Category: Taxation

Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.

  • FBR directs IRS officers to submit PERs for promotion into BS-18

    FBR directs IRS officers to submit PERs for promotion into BS-18

    The Federal Board of Revenue (FBR) has issued a directive to officers of the Inland Revenue Service (IRS) to submit their performance reports in preparation for the upcoming promotion committee meetings.

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  • KTBA strongly condemns Israel’s atrocities in Palestine

    KTBA strongly condemns Israel’s atrocities in Palestine

    KARACHI: Karachi Tax Bar Association (KTBA) on Wednesday strongly condemned Israeli barbaric attacks on innocent Palestinians and demanded immediate halt of barbaric attacks in Gaza.

    KTBA President Muhammad Zeeshan Merchant, while leading the protest rally, expressed deep anger over the current violent Israeli atrocities on the innocent Palestinians.

    Showing solidarity with the Palestinian people, the tax bar expressed concerns over Israeli aggression and brutality in Palestine and strongly condemned the barbaric attacks on the innocent people.

    “The intensifying assault on Gaza is beyond the pale of humanity,” Merchant said, adding that it was an act of aggression and a pompous show of strength on the part of the Israeli military on innocent and helpless Muslims of Palestine.

    “Our members believe that hundreds of civilians’ causalities are horrendous for this so-called civilized world,” KTBA president said.

    The tax bar also condemned the Israeli attacks on offices of media organizations in Gaza. “We demand the atrocities perpetrated by the Israeli government and the military should be stopped immediately in Gaza.”

    “We believe in survival through co-existence but what is happening is not about the so-called Israeli’s right to exist.”

    The KTBA demanded the government to strongly speak and take stand to safeguard the sanctity of Qibla-e-Awwal as well as the right of Palestinians.

  • FBR issues guidelines for recruitment in BS-01 to BS-05

    FBR issues guidelines for recruitment in BS-01 to BS-05

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued guidelines for recruitment against vacant posts (BS-1 to BS-5) in the Inland Revenue Department.

    The FBR advertised the vacant posts in BS-01 to BS-05 on May 09, 2021.

    The authorities had advised the candidates to submit their applications directly to the concerned IR field offices by May 25, 2021.

    The recruitment process has to be finalized by the field formations by July 28, 2021, as per instructions of the Establishment Division.

    In order to ensure transparency and merit based selection/recruitment, following guidelines have been prepared in the light of relevant rules and latest instructions of the government, to have uniformity in the recruitment process, which are for guidance and compliance of field formations.

    These guidelines are of supplemental nature, do not over-ride the relevant rules/regulations and instructions of the Government on the subject:

    The advertisement for recruitment shall be affixed on the Notice Board of each field office.

    The recruitment process must be transparent, merit based and must be strictly completed

    in accordance with the relevant rules/procedures/instructions issued from time to time.

    The concerned field formations will conduct requisite test for the posts where warranted under the service rules. No testing agency can be engaged for the recruitment process in the light of latest instruction of the Federal Government conveyed vide Establishment  Division 0.M No. 53/1/2008-SP dated 06.05.2020. It may be noted that the Federal Government has withdrawn its O.M. dated 29.07.2019  (Annex-II) regarding conducting balloting for the post in BPS 1-5 vide SRO 198(0/2020 dated 11.03.2020 (Annex-Ill), so there will be no balloting for recruitment against any  posts in any grade.

    The heads of field formation shall designate an officer of their formation to act as focal person to assist the relevant Departmental Selection Committees (DSCs) in the  selection/recruitment process against posts falling under their jurisdiction.

    The concerned field formation will prepare the lists/particulars of the qualified candidates with score awarded for the skill test and submit the lists to the concerned departmental Selection Committees (DSCs) specifically constituted in each field formation for the purpose of recruitment.

    After compilation of recommendations for selection and signing of minutes of the meetings, the Chairman of the DSCs shall forward the signed minutes to the respective Appointing Authority for approval. The selected candidates shall be issued offer of appointment by the concerned office on prescribed format.

    The appointment letters must be issued through Registered post to ensure timely delivery. Result shall be displayed on Notice Board of the respective office.

    The number of existing vacant posts in the respective field formation must be re-confirmed from Budget Book prior to issuance of offer of appointment.

    The respective Appointing authorities through their designated focal persons will be personally responsible for any lapse i.e recruitment made in excess of the actual number of vacant posts in the respective formation or any procedural lapse / irregularity and record will be saved / preserved for Audit and Accountability by the Focal Person.

    Domiciles of candidates shall be verified in the light of Establishment Division’s letter No. 5/7/2009/PPRAC-Vol.X11 dated 31.03.2021 and No. 5/1/2021-(R) dated 06.04.2021 (Annex-VII), (Annex-VIII)

    A list of finally selected candidates against the vacant posts may invariably be forwarded to the Board for information and record by each office upon completion of recruitment process.

    No candidate shall be appointed without verification of character / antecedent and Medical Fitness Certificate by Authorized Medical Board.

    These guidelines are being issued in supersession of earlier one issued on the subject on May, 2021

  • KTBA seeks further date extension for sales tax payment, return filing

    KTBA seeks further date extension for sales tax payment, return filing

    KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to further extend the last date for sales tax payment and filing monthly return as taxpayers are unable to comply with statutory requirement due to extended Eid holidays.

    The tax bar asked the tax authorities to extend the date of payment of sales tax and date of e-filing of the monthly sales tax return for the period April 2021 till May 24, 2021 and May 27, 2021, respectively to facilitate members of the bar and the compliant taxpayers to fulfill their legal obligation.

    While referring to a notification previously issued by the FBR to extend the date for payment of sales tax and filing monthly return for the period April 2021 issued on May 06, 2021, the date of payment was extended up to May 18, 2021 followed by filing of sales tax return till May 21, 2021.

    The KTBA said that may taxpayers and bar members had approached the association informing that the extended date (two days) for payment of sales tax for the tax period April 2021 was insufficient as businesses were not functional properly after Eid Holidays that were during May 10 to May 15, 2021 followed by Sunday on May 16, 2021.

    The KTBA also highlighted that in many cases taxpayers were unable to submit Annexure C as the last date of furnishing of Annexure C was May 10, 2021 which was also a holiday on account of Eid. It is important to note that unless Annexure C is submitted, sales tax payment amount cannot be calculated as payment of sales tax is dependent upon submission of Annexure C.

    The tax bar further informed that provincial revenue authorities had extended deadline for payments and filing of their respective sales tax returns between May 21 and May 27.

    “It is important to highlight that federal sales tax return cannot be furnished before the dates as extended by the provincial revenue authorities owing to the fact that input tax relating to services falling under the provincial domain can only be claimed in federal sales tax return once corresponding provincial sales tax return has been submitted by respective service provider,” the KTBA said.

  • FBR launches module for online hearing in audit, assessment cases

    FBR launches module for online hearing in audit, assessment cases

    The Federal Board of Revenue (FBR) has taken a significant leap into the digital era with the launch of a software platform for conducting online hearings in audit and assessment cases, as announced by an FBR spokesperson on Tuesday.

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  • Date for filing Sindh sales tax return extended

    Date for filing Sindh sales tax return extended

    The Sindh Revenue Board (SRB) has extended the deadline for filing monthly sales tax returns for the month of April 2021. The decision comes in response to challenges faced by taxpayers who experienced difficulties in meeting compliance requirements during the weeklong Eid holidays.

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  • Motor vehicle tax collection grows by 22.7pc; finance ministry issues nine-month statistics

    Motor vehicle tax collection grows by 22.7pc; finance ministry issues nine-month statistics

    ISLAMABAD: The collection of motor vehicle tax has been increased by 22.7 percent owing to better economic conditions during the current fiscal year as compared with unfavorable conditions in the last fiscal year due to corona pandemic.

    According to statistics released by the ministry of finance for the period July – March 2020/2021, the collection of motor vehicle tax increased to Rs20.53 billion during the first nine months of the current fiscal year as compared with Rs16.73 billion in the same months of the last fiscal year.

    The economic conditions were not encouraging at the start of the last fiscal year and later the coronavirus related lockdown adversely impacted commercial and financial activities.

    The provinces have jurisdiction over the collection of motor vehicle tax.

    The province wise collection revealed that the Punjab had posted 15.18 percent increase in motor vehicle tax collection during the period under review. The province collected Rs11 billion during July – March 2020/2021 as compared with Rs9.55 billion in the corresponding period of the last fiscal year.

    The province of Sindh collected Rs7.55 billion during July – March 2020/2021 as compared with Rs5.52 billion during the corresponding period of the last fiscal year, showing an increase of 36.27 percent.

    Khyber Pakhtunkhwa registered an increase of 9.65 percent to Rs1.25 billion during first nine months of the current fiscal year as compared with Rs1.14 billion, showing an increase of 9.65 percent.

    The province of Balochistan posted the highest growth of 43.13 percent to Rs0.73 million during July – March 2020/2021 as compared with Rs0.51 million in the same period of the last fiscal year.

  • MCC Peshawar auctions motor vehicles on May 19-20

    MCC Peshawar auctions motor vehicles on May 19-20

    ISLAMABAD: Model Customs Collectorate (MCC) Peshawar has announced to conduct public auction of motor vehicles at various customs stations on May 19 and May 20, 2021.

    Following are the details of motor vehicles and location of auction:

    STATE WARE HOUSE, PESHAWAR

    01. Mercedes Benz (Bullet Proof) Model 1982, chassis No. WDB-12603312037551

    02. Mitsubishi Pajero Station Wagon Jeep (4X4) Model 1999, Chassis No. JMYHNV360YJ000822

    03. Mitsubishi Pajero Model 1999 (As per Website), Chassis No. JMYHNV360YJ000823

    04. Toyota Land Cruiser Model 1989 (As per Website), Chassis No. LJ70-0005716

    STATE WARE HOUSE, ABBOTTABAD

    01. Toyota Hilux Surf Model 1993 (As per Website), chassis No. KZN130-9007320

    STATE WARE HOUSE, FRONTIER CORPS

    01. Daewoo Car Model 1992, Chassis No. KLATF19TINB-522281

    02. Mark-1 Motor Car Model Nil, Chassis No. LA3VS-216474

    03. Motor Car  Model 1978, Chassis No. M-430-300918

    04. Toyota Corolla Car Model 1982, Chassis No. A171-A-8024009

  • MCC Gwadar to hold public auction of motor vehicles on May 18

    MCC Gwadar to hold public auction of motor vehicles on May 18

    KARACHI: Model Customs Collectorate (MCC) Gwadar has announced public auction of motor vehicles to be held on May 18 at Custom House Gaddani.

    Following motor vehicles to be presented for the auction:

    01. Toyota Premio X Car Reg: No AAK-046 Chassis No. ZZT240-0112894 Engine No. Nil Model: 2006

    02. Toyota Land Cruiser Reg No. BC-0448 Chassis No. HJ61-002060 Engine No. Nil Model: 1986

    03. Hino Bus Reg No. BSB-808 Chassis No. AK1JRKA-16027 Engine JO8CB16832 Model:2012

    04. Coach Reg No. BSA-515 Chassis No. AK1JMKA-1415 Engine No. Nil Model: Nil

    05. Toyota Land Cruiser (Red) Reg No. BA-8164 Chassis No. BJ160-009711 Engine No. Not Traceable Model: 1985

    06. Indus Corolla Car Reg No. GF-1411 Chassis No. AE100-0028693 Engine No. Not Traceable Model: 1994

    07. Land Cruiser Prado Reg No. Not Traceble Chassis No. LJ78-0002499 Model. 1990

    08. Toyota Land Cruiser Reg No.BA-5186 Chassis No. HJ60-009651 Model. 1984

    09. Toyota Land Cruiser Reg: JAA-889 Ch# BJ-60-020679 Model: 1988

    10. Mitsubishi Pajero Reg: JAL-231 Ch# LO48G-3005856 Model: 1985

    11. Land Cruiser Reg: QAB-1649 Ch# HJ61-013994 Model:1989

    12. Toyota Jeep Land Cruiser Reg: AFR-2015 Ch: FJ40-371932 Model: 1989

    13. Toyota Land Cruiser Reg: Nil Ch:# LJ78-0039971 Eng:# ZL-33868 Model: 1993

    14. Honda Civic Car Reg: Nil Ch:# ESI-1600827 Eng:#D1610173-004871 Model: 2002

    15. BMW Reg: Nil Ch:# WBAGL62090DJ92594 Eng:#CC-300 Model: 2002

    16. Toyota Surf Reg: Nil Ch:# KZN130-9032504 Eng:#Not Traceable Model: 1993

    17. Toyota Land Cruiser Reg No. LSA-3469 Chassis No.FJ55-88824 Engine No. Nil Model: 1992

    18. Hino Bus Reg No. CH-14538 Chassis No. AK8JRKA-14538 Engine No. Nil Model: 2016

    19. Hino Bus Reg No. BSA-554 Chassis No. AK1JRKA-11056 Engine No. Nil Model: Nil

    20. Hino Bus Reg No. JB-3335 Chassis No. AK8JRKA-15635 Engine No. Model: 2012

    21. Hino Bus Reg No. BSA-327 Chassis No. AK17X-41808 Engine No. Model: 1992

    22. Hino Bus Reg No. BSA-571 Chassis No. AK-I-JRKA-16707 Engine No. Nil Model: 2011

    23. Toyota Land Cruiser Reg No. QBA-3037 Chassis No. FZ180-016013 Model Nil

    24. Nissan Sunny Car Reg No. Nill Chassis No. JN1BDAB14Z0336115 Engine No. GMI-6080565 Model: Nill

    25. Toyota Hilux Surf Jeep Reg No. BF-3414 Chassis No. RZN185-9024668 Engine No. 3RZ-FE Model: 2000

    26. Honda Accord Reg No. AVP-786 Chassis No. CL7-3003313 Engine No. N/A Model: Nill

    27. Toyota Altis Car Reg No. AZR-182 Chassis No. ZZE142-7403917 Engine No. N/T Model: N/T

    28. Hyundai Shehzore Reg No.KH-4410 Chassis No. AUDF101061 Engine No. N/T Model: N/T

    29. Mitsubmishi Pejero Reg No.KB-1782 Chassis No. CL048VFY100117 Engine No. N/T Model: N/T

    30. Mitsubishi Pejero Reg No.Nill Chassis No. V45-4401374 Engine No. 2L2678454 Model: 1998

    31. Mitsubishi Pejero Reg No.JAB-248 Chassis No. LJ78-00151955 Engine No. -TE Model: Nill

    32. Mitsubishi Pejero (03 Door) Reg No.LSC-5465 Chassis No. V24-7700536 Engine No. 4D56-T7UF Model: Nill

    33. Toyota Land Cruiser Reg No.BD-4472 Chassis No. FZJ80-0022240 Engine No. N/T Model:1992

    34. Toyota Land Cruiser Reg No.BF-7385 Chassis No. HZJ80-0011965 Engine No. N/T Model:Nill

    35. Toyota Land Cruiser Reg No.Nill Chassis No. LENFN28FX95300066 Engine No. 312684 Model:Nill

    36. Toyota Land Cruiser Prado Reg No.JAF-883 Chassis No. IZJ78-0027017 Engine No.1KZIT Model:1996

    37. Toyota Hilux Pickup Reg No.WAE-893 Chassis No. RN43-008601 Engine No.Nill Model:Nill

    38. Toyota Land Cruiser Reg No.JAA-038 Chassis No. HJ61-006515 Engine No.1158881 Model:1987

    39. Toyota Land Cruiser Reg No.JAA-195 Chassis No. LJ71-0003920

    40. Hyundai Shehzore Reg No.KN-9544 Chassis No. AUDF-128515 Engine No.Nill Model:Nill

    41. Pejero Reg No.JAA-983 Chassis No. CL0048VGJ400698 Engine No.Nill Model: Nill

    42. Shahzor Reg No.KP-6463 Chassis No. PHFGNSMXR7D138191 Engine No.D4BB6404789 Model:2007

    43. Toyota Land Cruiser Reg No.JAC-265 Chassis No. KZJ78-0001358 Engine No.1KZ-TE-0005609 Model: NIll

    44. Toyota Prado Reg No.BF-6548 Chassis No. VZJ121-0007375 Engine No.5VZ-FE3378 Model:2003

    45. Toyota Land Cruiser Reg No.JAD-117 Chassis No. FZ-J80-0163691 Engine No.Nill Model:Nill

    46. Hino Mazda Truck Reg No. JW-1236 Chassis No. AK176KA-43256 Engine No. 12181 Model: 1992

    47. Toyota XLI Car Reg No. GP-0896 Chassis No. NZE170R-4048738 Engine No. Z333007 (2ZN-FE Model: 2015

    48. Honda Fit Reg: No. Nil Chassis No. GD1-1270584 Eng: No. USA 1803375 Model: 2002

  • Half a million people pay surcharge to get active taxpayer status

    Half a million people pay surcharge to get active taxpayer status

    ISLAMABAD: Nearly half of a million people have paid surcharge for appearance in Active Taxpayers List (ATL) to get benefit of exempt withholding tax or reduced rate of withholding tax on various types of transactions.

    Sources in Federal Board of Revenue (FBR) on Wednesday said that around 500,000 taxpayers who filed their income tax returns after due date had paid surcharge to appear on the ATL for tax year 2020.

    The FBR issues a fresh ATL on March 01 every year on the basis of returns filed for the preceding tax year. The FBR issued ATL for tax year 2020 on March 01, 2021. This ATL carried 2.17 million names of taxpayers who filed their income tax returns by due date or those who filed their returns on the date which was extended by Commissioner Inland Revenue (CIR).

    The updated ATL – on the basis of surcharge paid by those person who filed their income tax returns after due date –  issued on May 10, 2021 is showing around 2.65 million names of active taxpayers.

    The filing of income tax returns is mandatory for all the taxpayers who have taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

    As per statute the compliance of mandatory return filing was not enough to avail the reduced rate facility. According to Section 182A of Income Tax Ordinance, 2001 the persons who fail to file annual return of income by due date or extended by commissioner Inland Revenue then their names would not be included in the active taxpayers list for the year for which return was not filed.

    However, the persons would be included in the taxpayers list on filing return after the due date, if they pay surcharge at: Rs20,000 in case of  a company; Rs10,000 in case of an association of persons; and Rs1,000 in case of an individual.