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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.

  • PTBA assures full support to new FBR chairman

    PTBA assures full support to new FBR chairman

    KARACHI: Pakistan Tax Bar Association (PTBA) has assured full support to Syed Muhammad Shabbar Zaidi, newly appointed chairman of Federal Board of Revenue (FBR).

    In a statement issued on Saturday PTBA welcomed the appointment of Shabbar Zaidi as chairman of Federal Board of Revenue (FBR).

    The tax bar declared the appointment of Shabbar Zaidi as positive step of the government.

    The PTBA congratulated Zaidi for taking the reins of FBR and agreeing to dedicate his time and energy for the betterment of the country.

    The statement said that Zaidi is a globally known professional and is bringing with him the wealth of in-depth knowledge of taxation system, Pakistan economy and the problems which are holding it back.

    “We hoped under his leadership along with the team members of FBR the structural flows in the revenue collection system will improve,” according to the statement.

    The PTBA assured the newly appointment FBR chairman of their full support and cooperation.

  • Restriction on gold purchase by non-filers proposed

    Restriction on gold purchase by non-filers proposed

    KARACHI: Federal Board of Revenue (FBR) has been suggested to restrict non-filers of income tax returns from purchasing gold bars, jewelry and other luxury goods in order to broaden tax net.

    “In addition to the restriction on purchase of immovable property and motor vehicles by non-filers, the punishment should be made even severe by foisting a restriction or imposing an additional charge of tax, on non-filers upon purchase of other luxury goods, including gold bars and jewelry, paintings, antiques, electronics etc.”

    The suggestions were made by Institute of Chartered Accountants of Pakistan (ICAP) in its tax proposals for budget 2019/2020 in order to broaden the tax base and documentation of economy.

    The institute said that the proposed restriction would eradicate the indifference between a filer and non-filer, and giving a sense of benefit to the filers, while non- filers should be penalized heavily.

    Giving recommendations and rationales in this regard it said:

    — Increase withholding income tax and sales tax for non-filers/unregistered persons by 50 percent higher rates; ‘further tax’ on sale to unregistered person should be increased to 5 percent.

    — Extra tax on commercial and industrial utilities connection should be increased to 15 percent for unregistered person.

    — Separate teams should be made and assigned responsibilities to visit the local shops, retail outlets and services providers to verify that proper sales tax invoices are generated and persons are registered with revenue authorities, if not they should be heavily penalized and compulsorily registered.

    — All utility connections amounting to Rs2.4 million or more of non-filers should be forced to get registered by issuance of Show-Cause Notices.

    In case of noncompliance, their utility connections should be disconnected.

    — An additional charge of tax should be foisted on non-filers upon purchase of luxury goods, such as gold bars and jewelry, paintings, antiques, electronics etc.

  • Younus Dagha assigned additional charge of secretary revenue division

    Younus Dagha assigned additional charge of secretary revenue division

    ISLAMABAD: The federal government has assigned additional charge of secretary revenue division to Muhammad Younus Dagha, who is already serving as Secretary Finance.

    A notification issued on Friday by Establishment Division stated that Mohammad Younus Dagha, a BS-22 officer of Pakistan Administrative Service, presently serving as Secretary Finance Division, is assigned additional charge of the post of Secretary Revenue Division for a period of three months or till the posting of a regular incumbent; whichever is earlier, with immediate effect.

    The government a day earlier issued notification to appoint Shabbar Zaidi as the chairman of Federal Board of Revenue (FBR).

    Usually the chairman FBR is by virtue is also secretary revenue division. Since Zaidi has been picked from the private sector and he is not eligible to serve on a bureaucratic post.

    Therefore, the government assigned the additional charge to Mohammad Younus Dagha to serve as secretary revenue division.

  • No bank account freezing without informing taxpayer: FBR chairman

    No bank account freezing without informing taxpayer: FBR chairman

    ISLAMABAD: Shabbar Zaidi, the newly appointed Chairman of the Federal Board of Revenue (FBR), has made a swift impact by issuing new directives aimed at improving transparency and taxpayer relations. In his first major move after assuming office, Zaidi directed that no taxpayer’s bank account would be frozen without prior notice, ensuring that taxpayers are informed at least 24 hours in advance.

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  • FBR imposes penalty on lady customs officer for inefficiency, misconduct

    FBR imposes penalty on lady customs officer for inefficiency, misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed penalty of withholding two annual increments on lady customs official for inefficiency and misconduct.

    The FBR said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Ms. Razia Sultana Bhutto, Principal Appraiser (under suspension), Model Customs Collectorate of Appraisement (West), Karachi through charge sheet dated September 29, 2017 by the Collectorate for various acts of omission and commission, constituting “Inefficiency”, “Misconduct” and “Corruption”.

    Ammar Ahmad Mir, Deputy Collector, Model Customs Collectorate of Appraisement-West, Karachi was appointed as Inquiry Officer to conduct inquiry into the charges. According to inquiry report dated February 01, 2018 submitted by the inquiry officer, the charges of “Inefficiency” & “Misconduct” were partially established against the accused, however, the Collector /Authorized Officer “exonerated” her from the charges vide Collectorate order dated 06.04.2018.

    The Authority/ Member (Admn), FBR observed that the exoneration of the accused officer was made without any justification, in view of the gravity of charges established against her during the inquiry.

    Therefore, in exercise of powers conferred under Rule-6-A of the Government Servants (E&D) Rules, 1973, the Member (Admn), FBR in his capacity as Authority decided to impose penalty on the accused.

    However, before imposing the penalty, the accused officer was served a Show Cause Notice dated February 21, 2019 as provided under sub-rule-2 of Rule 6-A of the Government Servants (E&D) Rules, 1973.

    The Member (Admn) being the Authority in this case, after having considered all aspects of the case, and in exercise of powers under the Government Servants (E&D) Rules, 1973 has set-aside the office order dated 06.04.2018 of exoneration and imposed the minor penalty of “With-holding of two annual increments” (falling on December 01, 2019 & 2020) upon Ms. Razia Sultana Bhutto, Principal Appraiser under rule 4(1)(a)(ii) of the Government Servants (E&D) Rules, 1973 with immediate effect.

    The official is re-instated into service with immediate effect and the intervening period of her suspension w.e.f March 14, 2017 till re-instatement shall be treated as leave of kind due and admissible under the rules.

  • Imposition of digital tax at 30 percent proposed

    Imposition of digital tax at 30 percent proposed

    KARACHI: Federal Board of Revenue (FBR) has been proposed for imposing digital tax at 30 percent in the budget 2019/2020.

    Chartered Accountants have suggested the imposition of digital tax from next tax year as OECD had started thinking of appropriately taxing the digitalized economy.

    Institute of Chartered Accountants of Pakistan (ICAP) in its budget proposals recommended the FBR that till the time proper mechanism was devised, a digital tax can be initially introduced at the rate of 30 percent (on non-resident companies having no establishment in Pakistan) only on their income from advertisements from Pakistan.

    It further added that policies should be developed in line with best practices from other countries, which should later be implemented with special consideration for companies setting up businesses in Pakistan.

    International social networking and retail websites, such as Alphabet, Facebook and Apple, are earning massive revenues from corporates and consumers in Pakistan by way of:

    — Advertisement on their websites,

    — Sharing consumer profiles / data with the corporates in Pakistan and to corporates and governments outside Pakistan, etc.

    “Despite all the revenues collected from consumers in Pakistan, these companies are not adequately taxed as they are not established within the country,” the ICAP said.

    These companies are also denting Pakistan’s local tech industry by eating up majority of the local advertisements, whereas their interests are not to set up business in Pakistan.

    Despite there are companies, like Ali Pay, who are now investing in Pakistan and have put their money in tech companies, like ‘Daraz’ and ‘Telenor Bank’.

    These businesses should be rather incentivized by charging high tax on non-resident companies not having their stakes in Pakistan despite earing significantly.

    “This will also encourage local software service providers to get registered and earn from local advertisements.”

    The ICAP further suggested identifying tax leakage areas / sectors prone to easy-escape tax net

    An efficient and effective collection platform is required to replace cash economy through digitization e.g. Jazz Cash or Easy Paisa or replacing this with a State Platform.

    The chartered accountants recommended that banks, insurance companies and branchless banking networks should be the ones recovering the taxes.

    The FBR together with firms / institutions must organize tax education campaigns (in digital, print and social media) in both Urban and Rural Areas.

  • MCC Appraisement East announces auction of vehicles, goods on May 13

    MCC Appraisement East announces auction of vehicles, goods on May 13

    KARACHI: Model Customs Collectorate (MCC) Appraisement East announced auction of fresh lots of goods and vehicles to be held on May 13, 2019 at Pak Shaheen Container Terminal.

    Following goods and vehicles to be presented for the auction:

    01. NISSAN SERENA, CHASSIS NO : HC26-077494, MODEL: 2013

    02. DAIHATSU COCOA CAR, MODEL: 2016, CHASSIS NO: L675S-0215496 AND BONNET 1PC

    03. MITSUBISHI EK WAGON CAR, MODEL: 2017, CHASSIS NO: B11W-0403062 AND SIDE MIRROR 2PCS

    04. HONDA N WGN CAR, MODEL: 2018, CHASSIS NO: JH1-1399795 AND LIGHT 1PC

    05. NISSAN DAYZ CAR, MODEL: 2015, CHASSIS NO: B21W-0322219 AND LIGHT 2PCS

    06. 4 BOXES STC USED SHIP SPARE PARTS 01. LINER 28/32H 02. LINER 23/30 03. BIG END BEARING (STD) 23/30 … AS PER B/L

    07. LCL/LCL 1 BOX STC:- WALKING TRACTOR, GRASS CUTTER MACHINE

    08. 1X20″ LCL CONTAINER STC SANDLING MACHINE BSG630R -RP COPY MILLING CUTTER MFX1000S (PLYWOOD CASES): 2430KG

    09. PVC CORD 48-KGS

    10. 1 PALLET BLEND OF PHENOLIC FIBRE ROD: 1160KG

    11. 503 CLL LED BULB: 50,300PCS (2793)KGS

    12. LCL CONTAINER STC ACIAL, CHARCOAL , EYE, BIOAOQUA BLACK MASK: 110KGS

    13. 5 PALLETS STC 127 CARTONS OF SUPER STRETCH BOOT CUT DENIM SUPER STRETCH HIGH WAIST DENIM: 1238KG

    14. 02 PLTS STC RECYCLED LDPE & RECYCLED PP: 980KGS

    15. TOYOTA NOAH AMBULANCE, CHASSIS NO: AZR60-0025137, MODEL: 2001-2004

    16. TOYOTA AMBULANCE, CHASSIS NO: RZH125-4005251, MODEL; 1998-2003

    17. TOYOTA AMBULANCE, CHASSIS NO: RZH133-1002545, MODEL; 1995-1999

    18. TOYOTA AMBULANCE, CHASSIS NO: RZH112-7107389, MODEL; 1996-2003

    19. TOYOTA AMBULANCE, CHASSIS NO: KZH116-0001878, MODEL; 1995-2004

    20. TOYOTA AMBULANCE, CHASSIS NO: RZH133-EFFDE, MODEL; 1995-1999

    21. TOYOTA AMBULANCE, CHASSIS NO: LH172-6105414, MODEL; 1998-2004

    22. TOYOTA NOAH AMBULANCE, CHASSIS NO: AZR60-0122362, MODEL: 2001-2004

    23. TOYOTA AMBULANCE, CHASSIS NO: TRH112-0005232, MODEL; 2004

    24. 1 PACKAGE STC GLOVES: 120KGS

    25. 6 PACKAGE STC GLOVES: 150KGS

    26. 2 PALLETS STC 44 HDPE BAGS RAW MATERIAL MIXTURE -BRAKE LINING CNSL MODIFIED PHENOLIC RESIN: 1060KGS

    27. 100 CARTONS STC 5ML RUBBER GASKET QUANTIRY: 1,820 KGS

    28. 1 PKG STC PARTS FOR JC45 SKID STEER LOADER CABINFAN BUCKE TEETH CLUTH DISK: 20KGS

    29. Suzuki Alto Car, Model:2016 CHASSIS NO : HA36S-878675

    30. HONDA N BOX CUSTOM, Model: 2013 CHASSIS NO : JF1-1281160

    31. STC:- 1 PALLET = 20 BAGS SIZETEX 5 MODIFIED STARCH H.S CODE 3505.1090 (FREIGHT AS ARRANGED): 500KGS

    32. 1X20″ LCL CONTAINER STC LADIES FLIP FLOPS: 1910KGS

    33. HONDA N ONE CAR, MODEL; 2014, CHASSIS NO: JG1-1111490

    34. CAST CAR, CHASSIS NO : LA250S-0124311, MODEL: 2016

    35. CAST CAR, CHASSIS NO : LA250S-0039032, MODEL; 2016

  • FBR sets up directorate to initiate legal action in suspicious transactions, stop currency smuggling

    FBR sets up directorate to initiate legal action in suspicious transactions, stop currency smuggling

    ISLAMABAD: Federal Board of Revenue (FBR) has established Directorate of Cross Border Currency Movement (CBCM) to stop individual and trade based money laundering and initiate legal action in suspicious transactions.

    The directorate shall be function under administrative control of the Directorate General of Intelligence and Investigation, Customs, a notification said on Thursday.

    According to its scope and objectives, a database of currency seizures would be maintained and updated at the directorate. Further each Model Customs Collectorate (MCC) and regional directorate of I&I shall report information about currency seizures made within their jurisdiction on fortnightly basis to the directorate.

    The FBR said that the directorate would share the data of currency seizures with the FBR and Financial Monitoring Unit (FMU) on monthly basis or as when required.

    The FBR said that the directorate shall maintain and update database containing information of Suspicious Transaction Reports (STRs) received from the FMU. “The aforesaid data shall be shared with FBR and FMU on monthly basis or as when required,” it said.

    The directorate will require to disseminate the STRs to the concerned regional directorate of I&I for inquiry and investigation. “Each regional directorate shall maintain record of STRs received and appoint officers to carry out investigation in light of the approved plan. “Progress on the investigation conducted in each case shall be communicated to the directorate for onward submission to the FMU,” it added.

    The directorate will also responsible to devise a mechanism for information sharing with other law enforcement agencies (LEAs) on real time as well as on routine basis. The directorate shall also cooperate with LEAs in areas of mutual interest.

    The directorate has been authorized to institute cases of money laundering. “Nominated or appointed investigation officers shall instituted money laundering cases emanating from STRs or currency seizures or from other sources, by filing complaints/applications in the respective competent courts through public prosecutors appointed under AML Act, 2010.”

    The FBR said that investigation and prosecution of the cases would be conducted in accordance with the procedure laid down in AML Act, 2010 Customs Act, 1969 and Cr.P.C 1898.

    While investigating money laundering cases in general and currency cases in particular, investigating officer shall focus on the following aspects:

    a. The personal and / or family association with any religious / political/ social organization or groups, travel history, past criminal record, professional history, etc. of the accused / arrested persons shall be investigated. The motive/linkages of each currency smuggling case with any of the associated offence such as trade- based money laundering, capital flight, Hundi/Hawala, etc. shall also be covered in such investigation.

    b. Whether there is any linkage of terror financing related to trans-national terrorist networks or UN designated entities and individuals detected in the cases the officers will be required to report to the directorate.

    c. Whether there are possibilities of involvement of any foreign networks other than trans-national terrorist networks, the officers should approach Chief International Customs – FBR for seeking information about the foreign linkages of the investigation.

    d. the investigation officers are also required to find source of funding for cash smuggling and the end user of the smuggling proceeds.

  • ACCA suggests making FBR immovable property values in line with fair market value to stop asset undervaluation

    ACCA suggests making FBR immovable property values in line with fair market value to stop asset undervaluation

    KARACHI: Association of Chartered Certified Accountants (ACCA) Pakistan has urged the Federal Board of Revenue (FBR) to bring the immovable property values in line with fair market values to discourage under-valued asset declarations.

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  • Notification issued to appoint Shabbar Zaidi as FBR chairman

    Notification issued to appoint Shabbar Zaidi as FBR chairman

    ISLAMABAD: The federal government has appointed Syed Muhammad Shabbar Zaidi as chairman of Federal Board of Revenue (FBR) for the period of two years.

    The establishment division on Thursday issued a notification in this regard.

    The notification said that Shabbar Zaidi has been appointed on honorary basis / pro bono basis, for a period of two years with immediate effect and until further orders.

    Shabbar Zaidi is 26th chairman of the FBR. Zaidi will replace Muhammad Jehanzeb Khan, who was serving as FBR chairman since August 29, 2018.

    Following is the list of FBR chairmen:


     

    1)Mr. Mohammad Jehanzeb Khan29.08.2018  —-
    2)Ms. Rukhsana Yasmin02.07.2018 29.08.2018
    3)Mr. Tariq Mahmood Pasha04.07.2017 02.07.2018
    4)Dr. Muhamad Irshad19.01.2017 30.06.2017
    5)Mr. Nisar Muhammad Khan17.11.2015 18.01.2017
    6)Mr. Tariq Bajwa02-07-2013 17.11.2015
    7)Mr.Ansar Javed10-04-2013 30-06-2013
    8)Mr. Ali Arshad Hakeem10-07-2012 09-04-2013
    9)Mr. Mumtaz Haider Rizvi21.01.2012 10-07-2012
    10)Mr. Salman Siddique24.12.2010 21.01.2012
    11)Mr. Sohail Ahmad18.05.2009 24.12.2010
    12)Mr. Moinuddin Khan02.01.1998 06.11.1998
    13)Mr. Hafeezullah Ishaq11.11.1996 02.01.1998
    14)Mr. Shamim Ahmed28.08.1996 11.11.1996
    15)Mr. Alvi Abdul Rahim13.07.1995 28.08.1996
    16) Mr. Sajjad Hasan24.07.1991 03.10.1991
    17)Mr. Ahadullah Akmal16.08.1990 24.07.1991
    18)Mr. Ghulam Yazdani Khan22.01.1989 11.08.1990
    19)Syed Aitezazuddin Ahmed20.08.1988 02.01.1989
    20)Mr. I.A. Imtiazi11.08.1985 20.08.1988
    21) Mr. Fazlur Rahman Khan14.12.1980 11.08.1985
    22)Mr. N.M. Qureshi12.11.1975 14.12.1980
    23)Mr. M. Zulfiqar01.10.1974 12.11.1975
    24)Mr. Riaz Ahmad17.11.1973 30.09.1974
    25) Mr. M. Zulfiqar11.10.1971 17.11.1973