The Federal Board of Revenue (FBR) has taken a proactive step to facilitate taxpayers by directing offices of Inland Revenue (IR) to observe extended working hours.
(more…)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.
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Peshawar collectorate announces auction of vehicles on May 30
ISLAMABAD: Model Customs Collectorate (MCC) Appraisement Peshawar has announced auction of large quantity of vehicles to be held on May 30 at Customs Railway Dryport, Peshawar.
S# Make/Chassis No. 1 USED MITSUBISHI EK WAGON CHASSIS NO. :H82W-1342187 Model 2011 2 USED TOYOTA LAND CRUISER PRADO CHASSIS NO.GRJ151-0001019 Model 2009 3 01 UNIT USED CHRYSLER 300 2012 COMPLETE VIN: 2C3CCAUM7DH517194 4 WDB2110722B156275 5 Toyota Corolla Ch No.JTNKU3JE80J011536 6 Toyota Hiace Van Ch No.KDH201-5013055 Model 2013 7 Suzuki Hybrid Car Ch No.FF21S-107822 Model 2016 8 Toyota Land Cruiser Ch No.URJ202-4116930 Model 2016 9 Toyota Land Cruiser Ch No.URJ202-4113863 Model 2016 10 Suzuki Hybrid Car Ch No.FF21S-103154 Model 2016 11 Toyota Lexux Ch No.URJ201-4193562 Model 2015 12 Suzuki Wagon R Ch No.MH34S-745380 Model 2013 13 Toyota Land Cruiser Ch No.URJ202-4134650 Model 2016 14 Toyota Vitz Car Ch No.NSP130-2220121 Model 2015 15 Used Hino Truck JHDFM2PK9D1S13123 16 Used Hino Truck JHDFM2PK9D1S13112 17 Suzuki Ignis Car Ch No. FF21S-106101 Model 2016 18 Suzuki Ignis Car Ch No FF21S-116086 Model 2016 19 Hino Truck Model 2013 Ch No. FD7JLA-13990 20 Honda Insight Car Ch No.ZE2-1128757 Model 2009 21 Honda Pruis Car Ch No ZE2-1100845 Model 2008 22 Honda Insight Car Ch ZE2-1101847 Model 2009 23 Isuzu Mazda Truck Ch No.NJR85-7033961 Model 2013 24 Toyota Pruis Car Ch No.ZVW30-5252971 Model 2010 25 Honda Insight Car Ch No.ZE2-1213085 Model 2010 26 Suzuki Every Van Ch No.DA64V-353777 Model 2009 27 Suzuki Every Van Ch DA64V-364405 Model 2009 28 Suzuki Ch No.HA25S-820648 Model 2011 29 Daihatsu Ch No.S321V-0066949 Model 2009 30 Toyota Hiace Van Ch No.KDH201-5013055 Model 2013 31 Honda Car Ch No.JG1-1013188 Model 2012 32 Toyota Pruis Car Ch No.ZVW30-1327759 Model 2010 33 Toyota Aqua Car Ch No.NHW20-3576346 Model 2010 34 Suzuki Every Van Ch No.DA64W-259752 Model 2008 35 Suzuki Every Van Ch No.DA64W-294817 Model 2008 36 Toyota Passo Car Ch No.KGC30-0016590 Model 2010 37 Suzuki Every Van Ch No.DA64V-294623 Model 2008 38 SCAZN000XHCX20626 39 Toyota Platz Car Ch No.NCP12-0001170 Model 1999 -
SBP issues daily exchange rates for payment under amnesty scheme 2019
KARACHI: The State Bank of Pakistan (SBP) is issuing daily exchange rate for payment of duty and taxes under tax amnesty scheme – 2019.
The exchange rates are available at the FBR portal and can be accessed by visiting https://www.fbr.gov.pk/assets-declaration-scheme-2019/132009
The SBP has started issuing the exchange rates from May 27, 2019 in 10 major foreign currencies for conversion into Pak Rupee.
The available conversions for foreign currencies available in US Dollar (USD), Saudi Riyal (SAR), Japanese Yen (JPY), British Pound (GBP), Euro (EUR), Chinese Yuan (CNY), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD) and UAE Dirham (AED).
The latest following exchange rates are available on the FBR site is for May 28, 2019.
CURRENCY: BUYING RATE
AED: 40.7238
AUD: 103.6792
CAD: 111.3376
CHF: 149.0207
CNY: 21.7252
EUR: 167.5895
GBP: 190.5176
JPY: 1.3657
SAR: 39.8949
USD: 149.5900
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SBP waives 100 percent cash margin requirement on various imported goods
KARACHI: State Bank of Pakistan (SBP) has waived condition of 100 cash margin on import of various goods against five different HS Codes.
The SBP in a circular issued on Tuesday said that it had been decided to waive the condition of 100 percent cash margin requirement on imports made against the HS Codes: 0105.1100, 8472.9090, 8473.3090, 1006.1010, 8472.9010
The SBP said that moreover, it is also clarified that 100 percent cash margin shall not be applicable to the import made by Independent Power Producers and Captive Power Producers against HS Code 8543.7090 – Other.
All other instructions contained in the aforementioned Circulars shall, however, remain unchanged, the SBP said.
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FBR withdraws zero-rate facility to textile unit for no business activity at declared address
KARACHI: Federal Board of Revenue (FBR) suspended zero-rated sales tax facility on supply of electricity and gas to a textile unit for not operational at declared place of business activity.
The FBR issued Sales Tax General Order (STGO) No. 98 and 99 to withdraw the sales tax zero-rated facility on supply of electricity and gas to M/s. Teetex Industries because the unit was no more operational at the declared place.
The FBR directed Chief Commissioner Inland Revenue, Corporate Regional Tax Office, Karachi to coordinate with K-Electric and SSGCL regarding implementation of the amendment in the general order and submit report in respect of action taken/ recovery made, if any, for misuse of the facility.
The FBR also asked K-Electric and Sui Southern Gas Company Limited to start charging sales tax on the supply of electricity and gas to the taxpayers with immediate effect.
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FBR urged to extend tax credit to investment in infrastructure
KARACHI: Federal Board of Revenue (FBR) has been urged to extend tax credit facility to investment in factory building and manufacturing related infrastructure.
Pakistan Tax Bar Association (PTBA) in its tax proposals for budget 2019/2020 said that tax credit under section 65E of Income Tax Ordinance, 2001 is restricted to investment in plant and machinery.
Tax credit under section 65D is available only at the time of setting up a new industrial undertaking. No tax credit is given on subsequent expansion of such an industrial undertaking since section 65E restricts eligibility to companies formed before 01 July, 2011.
Expansion of plant or undertaking a new project involves investment in factory building and manufacturing related infrastructure and as such, these types of investments should also be made eligible for tax relief.
Expansion is also possible in industrial units’ set-up after 01 July, 2011.
It is, therefore, recommended that tax credit under section 65E should also be extended to investment in factory building and manufacturing related infrastructure.
Applicability of section 65E to only such companies’ setup after 01 July, 2011 may be relaxed to include industrial undertakings formed thereafter as well, which undergo expansion.
An increased availability of tax credits may act as an incentive to new investment since the investors foresee tax benefits which they may practically be able to utilize.
The tax bar further highlighted that tax credits under sections 65B and 65E are restricted to investment in plant and machinery.
The rational behind these tax credits is not the purchase of plant and machinery but industrial expansion and increased economic activity. In this regard, it may be appreciated that expansion of business (and the consequent increase in economic activity) is not achieved from plant and machinery in isolation and is, for all practical purposes, not possible without an appropriate support structure.
In order to streamline section 65B(4) with the wordings of section 65B(1), the following wording, in bold, may be inserted:-
“65B (4) make an investment for the purposes of extension, expansion, balancing, modernization and replacement of the plant and machinery.”
An explanation be added to sub-section (1) of Section 65B:-
“For removal of doubts, for the purposes of this section, it is declared that the words “purchase of a plant and machinery” includes all direct expenses which are necessary to make the Plant and Machinery in a workable condition and also includes factory buildings and manufacturing related infrastructure.”
Tax credit under Section 65E should also be extended to investment in factory building and manufacturing related infrastructure, the PTBA recommended.
The proposed amendment/modification in tax credits will clarify the ambiguity for the companies’ set-up before first day of July, 2011 and shall promote industrial expansion and increased economic activity.
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FBR asks refund claimants to open CDC account
KARACHI: Federal Board of Revenue (FBR) has asked taxpayers, who opted for a sales tax refund through bonds, to open their accounts with the Central Depository Company (CDC).
In an advisory issued on Monday, the FBR said that refund claimants who have opted for sales tax payments through bonds should open investor account with the CDC if they do not already have such accounts.
FBR said that refund claimants who have opted for payment through bonds but have not provided proper CDC account as per given format, can update CDC accounts by visiting FBR website.
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FBR bans entry of unauthorized persons, Lappoos into custom houses
KARACHI: Federal Board of Revenue (FBR) has restricted entry of unauthorized persons, including privately hired persons by customs officials (Lappoos), into custom houses with immediate effect.
In a statement issued on Monday, Pakistan Customs said that FBR chairman Syed Muhammad Shabbar Zaidi ordered the ban on entry of unauthorized persons into customs station in order to ensure transparency in clearance system.
The FBR chairman while taking notice of presence of large number of visitors for making the entire clearance system doubtful, had ordered Customs Wing to strictly restrict, entry into Customs Houses, only to the concerned traders, their authorized representatives and members and relevant trade bodies/ associations.
Accordingly Customs Wings is in process of issuing instructions to its field formations for immediately restricting entry of all un-authorized persons, the statement said.
The visiting hours for traders and their authorized representatives for fulfillment of needed legal formalities in cases involving second review before Assistant / Deputy Collectors shall be limited from 10:00 Am to 1:00 PM.
The press release said that Pakistan Customs is operating its Web Based One Customs (WeBOC) system in order to facilitate the trade and provide ease of doing business in carrying out imports, exports and transit trade.
This system is available 24/7 and allows on-line submission and processing of documents as well as electronic payments of duty and taxes.
As such the need for traders and their representatives to physically visit offices of Customs has drastically been reduced.
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FBR suggested reduced corporate tax rate for job creation
KARACHI: Federal Board of Revenue (FBR) has been suggested to reduce corporate tax rate by one percent for companies creating 50 or more new jobs in a year.
Pakistan Business Council (PBC) in its tax proposals for budget 2019/2020 suggested the government to reduce tax rate for companies creating more jobs during a year.
“One percent lower tax rate for existing companies that create 50 or more new jobs on their own payroll in a year.”
Giving rationale to the proposal, the PBC said that Pakistan needs to find employment for two million youth each year.
The PBC further suggested first year depreciation allowance for investment in making upgrades to the provision of facilities (including lifts, ramps) for the specially challenged in the workplace or business.
It further suggested 0.5 percent lower tax rate for providing livelihoods to specially challenged persons equal to five percent of the workforce.
Giving rationale to the changes, the PBC said that in order to demonstrate a commitment to creating livelihoods for all and work toward target of sustainable development goal – “By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.”
It further said that no or limited facilities that allow access in the workplace or business for the specially challenged thereby deterring the disabled from working.
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PTBA suggests allowing further tax adjustment to suppliers
KARACHI: Pakistan Tax Bar Association (PTBA) has recommended the Federal Board of Revenue (FBR) to allow adjustment of further tax against input tax.
The PTBA in its proposals for budget 2019/2020, said that presently further tax has been charged by the registered person on the supplies made to the person who are required to be registered but does not obtain registration is not available for adjustment against input tax in pursuance of section 7(1) of the Sales Tax Act, 1990.
Moreover, through the Finance Act, 2017, further tax at the rate of 2 percent was also levied on zero-rated supplies.
The PTBA said that this results in unnecessary increase in cost of doing business and unrest amongst the taxpayers which is creating a negative business environment.
“Due to this amendment, all zero –rated supplies including exports are subject to further tax.”
Exports are made to non-resident persons who are not required to be registered with Pakistan tax authorities. Resultantly, the exporters will have the bear the amount of further tax charged to exporters which will badly affect their competiveness in the international market.
The PTBA recommended that the supplier should be allowed adjustment of further tax against input tax.
Appropriate clarification should be issued that export sales are not subject to further tax, the PTBA further advised.
The proposed amendments would put an end to unnecessary litigation, result in reducing the cost of doing business and create trust between taxpayers and tax collector.
The exporters will not be burdened with extra cost of further tax.