The Overseas Chamber of Commerce and Industry (OICCI), representing foreign investors and multinational companies in Pakistan, has proposed the imposition of an additional advance tax of Rs100,000 on all types of motor vehicles sold before registration.
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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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Pakistan Customs announces auction of fresh lot vehicles on May 22 at West Wharf Karachi
KARACHI: Model Customs Collectorate (MCC) Appraisement (West) has announced auction of fresh lot of vehicles to be held on May 22, 2019 at West Wharf Karachi.
Following vehicles will be presented for auction:
01. Suzuki Spacia Car, Chassis No. MK42S-147136, Model 2016
02. Nissan Safari Van, Chassis No. DR64V-801926, Model 2014
03. Honda Vezel Hybrid, Chassis No. RU3-1076651, Model 2015
04. Nissan Dayz Car, Chassis No. B21-W-0322718, Model 2015
05. Nissan Note E-power 1198CC, Chassis No. HE12-160002, Model 2018
06. Daihatsu Cast Car 658CC, Chassis No. LA250S-0098171, Model 2017
07. Suzuki Every Van, Chassis No. DA17W-117175, Model 2015
08. Daihatsu Wagon 658CC, Chassis No. S331G-0028698, Model 2015
09. Daihatsu Mira Car 658CC, Chassis No. LA350S-0039236, Model 2017
10. Daihatsu Mira Car, Chassis No. LA350S-0039236, Model 2016
11. EK Wagon Car, Chassis No. B1W-0224971, Model 2016
12. Suzuki Alto Car 658CC, Chassis No. HA-36V132435, Model 2018
13. Toyota Passo Car 996CC, Chassis No. M710A-0018576, Model 2018
14. Nissan Clipper Van, Chassis No. DR64V-802265, Model 2014
15. Nissan Note E-Power 1198CC, Chassis No. HE12-023466, Model 2016
16. Aqua Hybrid Car 1496CC, Chassis No. NHP10-6692279, Model 2017
17. Daihatsu Move Car 658CC, Chassis No. LA150S-0163586, Model 2018
18. Suzuki Alto Car, Chassis No. HE36S-352581, Model 2017
19. Mitsubishi EK Wagon Car, Chassis No. B11W-0307757, Model 2017
20. Honda Hybrid Freed, Chassis No. GP3-1216644, Model 2014
21. Hustler Suzuki, Chassis No. MR31S-311545, Model 2016
22. Honda Hybrid Vezel, Chassis No. RU3-1261776, Model 2017
23. Suzuki Alto, Chassis No. HA36S-268860, Model 2015
24. Suzuki Every Van, Chassis No. DA17V-118575, Model 2015
25. Suzuki Every Van, Chassis No. DA17V-152270, Model 2015
26. Suzuki Every Van, Chassis No. DA64V-844736, Model 2014
27. Toyota Hiace 1998ml, Chassis No. TRH200-0197415, Model 2014
28. Toyota Passo 996CC, Chassis No. M700A-008545
29. Toyota CH-R 1797ml, Chassis No. ZYX10-2044946, Model 2017
30. Suzuki Every Van, Chassis No. DA64V-846379, Model 2014
31. Suzuki Every Van, Chassis No. DA64V-856593, Model 2014
32. Toyota Vitz Car 996CC, Chassis No. KSP130-216623, Model 2016
33. Nissan Note E-Power 1198CC, Chassis No. HE12-034249, Model 2017
34. Daihatsu Hijet Cargo Van 658CC, Chassis No. S33AV-0115549, Model 2014
35. Toyota Vitz Car 996CC, Chassis No. KSP130-2168685, Model 2016
36. Toyota Passo Car 996CC, Chassis No. M700A-0002119, Model 2016
37. Daihatsu Move Car 658CC, Chassis No. LA150S-0092633, Model 2016
38. Suzuki Alto Car, Chassis No. HA36S-292654, Model 2016
39. Hybrid Honda Vezel, Chassis No.RU3-1312927, Model 2018
40. Daihatsu E:S Mira 658CC, Chassis No. LA300S-1413146, Model 2017
41. Daihatsu Move 658CC, Chassis No. LA150S-117996, Model 2017
42. Nissan NV100 Clipper Van, Chassis No. DR64V809451, Model 2014
43. Daihatsu Hijet Van 658CC, Chassis No. S321V-0231972, Model 2014
44. Cast Daihatsu 658CC, Chassis No. LA250S-0073212, Model 2016
45. Daihatsu Pixis Epoch 658CC, Chassis No. LA300A-1046502, Model 2017
46. Honda Vezel Hybrid, Chassis No. RU3-1207278, Model 2016
47. Suzuki Every Van, Chassis No. DA64V-830205, Model 2014
48. Hybrid Toyota Aqua 1491ml, Chassis No. NHP10-6507291, Model 2016
49. Suzuki Alto Car, Chassis No. HA36S-309433, Model 2016
50. Suzuki Alto Car, Chassis No. HA36S-284777, Model 2016
51. Hybrid Honda Vezel, Chassis No. RU4-1022328, Model 2015
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Customs announces auction of luxury vehicles on May 21
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PTBA recommends retaining alternative corporate tax or minimum tax
KARACHI: Pakistan Tax Bar Association (PTBA) has recommended the tax authorities to retain either Alternative Corporate Tax (ACT) or minimum tax, as existence of both regimes is inappropriate.
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FBR advised to stop treating taxpayers unfairly
KARACHI: Federal Board of Revenue (FBR) has been urged to stop unfair treatment of compliant taxpayers. The taxpayers should be rewarded instead of harassing them for being compliant.
Institute of Chartered Accountants of Pakistan (ICAP) in its tax proposals for budget 2019/2020, said that at present, existing tax payers are confronted with complex laws and unfair treatment by FBR’s personnel and are also threatened at times.
Taxpayers expect to obtain some form of benefit, e.g. health benefits, free education etc. while on the other hand, non-filers continue with their businesses facing no repercussions paying little or no amount of tax.
“This coupled with the harassment by tax system leads to existing tax payers feeling mistreated.”
The ICAP recommended:
As per section 182A, a person filing his/her return of income after the due date remains non-filer for the entire next year.
In order to encourage filing of returns, persons filing returns late should not be discouraged and should be brought in Active Taxpayers List (ATL).
Penalty provisions are already there to address delayed filings.
Active taxpayers list should be updated simultaneously with the filling of return of income.
Some mechanism should be developed to stop all types of unfair treatment with existing taxpayers be it attachment of bank accounts for substantially fictitious demands or asking for absurd details and reconciliations which are too voluminous and not possible to prepare within a reasonable timeframe e.g. explanation of each and every credit entry in the bank statements or reconciling sales and purchases as per sales tax and customs records with accounts.
A person, whose case is selected for audit under the provision of tax laws, should not be subject to monitoring of withholding taxes and other assessment proceedings as same information/details/explanations are asked again and again for different proceeding creating hassle for the filer/registered person.
Filers should be given priority treatment at various infrastructural facilities e.g., at NADRA, schools, excise and taxation when registering motor vehicles, courts of law, banks, hospitals, airports etc.
Top 50/100 tax payers are given blue passports till the time they remain in the list of top 50/100.
Incentives for compliant tax payers and professionals (Doctors, Engineers, Lawyers, Chartered Accountants, reduction in tax rates, tax education through media – pubic private partnership.
A tax filer with over 20 years of tax payment history should be treated with respect & certain tax rebates should be allowed to them including on utility bills.
Likewise a person who has been a genuine taxpayer for 20 years who is over 70 years should be exempted from tax deductions.
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FBR recommended to exempt income tax on mortgage loans to facilitate salaried persons
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Customs announces auction of luxury vehicles on May 21
ISLAMABAD: Pakistan Customs announced public auction of luxury vehicles lying at Prime Minister House to be held on May 21, 2019 at State Warehouse, Islamabad Dry Port.
Following vehicles will be presented for auction:
01. BMWX5 Jeep, Model 2016 (armored), Chassis No. WBAKR6209G0M99712
02. BMWX5 Jeep, Model 2016 (armored), Chassis No. WBAKR620200M9904
03. BMWX5 Jeep, Model 2016 (armored), Chassis No. WBAKR6202G0M99714
04. Mercedes Benz S600L (Guard), Model 2016, Chassis No. WDD2221762A266834
05. Mercedes Benz S600L (Guard), Model 2016, Chassis No. WDD2221762A267771
06. Mercedes Benz Maybach S600, Model 2016, Chassis No. WDD2229762A265866
07. Mercedes Benz Maybach S600, Model 2016, Chassis No. WDD2229762A266494
08. BMW Car 761 U, Model 2014, Chassis No. CH-WBAHP42000DY99225
09. BMW Car 760 U, Model 2014, Chassis No. CH-WBAHP42020DY99226
10. Toyota Land Cruiser Jeep (Protected) Model 2014, Chassis No. URJ2024093203
11. Toyota Land Cruiser, Model 2008, Chassis No. JTECB01J301032994
12. Toyota Land Cruiser, Model 2008, Chassis No. JTEEV73J4000002043
13. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A73693
14. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201762A457073
15. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A476036
16. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A475123
17. Stretched Limousine Car (Protected) Model 2005, Chassis No. WDB-2201752A457643
18. Toyota Lexus Jeep (Protected) 2005, Model JTJHT00W633531475
19. Mercedes Benz Car, (Protected) Model 2005, Chassis No. WDB-2201762A457435
20. BMW 760LI, Model 2014 (Protected), Chassis No. WBAPH2070DY99223
21. Mitsubishi Lancer S/Saloon Model 1994, Chassis No. CSNBIRU00812
22. BMWX5 Jeep, Model 2016, Chassis No. WBAKR6206G0M99845
23. BMWX5 Jeep, Model 2016, Chassis No. WBAKR6204G0M99830
24. Lexus Jeep, Model 2006, JTJHT00W564013596
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Higher duty rates proposed for car, luxury items import
KARACHI: The Federal Board of Revenue (FBR) has been suggested to impose higher rates of duties on import of non-essential and luxury items in order to reduce current account deficit.
Association of Chartered Certified Accountants (ACCA) in its tax proposals for budget 2019/2020 said that tangible measures should be taken to reduce the import burden.
“Heavy duties should be levied on all non-essential imports like expensive electronics, cars & luxury items.”
In addition incentives should be announced for local industry to encourage domestic products, it suggested.
In other key reforms, the ACCA said that agricultural sector needs to be re-evaluated.
Being an agricultural country its GDP share must be according to its volume. Currently its share in GDP is 24 percent while it has the potential to reach up to 55 percent.
Large landowners should be taxed at minimal rates i.e. 7 percent with that revenue used to subsidize seeds, fertilizers, water, electricity, fuel, etc. for the small farmers.
Cheap and low quality smuggling and imports from India should be controlled.
The ACCA said that for Pakistan, a country of 220 million people, human capital is a huge resource in new era, but unfortunately due to incompetent and poor policies we are unable to convert this power in to workable force, un-employment has increased to almost 6 percent and over 4 million people are unemployed.
Keeping in view the above indicators the government needs to encourage services sectors, new industries and agriculture.
Banking sector should be used to incentivize and promote a culture of entrepreneurship.
Incentives must be announced for Services sectors particularly Telecom, home based industries, young entrepreneurship programs with special focus on women.
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FBR chairman agrees on abolishing withholding tax on raw materials
KARACHI: Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) on Saturday asked business community to provide list of raw material for reducing tax rates on import stage.
Addressing the business community at Karachi Chamber of Commerce and Industry (KCCI), Shabbar Zaidi agreed with the business community that there should not be withholding tax on import of raw material.
The KCCI members raised the issue that withholding tax rates ranging 3 percent to 6 percent were imposed on import of raw materials.
“Yes. There should not be withholding tax on raw material,” Zaidi said and asked the KCCI to provide list for taking action before the next budget.
Talking on Amnesty Scheme – 2019, the chairman said that the asset declaration scheme was clear and there was no ambiguity.
He said that the scheme would be part of the Finance Bill for formal approval from the parliament and it would be the same as promulgated through the presidential ordinance.
The chairman said that the rules were being formulated for intending declarants.
Shabbar Zaidi also talked about smuggling and misuse of tax concessions.
He said that tax relief may be given to small number of raw materials but it cannot be extended to all imported goods.
He said that Afghan Transit Trade was used for smuggling into Pakistan. “But there are other ways to import illegal goods into the country,” he added.
The chairman asked the business community that once they declare the smuggled goods were illegal for selling in the local market. “If the business community support and promise there will be no protest then the raids against illicit goods will be launched from tomorrow,” the chairman added.
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PTBA suggests 5-year policy for gradually reducing sales tax rate
KARACHI: Pakistan Tax Bar Association (PTBA) has suggested gradually reduction of sales tax rate under five-year policy and for first year the sales tax rate should be brought down to 15 percent from next fiscal year.
In its budget proposals for 2019/2020, the PTBA said that present rate of Sales Tax at 17 percent with 3 percent value addition tax on commercial importers is too high.
It said that there is a narrow tax base due to the high rate which induces tax evasion, under invoicing, corruption and smuggling.
The PTBA proposed that this year as a first step Sales Tax Rate may be brought down to 15 percent and five year policy may be announced for reduction of rate of tax by 1 percent every year.
Moreover, same rate of value addition tax (i.e., 3 percent) may be levied on luxury goods which are expected to be sold at a higher value addition in the local market as compared to other goods.
“Higher value addition tax should be levied on import of luxurious items such as cosmetics, shampoos, cars, etc.”
It said that the proposed amendments would assist in the expansion of tax base, reduction in smuggling and corruption, rise in government revenues and increased competitive edge and promotion of documentation of economy.
Furthermore, the reduced tax rate will encourage the unregistered persons to get themselves registered, resulting in broadening of tax base.
Higher value addition tax on luxury goods will not only generate additional revenue but will discourage import and also support the local industry.
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Exemption on import of telecom equipment demanded to encourage investment
KARACHI: Foreign and multinational companies have demanded the Federal Board of Revenue (FBR) to exempt sales tax and customs duty on import of telecom equipment in order to encourage investment in this sector.
The Overseas Chamber of Commerce and Industry (OICCI) in its proposals for budget 2019/2020 said that telecom was very investment intensive sector and it should be given concessions in terms of reduced rates of customs duties and exemption of sales tax against import of telecom equipment.
The exemption and concessions are important to promote the teledensity throughout the country especially in far flung areas so that the benefits of next generation mobile services can be reached to the masses living in backward areas, said the OICCI – the representative body of foreign investors and multinational companies in Pakistan.
Previously, telecom sector was importing telecom equipment at 5 percent customs duty and zero percent sales tax under SRO 575, however, through Finance Act, 2015, this SRO was rescinded and consequently, the customs duties on network equipment have been increased from 5 percent to 20 percent and sales tax exemption has been removed.
“The increase in custom duty and levy of sales tax has badly affected the pace of growth and digital inclusion as the cost of doing business has been significantly increased which is an additional barrier to network coverage in Pakistan,” the OICCI said.
The roll out of 3G/4G network is still very much at the early stages and reduction in customs duties and restoration of sales tax exemption will help the operators to sustain the necessary investments.
Therefore, the OICCI recommended to reinstate the concessionary custom duties/ exemption of sales tax (refer SRO 575) to encourage investments in IT/ telecom infrastructure.
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Black money invested in immovable properties allowed whitening at just 1.5 percent of tax
KARACHI: The government has allowed whitening of money investment in immovable properties at nominal income tax rate of 1.5 percent on declaration made by June 30, 2019.
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