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Category: Taxation

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  • Key proposals to withdraw tax exemptions

    Key proposals to withdraw tax exemptions

    ISLAMABAD: The government is going to withdraw various exemptions allowed under Income Tax Ordinance, 2001.

    The exemption may be withdrawn through Income Tax (Second Amendment) Ordinance, 2021, the sources said on March 21, 2021.

    Following are the highlights of the proposed law:

    It is proposed to omit power of Federal Board of Revenue (FBR) to declare any sector or industry as industrial under taking under Section 2 Clause (29C) of Income Tax Ordinance. 2001.

    Under Section 23A of the Income Tax Ordinance, 2001 it is proposed to omit first year allowance equal to 90 percent of the cost of plant and machinery to mobile phone manufacturers and other industrial undertakings located in underdeveloped areas.

    Under Section 61 of the Income Tax Ordinance, 2001 it is proposed to enhance the scope of tax credit for contribution to non-profit and other organizations as direct deduction of such expense is being proposed to be done away with by omitting clause 61 of part I of the second schedule.

    Under Section 64C of the Income Tax Ordinance, 2001, it is proposed to omit tax credit available to persons employing fresh graduates. It was available maximum up to 5 percent of the tax liability.

    Under Section 65C of Income Tax Ordinance, 2001 it is proposed to omit tax credit to companies equal to 20 percent of tax payable for first two years and 10 percent for next two years  of enlistment at stock exchange.

    Section 65D of Income Tax Ordinance, 2001, it is proposed to omit tax credit available to newly established industrial undertakings.

    Under Section 65F of Income Tax Ordinance, 2001, it is proposed that the exemptions available to persons engaged in coal mining in Sindh, IT exports and startups to be replaced with tax credit.

    Under section 65G of Income Tax Ordinance, 2001, the exemptions available to greenfield industrial undertakings and industries engaged in manufacture of plant, machinery, equipment and items with dedicated use (no multiple uses) for generation of renewable energy have been proposed to be replaced with tax credit on the basis of  investment made in plant machinery, building, computer, hardware and software.

    Under Section 100C of Income Tax Ordinance, 2001 law related to tax credit available to charitable organizations has been re-drafted to make it simpler & easier besides streamlining the regime with other provisions. No substantial change.

    Under Section 152 of Income Tax Ordinance, 2001, technical correction in sub-section (1E) to synchronize with other sub-sections

  • PTBA demands date extension for taxpayers profile update

    PTBA demands date extension for taxpayers profile update

    ISLAMABAD: Pakistan Tax Bar Association (PTBA) on Friday urged the Federal Board of Revenue (FBR) to extend the last date for updating taxpayers’ profile for further 90 days.

    The PTBA in a letter to FBR Chairman Muhammad Javed Ghani informed that the last date for updating taxpayers’ profile under section 214 of Income Tax Ordinance, 2001 it was made compulsory for the taxpayers to update their profile electronically containing various information such as bank account, utilities etc. Furthermore, failure to file the prescribed form will also trigger the penal provisions as well as exclusion of the taxpayer from ATL list.

    The PTBA pointed out that due to sudden surge in COVID-19 patients and lockdown by the federal and provincial governments, the tax consultants/taxpayers are unable to complete and submit their profiles till March 31, 2021 and furthermore around 2.5 million taxpayers across the country are in same process at same time which is not possible in IRIS system.

    The tax bar urged the FBR chairman to issue necessary directives to the concerned department for providing relief to taxpayers.

    Furthermore, till such time, the time limit for updating the profile under the provisions of Section 114A of the Ordinance, date should be extended for 90 days up to June 30, 2021 by using the powers granted under the Ordinance.

  • FBR taking all measures to resolve taxpayers’ grievances: Javed Ghani

    FBR taking all measures to resolve taxpayers’ grievances: Javed Ghani

    The Federal Board of Revenue (FBR) is actively pursuing measures for redressal, as affirmed by FBR Chairman Muhammad Javed Ghani on Friday.

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  • FBR collects Rs1.8bn as capital gain tax on sale of securities

    FBR collects Rs1.8bn as capital gain tax on sale of securities

    KARACHI: Federal Board of Revenue (FBR) has collected Rs1.8 billion as capital gain tax on sale of securities during first eight months (July – February) 2020/2021.

    The collection of capital gain tax on sale of securities has increased by 31 percent to Rs1.8 billion during first eight months of the current fiscal year as compared with Rs1.37 billion in the corresponding period of the last fiscal year, sources in Large Taxpayers Office (LTO) Karachi said on Friday.

    The collection was made under Section 147 (5B) of Income Tax Ordinance, 2001.

    Adjustable advance tax on capital gain from sale of securities shall be chargeable as under, namely:—

    Where holding period of a security is less than six months: the rate of advance tax shall be two percent of the capital gains derived during the quarter.

    Where holding period of a security is more than six months but less than 12 months: the tax rate shall be 1.5 percent of the capital gains derived during the quarter.

    Provided that such advance tax shall be payable to the Commissioner within a period of twenty-one days after the close of each quarter: Provided further that the provisions of this sub-section shall not be applicable to individual investors.

  • Customs Intelligence Multan announces auction of confiscated vehicles on March 24

    Customs Intelligence Multan announces auction of confiscated vehicles on March 24

    ISLAMABAD: The Directorate of Intelligence and Investigation, Multan has announced auction of confiscated vehicles on March 24, 2021 lying at state warehouse of the directorate.

    Following vehicles to be presented for the auction:

    1. Toyota Corolla Car (accident), Model-2006, Chassis No. NZE121-3351112

    2. Toyota Fielder “X” Car, Model-2001, Chassis No. NZE121-0039807

    3. Toyota Probox Car, Model-2004, Chassis No. NCP50-0027535

    4. Hino Ranger Tuck, Model-1991, Chassis No. FD3WDA-11415

    5. Toyota Land Cruiser, Model-1998, Chassis No. VZJ95-0039067

    6. Hino Ranger Truck, Model-2001, Chassis No. FDIJLD-15708

    7. Toyota Vitz Car, Model-2003, Chassis No. SCP13-0030360

    8. Toyota Aqua Car, Model-2012, Chassis No. NHP10-6069798

    9. Toyota Fielder Car, Model-2014, Chassis No. NKE165-7064534

    10. Suzuki Alto Car, Model-2013, Chassis No. HA25S-874119

    11. Toyota Vitz Car, Model-2011, Chassis No. NSP130-2036789

    12. Hino Ranger Truck, Model-1990, Chassis No. FD3HMA-11083

    13. Suzuki Alto Car, Model-2012, Chassis No. HA25V-741746

    14. BMW Car, Model-2009, Chassis No. WBANTI2030CX30125

    15. Toyota Vitz Car, Model-1999, Chassis No. SCP10-0066271

    16. Toyota Raum Car, Model-2007, Chassis No. NCZ20-0107469

    17. Toyota Hilux Single Cabin, Model-2016, Chassis No. MROEX3CB401103255

    18. Toyota Aqua Car, Model-2012, Chassis No. NHP10-6125166

    19. Toyota Corolla Car, Model-2003-4, Chassis No. NZE121-3256455

    20. Toyota Corolla Car, Model-2004, Chassis No. NZE140-2185740

  • Pakistan, Qatar agree on promoting tax cooperation

    Pakistan, Qatar agree on promoting tax cooperation

    ISLAMABAD: Pakistan and Qatar on Thursday agreed to promote bilateral relations in customs and taxes.

    Ambassador of Qatar in Pakistan, Sheikh Saoud Abdul Rahman Al-Thani Thursday called on Chairman Federal Board of Revenue (FBR), Muhammad Javed Ghani.

    Matters of mutual concern pertaining to cooperation on customs and tax were discussed in the meeting according to an FBR press statement issued here.

    It was agreed in the meeting that relevant departments of both countries would further promote the cooperation in the field of customs and tax and would learn from each other’s best practices which would result in increasing the trade volume between the two countries.

    Chairman FBR briefed the Qatari Ambassador about the recent measures taken by FBR for the mobilization of revenue and facilitation of taxpayers.

    Qatari Ambassador appreciated the recent performance of FBR in the first eight months of current financial year and hoped that FBR would successfully achieve the revenue target set for the current year.

  • KTBA to discuss tax profile update problems with FBR chairman

    KTBA to discuss tax profile update problems with FBR chairman

    KARACHI: Karachi Tax Bar Association (KTBA) to take up problems faced by taxpayers at a meeting with the chairman of the Federal Board of Revenue (FBR), according to a communication received on Thursday.

    In the communication to its members, the KTBA said it was well aware about many issues faced by the members while updating taxpayers’ profile, which is mandatory under Section 114A of the Income Tax Ordinance, 2001.

    The KTBA advised its members to send the nature of problems they faced while updating taxpayers’ profiles on the IRIS portal.

    The tax bar also advised the members to send their issues by March 25, 2021 to enable the KTBA to take up the issues with the FBR chairman for resolution.

    Updating the taxpayer profile has been made mandatory through insertion of Section 114A to the Income Tax Ordinance, 2001 through Finance Act, 2020.

    The last date for updating the profile was December 31, 2020. However, it was extended to March 31, 2021.

    The FBR through various statements has made it clear that those who failed to update the profile would be excluded from the Active Taxpayers List (ATL).

    The FBR has also imposed monetary penalty for failure in updating the profile. Under the Income Tax Ordinance, 2001 an amount of Rs2500 per day with minimum penalty of Rs10,000.

  • MCC Appraisement (West) announces motor vehicle auction on March 20

    MCC Appraisement (West) announces motor vehicle auction on March 20

    KARACHI: Model Customs Collectorate (MCC) Appraisement and Facilitation (West), Karachi has announced auction of motor vehicles to be held on March 20, 2021 at

    Following motor vehicles will be presented for the auction:

    1. Used Honda-N One Car, Chassis No. JG1-1208909, Mfg. Year: 2016 Capacity: Not Shown

    2. Used Daihatsu Move Car, Chassis No. LA160S-0022740, Mfg. Year: 2016, Capacity: 658cc

    3. Used Alto (ene charge), Chassis No. HA365-283360, Capacity : Not Shown, Mfg. Year: 2016

    4. Used Toyota Aqua Hybrid, Chassis No. NHP10-6602703, Mfg. Year: 2017, Capacity: 1496 cc

    5. Used Honda Fit Hybrid, Chassis No. 0P5-3406289, Mfg Year: 2017

    6. Used Daihatsu Cast Car, Chassis No. LA250S-0087529, Mfg Year: 2017, Capacity: 658 cc

    7. Used Suzuki Every Van, Chassis No. DA64V-84762 I, Mfg. Year: 2014

    8. Used Suzuki Every Wagon, Chassis No. DA64W-438003, Mfg. Year: 2014

    9. Used Suzuki Every Van, Chassis No. DA17V-213505, Mfg. Year: 2016

    10. Used Daihatsu Move Car, Chassis No. LA150S-0117976, Mfg Year: 2017, Capacity: 658 cc

    11. Used Daihatsu E:S Mira Car, Chassis No. LA300S-1412103, Mfg. Year: 2016, Capacity: 658 cc

    12. Used Honda-N WGN Car, Chassis No. JH1-1399120, Mfg. Year: 2018, Capacity: Not Shown, Milage: 562Kms

    13. Used Daihatsu Move Car, Chassis No. LA 1505-0096763, Mfg. Year: 2016, Capacity: 658 cc

    14. Used Nissan Note, Chassis No. HE12-183219, Mfg. Year: 2017, Capacity: 1198 cc

    15. Used Suzuki Every Van, Chassis No. DA17V-171819, Mfg. Year: 2016

    16. Used Nissan Dayz Car, Chassis No. B21W-0459199, Mfg. Year: 2017

    17. Used Honda Shuttle, Chassis No. 0P7-I035329, Mfg. Year: 2016

    18. Used Suzuki Alto Car, Chassis No. MA36S-273828, Mfg. Year: 2016

    19. Used Honda Fit Hybrid, Chassis No. GP5-1227193, Mfg Year: 2017

    20. Used Nissan NV100 Clipper Van, Chassis No. DR17V-127859, Mfg. Year: 2016

    21. Used Toyota Passo Car, Chassis No. M700A-0068371, Mfg. Year: 2017, Capacity: 996 cc

    22. Used Toyota Aqua Hybrid, Chassis No. NHP10-6585179, Mfg. Year: 2017, Capacity: 1496 cc

    23. Used Toyota Aqua Hybrid, Chassis No. NHP10-2535470, Mfg. Year: 2016, Capacity: 1496 cc

    24. Used Suzuki Every Van, Chassis No. DA17V-225008, Mfg. Year: 2016

    25. Used Suzuki Wagon-R, Chassis No. MH355-103519, Mfg. Year: 2017

    26. Used Audi Q2 1.0TESI, Chassis # WAUZZZGAIJ018984, Manufacturing Year: 2018, Engine Capacity: Not Shown, Mileage: 3664 km

    27. Following motorcycles are also part of the auction:

    (i). New Arctic Cat ATV Bike, Chassis # RFB14ATV.3EK610888, Manufacturing Year: 2014, Engine Capacity: 90 cc

    (ii) New Arctic Cat ATV Bike, Chassis # RFB14ATVXEK6T0905, Manufacturing Year: 2014, Engine Capacity: 90 cc

    (iii) New Arctic Cat ATV Bike, Chassis # RF1314ATVXEK6T0919, Manufacturing Year: 2014, Engine Capacity: 90 cc

    (iv) New Arctic Cat ATV Bike, Chassis # RE8I4ATV2EK6T0896, Manufacturing Year: 2014, Engine Capacity: 90 cc

    (v) New Arctic Cat ATV Bike, Chassis # RFBI4ATVXEK6T0928, Engine Capacity: 90 cc

    (vi) New Arctic Cat ATV Bike, Chassis # RF1314ATV9EK6T0894, Manufacturing Year: 2014, Engine Capacity: 90 cc

    (vii) New Arctic Cat ATV Bike, Chassis # RFB14ATV3EK6T0910, Manufacturing Year: 2014, Engine Capacity: 90 cc

    (viii) New Arctic Cat ATV Bike, Chassis # RFB14ATV3EK6T0938, Manufacturing Year 2014 Engine Capacity 90 cc

    28. Used Range Rover Evoque, Chassis No. SALVA2AG70H828587, Mfg. Year: 2013

    29. Used Mitusbishi Mirage Car, Chassis No. AO3A-0034375, Capacity : Not Shown, Mfg. Year: 2015, Extra Parts (01 Pc New Hydraulioc Jack)

    30. Used Nissan Dayz car, Chassis No. 821-w-0322718, Mfg. Year: 2015 Capacity: 1496ml

    31. Used Daihatsu Cast Car, Chassis No. LA250S-0098171, Mfg. Year: 2017, Capacity: 658cc

    32. Used Suzuki Every Van, Chassis No. DA17W-117175, Mfg. Year: 2015, Capacity: Not Shown

    33. Used Daihatsu Wagon, Chassis No. S33 1G-0028698, Mfg. Year: 2015 Capacity: 658cc

    34. Used Suzuki Alto Car, Chassis No. HA-36V132435, Mfg. Year: 2018, Capacity : 658cc, 4303km

    35. Used Suzuki Alto Car, Chassis No. HE36S-352581, Mfg. Year: 2017, Capacity : Not Shown

    36. Used Mitsubishi Ek Wagon Car, Chassis No. B11 W-0307757, Mfg. Year: 2017, Capacity : Not Shown

    37. Used Honda Hybrid Freed, Chassis No. GP3-1216644, Mfg. Year: 2014, Capacity : Not Shown, Extra parts: (i) 01 pc bonnet (ii) 01 pc back door

    38. Used Hustler Suzuki, Chassis No. MR31S-311545, Mfg. Year: 2016, Capacity : Not Shown

    39. Used Suzuki Alto, Chassis No. 1-IA36S-268860, Mfg Year: 2015, Capacity: Not Shown, Extra parts: (i) 03 pcs bonnet (ii) 01 pc bumper (iii) 11 pcs fander

    40. Used Suzuki Every Van, Chassis No. DA64V-830205, Mfg. Year: 2014, Capacity : Not Shown

    41. Used Audi A3 1.4TFSI, Car, Chassis No. WAUZZZ8VXF1077847, Mfg. Year: 2015

    42. 1 UNIT STC USED VEHICLE TOYOTA AQUA CH/NO: NHP10 -6584555 YEAR 2017

    43. Used Suzuki Every Van, Chassis No. DA64V-844736, Mfg. Year: 2014, Capacity : Not Shown

    44. Used Daihatsu Hijet Cargo Van, Chassis No. S33AV-0115549, Mfg. Year: 2014, Capacity : 658cc

    45. Used Suzuki Every Van, Chassis No. DA17V-152270, Mfg Year: 2015, Capacity : Not Shown

    46. Used Suzuki Alto Car, Chassis No. HA-36V132435, Mfg. Year: 2018, Capacity: 658cc, 43031cm

    47. USED VEHICLE TOYOTA AQUA, MODEL-2017, CH # NHP10-6604902, ENGINE# 1NZ-FXEC CAPACITY: 1496 ML

    48. USED VEHICLE HONDA VEZEL MODEL, CHASSIS NO: RU3-1079539, MFG: 2015 CAPACITY: NOT SHOWN

    49. USED VEHICLE TOYOTA VITZ MODEL, CHASSIS NO: KSP130- 2201340,MFG: 2017, CAPACITY: 996ML

    50. USED VEHICLE TOYOTA PASSO MODEL , CHASSIS NO: M700A0071747,MFG:2017,CAPACIY:996cc

  • Tax credit for enlistment in stock exchange may be withdrawn

    Tax credit for enlistment in stock exchange may be withdrawn

    ISLAMABAD: The government likely to withdraw tax credit available to companies for enlistment in stock exchange.

    The withdrawal of tax credit is part of proposal to rationalize tax exemption regime in the country. The law to withdraw tax exemption and incentives may be introduced soon.

    The tax credit for enlistment is available under Section 65C of the Income Tax Ordinance, 2001. The tax credit is available for three years. The first year tax credit for enlistment in stock exchange is 20 percent of the tax payable for the year in which the company is enlistment. Meanwhile tax credit for the following two years is 10 percent of the tax payable.

    The government is considering omitting this tax credit. The Federal Board of Revenue (FBR) granted an amount of Rs357 million as tax credit during fiscal year 2019/2020 to the companies listed with stock exchange availing this incentive.

  • 200,000 late filers get active taxpayers status

    200,000 late filers get active taxpayers status

    ISLAMABAD: Around 200,000 income tax return filers paid surcharge to get their names in Active Taxpayers List (ATL) during past 15 days.

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