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Category: Taxation

Pakistan Revenue delivers the latest taxation news, covering income tax, sales tax, and customs duty. Stay updated with insights on tax policies, regulations, and financial developments in Pakistan.

  • FBR notifies promotions of customs officers into BS-20

    FBR notifies promotions of customs officers into BS-20

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday notified promotions of four Pakistan Customs officers of BS-19 into BS-20 on regular basis with immediate effect.

    The following customs officers have been promoted to BS-20:

    01. Muhammad Asghar Khan

    02. Basit Maqsood Abbasi

    03. Ms. Sadia Munib

    04. Abdul Waheed Marwat

    The FBR said that the officers, who are presently posted against BS-20 posts on OPS, may actualize their promotions against their respective BS-20 positions.

    Posting of the remaining officers will be notified separately.

    The officers, if drawing performance allowance prior to issuance of this notification, shall continue to draw this allowance on their promotion.

    FBR congratulates the officers on their promotion.

  • FBR notifies promotions of Customs officers into BS-21

    FBR notifies promotions of Customs officers into BS-21

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday notified promotions of four Pakistan Customs officers of BS-20 into BS-21 on regular basis with immediate effect.

    The following officers have been promoted to BS-21 on regular basis:

    01. Faiz Ahmed

    02. Gul Rehman

    03. Dr. Fareed Iqbal Qureshi

    04. Ahmed Raza Khan.

    The FBR said that the officers, who are presently posted against BS-21 posts on OPS, may actualize their promotions against their respective BS-21 positions.

    Posting of the remaining officers will be notified separately.

    The officers, if drawing performance allowance prior to issuance of this notification, shall continue to draw this allowance on their promotion.

    The FBR congratulates the officers on their promotion.

  • SBP relaxes tax non-filer condition

    SBP relaxes tax non-filer condition

    KARACHI: The State Bank of Pakistan (SBP) on Wednesday relaxed non-filer condition for depositing into to foreign currency accounts in order to facilitate declarants of tax amnesty scheme 2019.

    Referring Assets Declaration Ordinance, 2019 (ADO), the central bank said that the Ordinance had been promulgated with a view to provide for voluntary declaration of undisclosed assets, sales and expenditures, for the purposes of allowing the non-documented economy’s inclusion in the taxation system and economic revival and growth by encouraging a tax compliant economy/ culture.

    In terms of Section 8 of the ADO, the declaration made shall be valid if the foreign currency held in Pakistan declared under Section 3 is deposited into declarant’s own foreign currency bank account at the time of declaration and is retained in such account till 30th June, 2019.

    “It is clarified that notwithstanding any instructions to the contrary contained in the Foreign Exchange Manual, a declarant, including a non-filer can deposit foreign currency in cash into his/her bank account under the ADO.”

    Similarly, the provision of Foreign Exchange Manual, Chapter 6, para 1(vi) regarding deposit of foreign currency notes in foreign currency accounts exceeding USD 10,000/- (or equivalent in other currencies) in a single day, shall not be applicable to such deposits made under the ADO.

    However, the banks while accepting such deposits under the ADO shall obtain a copy of the declaration filed with the Federal Board of Revenue (FBR) by the declarant and accept the deposit only if the amount being deposited is equivalent to the amount declared in the declaration filed with FBR.

    The banks shall ensure the confidentiality and secrecy of the information contained in the declaration submitted to them by declarants along-with deposit request.

    The banks shall submit to the State Bank of Pakistan (SBP) a statement as annexed hereto, within 7 (seven) days of close of the scheme.

  • IR offices directed to remain open, observe extended working hours on Friday, Saturday, Sunday

    IR offices directed to remain open, observe extended working hours on Friday, Saturday, Sunday

    ISLAMABAD: Federal Board of Revenue (FBR) has made special arrangements on the last three days of the outgoing fiscal year to facilitate declarants of tax amnesty scheme and income tax return filers besides generating revenue by closing till June 30, 2019.

    The FBR directed all the offices of Inland Revenue to remain open and observe extended working hours on Friday, Saturday and Sunday (June 28, 29 & 30).

    The date for filing of income tax return is ending on June 30, 2019. Meanwhile the date for availing Asset Declaration Scheme is also June 30, 2019.

    The offices of Inland Revenue advised to observe extended working hours till 8:00 PM on Friday June 28, 2019.

    Further, they have been directed to remain open till 8:00PM on Saturday June 29, 2019 and 11:00PM on Sunday June 30, 2019.

    The FBR said that the observing extended hours and opening of offices on weekly holidays was to facilitate the taxpayers in payment of duty and taxes and filing of income tax returns and statement.

    The FBR directed Chief Commissioners of Inland Revenue to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on June 30, 2019 to respective branches of SBP on the same date so as to account for the same towards the collection for the month of June 2019.

  • FBR amends baggage rules, passengers required to make customs declaration

    FBR amends baggage rules, passengers required to make customs declaration

    ISLAMABAD: Federal Board of Revenue (FBR) has amended baggage rules and made it mandatory for passengers to declare their goods on arrival.

    The FBR on Tuesday issued draft amendments to Baggage Rules for passengers in order to clear their goods under concessionary or exempt regime.

    Under the draft rules made available to PkRevenue.com, a passenger is required to file a customs declaration at the time of arrival or departure.

    The declaration form shall include:

    Name of collectorate

    Passenger’s name

    Gender

    Date of birth

    Passport number

    Nationality

    Country coming from/going to

    Country going to (if in transit)

    Name of countries visited during the last 7 days

    Purpose of visit such as personal, official, business or tourism

    Contact person/sponsor, contact number in Pakistan, address in Pakistan

    The passenger is required to make following declaration:

    Are you carrying any of the following goods?

    Prohibited/restricted goods such as narcotics, psychotropic substance, firearms, weapons, satellite phones etc?

    Gold Jewelry, precious /semi previous stones

    Foreign currency in US $ or equivalent.

    Passengers have been advised to inform customs officer at the red channel if any of the above answer in Yes.

  • Automated sales tax registration to start from July 01: FBR

    Automated sales tax registration to start from July 01: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday said that the automated system for sales tax registration will start from July 01, 2019.

    The following procedure has been proposed and the same shall replace the one as prescribed in sub-rules (2) to (8) of rule 5 of the Sales Tax Act, 1990:

    The applicant having NTN/income tax registration shall, using his login credentials, upload following information / documents:

    Bank account certificate issued by the bank in the name of the business.

    Registration / consumer number with the gas and electricity supplier.

    Particulars of all branches in case of multiple branches at various locations.

    GPS-tagged photographs of the business premises In case of manufacturer, also the GPS-tagged photographs of machinery and industrial electricity or gas meter installed.

    On furnishing above documents, the system shall register the applicant for sales tax, the FBR said.

    After registration, the applicant or his authorized person shall visit e-Sahulat Centre of NADRA within a month for bio-metric verification.

    In case of failure to visit or failure of verification, the registered person’s name shall be taken off the sales tax Active Taxpayer List.

    In case of manufacturer, the FBR may require post verification through field offices or a third party authorized by the Board.

    In case, the field office, during scrutiny after the registration, finds that any document provided is non-genuine / fake / wrong, it may request through the system, to provide the missing document, in fifteen days, failing which the registered person shall be taken off from the sales Active Taxpayer List.

  • Customs stations to remain open on June 29, 30 for duty, tax collection

    Customs stations to remain open on June 29, 30 for duty, tax collection

    ISLAMABAD: Federal Board of Revenue (FBR) has instructed all the customs stations in the country to remain open and observe extended working house till 10:00 pm on Saturday (June 29, 2019) and till 12:00 mid-night Sunday (June 30, 2019).

    The FBR issued these instructions for facilitation of trade in payment of duty/taxes.

    The FBR has further instructed the Chief Collector of Customs to liaise with the State Bank of Pakistan and other scheduled commercial banks in their respective jurisdiction to ensure transfer of the duties/taxes collected by these branches to the respective branches of State Bank of Pakistan on the same date and to account the same towards collection for the month of June, 2019, a notification said on Monday.

  • Finance Bill 2019: tax officials granted powers to enter premises for gold, prize bonds; KCCI opposes

    Finance Bill 2019: tax officials granted powers to enter premises for gold, prize bonds; KCCI opposes

    KARACHI: The Finance Bill 2019 has proposed discretionary powers to Commissioner Inland Revenue to enter and search any premises for undeclared gold and prize bonds.

    Under Section 175 of Income Tax Ordinance, 2001 such powers have already with the commissioners but the proposal intended to expand the power to include gold and bearer security.

    Karachi Chamber of Commerce and Industry (KCCI) has opposed strongly to this recommendations saying that this is against the dignity granted to an individual as per the Article 14 of the Constitution and would tantamount to violation of sanctity of residential premises, if raided.

    A research report of the KCCI said that raiding of homes and subsequent breach of privacy is against national cultural norms and is an idea uncalled for, having grave social repercussions.

    “This proposal is also against the spirit of withdrawal of discretionary powers of the taxman.”

    The Asset Declaration Scheme 2019 also does not allow declaration of gold, precious stones, bearer security and bearer prize bonds, thereby restricting a holder of such assets from declaring them before probable confiscation. Any such measure before allowance of declaration makes this a very harsh measure.

    Such sweeping discretionary powers granted to the Commissioner would result in harassment to ordinary citizens including housewives and the elderly, as now raids could be made on homes as well, and by no means should be allowed to be confiscated.

    Hence, this proposal should be removed from the budget. Further, the Asset Declaration Scheme 2019 should be amended to include declaration of gold and bearer securities.

  • Tax slabs increased for rental income from properties

    Tax slabs increased for rental income from properties

    KARACHI: The government has revised tax slabs for rental income from property to eight from five.
    Experts at Deloitte Pakistan Chartered Accountants said that the Finance Bill 2019, proposed the increase in the number of tax slabs from five to eight.
    Three new tax slabs are proposed for income exceeding Rs4,000,000 to match the maximum rate with that of the individual tax rates.
    Rates of tax on income from property, based on the finance bill, shall be as follows:
     

    S. No. Gross Amount of Rent Rate of Tax
    1.Where the gross amount of rent does not exceed Rs.200,000.Nil
    2.Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs. 600,000.5 per cent of the amount exceeding Rs. 200,000.
    3.Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs. 1,000,000.Rs. 20,000 plus 10 per cent of the amount exceeding Rs. 600,000.
    4.Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs. 2,000,000.Rs. 60,000 plus 15 per cent of the amount exceeding Rs. 1,000,000.
    5.Where the gross amount of rent exceeds Rs.2,000,000 but does not exceed Rs. 4,000,000.Rs. 210,000 plus 20 per cent of the amount exceeding Rs. 2,000,000.
    6.Where the gross amount of rent exceeds Rs.4,000,000 but does not exceed Rs. 6,000,000.Rs. 610,000 plus 25 per cent of the amount exceeding Rs. 4,000,000.
    7.Where the gross amount of rent exceeds Rs.6,000,000 but does not exceed Rs. 8,000,000.Rs. 1,110,000 plus 30 per cent of the amount exceeding Rs. 6,000,000.
    8.Where the gross amount of rent exceeds Rs. 8,000,000.Rs. 1,710,000 plus 35 per cent of the amount exceeding Rs. 8,000,000.
  • FBR proposes massive increase in valuations of Lahore immovable properties

    FBR proposes massive increase in valuations of Lahore immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has proposed massive increase in valuations of immovable properties in Lahore to be effective from July 01, 2019.

    The FBR about two days back issued valuation tables of immovable properties in 18 cities of Pakistan. The FBR invited comments and suggestions on the proposal from the stakeholders before implementing those by July 01, 2019.

    A cursory look on the proposed valuation of immovable properties in Lahore suggested that the FBR was planning to generate a sizeable revenue from sales and purchase of immovable properties during next fiscal year.

    The increase in valuation is not uniform as it was done by the FBR by increase valuation by 20 percent through SROs issued in February 2019.

    The FBR now proposed locality based increase in valuation and the increase may be over 100 percent increase on the existing valuations.

    The comparative valuations of immovable properties in Lahore are given below so readers can measure the quantum of increase:

    In the proposed valuation the FBR given separate valuation of commercial and residential immovable properties. Besides, a new concept of valuation of immovable properties has been introduced for properties up to five years and properties above five years old.