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Category: Taxation

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  • Transit trade activity starts at Gwadar Port

    Transit trade activity starts at Gwadar Port

    ISLAMABAD: A first carrier containing 200 tons of fish from international waters arrived at Gwadar. The fish will be shipped to China in reefer containers, said Federal Board of Revenue (FBR) on Monday.

    According to the FBR statement the arrival of the container at the Gwadar Port will open a new era of prosperity and growth for the people of Baluchistan and the economy of the country.

    This has been made possible under the directions of the Prime Minister of Pakistan to kick start operations at the Gwadar Port.

    Pakistan Customs is all geared up to realize the vision of the Prime Minister Imran Khan for transforming Gwadar into an International Transit trade Hub and facilitate trade through Gwadar Port.

    FBR has already notified International Transshipment Rules vide SRO 218(I)/2020 dated 10.03.2020. A dedicated Directorate of Transit Trade has also been established at Gwadar to work closely with the stakeholders and transform Gwadar into a Transit trade hub.

    As a result of this proactive approach and support of all stakeholders, in the coming days, more vessels containing international cargo including LPG, Steel Pipes, DAP fertilizer for transit to Afghanistan is scheduled to arrive at Gwadar Port.

    This reflects the confidence of the international business community and shipping lines in the economic potential of the Port and excellent trade facilitation measures put in place by Pakistan Customs.

    Gwadar is the future of Pakistan and will help the country in earning much needed foreign exchange in the future.

    During the recent visit of a high level Pakistani delegation to Afghanistan led by Advisor on Commerce, the Afghan businessmen have shown interest in making investment for trade through Gwadar Port.

  • Tax return filing reaches record high of 2.95 million

    Tax return filing reaches record high of 2.95 million

    ISLAMABAD: The filing of income tax return has reached a record high of 2.95 million, according to the updated Active Taxpayers List (ATL) issued by Federal Board of Revenue (FBR) on Monday.

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  • CCIR given special role for taxpayer grievance redressal

    CCIR given special role for taxpayer grievance redressal

    ISLAMABAD: Chief Commissioners of Inland Revenue (CCIR) have been assigned special role for redressal of taxpayers’ grievances and attached the task as key performance indicator.

    In an official note sent to all Regional Tax Offices (RTOs), the FBR authorized the CCIRs with quasi-official role of Inland Revenue Ombudsman in their respective jurisdictionally assigned territories vis-à-vis their own taxpayers – both existing and potential, and start resolving their grievances on a war footing.

    The chief commissioners have been directed to ensure that they were the first point of contact for all existing and potential taxpayers for resolution of their problems and plaints, and ensure that even if a taxpayer has ever to go seeking redressal elsewhere, it is only after he has failed in getting the due relief from the Inland Revenue Ombudsperson at his doorsteps.

    “In future, the Chief Commissioner’s role as Inland Revenue Ombudsperson would be a key indicator of his performance, and it would reflect adversely on his efficacy as a tax administrator if the number of complaints emanating from his jurisdiction and lodged elsewhere does not drastically come down over the next few months.”

    The FBR further directed the CCIRs that they must widely publicize it in their respective jurisdiction so as to attract and internalize maximum complaints lodged by their taxpayers.

    “This significant administrative shift needs to be optimally leveraged to salvage image of the service, restore confidence citizen’s trust in the system, and maximize revenue collection in a wholesome manner,” the FBR said.

  • Valuation procedure for undeclared motor vehicles

    Valuation procedure for undeclared motor vehicles

    The Federal Board of Revenue (FBR) has outlined a detailed procedure for the valuation of motor vehicles identified as undeclared or concealed assets in the Income Tax Rules, 2001.

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  • FBR explains fair market value of property, assets

    FBR explains fair market value of property, assets

    ISLAMABAD: Federal Board of Revenue (FBR) explained fair market value, which is the price which the property or asset would ordinarily fetch on sale or supply in the open market at that time.

    The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) which explains the fair market value through Section 68.

    Following is the text of Section 68 of the Ordinance, explaining the fair market value:

    Section 68. Fair market value.—

    (1) For the purposes of this Ordinance, the fair market value of any property or rent, asset, service, benefit or perquisite at a particular time shall be the price which the property or rent, asset, service, benefit or perquisite would ordinarily fetch on sale or supply in the open market at that time.

    (2) The fair market value of any property or rent, asset, service, benefit or perquisite shall be determined without regard to any restriction on transfer or to the fact that it is not otherwise convertible to cash.

    (3) Where the price “other than the price of immoveable property” referred to in sub-section (1) is not ordinarily ascertainable, such price may be determined by the Commissioner.

    (4) Notwithstanding anything contained in sub-sections (1) and (3), the Board may, from time to time, by notification in the official Gazette, determine the fair market value of immovable property of the area or areas as may be specified in the notification.

    (5) Where the fair market value of any immovable property of an area or areas has not been determined by the Board in the notification referred to in sub-section (4), the fair market value of such immovable property shall be deemed to be the value fixed by the District Officer (Revenue) or provincial or any other authority authorized in this behalf for the purposes of stamp duty.

    (6) In respect of immovable property—

    (i) component A of the formula in sub-section (2) of section 37;

    (ii) “consideration received” as mentioned in Division X of Part IV of First Schedule;

    (iii) “value of immovable property” as mentioned in Divisions XVIII of Part IV of the First Schedule; and

    (iv) valuation for the purposes of section 111,shall not be less than the fair market value as determined under sub-section (4) or (5).

    Explanation.—(1)For the removal of doubt, it is clarified that the fair market value as determined under sub-section (4) or(5) shall be for carrying out the purposes of this Ordinance only.

  • Valuation of immovable property identified as concealed asset

    Valuation of immovable property identified as concealed asset

    ISLAMABAD – The Federal Board of Revenue (FBR) has issued determinations regarding the valuation of immovable properties identified as concealed or undeclared assets under Section 111 of the Income Tax Ordinance, 2001.

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  • Banks provide statements of account holders to tax authorities

    Banks provide statements of account holders to tax authorities

    ISLAMABAD – Banks are obligated to furnish statements of deposits and withdrawals of account holders to the Federal Board of Revenue (FBR).

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  • Rules drafted to empower customs freeze smuggled assets

    Rules drafted to empower customs freeze smuggled assets

    ISLAMABAD: Federal Board of Revenue (FBR) has drafted rules to empower customs officials to trace and freeze assets acquire by any person through proceeds of smuggling.

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  • FBR gets details of buyers, sellers of immovable properties

    FBR gets details of buyers, sellers of immovable properties

    The Federal Board of Revenue (FBR) is employing a comprehensive approach to enhance tax compliance by obtaining crucial information on buyers and sellers of immovable properties through provincial registrars.

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  • FBR issues rules for centralized payment of income tax refunds

    FBR issues rules for centralized payment of income tax refunds

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday announced the issuance of draft rules for the centralized payment of income tax refunds. The FBR released SRO 1239(I)/2020, proposing amendments to the Income Tax Rules, 2002, aimed at streamlining the refund process and enhancing transparency.

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