mix of policies and tools I am sure this team will perform even better and to the expectations of the nation,” the finance minister added.
READ MORE: Tax officials warned of strict action for private consultancy
Shaukat Tarin, the former finance minister of PTI government, responded to the current finance minister, saying: “Miftah Bhai, if FBR has done such a good job, you should not have changed its Chairman.”
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Tax officials warned of strict action for private consultancy
ISLAMABAD: Federal Board of Revenue (FBR) has warned all the officials of the apex tax agency of disciplinary action if found involved in private consultancy.
The FBR issued a circular dated April 28, 2022 titled bar against indulging in private consultancy / tax practice by officials of the FBR.
READ MORE: FBR surpasses collection target for July – April FY22
The Federal Tax Ombudsman (FTO) initiated an own motion investigation regarding private practice by employees of the FBR who joined local chambers or even opened their own law offices and render legal assistance to taxpayers in the evening or even during office hours.
“Findings were recorded that many of the officers / officials of FBR associate themselves with different taxpayers and provide legal assistance to them in various taxation matters in total disregard of the instructions under the Government Servants (Conduct) Rules, 1964 whereunder no government servant is allowed to engage in any trade or undertake any employment or work, other than his official duties, except with the previous sanction of the government,” the FBR said.
READ MORE: LTO Karachi posts 41% collection growth in 10 months
Furthermore, Estt, Div.’s O.M. No. 1/20/76-D-IV dated 6-3-1976 contains clear prohibitions regarding undertaking of private work by the government servants, it added.
The FBR further said it had also issued instructions already on July 03, 2019 on the matter and advised all its employees not to indulge in any private consultancy / tax practice.
READ MORE: FBR issues sales tax refund rules for tractor manufacturers
FBR chairman took a serious view of the matter and all FBR employees are again directed to completely abstain themselves from private consultancy / tax practice.
“Inland Revenue Operation Wing is putting in place a strong monitoring mechanism to ensure the compliance of FTO instructions,” the FBR said, adding that in future any officer / official is found involved in such practice, strict disciplinary action would be taken under Civil Servants (E&D) Rules, 2020.