Tax experts, gathered under the banner of the Karachi Tax Bar Association (KTBA), have strongly recommended the implementation of a comprehensive Value Added Tax (VAT) by the Federal Board of Revenue (FBR).
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KCAA appreciates customs clearance during Eid Holidays
KARACHI: Karachi Customs Agents Association (KCAA) has appreciated the measures taken by the tax authorities for smooth customs clearance during Eid holidays.
In a statement issued on Tuesday, the KCAA stated that the customs field formations at Karachi Ports observed normal working hours on May 8 h 2021 and remained open on 10th and 11th May in order to facilitate the trade and industry. During remaining Eid Holidays, from May 12th to 15 h May, special teams have been constituted to facilitate the import cargo.
As a result of the measures taken by the customs at the Karachi Ports, clearance of the cargo remained smooth including the food items, pharmaceutical goods and industrial raw materials.
Trade bodies engaged in clearance of import consignments have appreciated the measures taken by the FBR and Customs and the positive impact of such decisions on economy during Eid holidays and Covid-19.
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Framing sales tax rules for e-commerce recommended
KARACHI: Tax practitioners have suggested the Federal Board of Revenue (FBR) for framing rules to bring e-commerce under sales tax laws.
The tax practitioners under the umbrella of Karachi Tax Bar Association (KTBA) discussed upcoming budget 2021/2022 and proposed a comprehensive rules for e-commerce under sales tax laws.
It is discussed that e-commerce of goods as well as services has gained significant momentum particularly in post COVID era. Through digital platforms, large number of vendors/service providers from informal economy can reach customers without setting up proper business structure.
It is difficult not only for the tax authorities to capture such activity but also for the compliant taxpayers who want to discharge their obligations under the tax laws.
Therefore, it is suggested that relevant provisions be amended, and detailed rules be framed for ecommerce in line with global best practices core features of which are:
— Digital platforms, due to their control on the transactions, should be held responsible for collection and payment of sales tax where the vendor is unregistered
— Small vendors earning revenue below 5 Million be exempted from getting registration under the Act
— Appropriate provision for exemption from withholding tax should also be introduced
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FBR reduces sales tax rates on petroleum products
ISLAMABAD: Federal Board of Revenue (FBR) has reduced the rates of sales tax on domestic supply of petroleum products.
The sales tax rates have been reduced in order to maintain the retail prices for end consumers applicable from the first fortnight of May 2021.
The FBR issued SRO 551(I)/2021 dated May 09, 2021 to amend SRO 57(I)/2016 dated January 29, 2016.
Following are the revised sales tax rates on petroleum products from May 01, 2021:
Motor spirit: 17 percent ad valorem
High speed diesel oil: 17 percent ad valorem
Kerosene: 15.44 percent ad valorem
Light diesel oil: 7.56 percent ad valorem
On April 30, 2021, a press statement was issued by the finance division:
“In line with the vision of the Prime Minister to provide relief to the consumers in the holy month of Ramazan, the Government has decided not to increase the prices of the petroleum products. The implementation of this proposal requires an adjustment in the rates of petroleum levy on all petroleum products and a reduction in sales tax as well in case of kerosene oil and light diesel oil.
It is pertinent to mention that the Government was not charging any Petroleum Levy (PL) on Kerosene and light diesel oil.
The cumulative revenue impact of the decision will be Rs. 4.8 billion.
The prices of petroleum products w.e.f 1st May 2021 are as follows: MS Petrol Rs.108.56/liter High Speed Diesel Rs. 110.76/liter Kerosene oil Rs. 80.00/liter Light Diesel Oil Rs. 77.65/liter
A uniform rate of sales tax at 17 percent was announced for all petroleum products through SRO 700(I)/2019 effective from July 01, 2019. However, this notification has been now amended.
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FBR opens recruitment for over 470 vacancies
ISLAMABAD: Federal Board of Revenue (FBR) has started recruitment process of over 470 vacancies against up to Grade 5 posts.
The FBR invited applications from Pakistani nationals on local basis having local/domicile of the relevant districts against vacant posts in field offices of Inland Revenue (IR).
The FBR announced to recruit 143 sepoy in BS-05, 64 drivers in BS-04 and 266 naib qasid in BS-01.
The FBR said that the applications should be submitted by May 25, 2021.
The FBR advised the eligible candidates to submit their applications on the prescribed form available on FBR website and field offices to the Admin officers of the respective tax office. Candidates applying for more than one post should submit separate application form in separate envelope, clearly marked against the post applied for and obtain separate receiving of the same.
The FBR further instructed the candidates to attach attested copies of CNIC and all relevant documents with application form. Candidates will, however, be required to bring original documents (educational and experience certificate) and one set of attested copies of document at the time of interview.
The FBR further instructed the candidates to prescribe physical test for the posts of sepoy will be conducted for pre-screening of the candidate.
The contract employees (Bs-01- 05) who are appointed under the prime minister assistance package for the families of government employees who died in service may also apply for the posts.
The FBR has allocated 10 percent quota for women, five percent for minorities (non-Muslim) will be observed for all above posts, however, two percent quota for disabled persons will only be observed for the post of Naib Qasid as per government instructions.
Disabled persons are required to submit a certificate as proof of disability duly issued by recognized social welfare board/officer or other authorized government organization.
For further details:
https://pkrevenue.com/wp-content/uploads/2021/05/RecruitmentBS-1-15IRDepartment.pdf
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Withholding tax collection grows by 91pc as FBR refuses active status to late return filers
KARACHI: Collection of withholding tax has registered 91 percent increase to Rs11.5 billion during April 2021 as compared with Rs6 billion in the same month of the last year, according to statistics of Large Taxpayers Office (LTO) Karachi.
The phenomenal growth has been attributed to significant decline in number of active taxpayers for tax year 2020. A person, as an active taxpayer, is entitled to exemption of withholding tax or reduced rate of withholding tax on various types of transactions.
A large number of income tax return filers have been deprived from appearance on the ATL following change in definition by the FBR. Now a taxpayer will only qualify for active taxpayer if he files his income tax return by due date. In other cases the filing of return is after the due date then the person requires to pay surcharge for late filing the return and for appearance on the ATL.
Appearance on the ATL assures exemption of withholding tax or reduction in rate of withholding tax on various transactions.
The FBR issued the ATL for tax year 2020 on March 01, 2021 and denied the inclusion of names of those taxpayers who filed their returns after the due date i.e. December 08, 2020.
This results only 2.17 million (as per ATL issued on March 01, 2021) taxpayers qualified for active taxpayers as against 3.11 million active taxpayers for tax year 2019.
The sources said that on a weekly basis those taxpayers who filed return after the due date were paying surcharge to appear on the ATL.
The latest ATL issued on May 03, 2021 the number of active taxpayers increased to 2.62 million for the tax year 2020.
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FBR urged to prescribe time limit for audit conclusion
The Karachi Tax Bar Association (KTBA) has called upon the Federal Board of Revenue (FBR) to institute a definitive time limit for concluding audit proceedings in sales tax cases.
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FBR appoints CEO for Pakistan Single Window Company
ISLAMABAD: Federal Board of Revenue (FBR) has invited application for appointment of Chief Executive Officer (CEO) of Pakistan Single Window Company (PSWC). The application for the post may be submitted by May 23, 2021.
The FBR said that PSWC is a public sector company incorporated under Section 42 of the Companies Act, 2017 by Pakistan Customs, which is the designated lead agency to implement trade related Single Window.
PSWC is to act the operating entity under PSW Act 2021 for development, implementation and maintenance of PSW system. The company is headquartered at Islamabad with a site office at Karachi.
The PSW company requires a transformational and passionate individual to lead the company as CEO. The CEO will be responsible for the overall leadership and management of PSW and achievement of its stated objectives. “He/she will be responsible to ensure that the PSW system is developed and implemented as per the project timelines and in accordance with global best practices.”
He/she will also be responsible for creating and nurturing a conducive environment for technological innovation, reforms and development of IT based solutions for trade facilitation.
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Customs stations to remain operational during Eid Holidays
ISLAMABAD: Federal Board of Revenue (FBR) on Friday directed customs collectorates to observe normal working hours during Eid Holidays in order to facilitate trade and industry to clearance their goods.
The FBR directed the customs station to observe normal working days on May 08, May 10 and May 11 of 2021. The FBR said that the State Bank of Pakistan (SBP) had already issued instructions to banks to open their branches on the dates mentioned above.
The customs field offices had been instructed to issue duty schedule during Eid holidays to their officers in order to ensure consignment clearance during these days, especially those consignments having perishable items.
The FBR said that port authorities, terminal operators and dry ports had been informed about the customs operations during Eid Holidays. Further, trade and industries have also been informed about the decision.
The FBR said that the decision has been taken to ensure timely customs clearance of imported goods so the industrialists meet their export orders extended Eid holidays that were announced to prevent spread of coronavirus.
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FBR deputes IR officers for budget preparation
ISLAMABAD: Federal Board of Revenue (FBR) on Friday assigned the services of following officers of Inland Revenue (IR) with Member (IR-Policy) with immediate effect and until further orders for ongoing Budget exercise and for preparation of Finance Bill, 2021-2022.
Shabih-ul-Aijaz (IRS/BS-20) presently posted as Commissioner-IR (Audit-II), Large Taxpayers Office, Lahore.
Taudeer Ahmad (IRS/BS-19) presently posted as Additional Commissioner-IS, Large Taxpayers Office, Islamabad.
Munir Ahmed Chaudhry (IRS/BS-19) presently posted as Additional Commissioner-IR, Medium Taxpayers Office, Karachi.
The officers are directed to report to Member (IR-Policy) on morning of 07.05.2021 for preparation of presentation on budget proposals 2021-22 for the Honorable Minister for Finance and Revenue on 7th, 8th and 9th May, 2021.