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  • FBR issues updated rates of duty, taxes on mobile phones

    FBR issues updated rates of duty, taxes on mobile phones

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued the updated applicable rates of duty and taxes for clearance of mobile phones.

    The FBR said that following rate of duty and taxes for the clearance of mobile phones shall be applicable during (2021-2022) (with passport applied within 60 days of arrival in Pakistan):

    READ MORE: FBR collects mobile phone tax, PTA clarifies

    Mobile Phones having cost and freight (C&F) value up to $30, the rate of duty and tax has been fixed at Rs430.

    Mobile Phones having C&F value above $30 and up to $100, the rate of duty and tax has been fixed at Rs3,200.

    Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs9,580.

    Mobile Phones having C&F value above $200 and up to $350, the rate of duty and taxes shall be Rs12,200 + 17 per cent Sales Tax Ad Valorem.

    READ MORE: FBR increases income tax to 15% on cellular services

    Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs17,800 + 17 per cent Sales Tax Ad Valorem.

    Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs27,600 + 17 per cent Sales Tax Ad Valorem.

    Rate of duty and taxes on mobile phones 2021/2022 (Applied with CNIC):

    Mobile Phones having C&F value up to $30, the rate of duty and tax has been fixed at Rs550.

    READ MORE: FBR issues new FED rates on motor vehicles

    Mobile Phones having C&F value above $30 and up to $100, the rate of duty and taxes has been fixed at Rs4,323.

    Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs11,561.

    Mobile Phones having C&F value above $200 and up to $350, the rate of duty and tax shall be Rs14,661 + 17 per cent Sales Tax Ad Valorem.

    Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs23,420 + 17 per cent Sales Tax Ad Valorem.

    READ MORE: Banks to share business account details to FBR

    Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs37,007 + 17 per cent Sales Tax Ad Valorem.

  • FBR eyes Rs6 trillion collection in current fiscal year

    FBR eyes Rs6 trillion collection in current fiscal year

    ISLAMABAD: Dr. Ashfaq Ahmed, Chairman, Federal Board of Revenue (FBR) on Wednesday hoped that the revenue collection for the current fiscal year will increase to Rs6 trillion – surpassing the target of Rs5.83 trillion.

    “Our revenue target is Rs 5.830 trillion which is expected to increase till Rs6 trillion by June 2022. We have collected Rs 300 billion more revenue than our target till December 31,” Dr. Ashfaq said.

    READ MORE: DG Customs Valuation powers strengthened

    He expressed his hope that this year, the FBR would achieve all its revenue targets and would further play its role in the country’s economy.

    The FBR chief hinted for achieving revenue target of Rs 8 trillion by 2023 as it would set the country’s economy in a new direction.

    He said that Prime Minister Imran Khan has his own vision for revenue collection and economic development in the country, in which, achieving revenue target of up to Rs 8 trillion is one of top priorities.

    READ MORE: Tax imposed to protect domestic entertainment industry

    Chairman expressed these views while talking to the journalists here.

    Replying to a question, he said that Pakistan Customs was the protector of economic borders of the country and that they have always been playing its role for trade promotion.

    He said that Pakistan Customs was playing its best role in enforcing trade laws at Chaman and Torkham borders.

    He said that transparent trade brought prosperity and development in the country.

    READ MORE: FBR slaps sales tax at 17% on supply of food stuff

    He vowed that, “we would digitalize every FBR’s agency”.

    He said that FBR currently has the largest data portal which is in a dire need of digitization.

    This data can be very important in the trade and economic development of the country.

    He said that at present, the role of FBR was very important in all three trade corridors including Chaman and Torkham, which would be strengthened with China Pakistan Economic Corridor (CPEC).

    READ MORE; FBR enhances tax rates on motor vehicle registration

  • DG Customs Valuation powers strengthened

    DG Customs Valuation powers strengthened

    ISLAMABAD: The powers of Director General Customs Valuation have been strengthened through amendments made through Finance (Supplementary) Act, 2022.

    The powers of Customs Collector to determine customs valuation have been withdrawn through Finance (Supplementary) Act, 2022.

    Sources in Federal Board of Revenue (FBR) on Tuesday said that through the Finance (Supplementary) Act, 2022 amendment had been made in Section 25A of the Customs Act, 1969.

    READ MORE: Tax imposed to protect domestic entertainment industry

    Prior to the amendment the power to determine the customs value was with the collector of customs and the director of customs valuation.

    The collector of customs was given power to determine the valuation through Finance Act, 2021. However, after only six months the legislators had abolished the power of customs collector.

    Following the latest amendment the power to determine the customs valuation is now with the Director General of Valuation.

    READ MORE: FBR slaps sales tax at 17% on supply of food stuff

    Another important amendment has been made to Section 25D of the Customs Act, 1969 through Finance (Supplementary) Act, 2022. Prior to the amendment, the Section 25D allowed an aggrieved person to file an appeal before the Member Customs (Policy) against the value determine by the Director General Valuation.

    READ MORE; FBR enhances tax rates on motor vehicle registration

    Through the Finance (Supplementary) Act, 2022, the proviso in the Section 25D has been omitted so that appeal against the decision of Director General Valuation should not be filed before the Member Customs (Policy) and should be taken up at an appropriate judicial forum to redress the grievances.

    The supplementary act further provided that an order passed in revision by the Director General Customs Valuation under section 25D, provided that such appeal shall be heard by a special bench consisting of one technical member and one judicial member.

    READ MORE: FBR increases income tax to 15% on cellular services

  • KTBA identifies anomaly in SRB’s appellate system

    KTBA identifies anomaly in SRB’s appellate system

    Karachi Tax Bar Association (KTBA) has identified a sheer violation of the constitution by the Sindh Revenue Board (SRB) regarding appointments in appellate system.

    KTBA President Muhammad Zeeshan Merchant in a letter to SRB Chairman Wasif Ali Memon pointed out the irregularities in appointments of provincial tax officials in first appellate forum available to taxpayers i.e. Appeals.

    READ MORE: KTBA highlights anomalies in single sales tax return

    Merchant referred to the Constitution of Islamic Republic of Pakistan which is coined on the trichotomy of power.

    The Article 175 of the Constitution envisages separation of powers between legislature, executive and judiciary ostensibly to prevent the concentration of power and to check transgression.

    The Supreme Court of Pakistan in the case of Government of Baluchistan Vs. Azizullah Memon reported as PLD 1993 SC 31 has seconded the above analogy.

    READ MORE: KTBA passes resolution against FTO Asif Jah

    With the given methodology, it needs to be appreciated that the Notification No. SRB 3-4/34/2021 dated December 20, 2021 issued by the Member (Operations) Sindh Revenue Board (“SRB”), infringes upon the structure of trichotomy and separation of power in so far as following situations are concerned: 

    Zamir A. Khalid, presently posted as the Commissioner (Legal) is also given the additional charge of the Commissioner (Appeals – I)

    Muhammad Iqbal Lakho, presently posted as Commissioner-III is also given the additional charge of the Commissioner (Appeals – II).

    READ MORE: KTBA highlights issues in implementing digital payments

    The KTBA expressed the surprise to see such a belligerent offensive on the constitutional methodology by a distinguished institution like SRB.

    “We believe this prima facie is a travesty of justice as no one can be judge of his own cause. Please subscribe that this is further likely to shake the confidence of litigants (taxpayers) on the SRB as an independent appellate forum with the dedicated Commissioner (Appeals) is the only solution.”

    READ MORE: KTBA submits recommendations for e-filing of appeals

  • KCCI holds awareness seminar on Pakistan Single Window

    KCCI holds awareness seminar on Pakistan Single Window

    The Karachi Chamber of Commerce & Industry (KCCI) organized an awareness session on Pakistan Single Window (PSW).

    The seminar was aimed to raise technical awareness about the overall operations of this important facility and provide an opportunity to the participants of the session to better understand the system, highlight issues and get adequate response along with first-hand information from the relevant officers of Pakistan Customs.

    READ MORE: PSW to link 27 banks for trade facilitation

    The session, which was steered by Chief Domain Officer/ Additional Collector Customs Naveed Abbas Memon and simultaneously conducted through online zoom facility, was attended by President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain, Chairman Customs & Valuations Subcommittee Muhammad Arif Lakhani, Former Senior Vice President Muhammad Ibrahim Kasumbi, Former Vice President Nasir Mehmood, KCCI Managing Committee and General Body Members in addition to immense participation of more than 250 people from all over the country including Sialkot, Lahore, Islamabad and Faisalabad who joined the meeting via zoom facility.

    Speaking on the occasion, Chief Domain Officer Naveed Abbas Memon stated that Pakistan Single Window portal has been designed to fully facilitate traders by reducing time, cost and complexity in cross border trade in addition to improving the quality of experience for all stakeholders with primary focus on ease of doing business. He said that it also supports other government departments in adopting an Integrated Risk Management (IRM) approach for efficient enforcement of trade related controls.

    READ MORE: PSW to reduce trade cost, time, and complications: Tarin

    Earlier, while welcoming the participants of awareness session, President KCCI Muhammad Idrees appreciated the PSW initiative introduced by the government which would certainly help in minimizing human interaction and reduce chances of harassment and corruption. However, he stressed that the need to promptly rectify numerous glitches in the system and simplify procedures in order to achieve the prime objective of PSW facility which was to ensure ease of doing business.

    He said that it was heartening to see that PSW promotes ease of doing business by maintaining collaboration with 74 different public sector entities involved in regulation of cross border trade of Pakistan and digitalizing the processes related to importers, exporters, customs house agents, freight forwarders, shipping companies and transporters etc. but there was a room for further improving the system so that it could be brought at par with international standards.

    He was of the view that fully functional and totally flawless operations of PSW would also enable Pakistan to achieve compliance with WTO’s Trade Facilitation Agreement besides helping Pakistan to unlock its potential in becoming a hub for trade.

    READ MORE: Biometric verification for PSW inaugurated at KCAA

    He mentioned that Karachi Chamber has the honor of being the first Chamber of the country to NADRA e-Sahulat at KCCI premises where members of the business and industrial community were being provided biometric verification facility required for registration in the PSW portal. “PSW or any other IT-enabled service to be introduced in future must be devised in such a manner that these facilitate business community rather than becoming a source for exploitation”, he stressed, adding that FBR must work in close coordination with KCCI to make PSW and other such future initiatives successful.

    While appreciating the support and cooperation extended by Pakistan Customs, particularly the seriousness being exhibited towards ensuring ease of doing business, President KCCI opined that the success of PSW initiative would not only prove beneficial for businesses but also for the economy.

    Many participants of the meeting expressed deep concerns over some non-functional tabs in PSW portal and also the delays in biometric verification for registration which was causing demurrage detention losses. In response, on the spot instructions were issued to resolve several glitches so that the business community could use this portal without any problem.

    READ MORE: SBP to eliminate electronic import form for PSW

  • FBR collects mobile phone tax, PTA clarifies

    FBR collects mobile phone tax, PTA clarifies

    In response to the recent surge in taxes and duties on the registration of cellular mobile devices and handsets, the Pakistan Telecommunication Authority (PTA) issued a clarification on Monday, emphasizing that the applicable duty and taxes are solely collected by the Federal Board of Revenue (FBR).

    (more…)
  • FBR further extends date for filing sales tax return

    FBR further extends date for filing sales tax return

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday further extended the last date for filing sales tax and federal excise return for the month of December 2021 up to January 28, 2022.

    The FBR issued an office order to further extend the date of payment and filing of sales tax and federal excise return for the tax period of December 2021. Previously, the FBR issued an office order on January 17, 2022 to extend the date.

    The taxpayers are required to file their sales tax returns for the month of December 2021 through the Single Sales Tax Portal.

    READ MORE: FBR launches sales tax return filing through single portal

    The FBR on December 27, 2021 issued a notification under which it directed the taxpayers to file their sales tax returns for month of December 2021 through Single Sales Tax Portal.

    The payment of sales tax and federal excise duty, which was due on January 15, 2022 had been extended up to January 21, 2022. The FBR further extended the date for payment up to January 25, 2022.

    READ MORE: Power of the Board and Commissioner to call for records

    Similarly, the last date for filing sales tax and federal excise return for the month of December 2021 was due on January 18, 2022, which was extended up to January 24, 2022. The FBR further extended the date for filing the return for the month of December 2022 up to January 28, 2022.

    The single portal for sales tax returns has been launched to facilitate taxpayers, promote ease of doing business and reduce compliance cost.

    The FBR said that through this portal, sales tax registered persons shall be able to file a single sales tax return instead of having to file separate returns to the FBR and each of the different provincial sales tax authorities.

    READ MORE: Inland Revenue officers promoted to BS-20

  • Tax imposed to protect domestic entertainment industry

    Tax imposed to protect domestic entertainment industry

    The Federal Board of Revenue (FBR) has introduced taxes on foreign-produced TV dramas and advertisements as part of its efforts to safeguard and promote the domestic media industry.

    (more…)
  • FBR slaps sales tax at 17% on supply of food stuff

    FBR slaps sales tax at 17% on supply of food stuff

    The Federal Board of Revenue (FBR) has instituted a significant change in the tax structure for the supply of food items by restaurants, bakeries, caterers, and sweetmeat shops, imposing a 17% sales tax.

    (more…)
  • Committee formed to hunt tax evaders in supply chain

    Committee formed to hunt tax evaders in supply chain

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday constituted a committee to hunt for tax evaders in supply chain i.e. manufacturers, importers, distributors, retailers etc.

    According to a FBR notification, the committee shall identify wholesalers, distributors, small, medium and large manufacturers/importers who potentially have taxable income but neither, they have been brought into the tax base of Pakistan nor being part of the tax base but are evading and suppressing taxes and invoices.

    READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

    It will define the potential target market and quantify the size of the target market.

    The committee shall develop a business plan comprising of budget pertaining to project plan, human, IT and infrastructure resources required to bring the potential target market into the tax base, in order to generate incremental tax revenue.

    It will obtain legal and regulatory protection, facilitation and support of stakeholders in order to achieve the objective in collaboration and support of the FBR.

    READ MORE: FBR enhances tax rates on motor vehicle registration

    The committee shall have mandate to define policy and rules for a licensing framework for appointment of intermediaries who will coordinate and facilitate the integration of supply chain to capture and report all sales transactions.

    It will coordinate with various associations and trade bodies to facilitate the integration of supply chains.

    The committee shall have powers of controlling, monitoring and implementation of supply chain capture integration program in coordination with the IRS Operations.

    READ MORE: FBR increases income tax to 15% on cellular services

    It will develop a correlation between invoice and digital/electronic payments for the purpose of audit, in coordination with necessary stakeholders including but not limited to State Bank of Pakistan (SBP).

    The committee shall have mandate to leverage software to capture the entire supply chain from manufacturer, distributor, wholesaler, retailer and customers to capture transactions, withholding tax information and use the developed database to capture potential taxpayers.

    READ MORE: FBR issues new FED rates on motor vehicles

    It further have mandate to leverage data analytics to capture sales tax demand on the input/output at each stage of supply chain from manufacturer to end consumer, thereby bringing unregistered distributors, sub-distributors and retailers into the tax net.

    The committee will develop organizational structure required to deliver on the above Terms of Reference (TORs) based on size of potential target market, physical dispersion of potential target market, and committed time lines for achieving TORs.