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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.

  • KTBA urges prime minister for extending amnesty scheme for one month

    KTBA urges prime minister for extending amnesty scheme for one month

    KARACHI: Tax practitioners of Karachi Tax Bar Association (KTBA) have urged Prime Minister of Pakistan Imran Khan to extend the last date for availing tax amnesty scheme to July 31, 2019 from existing June 30, 2019.

    In a letter sent to Prime Minister Imran Khan on Saturday, the KTBA requested for extension of due date for filing of Assets Declaration Scheme 2019.

    It said that the last date to avail the Assets Declaration Scheme 2019 (Amnesty Scheme 2019) is expiring in the next two days while there still lies innumerable cases of taxpayers who are yet to file their Amnesties but for the reason of paucity of time and extremely slow speed of the IRIS Software of the FBR.

    The KTBA said that the Foreign Amnesty Scheme was launched by the government through an Ordinance on May 14, 2019 whereby a 47 days window was available to declare foreign and local assets and expenditure.

    Though the Ordinance was promulgated on May 14, 2019 but the filing under the Scheme accelerated only after the launch of the online Citizen Profile on NADRA and Tax-Profile on FBR on its “Malumaat” application which took the public in general by surprise and after which considerable discomfort and anxiety echoed in the ranks, which resulted in the radical change in the perception of seriousness of the Amnesty drive by the FBR as was factually reflected by it.

    However, since all these announcements were made only a few days before the June 30 which left very short time to fill in and to file the Amnesty even if someone genuinely wants to.

    Had these announcement been made earlier, the desired level of momentum which is visible today could be seen earlier as well.

    It is germane to mention here that the decision to upload the personal data of around 53 million citizens online was also taken without following a stakeholder process and is quite concerning among the public that also created panic on the way to avail the benefits of the scheme.

    Further, FBR and the SBP’s delayed response on the clarifications for implementation of scheme like foreign currency remittance/accounts etc, is also delaying the process of declaration filing.

    In view of the above it is requested to kindly give directions to the ministry to extend the date of filing of Amnesties till July 31, 2019.

  • FBR increases up to 28.34 percent retail value of CNG for sales tax collection

    FBR increases up to 28.34 percent retail value of CNG for sales tax collection

    ISLAMABAD: Federal Board of Revenue (FBR) has enhanced the consumer value of CNG by 28.34 percent for collection of sales tax from July 01, 2019.

    The FBR issued SRO 690(I)/2019 to notify the consumer value of CNG for the purpose of charging of sales tax from CNG stations by gas transmission and distribution companies.

    The FBR increased the consumer value of CNG to Rs69.57 per kilogram for Region-I, which included Khyber Pakhtunkhwa, Baluchsitan and Potohar Region (Rawalpindi, Islamabad, and Gujar Khan. The increase in consumer value is around 7.36 percent for this region as compared with the previous rate of Rs64.80 per kilogram.

    However, the FBR increased the consumer value of CNG by 28.34 percent for Region – II to Rs74.04 per kilogram from Rs57.69 per kilogram.

    The Region – II is included: Sindh and Punjab excluding Potohar Region.

    Large Taxpayers Unit (LTU) Karachi two years back presented a draft amendment, which stated:

    “Notification in exercise of powers under subsection (8) of section 3 for value of supply of CNG to CNG consumers as per prevailing market price in the same way as it is being issued in case of sale of petroleum product every month.

    “Board [FBR] may kindly issue the notification in exercise of powers under subsection (8) of section 3 for value of supply of CNG to CNG consumers as per prevailing market price in the same way as it is being issued in case of sale of petroleum products to avoid huge loss of monthly sales tax revenue.”

    The LTU Karachi said that the Gas Transmission and Distribution Company charges sales tax from CNG stations @ 17 percent of the value of supply to the CNG consumers as notified by the Board from time to time in terms of section 3(8) of the Sales Tax Act, 1990.

    Board accordingly vide its SRO No. 236(I)/2014 dated 31-03-2014, had notified the value of supply to the CNG consumers as the total value added cost of CNG as notified by the OGRA.

    The latest notification issued by OGRA is dated 31.08.2015 which fixed the maximum CNG price as follows:

    RegionValue Added CostGST

     

    @ 17%

    		Maximum

     

    CNG Sale Price

    I64.8011.02Rs. 75.82
    II57.699.81Rs. 67.50

    On 21-12-2016, OGRA deregulated the CNG sector in Pakistan, and directed the CNG station operators/associations to fix the rates themselves, as per market demand.

    This caused in an instant increase in the rates of CNG which jumped from Rs. 67.50 per kg in the Southern Region to Rs.79 overnight.

    However, the Gas distribution companies are charging sales tax on the previously issued notification of OGRA dated 31-08-2015.

    As a result, the CNG stations are collecting sales tax on maximum CNG sales price at Rs79 per kg from the end consumers where as the Government is getting sales tax from the Gas distribution companies on maximum retail price at Rs67.50, incurring a loss of sales tax revenue of Rs1.67 per kg.

    This loss of sales tax revenue of Rs.1.67 per kg is being collected from end consumers and pocketed by CNG stations.

    CNG retail price per kg on which SSGC is collecting GST (Rs.)GST @ 17%(Rs)CNG prevailing market retail price (Rs)GST @ 17% (Rs)Loss in sales tax revenue per kg(Rs)
    67.509.8179.0011.481.67

    The per month loss to the government revenue comes to be Rs75 million only in the case of SSGCL as the average monthly sale of Gas to the CNG stations by SSGCL is 50 million kgs of gas.

    Similarly the loss in case of SNGPL which caters more than three times of CNG stations is fairly high.

  • FBR restricts sale of duty free imported motor vehicles, machinery for Thar Coal Field

    FBR restricts sale of duty free imported motor vehicles, machinery for Thar Coal Field

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed restriction on selling the duty free imported goods for machinery and motor vehicles for Thar coal field.

    In order to impose restrictions the FBR on Saturday issued SRO 673(I)/2019 to amend SRO 268(I)/2015 dated April 02, 2015.

    The FBR allowed exemption from whole of customs duty on import of coal mining equipment and machinery including vehicles for site use, if not manufactured locally, imported for Thar Coal Field.

    Through the latest SRO, the FBR said that the goods shall not be sold or otherwise disposed of without prior approval of the FBR.

    “In case such goods are sold or otherwise disposed of after ten years of importation thereof, the same shall be subject to payment of duties and taxes as prescribed by the FBR.”

    In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of ten years from the date of importation thereof, the same shall be subject to payment of statutory rates of duties and taxes as were applicable at the time of import.

    “These goods shall, however, be allowed to be transferred to the other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable.”

    The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs.

  • FBR imposes up to 7 percent additional customs duty

    FBR imposes up to 7 percent additional customs duty

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed up to seven percent additional customs duty on items falling under tariff slab of 20 percent and higher slabs.

    The FBR issued SRO 670(1)/2019 on Saturday stated that in supersession of its Notification No. SRO 630(1)/2018, dated the May 24, 2018, the federal government approved to levy additional customs duty on import of goods specified in the First Schedule to the said Act, at the rate of-

    (i) two per cent on goods falling under tariff slabs of 0 percent, 3 percent and 11 percent;

    (ii) four per cent on goods falling under tariff slab of 16 percent; and

    (iii) Seven per cent on goods falling under tariff slab of 20 percent and higher slabs including slabs of specific rates.

    The FBR said that the value of goods for purpose of this levy shall be the value as determined under section 25 or section 25A of the said Act.

    The additional customs duty shall not be levied on the following, namely: –

    (i) import of seeds and spores for sowing (PCT 0904.2120, 1006.1010,
    1209.0000);

    (ii) import under Chapter 31 of First Schedule of the Customs Act,1969
    (IV of 1969);

    (iii) import of goods classifiable under PCT codes, 52.01, 52.03, 9501.3000, 5503.1100, 5503.1900, 5503.3000, 5503.4000, 5503.9000, 5504.1000, 5504.9000, 5506.1000, 5506.3000, 5506.4000, 5506.9000 and 5507.0000;

    (iv) import of goods classifiable under PCT codes 2902.3000, 2914.1200, 2915.1290, 2933.9990, 3202.1000, 3202.9010, 3202.9090, 3204.1100, 3204.1300, 3207.1090, 3208.1090, 3208.9090, 3403.9910, 3506.9110, 3506.9190, 3812.3900, 3906.9020, 4005.1090, 4005.9900, 8453.2000, 9606.2920 and 9606.2990;

    (v) plant and machinery used in manufacturing or production of goods as is classifiable under Chapter 84 and 85 of the First Schedule to the Customs Act, 1969 (IV of 1969);

    (vi) import under PCTs 8517.1211 and 8517.1219

    (vii) import under Chapter 99 of First Schedule of the Customs Act, 1969

    (IV of 1969);

    (viii) import under Fifth Schedule to the Customs Act, 1969 (IV of 1969)
    excluding;

    (a) serial numbers 30, 32, 33 and 35 of table of Part-l,

    (b) serial numbers 20 to 28, 30, 60, 96, 102, 108 to 118 of Table of Part Ill; and

    (c) Serial numbers 29 to 51, 66 to 85, 109 to 115, 117 to 126, 128 to 155 and 157 to 169 of Table-A, Sr. No. 4 to 9, 11 to 14, 19 to 21 of Table-B and Sr. No.1 to 47 of Table-C of Part VII

    (ix) import under the Baggage Rules, 2006;

    (x) import under sub-chapters 3 and 7 of chapter XII and chapter XV of Customs Rules, 2001;

    (xi) import under Notification No.SRO.577(I)/2005 dated 6th June, 2005;

    (xii) import under Notification No.SRO.565(1)/2006 dated 5th June, 2006;

    (xiii) import under Notification No.SRO.693(I)/2006 dated 1st July, 2006;

    (xiv) import under Small and Medium Enterprises and Export Oriented Units Rules, 2008;

    (xv) import under temporary importation scheme vide S.R.O. 492(1)/2009, dated the 13th June, 2009; and

    (xvi) imports under condition (vii) of SRO 678(1)/2004, dated the 7th August, 2004, by the Exploration and Production Companies, their contractors and service companies for offshore projects only.

    The FBR said that this notification shall take effect from July 1, 2019.

  • FBR proposes phenomenal increase in valuation of Karachi immovable properties

    FBR proposes phenomenal increase in valuation of Karachi immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has proposed to phenomenal increase in valuation for commercial and residential immovable properties in Karachi for the purpose of collection of income tax.

    (more…)
  • SRB allows reduced rate of 3pc for outstanding payments by indenters

    SRB allows reduced rate of 3pc for outstanding payments by indenters

    KARACHI: Sindh Revenue Board (SRB) has allowed a reduced rate of 3 percent sales tax for payment of past four years on services rendered by indenters.

    The SRB issued notification SRB-3-4/17/2019 on Thursday to declare that sales tax on the services provided or rendered by an indenter (described against tariff heading 9819.1200) from a place of business in Sindh during the tax periods from July, 2015 to June, 2019 shall, if not yet deposited by the indenter in Sindh Government’s head of account “B-02384”, be charged, levied and collected at the reduced rate of 3 percent subject to the conditions that:-

    (a) such indenter received or intends to receive the value of such indenter services from a place outside Pakistan in foreign exchange through banking channels in the indenter’s business bank account in the manner prescribed by the State Bank of Pakistan;

    (b) such indenter, if not yet a person actually registered under section 24 of the Act, gets himself registered in accordance with the provisions of the said section 24, read with rules prescribed under the Act, on or before the 31st day of July, 2019;

    (c) such indenter deposits the arrears of the amounts of Sindh sales tax, as involved, for the tax periods from July, 2015 to July, 2019, at the rate prescribed in this notification, in Sindh Government’s head of account “B- 02384” in the prescribed manner on or before the 31St day of August, 2019; and

    (d) such indenter does not claim any input tax credit/adjustments against the output tax payable under this notification.

    The SRB said that this notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax already paid or deposited by him in Sindh Government’s head of account “B-02384” on any day prior to the date of this notification.

  • FBR constitutes ADRCs for eight cities

    FBR constitutes ADRCs for eight cities

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday constituted Alternative Dispute Resolution Committees (ADRCs) for speedy disposal of cases in Inland Revenue in eight cities of the country.

    The FBR issued SRO 657(I)/2019 to notify the panel of the following persons for constitution of committees for alternative dispute resolution, namely :-

    SIALKOT

    1. Z.A. Nasir, C.A, Sialkot.

    2. Ch. Ahmad Zulfiqar Hayat, Businessman, Sialkot.

    3. Aftab Hussain Nagra, Advocate, Sialkot.

    4. Muhammad Arshad Nawaz Maan, Tax Practitioner, Sialkot.

    5. Mahar Ghulam Mujtaba, Representative Trade Bodies, Sialkot.

    6. Khalid Pervaiz Javaid Butt, Representative Trade Bodies, Sialkot.

    FAISALABAD

    1. Hamid Masood, C.A, Faisalabad.

    2. Zahid Suleman, C.A, Faisalabad.

    3. Muhammad Anwar Abid, Advocate High Court, Faisalabad.

    4. Syed Zia Alumdar Hussain, Trade Bodies Representative, Faisalabad.

    5. Mian Tanveer Ahmad, Trade Bodies Representative, Faisalabad.

    6. Engineer Hafiz Ihtasham Javed, Trade Bodies Representative, Faisalabad.

    7. Khalid Pervez, Advocate High Court, Faisalabad.

    8. Muhammad Amjad Khawaja, Trade Bodies Representative, Faisalabad.

    9. Ch. Habib Ahmad Gujjar, Trade Bodies Representative, Faisalabad.

    10. Jawad Asghar, Trade Bodies Representative, Faisalabad.

    11. Mr, Muhammad Ashraf Ghandi, Businessman, Faisalabad.

    12. Rana Muhammad Younis, Businessman, Faisalabad.

    13. Ch. Khalid Mahmood, District and Session Judge, Faisalabad.

    SAHIWAL

    1. Muhammad Abid, Commissioner IR, Sahiwal.

    2. Rashid Hameed, President Sahiwal Chamber of Commerce & Ind, Sahiwal.

    3. Rana Waseem Akhtar, Vice Chairman, Pakistan Soup Manufacturing Association, Sahiwal.

    4. Mian Muhammad Latif, President Anjuman Tajraan, Sahiwal.

    5. Muhammad Imran Khan, Vice President Sahiwal Tax Bar .

    6. Shaikh Muhammad Sajjad, Ex President, Sahiwal Tax Bar.

    ISLAMABAD

    1. Syed Tanseer Bukhari, Advocate, Islamabad.

    2. Syed Tauqeer Bukhari, Advocate, Islamabad.

    3. Hafiz Muhammad Idrees, Advocate, Islamabad.

    4. Shahzad Qazi, C.A Islamabad.

    5. Muhammad Mudasser, C.A, Islamabad.

    6. Khalid Iqbal Malik, Representative of Trade Body, Islamabad.

    7. Tariq Sadiq, Representative of Trade Body, Islamabad.

    8. Naeem Siddiqui, Representative of Trade Body, Islamabad.

    9. Mian Muhammad Ramzan, Representative of Trade Body, Islamabad.

    SUKKUR

    1. Asif Iqbal Shekhani, Advocate, Sukkur.

    2. Rewachand Rajpal, Advocate, Sukkur.

    3. Khair Muhammad Shaikh , Representative of Trade Body, Sukkur.

    4. Aamir Ali Khan, Ghouri, Reputable Taxpayer, Sukkur.

    5. Tarique Hussain Soomro, Advocate, Sukkur.

    MULTAN

    1. M. Rashid Qamar, Rtd, District & Session Judge, Multan.

    2. Waqas Khalid. Tax Practitioner. Multan.

    3. Mueed Khawaja. Tax Practitioner. Multan.

    4. Haji Saeed Ahmad, Businessman, Multan.

    5. Kh. Muhammad Usman, Businessman, Multan.

    6. Agha M. Akmal Khan Quzailbash, Advocate, Multan.

    7. Anis Ahmad Sh. Businessman, Multan.

    8. Malik Asrar Ahmad Awan, Businessman, Multan.

    9. Mirza Muhammad Waheed Baig, Advocate, Multan.

    10. Muhammad Younas Ghazi, Tax Practitioner, Multan.

    11. Talat Javed, Tax Practitioner, Multan.

    GUJRANWALA

    1. Abid Hafeez Abid, Advocate High Court, Gujranwala.

    2. Muhammad Asim Anees , Businessman, Gujranwala.

    BAHAWALPUR

    1. Shahid Nadeem Kahloon, Judge, Bahawalpur.

    2. Iqbal Haider, CMA, Bahawalpur.

    3. Ch. Javed Iqbal, Advocate, Bahawalpur.

    4. Saifal Tanveer, Tax Practitioner, Bahawalpur.

    5. Ejaz Nazim, Representative of Bahawalpur Chamber.

    6. Ch. Mehmood Majeed, Reputable Businessman, Bahawalpur.

  • FBR directs recovery of revenue loss from customs intelligence officers

    FBR directs recovery of revenue loss from customs intelligence officers

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed penalty on two customs intelligence officers and directed recovery from these officials of such government revenue lost due to their negligence.

    The FBR imposed penalty of stopping performance allowance for six months. The penalty has been imposed on Saifullah, Superintendent, Directorate of Intelligence & Investigation (Customs), Lahore and Ch. Muhammad Javaid, Superintendent (BS-17), Directorate of Intelligence & Investigation (Customs), Lahore.

    The FBR initiated departmental inquiry against both the official on the charges of inefficiency, misconduct and corruption.

    The Authorized Officer imposed minor penalty of “Recovery of 1/3rd of the revenue loss which occurred due to negligence of the accused officials.

  • Pending ADR cases can avail amnesty scheme: FBR

    Pending ADR cases can avail amnesty scheme: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that cases pending before the Alternate Dispute Resolution Committee (ADRC) can avail tax amnesty scheme.

    The FBR clarified that taxpayers can resolve all their tax cases which are pending in Dispute Settlement by availing Assets Declaration Ordinance-2019.

    All such cases can be settled through Section-6 (4) of Assets Declaration Ordinance-2019.

    All taxpayers are requested to avail this opportunity and resolve their disputes in accordance with Section 6(4) of Assets Declaration Ordinance-2019 and keep themselves away from prolonged litigation.

  • Tax credit allowed for hiring fresh graduates

    Tax credit allowed for hiring fresh graduates

    KARACHI: In order to generate employment in the country, the government allowed tax credit to employers for hiring fresh graduates from July 01, 2019.

    According to Deloitte Pakistan, a new section is proposed to be introduced through the Finance Bill 2019 in order to encourage creation of employment opportunities for fresh graduates.

    A person employing fresh qualified graduates, having graduated after 1st July 2017, from universities or institutions recognized by the Higher Education Commission would be given a tax credit to the extent of the lesser of amount of annual salary paid to fresh graduates or, 5 percent of persons taxable income for the year.

    Further, tax credit would be allowed in the year in which the fresh graduates are employed.

    However, the credit will be restricted to salary of those numbers of fresh graduates not exceeding 15 percent of the total employees.