ISLAMABAD: Federal Board of Revenue (FBR) is required to collect over Rs2.07 trillion in next four months in order to meet revenue collection target of Rs4.398 trillion for current fiscal year.
(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 issues ATL for Tax Year 2018, active taxpayers decline to 1.6 million
ISLAMABAD: Federal Board of Revenue (FBR) on Friday launched new Active Taxpayers List (ATL) for Tax Year 2018, which is showing around 1.6 million taxpayers filed their income tax returns by respective due dates.
The FBR issues ATL for the latest tax year on every first day of March. In the latest ATL the number of active taxpayers reduced to 1.6 million from 1.84 million as per the last weekly updated ATL for Tax Year 2017, showing fall of 240,000 returns submitted to the tax authorities.
The number of active taxpayers will not further increased as late return filers have been deprived of appearing on the ATL.
The previous PML-N government in its last budget announcement made a law to restrict the list with those name, who filed their list by due date.
Through Finance Act, 2018 a new provision Section 182A was added to Income Tax Ordinance, 2001 for this purpose.
Section 182A: Return not filed within due date.—
Sub-Section (1): Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—
(a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date; and
“Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and
(b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV.
The appearance on ATL is important for a taxpayer to avail reduced rate of withholding tax rates.
The appearance of name has become even more important after the amendments brought in to restrict non-filers in purchase / registering new motor vehicles and immovable properties.
With the issuance of new active taxpayers’ list the FBR will also suspend the weekly updated list as the late filers have been denied to have their names on the list.
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Authorities to pay penalty for processing non-filers’ request
KARACHI: Provincial motor or immovable property registration authorities will liable to pay penalty around three percent of the value in case of processing registration request by non-filers of income tax return.
According to updated Income Tax Ordinance, 2001 issued by the Federal Board of Revenue (FBR), the government imposed restriction on registration of motor vehicle and immovable properties by non-filers under Section 227C.
A penalty of three percent of the value of motor vehicle or immovable property is liable to pay:
i. Where any registering authority of Excise and Taxation Department accepts, processes or registers any application for registration of a locally manufactured motor vehicle or for the first registration of an imported vehicle in violation of the provisions of clause (a) of section 227C.
ii. Where any authority responsible for registering, recording or attesting the transfer of immovable property accepts or processes the registration or attestation of such property in violation of the provisions of clause (b) of section 227C.
Similarly car manufacturers are also liable to pay penalty in case of selling motor car to non-filer of income tax return.
A car manufacturer is liable to pay penalty of five percent of the value of the motor vehicle:
Where any manufacturer of a motor vehicle accepts or processes any application for booking or purchase of a locally manufactured motor vehicle in violation of the provisions of clause (a) of section 227C.
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Customs I&I announces auction of vehicles on March 05
ISLAMABAD: The Directorate of Intelligence and Investigation (I&I), Customs, Federal Board of Revenue (FBR) has announced auction of confiscated vehicles to be held on March 05, 2019 at state warehouse of its regional office in Multan.
The following confiscated vehicles will be offered for the auction:
01. Honda Civic Car, Model 2002, Chassis No. NFBES56D92R106849
02. Suzuki Jimmy Jeep, Model 1998, Chassis No. JB33W105092
03. Toyota Mark X, Model 2004, Chassis No. GRX121-1000041
04. Toyota Corolla Altis Car, Mode 2005, Chassis No. MR053ZEC107098965
05. Toyota Vitz Car, Model 2002, Chassis No. SCP10-3109526
06. Toyota Vitz Car, Model 2004. Chassis No. SCP13-0049272
07. Toyota Vitz Car, Model 2003, Chassis No. SCP10-0429866
08. Toyota Vitz Car, Model 2003, Chassis No. SCP13-0011311
09. Toyota Vitz Car, Model 2007, Chassis No. SCP90-2044891
10. Toyota Vitz Car, Model 2007, Chassis No. KSP90-2043958
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Income Tax Ordinance 2001: Late filers not to get names on ATL
KARACHI: Late filers of income tax returns will not get their name on the Active Taxpayers List (ATL) that will be issued tomorrow (March 01, 2019).
The Federal Board of Revenue (FBR) will issue the latest edition of ATL, which will carry names of those taxpayers who filed their income tax returns by due date for Tax Year 2018.
With the issuance of new active taxpayers’ list the FBR will also suspend the weekly updated list as the late filers have been denied to have their names on the list.
The previous PML-N government in its last budget announcement made a law to restrict the list with those name, who filed their list by due date.
Through Finance Act, 2018 a new provision Section 182A was added to Income Tax Ordinance, 2001 for this purpose.
Section 182A: Return not filed within due date.—
Sub-Section (1): Notwithstanding anything contained in this Ordinance, where a person fails to file a return of income under section 114 by the due date as specified in section 118 or by the date as extended by the Board under section 214A or extended by the Commissioner under section 119, as the case may be, such person shall—
(a) not be included in the active taxpayers’ list for the year for which return was not filed within the due date; and
“Explanation.—For the removal of doubt it is clarified that the provisions of this section shall apply from tax year 2018 and onwards for which the first Active Taxpayers List is to be issued on first day of March, 2019 under Income Tax Rules, 2002.; and
(b) not be allowed, for that tax year, to carry forward any loss under Part VIII of Chapter IV.
The FBR issued its last weekly updated ATL for Tax Year 2017 on Monday, February 25, 2019, which carried those taxpayers list who filed their returns up to February 24, 2019.
The last ATL shows the FBR received 1.84 million returns till February 24, 2019 for tax year 2017.
While, the FBR received around 1.55 million income tax returns for tax year 2018 by due dates for individuals and corporate entities.
The appearance on ATL is important for a taxpayer to avail reduced rate of withholding tax rates.
The appearance of name has become even more important after the amendments brought in to restrict non-filers in purchase / registering new motor vehicles and immovable properties.
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World Bank surveys customs clearance in Pakistan
KARACHI: World Bank Group is conducting a survey regarding traders’ and customs agents’ views about the customs clearance process in Pakistan.
Karachi Customs Agents Association (KCAA) is facilitating the World Bank in this survey, said a circular issued by the association.
This survey will be used to understand the relations between companies and Pakistan customs and will be one of the tools used to ultimately improve the business climate and facilitation of trade in Pakistan.
The KCAA said that it would contact its members for the survey in order to take feedback on Pakistan’s trade network.
The association said that the feedback would be important for enabling further improvement in the trade and customs experience in the country.
The KCAA further said that in order to ensure anonymity and confidentiality, the World Bank had commissioned Gallup Pakistan, an independent market research organization, to carry out the study.
“Gallup will be contacting you (members) in the next few weeks to arrange an in-person interview,” it said.
“As per undertaking submitted by the World Bank Group all the information provided will be kept confidential and will only be used in aggregate form,” the KCAA assured the members.
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FBR discontinues zero rating facility to two textile units
ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn sales tax zero rating to two textile units in Karachi for misusing facility on consumption of gas and electricity.
According to Sales Tax General Order (STGO) issued on Wednesday, the FBR withdrew the facility of zero rating that was granted on consumption of electricity and gas to companies including A R Hosiery Works and International Chrome Tannery.
The FBR said that the zero-rated facility was withdrawn on the recommendation of Regional Tax Office (RTO)-III Karachi.
The FBR directed the Chief Commissioner Inland Revenue of RTO-III Karachi to communicate with concerned authorities for charging the normal sales tax rates from those textile units.
The FBR further directed the chief commissioner to submit report in case of misuse of the facility.
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List of 1,208 banned tariff lines for import from India
KARACHI: Following is the list of items not importable from India under Import Policy Order 2016 as issued by minister of commerce.
The items cannot be imported under Appendix-G of Import Policy Order 2016.
Following is the list including Serial Number, PCT Code and Description
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Income Tax Ordinance 2001: No commercial, industrial gas or electricity connection without NTN
KARACHI: The National Tax Number (NTN) is mandatory for a person applying by commercial or industrial connection for electricity or natural gas.
The Federal Board of Revenue (FBR) recently updated Income Tax Ordinance, 2001 which explained about taxpayer’s registration.
Section 181: Taxpayer’s registration.—Sub-Section (1): Every taxpayer shall apply in the prescribed form and in the prescribed manner for registration.
Sub-Section (2): The Commissioner having jurisdiction over a case, where necessitated by the facts of the case, may also register a taxpayer in the prescribed manner.
Sub-Section (3): Taxpayers’ registration scheme shall be regulated through the rules to be notified by the board.
Sub-Section (4): From tax year 2015 and onwards, in case of individuals having Computerized National Identity Card (CNIC) issued by the National Database and Registration Authority, CNIC shall be used as National Tax Number.
Section 181A: Active taxpayers’ list
Sub-Section (1): The Board shall have the power to institute active taxpayers’ list.
Sub-Section (2): Active taxpayers’ list shall be regulated as may be prescribed.
Section 181AA: Compulsory registration in certain cases
Sub-Section (1): Notwithstanding anything contained in any law, for the time being in force, any application for commercial or industrial connection of electricity or natural gas, shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under section 181.
Section 181B: Taxpayer card
Subject to this Ordinance, the Board may make a scheme for introduction of a tax-payer honour card for individual taxpayers, who fulfill a minimum criteria to be eligible for the benefits as contained in the scheme.
Section 181C: Displaying of National Tax Number
Every person deriving income from business chargeable to tax, who has been issued a National Tax Number, shall display his National Tax Number at a conspicuous place at every place of his business.
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FBR fixes sales tax rate for cottonseed
ISLAMABAD: Federal Board of Revenue (FBR) has fixed Rs 8 as sales tax for 40 kilogram of cottonseed for the period starting from July 01, 2019.
Similarly, Rs 7 sales tax for 40kg of cottonseed for the period of starting July 01, 2018 and ending on June 30, 2018 (both days inclusive).
The FBR on Tuesday issued SRO 253(I)/2019 and said that SRO 188(I)/2015 dated March 05, 2018 was issued for a special procedure for payment of sales tax on cottonseed oil and to exempt cottonseed oil cake from payment of sales tax.
The FBR further said that the notification was declared ultra vires by the Lahore High Court and the order of the Lahore High Court was upheld by the Supreme Court of Pakistan vide its order dated April 16, 2018 in Civil Petition No. 1028 to 1121, 1433 to 14558 and 2550 to 2553 of 2017 on the ground that the approval of the federal cabinet was not obtained.
Therefore, the federal government approved the amendments to Sales Tax (Special Procedures) Rules, 2007, which would be effective July 01, 2018.
The FBR said that the notified sales tax rates would be collected under the special procedure.
It said that all cotton ginners, if not already registered or required to be registered, shall obtain sales tax registration for the purpose of these rules.
The amount of sales tax so charged and collected by the cotton ginners shall be declared in the monthly returns and shall be deposited as such without any input tax adjustment.
The suppliers of cottonseed shall mention sales tax charged separately on the sales tax invoice to be issued by them.
The oil expelling units using the cottonseed on which sales tax has been charged and collected in the aforesaid manner shall be exempt from payment of sales tax on the supplies of oil cake produced from such cottonseed.
The ginner shall submit a certificate to the commissioner having jurisdiction by the 15th day of the month following the tax period for the quantity of cottonseed supplied to the growers for sowing purpose.