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Category: Taxation

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  • Motor vehicle tax collection grows by 15pc to Rs12.7 billion in 1HFY21

    Motor vehicle tax collection grows by 15pc to Rs12.7 billion in 1HFY21

    ISLAMABAD: The collection of motor vehicle tax has increased by 15 percent to Rs12.7 billion during the first half (July – December) of 2020/2021 owing to improved business and commercial activities after ease in coronavirus lockdown.

    According to official statistics made available on Saturday, the motor vehicle tax collected by all the provinces increased to Rs12.7 billion during the first half of the current fiscal year as compared with Rs11 billion in the corresponding half of the last fiscal year.

    Province wise collection data revealed that Punjab had contributed the major chunk under this head. The Punjab province collected Rs7.08 billion as motor vehicle tax during first half of the current fiscal year as compared with Rs6.52 billion in the corresponding half of the last fiscal year.

    In terms of growth, the Sindh province registered an increase of 28.48 percent to Rs4.28 billion during the period of July – December of the current fiscal year as compared with Rs3.33 billion during the same period of the last fiscal year.

    The collection of motor vehicle tax by the province of Khyber Pakhtunkhwa registered an increase of 2.24 percent to Rs865 million during the first half of the current fiscal year as compared with Rs846 million in the corresponding half of the last fiscal year.

    The Balochistan province collected Rs413 million as motor vehicle tax during July – December 2020/2021 as compared with Rs303 million in the same period of the last fiscal year.

  • Customs values increased for imported imitation jewellery

    Customs values increased for imported imitation jewellery

    KARACHI: Customs values of imported artificial / imitation jewellery have been increased for determination of duty and taxes at the time of customs clearance.

    The Directorate General of Customs Valuation has issued Valuation Ruling No. 1509/2021 dated January 27, 2021.

    The directorate said that earlier the customs values of artificial jewellery were determined under Section 25A of Customs Act, 1969 through Valuation Ruling No. 1376/2019 dated May 30, 2019.

    The directorate general of customs valuation was tasked by the Federal Board of Revenue (FBR) to identify the items/goods where variation with respect to values in exporting countries viz-a-viz import values in Pakistan were observed and where valuation ruling already exist.

    Accordingly, a special team was constituted in Directorate General of Customs Valuation, which identified the subject items where vast variations in declarations/specifications were observed.

    Accordingly, an exercise was initiated to re-determine the customs values of artificial imitation jewellery under Section 25A of the Customs Act, 1969.

    The directorate invited stakeholders to present evidence of the import values of the goods.

    The meetings were attended by representatives from M/s. GA Jahangir & Associates authorized by various importers and stakeholders. The point of view heard in detail to arrive at customs values of subject goods.

    The  stakeholders claimed that their declared values were true transactional values and may be accepted as such. The stakeholders also submitted their proposal regarding values of artificial jewellery but failed to substantiate said values with documentary evidences.

    The customs values of following artificial jewellery on import of various origins have been amended:

    01. Electroplated white/yellow, without stones/beads:

    The customs value enhanced to $3.85/kg from $3.54 on import from China.

    The customs value enhanced to $5.40/kg from $4.97 on import from other origins.

    02. Electroplated white/yellow, with plastic stones / beads:

    The customs value enhanced to $4.40/kg from $4.12 on import from China.

    The customs value enhanced to $6.55/kg from $6.12 on import from other origins.

    03. Fancy Electroplated white/yellow, with crystal stones/beads:

    The customs values enhanced to $12.5/kg from $11 on import from China.

    The customs values enhanced to $27.35/kg from $24 on import from other origins.

    In the previous valuation ruling a separate rate for imitation jewellery import from India was given. However, in the latest valuation ruling the rate of the goods on import from India has been eliminated.

  • Jewelers making cash transactions above Rs2 million liable to comply with FATF conditions: FBR

    Jewelers making cash transactions above Rs2 million liable to comply with FATF conditions: FBR

    ISLAMABAD: The Federal Board of Revenue (FBR) has said that jewelers making cash transactions with their buyers and sellers above Rs2 million are liable to monitoring under Anti-Money Laundering (AML)/Countering Financing of Terrorism (CFT), sources said on Thursday.

    In this regard the FBR issued guidelines for persons dealing in precious stones and metals.

    The procedures have been issued under anti money laundering (AML) and combating financing of terrorism (CFT) and to meet conditionalities of Financial Action Task Force (FATF).

    A jeweler is required to retain record of such transactions for at least five years following the completion of a transaction.

    Bringing Designated Non-Financing Business and Professions (DNFBP) into AML/CFT laws is one of the major requirements of the FATF. The FBR on September 29, 2020 issued SRO 924(I)/2020 to notify regulations namely Anti-Money Laundering and Countering Financing of Terrorism Regulations for DNFBPs, 2020.

    The DNFBPs have been defined as real estate agents, jewelers and accountants.

    The latest procedure for compliance by jewelers has also been issued to make this segment into money laundering free business.

    The sources said a person engaged in the business of precious stones is not subject to AML/CFT if he is selling or buying jewellery below Rs2 million in cash.

    According to the procedures issued by the FBR, if a person is a retail merchant and selling or buying jewellery e.g. rings, bracelets, necklaces and other bodily ornaments may not be a Dealers in Precious Metals and Stones (DPMS) in one year or one month, but the person starts selling or buying such items over Rs2 million threshold, in subsequent years or months, the person would be subject to AML/CFT.

    The FBR interprets the Rs2 million threshold as a cash transaction below threshold amount, if the cash transaction is below Rs2 million but is part of a series of transactions related to the purchase of the same item or items totaling Rs2 million or above.

    The revenue body said that the business of precious stones and metals may be abused by criminals and terrorists because of a number of factors.

    “They can be of very high value, but still very small and therefore very easy to carry, transport and conceal. Transferring ownership does not require any formal registration process unlike for real estate, motor vehicles or share ownership,” the FBR said, adding that the holder of the precious stone and metal is the owner and can be held anonymously without a need for records to be kept.

    “In terms of gold, it can be considered as a universally accepted currency and therefore, investing in gold to launder illegal earnings would be easy as well as profitable,” the FBR added.

    The FBR also issued similar procedures for real estate agents and accountants.

  • FBR exempts entire sales tax on import of 52 fire tenders

    FBR exempts entire sales tax on import of 52 fire tenders

    The Federal Board of Revenue (FBR) announced on Wednesday the exemption of sales tax and additional sales tax on the import of 52 fire-fighting vehicles.

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  • Tax cases involving over Rs250 billion decided at various judicial forums: FBR

    Tax cases involving over Rs250 billion decided at various judicial forums: FBR

    ISLAMABAD: Tax cases involving over Rs250 billion have been decided at the various judicial forums during the quarter ended December 2020, Federal Board of Revenue (FBR) said in a statement.

    The FBR said that it had geared up the efforts for resolving tax cases laying pending at various judicial forums.

    As a result of these ongoing efforts, in the last quarter (ending December, 2020) 934 tax cases have been disposed of by the high courts and the supreme court with the revenue involved amounting to Rs81.7 billion.

    Moreover, 1240 cases with the revenue involved of Rs168.5 billion have been decided by the Appellate Tribunal Inland Revenue (ATIR) during the same period.

    The FBR said that it is making all out efforts by taking several steps to improve the disposal of tax litigation cases pending in different appellate fora including Commissioners Inland Revenue (Appeals), Appellate Tribunal Inland Revenue, High Courts and the Supreme Court of Pakistan.

    The FBR has launched the simplified process at the first Appeal i.e. Commissioners Appeals level by implementing the e-filing of appeals since January 01, 2021.

    Through e-filing, taxpayers can simply file appeals against an appealable order, online, without hassle of going to their respective field office. Even prior to launching of E-filing, disposal of cases have been surpassing the assigned targets as per the Performance Agreement.

    For the period from July to December, 2020, the target of disposal assigned to the CsIR (Appeals) was 7818 appeals against which a total of 17,768 appeals were disposed of which is in excess of the target by a huge margin.

    Similarly on FBR’s request, special benches for hearing of tax cases have been constituted by Sindh High Court, Lahore High Court and Islamabad High Court for early hearings and speedy disposal of tax related cases.

    In addition to that a new policy has been introduced for the induction of competent lawyers so that government revenue is not left at the stake of amateur lawyers.

    It is also informed for the benefit of taxpayers’ that the institution of ADRC (Alternate Dispute Resolution Committee) has also been mobilized by virtue of which taxpayers’ are encouraged to get their cases settled through these committees in a much lesser time and without incurring litigation cost.

    So far on application by the taxpayers’ 18 committees have started working for resolution of cases.

    FBR further clarifies that by virtue of a major facilitative change in law vide Finance Act-2020, an applicant taxpayer, in order to apply for resolution of case by ADRC, is not required to withdraw his case pending in any other appellate forum.

    In order to win trust of the taxpayers’ in this system, the law requires that members of ADRC apart from the relevant Chief Commissioner would also include respectable reputable judges, chartered accountants and businessmen nominated by chambers of commerce.

    The committee is also empowered to stay the process of recovery in hardship cases. FBR also clarifies that taxpayers’ application has to be finalized by the Committee within a short period of 120 days which in itself is a big relief considering the usual time taken in various appellate fora before a case attains finality.

  • Law authorizes customs officials to X-Ray suspects for detection of concealed goods

    Law authorizes customs officials to X-Ray suspects for detection of concealed goods

    KARACHI: Customs authorities have been empowered to screen or X-Ray bodies of suspected persons for detection of concealed goods.

    According to Customs Act, 1969, an officer not below the rank of an assistant collector of customs can order to screen or X-Ray a person for detection of concealed goods.

    Section 160 of the Act explained regarding the power to screen or X-Ray bodies of suspected persons for detecting secreted goods.

    (1) Where the appropriate officer has reason to believe that any person liable to search has any goods liable to confiscation secreted inside his body, he may detain such person and produce him without unnecessary delay before an officer of customs not below the rank of an Assistant Collector of Customs.

    (2) The aforesaid officer, if he has reasonable grounds for believing that such person has any such goods secreted inside his body and that it is necessary to have the body of such person screened or X-Rayed, may make an order to that effect , or else discharge such person forthwith, except where he is held on any other grounds.

    (3) Where the aforesaid officer orders such person to be screened or X-Rayed, the appropriate officer shall, as soon as practicable, take him to a radiologist possessing such qualifications as may be recognized by the Federal Government for that purpose and such person shall allow the radiologist to screen or X-Ray his body.

    (4) The radiologist shall screen or X-Ray the body of such person and forward his report thereon, together with any X-Ray picture taken by him to the aforesaid officer without unnecessary delay.

    (5) Where on the basis of a report from a radiologist or otherwise, the aforesaid officer is satisfied that any person has any goods liable to confiscation secreted inside his body, he may direct that suitable action for bringing such goods out of his body be taken on the advice and under the supervision of a registered medical practitioner and such person shall be bound to comply with such direction:

    Provided that in the case of a female no such action shall be taken except on the advice and under the supervision of a female registered medical practitioner.

    (6) Where any person is brought before an officer of customs not below the rank of an Assistant Collector of Customs as aforesaid, he may direct that pending completion of all action under this section such person be detained.

    (7) No person shall be subjected to screening or X-Ray if he confesses that goods liable to confiscation are secreted inside his body and of his own consent agrees to suitable steps being taken to bring out such goods.

  • FBR to start marking tax stamps from July 2021

    FBR to start marking tax stamps from July 2021

    ISLAMABAD: The Federal Board of Revenue (FBR) announced a significant step towards curbing counterfeit products and enhancing tax collection through tax stamps.

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  • Hamid Ali posted as Member Customs Policy

    Hamid Ali posted as Member Customs Policy

    ISLAMABAD: Syed Hamid Ali, a BS-21 officer of Pakistan Customs Service (PCS) has been transferred and posted as Member (Customs-Policy), Federal Board of Revenue (Headquarter), Islamabad, a notification said on Monday.

    Hamid Ali was previously posted as Member (Legal & Accounting – Customs), FBR (Hq), Islamabad.

    The post of Member Customs was remained vacant after Muhammad Javed Ghani assumed the charge as Chairman of the FBR.

    Ms. Zeba Hai Azhar, a BS-21 officer of PCS, has been transferred and posted as Member (Legal & Accounting – Customs), FBR (Hq), Islamabad from the post of Director General, Directorate General of Training and Research (Customs), Karachi.

  • NSS: tax rate at 10% on profit subject to furnishing certificate

    NSS: tax rate at 10% on profit subject to furnishing certificate

    ISLAMABAD: Persons deriving profit less than Rs500,000 on national saving schemes are required to provide a certificate in order to get reduced income tax rate at 10 percent, official sources said.

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  • FBR issues 1.4 million notices for not filing returns, concealing income

    FBR issues 1.4 million notices for not filing returns, concealing income

    ISLAMABAD: Federal Board of Revenue (FBR) has issued around 1.4 million notices to non-filers of income tax returns and those who concealed income in their declaration, a statement said on Saturday.

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