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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.

  • Preventive auctions confiscated vehicles on March 19

    Preventive auctions confiscated vehicles on March 19

    KARACHI: Model Customs Collectorate (MCC) Preventive has announced public auction of confiscated vehicles on March 19, 2019 to be held at State Warehouse, Ghasbandar, East Wharf, Karachi.

    The following vehicles will be presented for auction:

    01. Mitsubishi Pajero Jeep, GS-200, Model 1994, Chassis No. Reg. GS-2000/V46-4034794

    02. Lexus Car, Model 2006, 3450CC, Chassis No. JTHBG963905034702

    03. Toyota Premio Car VVT, Reg. No. AAH-747, Model 2007, Chassis No. ZZT240-0140149

    04. Toyota Harrier Jeep, Reg. No. JAA-454, Model 1998, 2999CC, Chassis No. MCU-10-0013510

    05. Toyota Hilux Surf, Reg No. CP-0693, Model 1990, 2958CC, Chassis No. LN-130-0009771

    06. Honda Saloon Accord Car, Reg. No. BFT-418, Model 2003, 1990CC, Chassis No. LC7-3006339

    07. Toyota Land Cruiser Parado, Reg. No. BD-9380, Model 1998, 2657CC, Chassis No. RZI-90-0002888

    08. Toyota Hilux Surf SSR-X-3.0, Reg No. BD-8045, 2962CC, Chassis No. KZN-130-9048116

    09. Mercedes Benz (AG), Fake Reg. No. AB-1001, 2999CC, Chassis No. WDB1240312B4767728

    10. Toyota Mark-II Saloon Car, Reg. No. BBL-708, Model 2000, 1800HP, Chassis No. JZX110-6000922

    11. Toyota Hilux Surf, Reg. No. BD-1688, Model 1994, Chassis No. LN-130-0123784

    12. Honda Accord, Reg. No, AUX-934, Model 2004, Chassis No. CL7310078

    13. Mercedes Benz Car, Model 2001, 2000CC, Chassis No. WDB2037452A272217

    14. Toyota Axio-X car, Reg. No. BFE-068, 1496CC, Model 2007, Chassis No. NZE-141-6028039

    15. Toyota Primo Car, Reg. No. AAM-095, Model 2005, 1794CC, Chassis No. ZZT-240-5039822

    16. Honda Civic Saloon Car, Reg. No. AAM-988, Model 2007, Chassis No. FD-31001100

    17. Toyota Land Cruiser Jeep, Reg. No. BG-1131, Model 1989, 3431CC, Chassis No. BJ 60-023765

    18. Toyota Corolla Car, Model 2015, Reg. No. BDE-852, Chassis No. NZE170R4016729

    19. Toyota Crown Saloon Car, Model 2004, Reg. No. BHK-012, Chassis No. GRS182-5014910

    20. Toyota Saloon Car XE- Model 1999, 1500CC, Cassis No. AE-100-5171778

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  • Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

    Income Tax Ordinance 2001: amended advance tax rates on marriages, functions

    KARACHI: Federal Board of Revenue (FBR) has updated advance tax rates on marriages and functions through latest amendment to Income Tax Ordinance, 2001.
    The national assembly recently approved Finance Supplementary (Second Amendment) Act, 2019 and advance tax rate for functions and gathering has been updated.
    The advance tax is collected under following section of the Ordinance.
    Section 236D: Advance tax on functions and gatherings
    Sub-Section (1): Every prescribed person shall collect advance tax at the rate specified in Division XI of Part IV of the First Schedule on the total amount of the bill from a person arranging or holding a function in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.
    Sub-Section (2): Where the food, service or any other facility is provided by any other person, the prescribed person shall also collect advance tax on the payment for such food, service or facility at the rate specified in Division XI of Part IV of the First Schedule from the person arranging or holding the function.
    Sub-Section (3): The advance tax collected under sub-section (1) and sub-section (2) shall be adjustable.
    Sub-Section (4): In this section,—
    (a) “function” includes any wedding related event, a seminar, a workshop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose; and
    (b) “prescribed person” includes the owner, a lease-holder, an operator or a manager of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose.
    The rate of tax to be collected under each sub-sections (1) and (2) of section 236D shall be 5%;
    Provided that the rate for the function of marriage in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose shall be as set out in the Table below:─

    S. No.Rate of tax 
    015% of the bill ad valorem or Rs20,000 per function, whichever is higherFor Islamabad, Lahore, Multan,Faisalabad, Rawalpindi, Gujranwala, Bahawalpur, Sargodha, Sahiwal, Shekhurpura, Dera Ghazi Khan, Karachi, Hyderabad, Sukkur, Thatta, Larkana, Mirpur Khas, Nawabshah, Peshawar, Mardan, Abbottabad, Kohat, Dera Ismail Khan, Quetta, Sibi, Loralai, Khuzdar, Dera Murad Jamali and Turbat.
     
    025% of the bill ad valorem or Rs10,000 per function, whichever is higherFor cities other than those mentioned above.

    Through Finance Supplementary (Second Amendment) Act, 2019, the following amendment has been inserted:
    “Provided further that the rate for the function of marriage in a marriage hall, marquee or a community place with the total function area less than 500 square yards or, in case of a multi-stories premises, with the largest total function area on one floor less than 500 square yards, shall be 5 percent of the bill ad valorem or Rs5,000 function whichever is higher.”
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  • Filing annual return: large number to benefit from date extension

    Filing annual return: large number to benefit from date extension

    KARACHI: A large number of taxpayers may file their annual income tax returns while taking advantage of date extension up to March 31, 2019, tax manager said.

    The Federal Board of Revenue (FBR) recently extended the last date for filing income tax return for tax year 2018 up to March 31, 2018, which was December 15, 2018 for salary, business individuals, taxpayers falling in final tax regime and companies having special tax year.

    Similarly, the date was also extended for corporate units up to March 31, 2019, whose last date was December 31, 2018.

    The tax managers said that due to burden and restrictions on non-filers under Income Tax Ordinance, 2001 a huge number of individuals and companies would file their income tax returns for tax year 2018 to appear on Active Taxpayers List (ATL).

    They said that the non-filers have been restricted in purchasing immovable properties over Rs40 million and registration of imported motor vehicles.

    Further, the non-filers are also required to pay higher percent of withholding tax on various transactions. The non-filers in the recent mini-budget allowed to purchase and register new locally assembled motor vehicles. However, the withholding tax rates on non-filers have been increased by 50 percent.

    The ATL issued by FBR on March 01, 2019 for tax year 2018 carried list of 1.59 million active taxpayers. In contrast the ATL for the tax year 2017 had carried 1.84 million active taxpayers, which showed about 240,000 taxpayers were not on the new list.

    With the extension of date up to March 31, 2019 the return filers would not require to pay penalty and also become eligible for appearing on the ATL.

    To some estimates the recent date extension by the FBR around 250,000 to 300,000 more returns would be added to the current active taxpayers list.

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  • Income Tax Ordinance 2001: advance tax on sale, purchase of immovable properties

    Income Tax Ordinance 2001: advance tax on sale, purchase of immovable properties

    KARACHI: Adjustable advance tax is applicable for filers and non-filers of income tax return on sales and purchase of immovable properties to be collected at the time of transaction.

    According to updated Income Tax Ordinance, 2001 issued by Federal Board of Revenue (FBR) the tax shall be collected under Section 236C and Section 236K of the Ordinance, which are as follow:

    Section 236C: Advance Tax on sale or transfer of immovable Property
    Sub-Section (1): Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:

    “The rate of tax to be collected under section 236C shall be 1% of the gross amount of the consideration received for filers and 2% of the gross amount of the consideration received for non-filers.”

    Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.

    Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service.

    Sub-Section (2): The Advance tax collected under sub-section (1) shall be adjustable:

    Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.

    Sub-Section (3): Advance tax under sub-section (1) shall not be collected if the immovable property is held for a period exceeding three years.

    Section 236K: Advance tax on purchase or transfer of immovable property

    Sub-Section (1): Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the purchaser or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

    The rate of tax to be collected under section 236K shall be:-

    S. NoPeriodRate of Tax
    01Where value of immovable property is up to Rs4 millionZero percent
    02Where the value of immovable property is more than Rs4 millionFiler 2 percent
    Non-filer 4 percent

     
    Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society and registrar of properties.

    Sub-Section (2): The advance tax collected under sub-section (1) shall be adjustable.

    Sub-Section (3): Any person responsible for collecting payments in installments for purchase or allotment of any immovable property where the transfer is to be effected after making payment of all installments, shall at the time of collecting installments collect from the allotee or transferee advance tax at the rate specified in Division XVIII of Part IV of the First Schedule.

    Sub-Section (4): Nothing contained in this section shall apply to a scheme introduced by the Federal Government, or Provincial Government or an Authority established under a Federal or Provincial law for expatriate Pakistanis:

    “Provided that the mode of payment by the expatriate Pakistanis in the said scheme or schemes shall be in the foreign exchange remitted from outside Pakistan through normal banking channels.”

  • Car imports fall by massive 38.34 percent after strict checks on concessionary schemes

    Car imports fall by massive 38.34 percent after strict checks on concessionary schemes

    KARACHI: The import of motor cars has sharply declined by 38.34 percent during first eight months of current fiscal year due to certain government checks on preventing misuse of allowed schemes.

    The import of motor cars in Completely Built Unit (CBU) condition was at $202.9 million during July – February 2018/2019 as compared with $329.06 million in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS).

    Industry experts attributed the decline mainly to restriction imposed on non-filers in registering imported cars with provincial motor vehicle authorities.

    The experts further said that the condition of arranging foreign exchange for payment of customs duty had also discouraged the imports of cars.

    The import of cars fell even more sharply when compared the imports of $9.47 million in February 2019 as compared with $37 million in the same month of the last year.

    The experts said that the import of cars had been allowed under three different schemes such as gift scheme, transfer of resident scheme and baggage scheme for Pakistanis living abroad.

    However, these schemes were grossly misused which resulted huge loss of foreign exchange.

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  • Difficult time for people not in tax net: FBR chairman

    Difficult time for people not in tax net: FBR chairman

    KARACHI: The chairman of Federal Board of Revenue (FBR) Mohammad Jehanzeb Khan on Saturday said that difficult time has started for those having taxable income but still out of tax net.

    He was addressing the business community at Karachi Chamber of Commerce and Industry (KCCI).

    The chairman said that it was difficult to bring change in any organization yet we are ready to bring changes in the FBR.

    He said that the tax collecting agency should be a facilitator and the business community is our partner.

    “There is need to boost confidence on tax agency,” he added.

    He said that the tax collecting agency was ready to reduce sales tax rates as well to broaden the tax net.

    The chairman praised the business community for contributing into economic growth and generating employment.

    He said that if a person made short payment then he should not be treated as tax evader. “And those who are paying taxes should not be worried,” he added.

    Jehanzeb admitted that there were difficulties in revenue collection but he said that the FBR would not take any harsh action.

    The chairman said that the FBR had immense powers and warned that these powers would be exercised if needed.

  • FBR recovers Rs1.85 billion from tax evaders: Jehanzeb Khan

    FBR recovers Rs1.85 billion from tax evaders: Jehanzeb Khan

    KARACHI: Mohammad Jehanzeb Khan, Chairman, Federal Board of Revenue (FBR) on Saturday said that the revenue body recovered Rs1.85 billion from tax evaders.

    Talking at Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said that the revenue body had issued 6,000 notices for recovery of Rs3 billion.

    The chairman said that the government was endeavoring to increase trade volume in Balochistan and the FBR was considering to increase the customs staff in the province.

    Talking about sales tax refunds, he said that this amount was not belong to FBR and it had to be reimbursed.

    The chairman said that penalty would not be imposed on those taxpayers who applied for reviewing their income tax returns.

    Dilating upon Benami assets, he said that a separate section in the law was being creating for benami assets. He said that under this law the FBR would able to seize the undeclared assets in someone else names.

    Jehanzeb Khan said that the FBR was facing a shortfall of Rs 220 billion.

    He said that the FBR was enhancing capacity in customs clearance. The chairman said that work had been started to eliminate under invoicing. Further valuation on imported goods has also been streamlined, he added.

    The chairman said that FATF issue was important and the customs authorities had made efforts in this regard.

  • SRB suspends registration of logistic company on tax evasion

    SRB suspends registration of logistic company on tax evasion

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of a logistic service provider based in Islamabad for alleged tax evasion.

    Sources in SRB said that the provincial revenue authority had suspended sales tax registration of M/s. Capital Marketing Services for suppressing sales for evading tax payment for the period July 2014 to June 2018.

    The SRB said that short declaration of sales and non-payment of Sindh Sales Tax is contravention of Sales Tax Act, 2011 and the rules made thereunder.

    Record available shows that M/s. Wazir Ali Industries Limited, M/s. Dalda Foods Limited, M/s. Engro Food Limited and M/s. Engro Polymer & Chemical Limited have declared purchases of Rs 329.78 million (including sales tax of Rs27.68 million from M/s. Capital Marketing Services during July 2014 to June 2018, and have also paid sales tax amount of Rs5.09 million to M/s. Capital Marketing Services for onward payment in SRB’s head of account.

    However, M/s. Capital Marketing Services have declared sales of Rs90.38 million during July 2014 to June 2018 with SRB leading to sales suppression of Rs239.39 million and short payment of sales tax of Rs5.09 million.

    “This is serious violation of provisions of the Act 2011 and the rules made thereunder,” the SRB said.

    The SRB suspended the sales tax registration of the company with immediate effect and directed the company that the suspension would only be revoked if remedial measures are taken by March 26, 2019.

    The SRB directed the company to declare all sales and discharge all Sindh Sales Tax dues along with default surcharge under section 44 of the Act, 2011 for the tax period. Further the company has been directed to e-file the true and correct monthly Sindh sales tax return for the said tax periods.

    In case of non-satisfactory response or failure to take remedial measures as suggested above on or before March 26, 2019, further necessary action would be taken as envisaged under the Act.

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  • FBR notifies transfers, postings of 21 IRS officers

    FBR notifies transfers, postings of 21 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified transfers and postings of 21 officers of BS-17-21 Inland Revenue Service (IRS) with immediate effect and until further orders.

    Following IRS officers have transferred and posted:

    01. Muhammad Ashfaq Ahmad (Inland Revenue Service/BS-21) has been transferred and posted as Director General, (International Taxes (Operations) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (International Taxes) Federal Board of Revenue (Hq), Islamabad.

    02. Abdul Hameed Memon (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (IR-Policy) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (IR-Operations) Federal Board of Revenue (Hq), Islamabad.

    03. Rizwan Ahmed Urfi (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Legal Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (IP/TFD/HRM) Regional Tax Office, Gujranwala.

    04. Imtiaz Ali Solangi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (IP/TFD) Corporate Regional Tax Office, Karachi from the post of Commissioner, (Zone-VI) Corporate Regional Tax Office, Karachi.

    05. Javaid Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Accounting Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (HRM) Regional Tax Office, Rawalpindi.

    06. Muhammad Shaukat Hayat Cheema (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (East Zone) Regional Tax Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Islamabad. He is also assigned the additional charge of the post of Commissioner-IR (WHT), RTO, Islamabad

    07. Masood Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Bahawalpur Zone) Regional Tax Office, Bahawalpur from the post of Commissioner, (East Zone) Regional Tax Office, Islamabad.

    08. Shabih-ul-Aijaz (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (IR-Policy) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (HRM) Large Taxpayers Unit, Lahore.

    09. Saleem Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (IPMU) Federal Board of Revenue (Hq), Islamabad from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

    10. Muzaffar Ali Soomro (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (WHT) Regional Tax Office, Quetta from the post of Commissioner, (Bahawalpur Zone) Regional Tax Office, Bahawalpur.

    11. Said Munaf (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (IR-Operations) Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (Strategic Planning Reforms & Statistics) Federal Board of Revenue (Hq), Islamabad.

    12. Ms. Bushra Jaffar (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office II, Lahore from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    13. Syed Hasan Sardar (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (IR-Policy) Federal Board of Revenue (Hq), Islamabad from the post of Deputy Commissioner, (IR) Regional Tax Office, Islamabad.

    14. Ms. Qayyum Rani (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue (AEOI Zone) Large Taxpayers Unit, Lahore from the post of Deputy Commissioner, (IR) Large Taxpayers Unit, Lahore.

    15. Shahid Ijaz Tarar (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (Legal Wing) Federal Board of Revenue (Hq), Islamabad from the post of Second Secretary, (FATE Wing) Federal Board of Revenue (Hq), Islamabad.

    16. Muhammad Adil Khan (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (IR-Operations) Federal Board of Revenue (Hq), Islamabad from the post of Second Secretary, (Lit-HC) Federal Board of Revenue (Hq), Islamabad.

    17. Hassan Bin Izhar (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (SPR&S Wing) Federal Board of Revenue (Hq), Islamabad from the post of Second Secretary, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad.

    18. Ms. Romana Alam (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (IR-Policy) Federal Board of Revenue (Hq), Islamabad from the post of Deputy Commissioner, (IR) Regional Tax Office, Islamabad.

    19. Muhammad Salamat Ullah (Inland Revenue Service/BS-17) has been transferred and posted as Second Secretary, (IR-Policy) Federal Board of Revenue (Hq), Islamabad from the post of Assistant Commissioner (Prob), Regional Tax Office, Rawalpindi.

    20. Muhammad Siddique (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Regional Tax Office II, Lahore from the post of Assistant Commissioner, Regional Tax Office, Faisalabad.

    21. Nasir Maqbool Hashmi (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Assistant Commissioner, Regional Tax Office, Abbottabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.


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  • FBR extends last date for filing return up to March 31

    FBR extends last date for filing return up to March 31

    ISLAMABAD: Federal Board of Revenue (FBR) has extended the last date for filing income tax returns and wealth statements up to March 31, 2019, which will enable the late filers to become part of active taxpayers list.

     FBR issued Circular 02/2019 on Friday and extended the last date for salary persons and final taxations which was due on August 31, 2018 and extended up to December 15, 2018 has been further extended up to March 31, 2019.

     The date of filing of returns of total income and statement of final taxation for companies, individuals and association of persons which were due on September 30, 2018 and extended up to December 15, 2018 has been extended up to March 31, 2019.

     Further the date of filing of returns of total income and statement of final taxation for companies which were due on December 31, 2018 has been further extended to March 31, 2019.