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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.

  • Main features of Amnesty Scheme 2019

    Main features of Amnesty Scheme 2019

    KARACHI: The government may launch a new tax amnesty scheme 2019 on April 15 for allowing undeclared local and domestic assets to become part of documented economy.

    The main features of the draft amnesty scheme, included:

    – Benami assets

    – Sales Tax and Federal Excise Duty

    – mandatory return filing

    – allowing balance sheet revision

    – litigation cases would also be allowed

    – amnesty to banking transaction will require cash to be put in bank accounts

    – there will be limit on gold declaration

    – Bank credits in last five years included

    – the amnesty will have higher valuation

    – this amnesty will have higher rates.

    The draft of amnesty scheme also explained persons qualified:

    According to it all companies and individuals except: holders of public office since January 01, 2000, their spouses, children, brothers and sister or lineal ascendant or descendant.

    Proceeds derived for commission of a criminal offence would be excluded for amnesty.

    Cases pending before a court of law would be allowed with the exception of older pending litigation.

  • Sales Tax Act 1990: recovery of short payment without notice

    Sales Tax Act 1990: recovery of short payment without notice

    KARACHI: The sales tax law authorized tax authorities to recover short paid amount without issuing notice.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR), the Section 11A of the Act explained the authority of tax officials in recovery of short paid amount.

    Section 11A: Short paid amounts recoverable without notice

    Notwithstanding any of the provisions of this Act, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts, without giving him a show cause notice and without prejudice to any other action prescribed under section 48 of this Act or the rules made thereunder:

    Provided that no penalty under Section 33 of this Act shall be imposed unless a show cause notice is given to such person.

    Section 11B: Assessment giving effect to an order

    Sub-Section (1): Except where sub-section (2) applies, where, in consequence of, or to give effect to, any finding or direction in any order made under Chapter-VIII by the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court an order of assessment of tax is to be issued to any registered person, the Commissioner or an officer of Inland Revenue empowered in this behalf shall issue the order within one year from the end of the financial year in which the order of the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be, was served on the Commissioner or officer of Inland Revenue.

    Sub-Section (2): Where, by an order made under Chapter-VIII by the Appellate Tribunal, High Court or Supreme Court, an order of assessment is remanded wholly or partly and the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is directed to pass a new order of assessment, the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, shall pass the new order within one year from the end of the financial year in which the Commissioner or Commissioner (Appeals) or officer of Inland Revenue, as the case may be, is served with the order:

    Provided that limitation under this sub-section shall not apply, if an appeal or reference has been preferred against the order passed by Appellate Tribunal or a High Court.

  • Tax rates for proposed Amnesty Scheme 2019

    Tax rates for proposed Amnesty Scheme 2019

    KARACHI: Persons may be allowed to avail tax amnesty at one percent for undeclared banking transactions of past five years.

    According to draft of Tax Amnesty Scheme 2019, credit entries in a person’s own bank account is allowed at one percent of the total credit entries from July 01, 2013 till June 30, 2018 or 10 percent of peak credit entries during the said period whichever is higher.

    A tax rate of 10 percent has been proposed for declaration of benami assets.

    For foreign liquid assets repatriated into Pakistan the tax rate shall apply at five percent.

    The government has also proposed to allow transactions into benami bank accounts at only two percent of the total credit entries from January 01, 2017 till April 15, 2019 or 10 percent of peak credit entries during the said period whichever is higher.

    Any other assets have been allowed to avail amnesty at 7.5 percent of the prescribed value.

    The valuation has been proposed for undisclosed income and assets for the purpose of Section 5(2) of Income Tax Ordinance, 2001.

    For undisclosed bank accounts, the credit entries from July 01m 2013 till June 30, 2018.

    For undeclared open plots and land, flat the valuation shall be cost of acquisition or FBR values on April 15, 2019, whichever is higher.

    For undisclosed superstructure, the valuation has been proposed at Rs1,500 per square feet.

    For undisclosed motor vehicles, the valuation shall be costs incurred till original registration.

    For undisclosed gold, the valuation shall be Rs5,000 per gram.

  • FBR sets up complaint cell against corrupt officials

    FBR sets up complaint cell against corrupt officials

    ISLAMABAD: Federal Board of Revenue (FBR) has established a dedicated cell to facilitate taxpayers in filing complaints against corrupt practices of officials of Inland Revenue and Pakistan Customs.

    The FBR on Wednesday said that it had established Integrity Management Cell (IMC) to facilitate general public / taxpayers for filing of complaints against corrupt practices of officers/officials of FBR.

    The FBR said that following modes may be adopted to lodge complaints:

    — By directly calling helpline at 111-772-772 for information.

    — By visiting field offices of Inland Revenue & Pakistan Customs.

    — By sending an email at [email protected]

    — By filing complaint on FBR online portal.

    — By submitting either a hard copy of the complaint through post or meeting in person with Secretary (IMC), FBR (HQ), Constitution Avenue, Islamabad.

  • FBR asks financial institutions to provide account holders details for automatic exchange of information

    FBR asks financial institutions to provide account holders details for automatic exchange of information

    KARACHI: Federal Board of Revenue (FBR) has asked financial institutions to provide details of their account holders by May 31, 2019 for the purpose of automatic exchange of information with OECD member countries.

    In a notice sent to Pakistan Stock Exchange (PSX), the FBR said that as per section 165(B) and 107(1) of Income Tax Ordinance, 2001 and other applicable domestic laws and rules related to Automatic Exchange of Information (AEOI), the Reporting Financial Institutions are required to obtain and maintain certain information about their account holders in accordance with the CRS Rules notified by FBR through SRO166(I)/2017 on March 15, 2019, which has to be reported to FBR on an annual basis on May 31 of every year.

    The FBR said that reports from RFIs are due on May 31, 2019. In this regard the FBR asked the stock exchange to direct the RFIs that report to or are under the control of the stock market to ensure timely compliance as per law and rules.

    The FBR warned that in case of failure the RFIs would be penalized under Section 182 of the Income Tax Ordinance, 2001.

  • Sales Tax Act 1990: Recovery of amount erroneously refunded

    Sales Tax Act 1990: Recovery of amount erroneously refunded

    KARACHI: The officers of Inland Revenue have been authorized for recovery of refunded amount erroneously issued to taxpayer along with penalties and default surcharge.

    (more…)
  • FBR promotes 49 Inland Revenue Officers to Assistant Commissioner BS-17

    FBR promotes 49 Inland Revenue Officers to Assistant Commissioner BS-17

    ISLAMABAD: Federal Board of Revenue (FBR) o Wednesday promoted 49 officers of Inland Revenue from BS-16 to the post of Assistant Commissioner Inland Revenue (BS-17) with immediate effect.

    Following are the officers, who are promoted by the FBR:

    01. Farrukh Rehman, Regional Tax Office (RTO), Faisalabad

    02. Amjad Ali Khan, Corporate RTO, Lahore

    03. Kanwar Abdul Rahim, RTO Multan

    04. Muhammad Akbar, RTO Multan

    05. Iftikhar Ahmad Lali, RTO Faisalabad

    06. Malik Muhammad Arshad, Corporate RTO, Lahore

    07. Mehrur Rehman, RTO Peshawar,

    08. Abid Hussain, RTO Peshawar

    09. Fazl-e-Amin, RTO Peshawar

    10. Asim Sana Naik, Corporate RTO Lahore

    11. Khuda Bux Abbasi, RTO Sukkur

    12. Tafukhur Zahoor, Directorate of Internal Audit (IR), Lahore

    13. Muhammad Pervez Khan, Large Taxpayers Unit (LTU) Karachi

    14. Darshan Lal, Corporate RTO Karachi

    15. Muhammad Khan, Corporate RTO Lahore

    16. Tauheed Raziq Khan, RTO Multan

    17. Muhammad Humayun, RTO Peshawar

    18. Aslam Pervez, RTO Peshawar

    19. Qaisar Khan, RTO Peshawar

    20. Mazhar Javed, RTO Sahiwal

    21. Muhammad Zafar Iqbal, RTO Multan

    22. Muhammad Mazhar Ejaz, RTO Faisalabad

    23. Ashfaq Ahmed, LTU Karachi

    24. Muhammad Yaqub Malik, RTO Islamabad

    25. Akbar Ali Shad, Internal Audit (IR) Islamabad

    26. Muhammad Mohsin, RTO-II Islamabad

    27. Farasat Yar Khan, Corporate RTO Karachi

    28. Ejaz Iqbal Raja, RTO Rawalpindi

    29. Muhammad Asghar, RTO Faisalabad

    30. Azizur Rehman Awan, RTO Quetta

    31. Saleem Raza, RTO Sargodha

    32. Abdul Qayyum, LTU Islamabad

    33. Ansar Hussain, Internal Audit IR Rawalpindi

    34. Zia Ahmad Butt, LTU Islamabad

    35. Muhammad Rafiq Awan, LTU Karachi

    36. Khalid Ali Siddiqui, LTU II Karachi

    37. Muhammad Irfan Siddiqui, LTU Karachi

    38. Mustafa Tayyab Ali, Corporate RTO Karachi

    39. Muhammad Naeem Sialvi, RTO II Lahore

    40. Aftab Ahmad Nasir, RTO Faisalabad

    41. Javed Iqbal, RTO Faisalabad

    42. Muhammad Altaf Anjum, RTO Faisalabad

    43. Jamshed Khan, Directorate of Intelligence and Investigation, IR, Peshawar

    44. Muhammad Zafar, RTO Islamabad

    45. Ishtiaq Ahmed, RTO Gujranwala

    46. Mehboob Ahmed, RTO Gujranwala

    47. Mehboob Ahmad, RTO Gujranwala

    48. Noor Muhammad Baloch, RTO III Karachi

    49. Muhammad Shahzad, Corporate RTO Karachi

    The FBR said that the promotion would take effect from the date of their joining, subject to the

    conditions that no disciplinary proceedings are pending against them.

  • Sales Tax Act 1990: refund of input tax payable in 45 days

    Sales Tax Act 1990: refund of input tax payable in 45 days

    KARACHI: Federal Board of Revenue (FBR) is required to pay sales tax refunds to the taxpayers in 45 days from the date of filing claim.

    According to recently updated Sales Tax Act, 1990 issued by the FBR, the Section 10 explained the refund of input tax.

    Section 10: Refund of input tax

    Sub-Section (1): If the input tax paid by a registered person on taxable purchases made during a tax period exceeds the output tax on account of zero rated local supplies or export made during that tax period, the excess amount of input tax shall be refunded to the registered person not later than forty-five days of filing of refund claim in such manner and subject to such conditions as the Board may, by notification in the official Gazette specify:

    Provided that in case of excess input tax against supplies other than zero-rated or exports, such excess input tax may be carried forward to the next tax period, along with the input tax as is not adjustable in terms of sub-section (1) of section 8B, and shall be treated as input tax for that period and the Board may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, prescribe the procedure for refund of such excess input tax.

    Provided further that the Board may, from such date and subject to such conditions and restrictions as it may impose, by notification in the official Gazette, direct that refund of input tax against exports shall be paid along with duty drawback at the rates notified in the such notification.

    Sub-Section (2): If a registered person is liable to pay any tax, default surcharge or penalty payable under any law administered by the Board, the refund of input tax shall be made after adjustment of unpaid outstanding amount of tax or, as the case may, default surcharge and penalty.

    Sub-Section (3): Where there is reason to believe that a person has claimed input tax credit or refund which was not admissible to him, the proceedings against him shall be completed within sixty days. For the purposes of enquiry or audit or investigation regarding admissibility of the refund claim, the period of sixty days may be extended up to one hundred and twenty days by an officer not below the rank of an Additional Commissioner Inland Revenue and the Board may, for reasons to be recorded in writing, extend the aforesaid period which shall in no case exceed nine months.

  • Ministry notifies implementation of labeling, printing requirements on imported goods from July 01

    Ministry notifies implementation of labeling, printing requirements on imported goods from July 01

    ISLAMABAD: The ministry of commerce on Tuesday notified the implementation of labeling and printing conditions on imported goods from July 01, 2019.

    The commerce ministry issued SRO 438(I)/2019 to amend Import Policy Order, 2016 and deferred the implementation of labeling requirement and mandatory description of goods in Urdu language till June 30, 2019.

    The ministry imposed the conditions through SRO 237 (I)/ 2019 issued on February 19, 2019, under which it was made mandatory that the ingredients and details of the products (e.g. nutritional facts, usage instructions etc.) of the food products shall be printed in Urdu and English languages on the consumer packaging.

    It is further made mandatory that the logo of the Halal certification body shall be printed on the consumer packaging. The ministry had made it clear that the labeling shall not be in the form of a sticker, over printing stamp or scratched labeling.

    It is also made mandatory that the shipment shall be accompanied by a Halal Certificate issued by a Halal Certification Body, accredited with an Accrediting Body which is a member of International Halal Accreditation Forum (IHAF) or Standards Metrology Institute for Islamic Countries (SMIIC).

    The ministry of commerce through the latest notification also amended the requirement of shelf life.

    The ministry of commerce extended the labeling requirement on the demand of business community as a large number of imported consignments were stuck at the ports failing to meet the requirement.

  • MCC Islamabad announces auction of vehicle on April 11

    MCC Islamabad announces auction of vehicle on April 11

    ISLAMABAD: Model Customs Collectorate (MCC) Islamabad has announced public auction of confiscated vehicles and those vehicles surrendered by Prime Minister House under austerity measures and surrendered by National Agricultural Research Centre (NARC) Islamabad.

    The auction has been scheduled on April 11, 2019

    Following confiscated vehicles would be presented for auction:

    01. Mercedez Benz Car E200, Model 1998, Chassis No. WDB210035-2A-648986

    02. Mitsubishi Pajero, Model 2005, Chassis No. JMYLNV76W5J002599

    03. Mercedez Benz Car E240, Model 2002, Chassis No. WDB210062-2B-483258

    04. Mitsubishi Pajero, Chassis No. JMYLNV76W5J000309

    05. Nissan Sunny, Model 2006, Chassis No. JN1CEAN16Z0501267

    06. Nissan Sunny, Model 2006, Chassis No. JN1CEAN16Z0501315

    07. Toyota Cressida Sedan, Station Wagon, Model 1991, Chassis No. RX72-6009732

    08. Toyota Cressida Sedan, Station Wagon, Model 1991, Chassis No. RZ72-6009700

    09. Suzuki Van, Model 1998, Chassis No. DA21V-106767

    10. Toyota Land Cruiser, Model 1983, Chassis No. BJ60-011734

    11. Toyota Hiace, Model 1980, Chassis No. RH20B-038785

    12. Toyota Land Cruiser, Model 1991, Chassis No. PZJ70-0003729

    13. Toyota Hiace, Model 1988, Chassis No. LH1B0008465

    14. Toyota Land Cruiser, Model 1991, cn. PZJ70-0003701

    Vehicles surrendered by PM’s office placed at I-9, Islamabad Dry Port

    15. BMW X5 Jeep, Model 2016, Chassis No. WBAKR6206GOM99845

    16. BMW X5 Jeep, Model 2016, Chassis No. WBAKR6204GOM99830

    17. Mitsubishi Lancer S/Saloon, Model 1994, Chassis No. CSNBIRU00812

    18. LEXUS Jeep, Model 2006, Chassis No. JTJHT00W564013596

    Surrendered By NARC Placed at NARC Chak Shehzad

    19. Mitsubishi Double Cabin, Model 1989, Chassis No. CJNK-440LP00693

    20. FIAT Truck, Chassis No. 682N3-099185

    21. Toyota Corolla Car, Chassis No. TT133-601345

    22. Toyota Corolla Car, Model 1982, Chassis No. KE70-5070315