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.

  • Customs Preventive announces auction of used cars on September 26

    Customs Preventive announces auction of used cars on September 26

    KARACHI: Model Customs Collectorate (MCC) Preventive, Karachi has announced public auction of used vehicles on September 26, 2019 to be held at Anti-Smuggling Organization (ASO) Headquarters, NMB Wharf, Ghass Bandar, East Wharf, Karachi.

    Following used vehicles to be presented for auction:

    01. Toyota Lexus Car, Reg No. US-868, Model 2006, Chassis No. JTHBG963905034702

    02. Toyota Harrier Jeep 2999CC, Reg. No. JAA-454, Model 1998, Chassis No. MCU-10-0013510

    03. Toyota Mark-II Saloon Car 1800HP/ Reg. No. BBL-708, Model 2000, Chassis No. JZX110-6000922

    04. Toyota AXIO-X Car 1496CC, Reg. NO. BFE-068, Model 2007, Chassis No. NZE-141-6028039

    05. Toyota Land Cruiser Jeep 3400CC, Reg. No. BG1131, Model 1989, Chassis No. BJ60-023765

    06. Mercedes Benz Saloon Car, Reg No. BFF-014, Model 2007, Chassis No. WDD2193222A117436

    07. Toyota Land Crusier Jeep 4663 CC, Reg. No. BF-2237 ( Sindh), Model 1999, Chassis No. UZJ100-0081129

    08. Toyota Land Cruiser PRADO 3378CC, Reg. No. BF2237 (Sindh), Model 1999, Chassis No. VZJ95-0070909

    09. Toyota Surf Jeep, Reg. No. BF-9252, Model 1998, Chassis No. RZN185-9019896

    10. Toyota Hilux Surf Jeep 2446CC, Reg. No. CJ-4242 (Sindh), Model 1990, Chassis No. LN130-0026273

    11. Nissan-X Trail 5 Door Jeep, Reg. No. GR-621, Model 2005, Chassis No. NT30-100374

    12. Toyota Mark-X Car 2499CC, Reg. No. BFB-837, Model 2005, Chassis No. GRX 120-3007142

    13. Toyota Land Cruiser Jeep 4476CC, Reg. No. BF-5933, Model 1995, Chassis No. FZJ 80-0109507

    14. Honda Civic Hybrid Car 1339CC, Reg. No. AND-312, Model 2008, Chassis No. FD 3-1203642

    15. Toyota PASSO Car 996CC, Reg. No. GS-6996, Model 2010, Chassis No. KGC 30-0044392

    16. Toyota AIXO Car 1496CC, Reg. No. KCH-434, Model 2006, Chassis No. NZE141-6003694

    17. Toyota Mark-X Car 2499CC, Reg. No. QG-966, Model 2005, Chassis No. GRZ120-1004220

    18. Toyota Land Cruiser PRADO 3378CC, Reg. No. BF-8507, Model 1998, Chassis No. VZJ90-0003998

  • Provinces collect Rs7.03 billion as property tax

    Provinces collect Rs7.03 billion as property tax

    ISLAMABAD: The province have collected Rs7.03 billion as property tax during fiscal year 2018/2019 as compared with Rs5.55 billion in the preceding fiscal year, showing growth of 26.57 percent, according to details issued by the federal finance ministry.

    The collection of property tax is provincial jurisdiction and the provinces collected the tax on rental of immovable property. The sources said that the increase in tax revenue under this head was due to revision in valuation of rents on immovable properties by the provinces.

    The break-up shows that the province of Punjab collected Rs2.816 billion as property tax during fiscal year 2018/2019, which is 23.6 percent higher when compared with Rs2.278 billion in the preceding fiscal year.

    Sindh collected Rs2.85 billion as property tax during the last fiscal year, showing 41.2 percent growth when compared with collection of Rs2.016 billion in the preceding fiscal year.

    Khyber Pakhtunkhwa also collected Rs1.15 billion during the fiscal year 2018/2019 as compared with Rs1.13 billion in the preceding fiscal year.

    Baluchistan collected property tax to the tune of Rs213 million in the last fiscal year as compared with Rs122 million in the preceding fiscal year.

  • FBR detects huge gap in indirect revenue collection; launches sales tax, federal excise monitoring

    FBR detects huge gap in indirect revenue collection; launches sales tax, federal excise monitoring

    ISLAMABAD: Federal Board of Revenue (FBR) has launched monitoring of sales tax and federal excise duty following huge gap detected in indirect revenue collection.

    “There appear to be a big gap between actual collection of sales tax / federal excise and its true potential,” the FBR said in a communication sent to all Chief Commissioners of Inland Revenue.

    The FBR said that in order to bridge the gap numerous amendments were made in Sales Tax Act, 1990 and Federal Excise Act, 2005 through Finance Act, 2019.

    Now administrative measures are required to be strengthened / implement the policy corrections/

    The FBR directed the field formations to adopt the following steps in addition to their regular actions:

    01. Immediate action on non-files of July and August 2019, especially where the registered persons have filed their sales tax returns for the tax periods of May and June 2019. In addition, desk audit of the registered persons who filed returns for the month of July and August 2019 to be conducted especially those who were previously included in five reduced / zero rated sectors.

    02. Monitoring of registered persons paying sales tax under Eighth Schedule of the Sales Tax Act, 1990 especially in those cases where registered persons are supplying at reduced rate.

    03. Sectoral analysis/reports must be made by the field formations having jurisdiction over a specific sector, and these reports should be shared with the FBR as well as other field formations having jurisdiction over same sectors. Any success stories be identified.

    04. The registered persons dealing in third schedule items should be specifically monitored to ensure the sales tax is being paid on the retail price.

    05. Printing of retail price has to be ensured and price lists of all such products have to be obtained from the manufactured/importers filing in Third Schedule to compared with the printed prices of products supplied in market.

    06. Monitoring of stock position as on June 30, 2019 filed by the manufacturers/importers of goods which have been included in Third Schedule to ensure that supply is made and tax is charged on retail price.

    07. Timely filing of sales tax/federal excise returns along with all the annexure should be ensured. It has been observed that the registered persons do intentionally skip some annexures while filing the returns.

    08. Analysis of Annexure J showing the sale, production and stock must be at regular basis.

    09. Special focus should be made on those cases which have piled up massive carry forward and are only paying sales tax under Section 8B of the Sales Tax Act, 1990.

    10. FBR instructions / SOP for revision of the Sales Tax Returns should be followed in letter and spirit.

  • SRB suspends sales tax registration of Wateen Telecom

    SRB suspends sales tax registration of Wateen Telecom

    The Sindh Revenue Board (SRB) has suspended the sales tax registration of Wateen Telecom Limited due to the company’s failure to remit collected sales tax to the provincial treasury. The decision came after an audit revealed significant lapses in tax payments by the telecom provider.

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  • Late return filers may get ATL status after payment of surcharge

    Late return filers may get ATL status after payment of surcharge

    ISLAMABAD: Persons, who fail to file their income tax return by due date, may be included into the Active Taxpayers List (ATL) after payment of surcharge.

    Inclusion in ATL is mandatory to avail reduced rate of withholding tax. Through Finance Act, 2019 the rates of withholding tax have been increased 100 percent for those persons who have either failed to file annual return or filed return after due date.

    This means only those individuals or companies will get ATL status who filed their annual income tax returns by due date.

    The FBR said that a person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL.

    For example, to be part of the ATL published on 1st March 2018, a person must have filed a Tax return for the Tax year 2017.

    Similarly, to be a part of the ATL published on 1st March 2019, a person must have filed a Tax Return for the Tax year 2018.

    Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income tax authorities was introduced through Finance Act, 2018.

    For example, to be part of the ATL published on 1st March 2019, a person must file a Tax Return by the specified due date for the Tax year 2018.

    However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

    Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under:

    Company Rs20,000

    Association of Persons: Rs10,000

    Individuals: Rs1,000

    The FBR said a that company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

    Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

    Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

    The FBR said that the late filers of Income Tax Return for Tax Year 2018 can pay “Surcharge for ATL” as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

    Only after the payment of surcharge will the name of the late filer become part of ATL.

  • FBR launches simplified wizard for income tax return filing

    FBR launches simplified wizard for income tax return filing

    KARACHI: Federal Board of Revenue (FBR) has introduced a simplified wizard based income tax return filing mechanism to its Tax Asaan mobile application.

    This feature will help taxpayer to proceed step by step utilizing interactive questions for return filing, even familiarizing the taxpayer with the various issues related to tax and giving the best possible experience to file IT Return.

    The FBR said that the wizard based solution takes care of Salaried Individual Income Tax Return for resident/non-Resident taxpayers.

    The mobile application enables the taxpayer to draft the return offline giving them freedom and flexibility to file their return at their own convenience anywhere and at any time however to perform calculations and in order to submit the IT Return, internet connectivity is required by the application.

    The FBR said that Tax Asaan is available for both Android and iOS platforms for free download and gets installed on one tap. Once installed, you can find the application icon under your mobile Apps list. Simply tap on the application icon to get started and view the home screen as shown below:

    Signing On

    “Income Tax Return’ module can only be used after successful login. Registered user can Sign-In to application by using their valid account credentials to file Income Tax Return.

    Following are the steps to login/Sign-In Tax Asaan mobile application:

    Click on the hamburger button provided on the top right corner of the home screen to view the main menu. The application will load a left panel with list of all available features along with the option to sign-in.

    Tap on “Sign in” option from the left panel to navigate to the Sign in screen as shown below:

    Enter “User Name” and “Password” then click on Login button to sign in as shown below:

    Please note that you will need to use Login ID and Password as that of Iris. If you are not registered with FBR on Iris then use Iris Web portal for New Registration.

    Income Tax Return

    On successful sign in, the registered user name will appear on left panel replacing the “Sign In” option along with the available option of “Income Tax Return” for the signed in user as shown below:

    User can reach Income Tax Return page either from click on “Income tax Return” menu option from the left panel or can directly click on “Income Tax Return” tile from main dashboard as shown below:

    Income Tax Return for Resident Pakistani Taxpayers
    After successful login to Tax Asaan mobile application, follow these easy steps to file Income Tax Return:

    Tap on Income Tax Return tab, Application will redirect user on Income Tax Return year selection page as shown below:

    Click on any of the provided Tax year options shown on the screen to file income tax return for the selected tax year. Application will mark the tax year selection by highlighting the tax year and will redirect user on resident status screen as shown below:

    Click on “Resident” (or “Non-Resident”) tile to select the desired category, application will load sources of income page as residence status selection as shown below:

    To enter data under relevant source of income click on desired source tile i.e. “I have salary” as shown below:

    [Please note that in case no source of income or to skip this step enable the check provided as “I don’t have any source of income” and click continue to move to next step.]

    As soon as taxpayer click on any of the provided source of income options, the application will redirect taxpayer on data entry page of selected source as shown below:

    Enter details in provided fields and click “Ok”, application will save provided data and redirect user back to source of income page. You can add data against multiple source of income by repeating the same process and selecting each source of income one by one. Once you add data under any source of income, the application will load edit and delete option to modify or remove the data entered under that category / source as shown below:

    To edit data added under the specific source of income click on edit button, the application will redirect taxpayer on edit source of income information page. Similarly you can edit or delete specific records under the source by using the edit option provided in front of each record added as shown below:

    To delete all information under a specific source of income click on delete button as shown below, the application will remove all records added under the selected source.

    [Please note that the system will not show edit/delete buttons for a source if there is NO record added under the selected category.]

    After adding all information for the source of income click on “continue” button to move on next step for return filing as shown below:

    [Please note that you can go back to previous step i.e. source of income page by using back button.]

    Next step after adding source of income is to add Tax deductions. Click on desired option to enter tax deductions detail as shown below:

    Application will redirect user on details page of selected tax deduction option i.e. Vehicle Token as shown below:

    Add details of tax deduction under selected option. You can click on “Add Another” button to add multiple records. After adding details click on “Back” button to go back to the tax deductions main page. You can add data against multiple tax deduction options by repeating the same steps. you can click on “Save and Back” button to move back to Tax Deductions page.

    After adding all details under tax deductions, click on “Continue” button to move on to the next step for filing tax return as shown below:

    Application will redirect user on “Wealth Statement” page as shown below:

    Tap on Assets icon, Application will redirect the tax payer to Assets Declaration page as shown below:

    Click on “Net Assets Previous Years” icon to enter net worth of your Assets for previous years, the application will open following page:

    Enter Net amount (in PKR) of previous year assets in provided field for Amount.

    Click on OK button to add the amount, the application will redirect taxpayer back to assets declaration screen.

    Edit and Delete buttons will now appear below “Net Assets Previous Years” icon as shown below:

    In order to edit the saved details click on Edit Button below Net Assets Previous Years icon the application will redirect tax payer to Edit Net Assets Previous Years page.

    Edit the amount as needed and to save the updates click on OK button.

    To cancel the updated details click on Cancel Button.

    To delete all the saved details click on Delete button below Net Assets Previous Years icon.

    Click on Inflows icon to enter net worth of your Assets for current year, the application will open following page:

    Enter Net amount (in PKR) of Inflows in Text field labelled Amount.

    Click on OK button to add the amount, the application will redirect taxpayer back to assets declaration screen.

    Just like “Assets” click on “Expenses” icon to add details of expenses as shown below:

    Application will redirect user on add expenses page. Add the total amount of expenses for the selected Tax year and click “OK” button to save the value as shown below:

    After adding details of Assets and expenses, click on Continue button to reconcile assets. Application will load reconciliation page as shown below:

    [Please note that if application load reconciliation error then click on back button to edit and correct assets record in order to remove error and process again.]

    On successful reconciliation, click on continue button to move to next step for filing return. Application will redirect user on declaration screen as shown below:

    Click on “Submit” button to submit return. Please note that once submitted, you will not be able to do any further modification in return. On successfully submitting return application will redirect user on return summary report with a success message as shown below:

    You can also view the summary at any stage (during Return preparation) by Clicking the icon.

    Income Tax Return for Non-Resident Pakistani Taxpayers

    To file Income Tax Return as Non-resident taxpayer, the process of return filing will remain same as of resident taxpayer. Only the tax payer has to select the option as “Non-resident” from the application screen after selection of Tax Year as shown below:

    [Please note the all steps of return filing are pre-configured and will appear accordingly as per user’s selected option.]

    View Income Tax Return Summary

    Tax payer can view the summary of all entered information in income tax return at any time or step during the return filing process. To view return summary, click on the expand options icon on top left corner of the screen as shown below:

    Attach Payments

    In case the taxpayer has some income tax due i.e. payable at the time of reconciling Assets, then application will redirect user on “Attach Payments” screen before submitting the return as shown below:

    Taxpayer can attach multiple CPRs against the due amount however application will only allow taxpayer to submit return after attaching CPRs equivalent or greater than the due tax amount.

    Special Instructions for ERROR Correction

    In case user is unable to view all menu options in left panel or only “Sign In” option is listed in left panel then there must be some issue with the internet connectivity. To resolve this error, check internet connectivity and Close and Re-Run Tax Asaan mobile application.

    Reporting

    This system does not support any reporting capability right now however users can only view information specific to provided NTN/Registration Numbers as per available inquiry features in Tax Asaan mobile application.

  • Income tax return filing must for person owns above 1000CC motor vehicle

    Income tax return filing must for person owns above 1000CC motor vehicle

    KARACHI: A person owns a motor vehicles having engine capacity above 1000CC is mandatorily required to filing of income tax return for tax year 2019.

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  • Persons committing fiscal fraud liable to 10 years jail under Customs laws

    Persons committing fiscal fraud liable to 10 years jail under Customs laws

    KARACHI: A person is liable to jail punishment up to 10 years in case of committing fiscal fraud under Customs Act, 1969.

    The Federal Board of Revenue (FBR) recently updated Customs Act, 1969 under which if a person commits and offence of fiscal fraud under Section 32A of the Act then such person is liable to penalty and imprisonment.

    According to the Customs Act, 1969:

    If any person commits an offence under section 32A such person shall be liable to a penalty not exceeding three times the value of the goods in respect of which such offence is committed and such goods shall also be liable to confiscation and upon conviction by a Special Judge he shall further be liable to imprisonment for a term which may extend to ten years but shall not be less than five years or to fine, or to both.

    The act explained the fiscal fraud as:

    32A. Fiscal fraud.- (1) If any person, in connection with any matter related to customs-

    (a) causes to submit documents including those filed electronically, which are concocted, altered, mutilated, false, forged, tempered or counterfeit to a functionary of customs;

    (b) declares in the goods declaration electronically filed customs declaration, the name and address of any exporter or importer which is physically non-existent at the given address;

    (c) declares in the goods declaration electronically filed customs declaration, an untrue information regarding payment of duties and taxes through self-assessment, description, quantity, quality, origin and value of goods;
    (d) alters, mutilates or suppresses any finding of the customs functionary on any document or in the computerized record; or (e) attempts, abets or connives in any action mentioned in clauses (a), (b), (c) and (d) above, he shall be guilty of an offence under this section.

    (2) Where, by any reason as referred to in sub-section (1) as aforesaid, any duty or tax charged or fee or fine and penalty levied under any provision of law has not been levied or has been short levied or has been refunded, the person liable to pay any amount on that account shall be served with a notice within a period of 180 days of the date of detection of such custom duty and tax fraud, requiring him to show cause as to why he should not pay the amount specified in the notice along with any other amount imposed as fine or penalty under the provisions of this Act.

    (3) The appropriate Adjudicating Officer, after considering the written or verbal representation of such person, may determine the amount of duty or tax chargeable or fee payable by such person which shall in no case exceed the amount specified in the notice and such person shall pay the amount so determined besides the fine or penalty or both.

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  • Filing wealth statement mandatory along with annual return for Tax Year 2019

    Filing wealth statement mandatory along with annual return for Tax Year 2019

    KARACHI: The filing of wealth statement has been made mandatory for persons filing annual income tax return for tax year 2019.

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  • FBR notifies adjudication benches for Benami cases

    FBR notifies adjudication benches for Benami cases

    The Federal Board of Revenue (FBR) has taken a decisive step in addressing Benami cases by establishing dedicated adjudication benches in three major cities across the country.

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