Pakistan’s tax-to-GDP ratio fell to 11.6% in the fiscal year 2018/2019, down from 13% in the previous fiscal year, according to data released by the Ministry of Finance.
(more…)Category: Taxation
Stay updated on taxation news, tax laws, FBR policies, compliance, audits, income tax, sales tax, and fiscal developments in Pakistan.
-
Customs duty to apply on re-importation of goods manufactured in Pakistan
KARACHI: Federal Board of Revenue (FBR) has said that customs duty shall be applied on re-importation of goods that are manufactured and exported from Pakistan.
The FBR issued Customs Act, 1969 updated June 30, 2019 and explained re-importation of goods produced or manufactured in Pakistan under section 22 of the Act.
Section 22: Re-importation of goods produced or manufactured in Pakistan
If goods produced or manufactured in and exported from Pakistan are subsequently imported into Pakistan, such goods shall be liable to customs-duties and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value not so produced or manufactured are liable on the importation thereof:
Provided if such goods have been imported within one year of their exportation and have been consigned to the person in whose account they were exported and have not undergone any processing since their exportation, the appropriate officer not below the rank of Assistant Collector of Customs may admit the goods-
(a) Where at the time of exportation of such goods, rebate, refund or drawback of any customs or Federal Excise duty or any other tax levied by the Federal Government or any tax, cess or duty levied by the Provincial Government was allowed on payment of customs duty equal to the amount of such rebate, refund or drawback as the case may be;
(b) where such goods were exported in bond, without payment of –
(i) the customs-duty chargeable on the imported materials, if any, used in the manufacture of the goods; or
(ii ) the Federal Excise duty chargeable on the indigenous materials, if any, used in the manufacture of such goods; or
(iii) the Federal Excise duty, if any, chargeable on such goods; or
(iv) any other tax chargeable on the material used in the manufacture of such goods; or
(v) any other tax chargeable on such goods, on payment of customs-duty equal to the aggregate amount of all such duties and taxes calculated at the rates prevailing at the time and place of importation of goods; or
(c) in any other case, without payment of duty.
Section 22A: Temporary export of imported plant and machinery
Imported plant and machinery, temporarily exported that have not undergone any alteration, renovation, addition or refurbishment, may be re-imported duty free subject to the specific or general terms and conditions the Board may by the rules prescribe.
-
FED imposition may negatively affect local automobile assembling: SBP
KARACHI: The State Bank of Pakistan (SBP) has said that the imposition of federal excise duty (FED) may negatively affect local automobile industry as imported parts would become costlier.
The enhancement of FED on imported vehicles could increase the demand for locally assembled vehicles. “However, because of increase in FED on the imported parts, automobile assemblers, who mostly rely on imported components, might be negatively affect,” the SBP said in its Financial Stability Review (FSR) released last week.
FED on imported vehicles has been amended from 20 percent on vehicles above 1800cc to 25 percent for vehicles between 1800cc and 3000cc, and 30 percent for 3000cc or above.
The central bank said that the automobile sector has the highest operational efficiency in the corporate sector.
“It has, however, faced a contraction in the gross profit margin in CY18, as the bar on non-filers against purchase of new car affected the demand and the devaluation of the currency put pressure on production costs and profit margins.”
Resultantly, local assemblers increased their prices to sustain profitability.
“The outlook is positive in terms of enhanced production capacity as Kia, Hyundai and Renault are expected to enter the market in the coming years.”
-
MCC Preventive Peshawar announces auction of confiscated vehicles on Sept 11
ISLAMABAD: Model Customs Collectorate (MCC) Preventive Peshawar has announced auction of confiscated vehicles on September 11, 2019 at various state warehouses.
Following vehicles will be presented for auction:
STATE WARE HOUSE, PESHAWAR
01. Honda Accord Car Model 1987 Chassis No. JHMCA5300C000462
02. Mercedes Benz (Bullet Proof) Model 1982 Chassis No. WDB-12603312037551
03. Honda Accord Motor Car 1985 Chassis No. JHMCA45300C002584
04. Mercedez Benz Truck Model 1995 Chassis No. WDB6770381K175873
05. Mitsubishi Pajero Jeep Model 2006 Chassis No. JMYLNV76W6J001329
06. Toyota Land Cruiser Prado Model 1999 Chassis No. LJ90-0002325
07. Toyota Hilux Pick Up 4X4 Model 1997 Chassis No. JT733LNA309004002
08. Toyota Hilux Pick Up Model 2007 Chassis No. MROCS12G400043443
09. Toyota Fielder Car Model 2002 Chassis No. NZE121-0134145
10. Mitsubishi Pajero Model 2006 Chassis No. JMYLNV76W6J001340
11. Toyota Land Cruiser Model 2004 Chassis No. LTERB71J800020686
12. Toyota Hilux Pick Up Model 2001 Chassis No. JTFDE626800061496
13. Toyota Camry Car Model 2014 (as per Website) Chassis No. 6TIBF3FK-40X056581
14. Mercedez Benz Car Model 2002(as per Website) Chassis No. WDB2100162B169560
15. Toyota Land Cruiser 1993 Chassis No. KZJ78-0007642
STATE WARE HOUSE MARDAN
01. Toyota Surf Model 1996 Chassis No. RZN185-0015007
STATE WARE HOUSE, ABBOTTABAD
01. Toyota Mark-X Car Model 2006 Chassis No. GRX120-0009539
STATE WARE HOUSE, FRONTIER CORPS
01. Toyota Corolla Car Model 2007 Chassis No. NZE120-6073022
02. Daewoo Car Model 1992 Chassis No. KLATF19TINB-522281
03. Toyota 2D Corolla Car, 1992 Chassis No. EE101-3046367
04. Pickup Model 1980 Chassis No. RN43-003433
05. Toyota Land Cruiser Model 1988 Chassis No. LJ-710003848
06. Mark-1 Motor Car Model Nil Chassis No. LA3VS-216474
07. Motor Car Model 1978 Chassis No. M-430-300918
08. Toyota Corolla Car Model 1982 Chassis No. A171-A-8024009
09. Toyota Pick Up Model 1980 Chassis No. RN40-069388
10. Toyota Corolla Car Model 2003 (as per Website) Chassis No. NZE120-6005014
11. Toyota Double Cabin Model 1996 (as per Website) Chassis No. JT133LNA409046824
12. Towance Model 1994 (as per Website) Chassis No. CR22-5016240
13. Suzuki Mehran Car Model 1989 Chassis No. SB308PK622878
14. Toyota Pick Up Double Cabin Model 1986 (as per Website) Chassis No. LN56-0075058
15. Toyota Corolla Car Model 1992 (as per Website) Chassis No. CE100-3020027
16. Toyota Mark-II Car Model 2001 (as per Website) Chassis No. JZX110-6022047
17. Suzuki Alto Car Model 2002 Chassis No. HA23S-689157
18. Toyota Corolla Saloon Car Model 2004 (as per Website) Chassis No. ZZE121-9010983
19. Suzuki “VXR” Car Model 2001 Chassis No. HA23S-613292
20. Honda Motor Cycle CG-125 Model 2005 Chassis No. S74083
21. Honda Motor Cycle CG-125 Model 2003 Chassis No. D72343
22. Honda Motor Cycle CG-125 Model 2007 Chassis No. BJ017444
23. Honda Motor Cycle CG-125 Model 2001 Chassis No. PF012620
24. Honda Motor Cycle Deluxe 125CC Model 2006 Chassis No. BJ006783
25. Toyota Corolla Car Model 2001 (as per Website) Chassis No. CE100-9020816
-
FBR to collect FED on steel products, rescinds sales tax notification
KARACHI: The government has decided to collect federal excise duty from steel products instead of sales tax. In this regard the Federal Board of Revenue (FBR) has issued 992(I)/2019 dated September 04, 2019 to implement the decision.
The FBR issued minimum values of locally produced goods for the purpose of payment of federal excise duty in sales tax mode on ad valorem basis, at the rate defined below under the First Schedule to the Federal Excise Act, 2005:
01. Steel bars and other long profiles at the value of Rs83,000 per metric ton.
02. Steel Billets at the value of Rs74,000 per metric ton.
03. Steel Ingots/bala at the value of Rs72,000 per metric ton.
04. Ship plates at the value of Rs72,000 per metric ton.
05. Other re-rollable iron and steel scrap at the value of Rs71,000 per metric ton.
The FBR further explained that in ccase the value of the goods specified in the Table above, as determined under sub-section (I) of Section 12 of the Federal Excise Act, 2005, is higher than the value fixed herein, the value of goods shall be such higher value.
The FBR also rescinded the SRO 697(I)/2019 dated June 29, 2019 through SRO 993(I)/2019.
Through SRO 697(I)/2019 the fbr issued the fixed value of locally produced goods for the purpose of sales tax on ad valorem basis under the Sales Tax Act, 1990.
01. Steel bars and other long profiles at the value of Rs83,000 per metric ton.
02. Steel Billets at the value of Rs74,000 per metric ton.
03. Steel Ingots/bala at the value of Rs72,000 per metric ton.
04. Ship plates at the value of Rs72,000 per metric ton.
05. Other re-rollable iron and steel scrap at the value of Rs47,000 per metric ton.
The SRO 697(I)/2019 was imposed from July 01, 2019.
-
Salary tax slabs for filing returns tax year 2019
KARACHI: The salaried person shall follow the following slabs for filing income tax returns for tax year 2019 which is due on September 2019.
01. Where the taxable income does not exceed Rs400,000 the tax shall be zero.
02. Where the taxable income exceeds Rs400,000 but does not exceed Rs800,000 the tax amount shall be Rs1,000.
03. Where the taxable income exceeds Rs800,000 but does not exceed Rs1,200,000 the tax amount shall be Rs2,000.
04. Where the taxable income exceeds Rs1,200,000 but does not exceed Rs2,500,000 the tax shall be 5 percent of the amount exceeding Rs. 1,200,000.
05. Where the taxable income exceeds Rs2,500,000 but does not exceed Rs4,000,000 the tax shall be Rs65,000 + 15 percent of the amount exceeding Rs2,500,000.
06. Where the taxable income exceeds Rs4,000,000 but does not exceed Rs8,000,000 the tax shall be Rs290,000 + 20 percent of the amount exceeding Rs4,000,000.
07. Where the taxable income exceeds Rs8,000,000 the tax shall be 1,090,000 + 25 percent of the amount exceeding Rs8,000,000.
Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.
The Federal Board of Revenue (FBR) has issued the final income tax return forms for all categories of taxpayers in order to ensure to complete return filing by September 30, 2019.
-
Benami property holder may get 7 years jail, pay 25pc as fine
In a significant move aimed at curbing illicit financial activities and tax evasion, the Benami Transaction (Prohibition) Act, 2017 has brought about stringent penalties for those involved in benami transactions in Pakistan.
(more…) -
FBR issues finalized return forms for companies
The Federal Board of Revenue (FBR) has officially released the finalized return forms for companies, marking a crucial step in the taxation process for the tax year 2019.
(more…) -
FBR decides to update units of measurement for trade facilitation
ISLAMABAD: Federal Board of Revenue (FBR) has decided to update the units of measurements in order to facilitate trade. FBR chairman Syed Shabbar Zaidi has issued instructions to customs authorities, said a statement on Friday.
It said that this exercise is likely to be completed in week’s time and new units of measurement shall be notified and difficulties faced by the importers/exporters regarding unit of measurements will get addressed.
It will also result in ease of doing business.
In order to bring the national trade data in conformity with international standards, the units of measurement (UoM) are made uniform in accordance with the guidelines of World Customs Organization (WCO).This uniformity not only helps in collection, comparison and analysis of trade statistics but also simplify the process of assessment resulting in speedy clearance of goods.
The standard units of measurements were previously notified by the Federal Board of Revenue in the year 2012.
Despite the fact that these need to be revisited and updated on regular basis, no exercise to this effect was carried out in the last seven (7) years.
After the issuance of new CGO all field formations of Customs will be directed to adopt standard units of quantity/measurement (UoM) expressed therein and accordingly, the importers/clearing agents/shipping agents will be required to fill invoices/documents in line with new UoM.
-
Tax payment made must for return filing date extension
ISLAMABAD: In order to achieve first quarter target the Federal Board of Revenue (FBR) has directed all the chief commissioners of Inland Revenue to ensure payment of taxes before allowing extension in date for return filing beyond September 30, 2019.
The FBR has required huge amount to achieve quarterly (July – September 2019) revenue collection target of Rs1078 billion and it had managed to collect Rs 562 billion in first two months of current fiscal year.
A circular issued by the FBR on Friday, stated that payment of due taxes should be ensured before allowing extension of income tax returns/statements for the tax year 2019.
All chief commissioners Inland Revenue should ensure that before granting extension in the date of filing Income Tax Return for the tax year 2019 in the cases where last date of filing of Income Tax Returns is September 30, the admitted tax liability is discharged before September 30, 2019.