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.
ISLAMABAD: Federal Board of Revenue (FBR) has suspended an officer Pakistan Customs Service (PCS) BS-16 while taking disciplinary action against him.
In a notification issued on Monday, the FBR while exercising powers under Government Servants (Efficiency & Discipline) Rules, 1973, suspended Mansab Shah, Inspector, BS-16, Model Customs Collectorate of Preventive, Lahore with immediate effect for a period of three months.
KARACHI: Following are the tax rates for individuals under First Schedule of Income Tax Ordinance, 2001.
The tax rate as updated through Finance Supplementary (Amendment) Act, 2018 to Income Tax Ordinance, 2001, issued by Federal Board of Revenue (FBR).
Rates of tax for individuals
(1) The rates of tax imposed on the taxable income of every individual, not being an individual to which paragraph (1A) of this Division applies, shall be as set out in the following table, namely:—
Table
| S. No. | Taxable Income | Rate of Tax |
| 01 | Where the taxable income does not exceed Rs. 400,000 | 0 percent |
| 02 | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 | Rs1,000 |
| 03 | Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 | Rs2,000 |
| 04 | Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000 | 5 percent of the amount exceeding Rs. 1,200,000 |
| 05 | Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 | 60,000 + 15 percent of the amount exceeding Rs. 2,400,000 |
| 06 | Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 | 150,000 + 20 percent of the amount exceeding Rs. 3,000,000 |
| 07 | Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 5,000,000 | 350,000 + 25 percent of the amount exceeding Rs. 4,000,000 |
| 08 | Where the taxable income exceeds Rs. 5,000,000 | 600,000 + 29 percent of the amount exceeding Rs. 5,000,000 |
Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.
Salary persons
(1A) Where the income of an individual chargeable under the head “salary” exceeds fifty per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—
Table
| S.No. | Taxable Income | Rate of Tax |
| 01 | Where the taxable income does not exceed Rs. 400,000 | 0 percent |
| 02 | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 | Rs1,000 |
| 03 | Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 | Rs2,000 |
| 04 | Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,500,000 | 5 percent of the amount exceeding Rs. 1,200,000 |
| 05 | Where the taxable income exceeds Rs.2,500,000 but does not exceed Rs. 4,000,000 | 65,000 + 15 percent of the amount exceeding Rs. 2,500,000 |
| 06 | Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 8,000,000 | 290,000 + 20 percent of the amount exceeding Rs. 4,000,000 |
| 07 | Where the taxable income exceeds Rs. 8,000,000 | 1,090,000 + 25 percent of the amount exceeding Rs. 8,000,000 |
Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.
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The Federal Board of Revenue (FBR) has recently presented a comprehensive revenue position to the finance ministry, highlighting an estimated loss of Rs50 billion resulting from the downward revision of tax rates on salary income.
(more…)KARACHI: Foreign exchange companies are responsible for collecting advance tax on remitting abroad the education related expenses.
The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 under which Section 236R explained the advance tax on remitting amount abroad for education expenses.
Section 236R: Collection of advance tax on education related expenses remitted abroad
Sub-Section (1): There shall be collected advance tax at the rate specified in Division XXIIV of Part-IV of the First Schedule on the amount of education related expenses remitted abroad.
Rate of collection of tax under section 236R shall be 5percent of the amount of total education related expenses.
Sub-Section (2): Banks, financial institutions, foreign exchange companies or any other person responsible for remitting foreign currency abroad shall collect advance tax from the payer of education related expenses.
Sub-Section (3): Tax collected under this section shall be adjustable against the income of the person remitting payment of education related expenses.
Sub-Section (4): For the purpose of this section, “education related expenses” includes tuition fee, boarding and lodging expenses, any payment for distant learning to any institution or university in a foreign country and any other expense related or attributable to foreign education.
ISLAMABAD: Directorate of Intelligence and Investigation, Customs, Federal Board of Revenue (FBR), Lahore announced auction of confiscated vehicles to be held on March 27, 2019.
Following vehicles will be presented for the auction:
01. Mercedes Benz Car E-240, Model 1997, Reg. No. LE-190/ICT, Chassis No. WDB2100352A502971
02. Toyota Progress Car 2927CC, Model 1999, Reg. No. DGA-271, Chassis No. JCJ11-0005820
03. BMW Car 745i, Model 2003, Reg. No. LZM-86, Chassis No. WBAGL22000DP38322
04. Toyota Land Cruiser, Model 1992, Reg. No. BC-4763 Sindh, Chassis No. HDJ81-0020626
05. Honda Civic Hybrid Car 1339CC, Model 2006, Reg. No. AAK-572, Chassis No. FD3-1006468
06. Honda Accord Car CL-9, Model 2002, Reg. No. BFH-756, Chassis No. CL9-1000417
07. Toyota Mark-X Car, Model 2005, Reg. No. NZ-609, Chassis No. GRX120-0025787
08. Honda Accord Car (Inspire), Model 2003, Reg. No. BDF-478/Sindh, Chassis No. UCI-1007210
09. Jaguar X-Type 2.5 Car, Model 2006, Reg. No. AAA-537-Quetta, Chassis No. SAJAC51MX2XC2666
10. Toyota Crown Car, Model 2003, Reg. No. ANY-763-Sindh, Chassis No. JZS175-0064405
11. Toyota Crown Car, Model 2001, Reg. No. AXA-037, Chassis No. JZS171-0075220
12. Toyota Crown Car, Model 2007, Reg. No. WG-009-ICT, Chassis No. GRS182-5014070
13. Toyota Crown Hybrid Athlete Car, Model 2014, Reg. No. AAK-222-ICT, Chassis No. AWS210-6050888
14. Nissan Petrol Jeep, Model 2006, Reg. No. LU-064, Chassis No. WFGY61-003549
15. Honda Accord Car, Model 2004, Reg. No. BDY-545, Chassis No. CL9-1050040
16. Suzuki Motorcycle (Heavy Bike) HP1300CC, Model 2014, Reg. No. GSX-1300, Chassis No. JS1CK111600101675
17. Triumph Heavy Motorcycle, Model 2010, Reg. No. LX09-UXB, Chassis No. PTOTOTYPEVH004CP2
18. Heavy Motorcycle Yamaha Brand 1000CC Made in Japan, Model R12000, Chassis No. JYARN041000003182
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MCC Appraisement West announces auction of vehicles on March 25
In a proactive step towards modernizing tax procedures and enhancing ease of doing business, the Federal Board of Revenue (FBR) organized informative sessions in Karachi and Lahore for the business community and tax consultants.
(more…)
KARACHI: Every market committee has been required to collect advance tax from dealers, commission agents under income tax laws.
The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 under which advance tax is collectable from dealers, commission agents and arhatis under Section 236J.
Section 236J: Advance tax on dealers, commission agents and arhatis etc
Sub-Section (1): Every market committee shall collect advance tax from dealers, commission agents or arhatis, etc. at the rates specified in Division XVII of Part-IV of the First Schedule at the time of issuance or renewal of licences.
The rate of collection of tax under section 236J shall be as follows:
| Group | Amount of tax (per annum) |
| Group or Class A: | Rs. 10,000 |
| Group or Class B: | Rs. 7,500 |
| Group or Class C: | Rs. 5,000 |
| Any other category: | Rs. 5,000 |
Sub-Section (2): The advance tax collected under sub-section (1) shall be adjustable.
Sub-Section (4): In this section “market committee” includes any committee or body formed under any provincial or local law made for the purposes of establishing, regulating or organizing agricultural, livestock and other commodity markets.
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KARACHI: Model Customs Collectorate (MCC) Appraisement (West) Karachi announced auction of vehicles laying at Al-Hamd International Cargo Terminal to be held on March 25, 2019.
Following vehicles will be offered for the auction:
| S. No. | Description | Model | Capacity |
| 1 | Used Mitsubishi Car | 2009 | – |
| 2 | Used Mitsubishi Mini Cab | 2013 | – |
| 3 | Used Nissan Clipper | 2012 | – |
| 4 | Used Suzuki Stingray Wagon R (without extra goods) | 2013 | – |
| 5 | Used Toyota KX-R V6 | 2013 | 3456 ML |
| 6 | Used Honda FIT Car | 2014 | – |
| 7 | Used Suzuki Carry | 2013 | 650 CC |
| 8 | Used Honda Shuttle Hybrid Car | 2015 | – |
| 9 | Used Honda FIT Hybrid Car | 2017 | – |
| 10 | Used Suzuki Lapin Car (ene-charge) | 2017 | – |
| 11 | Used Lexus NX300H (Hybrid) | 2015 | 2494 ML/CC |
| 12 | Old & Used Toyota Mark-II (Grande) Car | 2004 | 2000 CC |
| 13 | Old & Used Toyota Mark-II (Grande) Car | 2000 | 2000 CC |
| 14 | Old & Used Toyota Mark-X-250G | 2005 | 2500 CC |
| 15 | Used Toyota Hilux 4X4 Double Cabin | 2009 | 3000 CC |
| 16 | Used Toyota Hilux Double Cabin | 2004 | 2779 ML |
| 17 | Old & Used Toyota Hilux 4X4 | 2009 | 3000 CC |
| 18 | Used Toyota Hiace Van | – | 2446 CC |
| 19 | Old & Used Toyota Hiace Van Ambulance | 1995 | 2446 CC |
| 20 | Old & Used Toyota Hilux Pickup D/ Cabin | 2008 | 2779 CC |
| 21 | Old & Used Toyota Hilux Pickup D/ Cabin | 2000 | 2779 CC |
| 22 | Old & Used Toyota Hilux Pickup D/ Cabin | 2008 | 2779 CC |
| 23 | Old and Used Toyota Vigo | 2005 | 2779 CC |
| 24 | Old and Used Toyota Hilux 4X4 | 2002 | 2779 CC |
| 25 | Old and Used Toyota Hilux 4X4 | 2002 | 2779 CC |
| 26 | Old & Used Toyota Hilux 4X4 | 2000 | 2779 CC |
| 27 | Old and Used Toyota Hilux 4X4 | 2002 | 2779 CC |
| 28 | Old and Used Toyota Hilux 4X4 | 2002 | 2779 CC |
| 29 | Old and Used Toyota Hilux 4X4 | 2002 | 2779 CC |
| 30 | Old and Used Toyota Hliux Pickup 4X4 | 2002 | 2779 CC |
| 31 | Old and Used Toyota Hilux 4X4 | 2000 | 2779 CC |
| 32 | Old and Used Toyota Hilux 4X4 | 2000 | 2779 CC |
| 33 | Old and Used Toyota Tsusho 4X4 | 2000 | 2779 CC |
| 34 | Old and Used Toyota Hliux Pickup 4X4 | 2002 | 2779 CC |
| 35 | Old and Used Toyota Hliux Pickup 4X4 | 2002 | 2779 CC |
| 36 | Old and Used Toyota Hliux Pickup 4X4 | 2002 | 2779 CC |
| 37 | Old and Used Toyota Hliux Pickup 4X4 | 2002 | 2779 CC |
| 38 | Old and Used Toyota Hliux Pickup 4X4 | 2000 | 2779 CC |
| 39 | Old & Used Mitsubishi Van | 1997 | 2477 CC |
| 40 | Used Volkswagen AG Car | 2013 | 999 CC |
| 41 | Used Nissan Dayz Roox | 2017 | – |
| 42 | Used Honda Jade Hybrid Car | 2015 | – |
| 43 | Used Honda N-ONE | 2015 | – |
| 44 | Used Daihatsu Subaru Stella Car | 2016 | 658 CC |
| 45 | Used Honda ACTY Van | 2017 | – |
| 46 | Used Suzuki Alto ene-charge Car | 2016 | – |
| 47 | Used Daihatsu Mira E:S Car | 2015 | 658 CC |
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Maintaining five-year record of international trade mandatory under Customs Act
KARACHI: State Bank of Pakistan (SBP) on Friday directed all commercial banks to ensure receiving payment of duty and taxes through over the counter (OTC) channel.
The SBP said that the finance department through circular on July 17, 2018 made it mandatory for banks to enable their Over-the-Counter (OTC) Channel for collection of taxes and duties.
Complaints are pouring in from different quarters, regarding non-entertaining of tax payment requests through banks’ OTC Channel.
So much so that Federal Board of Revenue (FBR) has formally launched a complaint that PSIDs generated by WeBOC system for payment of customs duty and other taxes especially the levy on Mobile devices are not being entertained, by the bank branches.
In view of the above, all banks were advised vide email dated 15th March 2019 to improve their customer services in facilitating taxpayers with due courtesy.
Despite the above-referred instructions, there is no visible improvement, as complaints from different quarters are still landing with us.
It is therefore advised to share these instructions with all your branches across the country with the advice to ensure meticulous compliance and facilitate the taxpayers in payment of taxes and duties under the I Link’s OTC facility.
The branches shall also prominently display on their respective Notice Boards that “Taxes and Duties are accepted here under the 1Link’s OTC facility”. Further, banks shall also ensure that the branch staff has adequate understanding of the mechanism for collection of taxes and duties under the said facility.
The banks shall inform this department within 3 working days of the date of circular i.e. 27th March 2019 that these instructions have been communicated to all their branches for meticulous compliance and that the Notice Boards of branches are prominently displaying the message that “Taxes and Duties are accepted here under the 1Link’s OTC facility”.
KARACHI: Importers, exporters and other stakeholders related to international trade are required to maintain transactions record for at least past five years.
According to Customs Act, 1969 the stakeholders of international trade are required to maintain record under the following section:
Section 211: Maintenance of record
Sub-Section (1): All importers, exporters and claimants of duty drawback, refunds or any notified concessions, terminal operators, owners of the warehouses, customs agents and the licensed customs bonded carriers, transport operators and tracking companies, carrying out business under this Act or rules made thereunder or under any other law, directly or indirectly, relating to international trade, shall be required to maintain and keep records and correspondence concerning import, export and transit trade transactions.
Sub-Section (2) The records required under sub-section (1) shall be kept for a period not less than five years in such form as the Board may by notification in the official gazette, specify.
Sub-Section (3): The provision of sub-section (1) shall not be applicable to the baggage of the passengers and crew of the conveyance and to the recipients of gifts.