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…)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.
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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.
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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.
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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.
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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
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FBR waives penalty on overstayed consignments
ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday waived penal surcharges on overstayed consignments to facilitate trade community.
The FBR said that the waiver had been granted in pursuance to decision taken at the Economic Coordination Committee (ECC) of the Cabinet held on March 27, 2019 to waive penal surcharges on the overstayed cargoes at ports.
The FBR said that the time to stay of the cargo has been extended up to April 13 the period for which warehoused goods may remain in the warehouse.
Further the government also directed to remit penal surcharges in the case of goods which are cleared from the warehouse within the period starting on April 08, 2019 and ending April 13, 2019.
The FBR said that the decision would not apply to the goods which had since been abandoned or auctioned under the rules.
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Many withholding tax provisions to be abolished in budget
ISLAMABAD: The government has intended to abolish large number of withholding tax provisions in the budget.
According to Medium-Term Economic Framework (MTEF), which was launched by Finance Minister Asad Umar on Monday, pointed out that withholding taxes become regressive if people who are not liable to income taxes and/or if firms treat them as consumption taxes and are generally passed them on to the consumers, badly impacting the progressivity of the tax.
As such, the tax needs some fundamental reforms.
“As a first step, the government intends to discontinue a large number of low yielding withholding taxes in the next year’s budget.”
The framework also highlighted about the taxation and valuation of immovable properties.
Since the federal government collects tax on income from property and provincial and local governments collect property and transaction tax on immovable property, all parties have an interest in proper documentation and valuation of property.
“The government intends to pursue a coordinated approach to taxation and valuation of the real estate sector in a way to collect optimum revenue from it without discouraging investment.”
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FBR empowered to use third-party information for identifying tax dodgers: MTEF
ISLAMABAD: Federal Board of Revenue (FBR) has been empowered for using third-party information to identify tax dodgers.
The Medium-Term Economic Framework (MTEF), which was launched on Monday by the Finance Minister Asad Umar, the government had promulgated a law so as to allow FBR to access third-party data bases.
The MTEF pointed out building data analytics capacity to utilize available information. “This involves identifying and identifying and pursuing individuals falling outside the tax net through the use of third-party information on consumption patterns utilizing data from income, income tax returns and expenditure data from various sources such as travel, bank account, car ownership, property ownership, children studying abroad, children studying in expensive schools etc.”
Since FBR does not have adequate capacity to utilize these data using latest techniques available, it would be necessary to collaborate with researchers and experts to develop efficient and effective analytical tools.
The government has evolved measures to strengthening tax enforcement and tax audits
The framework said that tax enforcement has remained one of the weakest areas of tax administration.
The government intends to overcome this shortcoming by building enforcement capabilities within FBR through staff training and an intensive use of information technology.
In this regard, priority is being given to putting in place a track-and-trace system and strengthening the risk-based tax audits.
The government also planned harmonizing the tax codes. The MTEF said that the government is well aware that some tax issues (e.g. non-harmonized sales tax rates across tiers of government, taxation of real estate, etc.) adds to the cost of doing business by requiring multiple tax returns to be filed in a single tax year.
While working with the provincial governments in the National Finance Commission (NFC) framework, the federal government intends to harmonize the tax code and integrate tax processes through digitization and process automation.
In addition, it intends to establish a mechanism to fast-track resolution of tax disputes, thus reducing compliance cost.
This will reduce the cost of doing business to some extent and make it harder for taxpayers to play the tax administrations off against each other to evade taxes.
An NFC sub-group has already been tasked with formulating recommendations to simplify payment of taxes to enhance ease of doing business in taxation area.
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All tax exemptions to have sunset clause: MTEF
ISLAMABAD: The ministry of finance on Monday launched Medium-Term Economic Framework (MTEF), which envisaged that all permanent exemptions to be withdrawn or have a sunset clause.
The MTEF said that presently tax policy has a predominant revenue focus and as such is likely to create distortions in the economy which can adversely affect the growth and equity objectives.
In addition, even the revenue objective is compromised by large scale exemptions.
To correct this shortcoming, the government intends the following:
i) Enact a law to ensure that no tax exemption is allowed through law or notification without an estimate of its cost independently by the tax department as well as the concerned ministry. Such cost will be made public before notification of the exemption.
ii) Review all existing exemptions, with the purpose of eliminating as many of those as possible. Even if an exemption is to be retained its cost will be determined and made public. Ministry of Finance to publish annually a statement of tax expenditures to show how much revenue is being foregone due to exemptions.
iii) Ensure that all exemptions, existing or newly proposed, will have a sunset clause (ideally not more than 5 years).
iv) Publish a list of all government owned, quasi-government and government-linked enterprises availing tax exemption/concession in any way along with quantification of the tax expenditure. In addition, a plan be prepared for phasing out of these concessions.
v) Withdraw FBR powers to issue SROs to grant exemptions. This power will vest only with the Parliament.
vi) Ensure that all non-procedural existing SROs will expire at the end of the fiscal year. Steps taken over the last two years to incorporate all exemptions granted through SROs to be made part of the body of law.
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Amnesty Scheme 2019 likely be introduced on April 15
ISLAMABAD: The government likely to introduce new tax amnesty scheme 2019 for undeclared foreign and local assets from next week.
In this regard a briefing was give to Prime Minister Imran Khan on Monday.
According to the sources the amnesty would be introduced from April 15, 2019 and will continue till June 30, 2019.
The amnesty scheme may be announced through Presidential Ordinance and subsequently passed I Finance Act, 2019 in May or June this year.
According to documents, all companies and individuals would be qualified for the scheme except: holders of public office since January 01, 2000, their spouses, children, brothers and sisters or lineal ascendant or descendant; proceeds derived from commission of a criminal offence are excluded; cases pending before a court of law with the exception of older pending litigation.
The amnesty scheme would have conditions, included:
— filing of income tax returns or revision thereof for 2018 and payment of tax.
— filing/revising sales tax returns for last completed tax period and declaring last 5 years undisclosed sales and payment of three percent sales tax/Federal Excise Duty.
–Depositing the case declared in a bank account and retaining the balance till June 30.
— Gold and precious stones declaration shall not exceed value of Rs5 million.
According to valuation of assets for the amnesty, the Benami assets would be allowed to declare at 10 percent. Foreign liquid assets repatriated into Pakistan at five percent.