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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.

  • General education not taxable under training services: SRB

    General education not taxable under training services: SRB

    KARACHI: Sindh Revenue Board (SRB) on Monday said that general education services are not taxable under ‘training services’ which is introduced through Sindh Finance Act, 2019.

    The provincial revenue authority issued clarification on the issued after receiving objections from the stakeholders for explaining the training services.

    The SRB said; “The general education services like pre-primary, primary, elementary, secondary (matric), higher secondary (intermediate), general certificate of secondary education, international general certificate of secondary education, college or university education (leading to degrees like BA, BSC, B.S, B.Com, BBA, BE, Bed, B Tech, LLB, MBBS, MA, MSc, MS, MCS, M Com, MBA, M Ed, LLM, M Phil, MCPS, FCPS, PhD, special education for handicapped children and education under the adult literacy program are not taxable as training services of tariff heading 9848.000 of the Second Schedule to the Sindh Sales Tax on Services Act, 2011.”

    Earlier, Deloitte Yousf Adil, Chartered Accountants urged the SRB for clarification regarding applicability of Sindh Sales Tax on education related activity under Tariff Heading 9848.000 (training services).

    The chartered accountants firm said that through the Sindh Finance Act, 2019, the training services had been brought to tax net under the tariff heading of 9848.000 with effect from July 01, 2019.

    Through notification issued July 01, 2019, the rate of Sindh Sales Tax on training services had been reduced to five percent with not input tax adjustment.

    The chartered accountants firm pointed out that there was confusion regarding chargeability of SST on education related services provided or rendered by schools, colleges, institutes and universities as chartered by the government or related bodes such as Higher Education Commission etc.

    The chartered accountants firm had urged the provincial revenue authority to clarify the scope of tariff heading specifically keeping the scenario of general education services.

  • Sindh Excise collects Rs5.7 billion in July 2019

    Sindh Excise collects Rs5.7 billion in July 2019

    KARACHI: The Sindh Excise Department has reported an impressive collection of Rs5.7 billion under various tax heads, including infrastructure cess, motor vehicles, properties, etc., for the month of July 2019.

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  • Commerce ministry extends date for submitting DLTL claims

    Commerce ministry extends date for submitting DLTL claims

    KARACHI: The ministry of commerce has extended the last date for submission /resubmission of claims of Drawback of local Taxes and Levies (DLTL).

    The State Bank of Pakistan (SBP) on Monday informed banks that the commerce ministry extended the date for claiming DLTL.

    The central bank said that in terms of Commerce Division, Ministry of Commerce & Textile’s letter F.No. 5(2)/2017-SO(M&I) dated July 30, 2019, it has been decided to extend the deadline for submission/ resubmission of claims from claimants to Authorized Dealers (ADs) under Para 1(4)(a) and 1(4)(d) of the subject Order till August 15, 2019.

    Further, the deadline for submission of the claims from ADs to the field offices of State Bank of Pakistan – Banking Services Corporation (SBP-BSC) shall be August 30, 2019.

    Likewise, the last date for submission of incremental claims from exporters to ADs under Para 1(4)(b) of the subject Order, shall be October 16, 2019 and from ADs to SBP-BSC October 31, 2019.

  • Auction of confiscated vehicles to be held on August 20 at ASO Headquarters

    Auction of confiscated vehicles to be held on August 20 at ASO Headquarters

    KARACHI – The Model Customs Collectorate (MCC) Preventive has officially announced the upcoming auction of a large number of confiscated vehicles. The event is scheduled to take place on August 20, 2019, at the Anti-Smuggling Organization (ASO) Headquarters, located at NMB Wharf, Ghass Bandar, East Wharf, Karachi.

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  • Commerce ministry issues clarification to ban on Indian imports

    Commerce ministry issues clarification to ban on Indian imports

    The Ministry of Commerce has issued a clarification regarding the ban on imports from India, stating that Letter of Credit (LC) or Bill of Lading (BL) issued prior to August 09, 2019, will be allowed for customs clearance.

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  • Non-ATL commission agents to pay up to 24 percent withholding tax

    Non-ATL commission agents to pay up to 24 percent withholding tax

    ISLAMABAD: Federal Board of Revenue (FBR) has said that commission agents not appearing on Active Taxpayers List (ATL) shall pay 24 percent withholding tax during tax year 2019/2020 effective from July 01, 2019.

    The FBR issued Withholding Tax Card for tax year 2019/2020 saying that the collection of withholding tax is payable under Section 233 of Income Tax Ordinance, 2001.

    The revenue body said that Federal Government, Provincial Government, Local authority, Company AOP constituted by or under any law or principal shall collect withholding tax from recipient of brokerage or commission or agent at the time the brokerage or commission is actually paid.

    The following rates shall be applicable:

    (i) Advertising Agents, the tax rate shall be 10 percent for compliant taxpayers and 20 percent for persons not appearing on ATL.

    (ii) Life insurance agents where commission received is less than 0.5 million per annum, the tax rate shall be 8 percent for compliant taxpayers and 16 percent for persons not appearing on ATL.

    (iii) Persons not covered in (i) & (ii), the tax rate shall be 12 percent for compliant taxpayers and 24 percent for persons not appearing on ATL.

  • FBR starts verifying imported goods in spot checking of markets, shopping plazas

    FBR starts verifying imported goods in spot checking of markets, shopping plazas

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch mega crackdown against smuggled goods and in this regard joint teams of the revenue body will visit markets and shopping plazas in major cities of the country from September 01, 2019.

    The FBR on Saturday issued a notification related to anti-smuggling drive, which highlighted the adverse impact of smuggled goods on the economy in general and industrial activities in particular.

    The FBR said that it had started phased program, which included verification of imported documents of foreign goods available in the market.

    “With effect from September 01, 2019 special joint teams of the FBR may be visiting major shopping areas especially large retailers in major cities to check the import documents the imported goods available for sale to ensure compliance to various requirement of the law,” it said.

    The FBR clarified that such checking would not be called ‘raid’. “All teams will be conducting respective identification as being officially designated and the team will be headed by a senior person.”

    It further said that in case a retailer/shopkeeper had not documents at the time of checking then the team would provide adequate opportunity to submit the document in respective offices/shops after reasonable time.

    The FBR said that all relevant persons are expected to cooperate with the FBR personnel during this exercise which is being undertaken to ensure compliance of laws and discourage sale of smuggled goods.

    The FBR asked Member Customs (Operations) and Member (IR-Operations) to supervise the activity and provide complete assistance to the joint team wherever required.

    The FBR also directed Director General (I&I) and Director General (I&I) Inland Revenue to constitute joint teams under intimation to this office and concerned Member Operations keeping in view the scope of the activity on countrywide basis.

  • Karachi traders criticize FBR for not including in consultative committee

    Karachi traders criticize FBR for not including in consultative committee

    Traders associations from Karachi have strongly criticized the Federal Board of Revenue (FBR) for excluding representatives of small traders and shopkeepers from Pakistan’s commercial capital in its newly formed consultative committee on the fixed tax scheme.

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  • FBR constitutes consultative committee for fixed tax scheme

    FBR constitutes consultative committee for fixed tax scheme

    ISLAMABAD: The chairman of Federal Board of Revenue (FBR) on Friday constituted a committee to finalize fixed tax scheme and simplified tax procedure for traders.

    The committee has been constituted comprising following members:

    01. Ms. Nausheen Amjad, Member (TPA) – Convener

    02. Faheem ul Haq, Member, Accounting

    03. Ms. Seema Shakeel, Member (IR-Operations)

    04. Dr. Hamid Ateeq Sarwar, Member (IR-Policy)

    05. Ashfaque Tola, Chartered Accountant

    06. Abid Shaban, Advocate

    07. Naeem Mir, All Pakistan Anjuman-e-Tajiran

    08. Khawaja Sulaiman Siddique, Tanzeem-e-Tajran Pakistan

    09. Malik Khalid, Qaumi Tajir Ittehad, Pakistan

    10. Mohammad Ali Mian, Pakistan Traders Alliance

    11. Ashraf Bhatti, Anjuman-e-Tajran (Bhatti Group)

    12. Kashif Chaudhry, Tanzeem-e-Tajran Pakistan.

    The FBR said that the committee would discuss the various aspects of the draft of fixed tax scheme for small traders / shopkeepers and simplified tax procedure for traders and shall come up with finalization of the same in the present or amended form after through discussion and consultation.

    Member (IR-Policy), FBR shall act as secretary to the committee.

    The committee shall submit its recommendations not later than August 25, 2019 to the office of the chairman FBR.

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  • FBR further extends date for filing sales tax, FE returns

    FBR further extends date for filing sales tax, FE returns

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday extended the last date for filing sales tax and federal excise (FE) return for the tax period of July 2019.

    Previously the FBR extended the date for filing sales tax and federal excise return on August 09 considering the Eid holidays.

    As per the latest notification, the FBR further extended the date for filing and said that the annexures of sales and purchases, which are due on August 10, 2019 can be submitted up to August 19, 2019.

    The FBR said that payment of sales tax and federal excise duty, which is due on August 15, 2019 can be made up to August 21, 2019.

    Similarly, the date for submitting sales tax and federal excise return, which is due on August 18, 2019, has been extended up to August 23, 2019.
    The FBR said that the date has been extended considering the Eid holidays.

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