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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.

  • If FBR not fixed, new tax authority will be created: PM

    If FBR not fixed, new tax authority will be created: PM

    ISLAMABAD: Prime Minister Imran Khan on Thursday said that reforming Federal Board of Revenue (FBR) is priority of the government.

    If the FBR fails to deliver then we will replace with a new tax authority, he said while addressing at the 11th All Pakistan Chambers President Conference.

    He said that the reforms in the taxation system was need of the hour because without it the government would not able to meet its developmental expenditures.

    The prime minister informed the business community that he was regularly discussing with Commerce Adviser Abdul Razak Dawood and Finance Minister Asad Umar on ways to boost revenue generation and making the FBR a business-friendly organization.

    “But I should also tell you this: if we realise that the FBR cannot be fixed, we will create a new FBR,” he said.
    Imran Khan said that the economy was facing challenging conditions and revenue generation was a must.

    He also urged the nation to come into the tax net, adding that in return he would guarantee that their tax would not be misspent.

    He assured the nation that each and every penny of Pakistanis’ tax collection will be spent with great caution, he said.
    He said that the government will end all unnecessary expenses. He urged the business community to pursue people that it is impossible for any country to succeed without paying their taxes.

    The prime minister said that it was shocking that only 72,000 taxpayers were declaring Rs200,000 or more monthly income out of 210 million people in Pakistan.

    The prime minister assured the business community that his government will do all he can to facilitate them, indicating that “some more incentives are coming your way in the upcoming days”.

  • KTBA requests FBR to include late-filers’ name into ATL

    KTBA requests FBR to include late-filers’ name into ATL

    KARACHI: The Karachi Tax Bar Association (KTBA) on Thursday requested tax authorities to include names of late filers of income tax returns, who already applied for extension, into Active Taxpayers List (ATL).

    The KTBA requested the chairman of Federal Board of Revenue (FBR) to issue instructions for inclusion of the names of those taxpayers who had duly applied for extension for filing of return of income and the rejection order of which was not passed by the commission and they filed return of income by the requested due date and also those taxpayers who are registered with FBR after June 2018 and are entitled for inclusion as per SRO831(I)/2015 dated August 21, 2015 in the ATL issued by the FBR.

    It said that the instruction will be in accordance with the true spirit of law and for the facilitation of taxpayers who fulfilled their responsibility as compliant taxpayers and will also encourage new taxpayers, consequently helping in increasing the tax base.

    The tax bar further said that it cannot be considered reasonable that these taxpayers should be treated as non-filer for the entire next year equating them with those non-filers who did not even bother to file return at all and you will be agree that both should not be treated in the same manner.

    Under Section 182A of Income Tax Ordinance, 2001 the taxpayers, who filed their returns after due date, have been denied to have their names into ATL for tax year 2018.

  • SRB suspends sales tax registration of Baba Farid Carriage

    SRB suspends sales tax registration of Baba Farid Carriage

    KARACHI: Sindh Revenue Board (SRB) has suspended sales tax registration of M/s. Baba Farid Carriage Company for default payment related to period January 2017 to August 2018.

    The SRB said that non-payment of Sindh sales tax on services is contravention of provincial tax laws. It said that record showed that M/s. Fauji Fertilizer Company Limited, M/s. Engro Fertilizers Limited and M/s. Efert Agritrade (Private) Limited have declared purchases of Rs211 million (including sales tax of Rs33.46 million) from M/s. Baba Farid Carriage Company during January 2017 to August 2018.

    However, M/s. Baba Farid Carriage Company have declared sales of Rs192.78 million during November 2016 to August 2018 with SRB leading to sales suppression of Rs18.62 million and short payment of Sindh Sales Tax of Rs5.98 million.

    The SRB suspended the sales tax registration of the company and directed to make remedial actions by March 18, 2019, including declaration of correct monthly sales tax returns and submit all sales and purchase record for the tax periods with income tax returns for the period of 2016/2017, 2017/2018 and copies of sales tax return filed with other provincial sales tax authorities.

    “In case of non-satisfactory response or failure to take remedial measures as suggested on or before March 18, 2019, further necessary action shall be taken under the law,” the SRB warned.

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  • FBR notifies transfers, postings of key IRS posts

    FBR notifies transfers, postings of key IRS posts

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday notified transfers and postings of key posts in Inland Revenue Service (IRS) with immediate effect.

    The FBR transferred and posted Zulfiqar Hussain Khan (IRS/BS-20) as the Director General (OPS), Directorate General of Internal Audit (Inland Revenue), Islamabad from the post of Chief (L&C) FBR, Islamabad.

    The FBR also transferred and posted Mir Badshah Khan Wazir (IRS/BS-20) as Director General (OPS) Broadening of Tax Base (BTB) FBR HQ Islamabad.

    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, the FBR said.

  • Local car assemblers to be beneficiary on concession to non-compliant taxpayers

    Local car assemblers to be beneficiary on concession to non-compliant taxpayers

    KARACHI: The local car assemblers are main beneficiary of the government decision to allow non-compliant taxpayers for purchasing motor vehicles, analysts said on Thursday.

    A day earlier on floor of the house Finance Minister Asad Umar presented this proposal to the Finance Supplementary (Second Amendment) Bill, 2019 to allow non-filers of income tax returns to purchase any engine capacity of motor vehicles.

    Though the decision has been taken to generate tax revenue through collection of withholding tax on purchase of motor vehicles as non-filers are required to pay higher rate but it seems to be a big ‘U’ turn by the present government.

    The PML-N government in its last budget 2018/2019 announced to imposed restriction on non-filers to purchase motor vehicles of any engine capacity in order to bring large number of tax evaders into tax net.

    The present PTI government however in its Finance Supplementary (Second Amendment) Bill, 2019 initially proposed to allow non-filers for purchasing motor vehicles with engine capacity up to 1300CC. However, finalizing this bill and approval from the parliament the concession to non-filers further enhanced and now they would be able to purchase any engine capacity motor vehicle.

    The analysts at Taurus Securities Limited said that the Supplementary Finance (Second Amendment) Bill, commonly known as the ‘Mini-Budget’, passed in the National Assembly yesterday, in the midst of an opposition walk-out protesting the Bill’s contents.

    The Bill has wholly removed the ban on Non-Filers; the initial proposal allowed Non-Filers access to the market for cars with a cylinder capacity of less than 1300cc.

    All three auto players (PSMC, INDU and HCAR) will be the beneficiary of this reversal in policy, as they will now be able to clear their build-up of stock.

  • Non-filers allowed locally assembled motor vehicle of any engine capacity

    Non-filers allowed locally assembled motor vehicle of any engine capacity

    ISLAMABAD: The federal government has allowed non-filers of income tax returns to purchase of locally assembled motor vehicles of any engine capacity.

    (more…)
  • FBR promotes customs officers to BS-18

    FBR promotes customs officers to BS-18

    Karachi – In a move aimed at strengthening the administrative core of the Pakistan Customs Service (PCS), the Federal Board of Revenue (FBR) has announced the promotion of three distinguished customs officers from BS-17 to BS-18 on a regular basis, effective immediately.

    (more…)
  • Income Tax Ordinance 2001: furnishing customers’ information by banks

    Income Tax Ordinance 2001: furnishing customers’ information by banks

    KARACHI: Banks are required to provide certain details of their customers and transactions to Federal Board of Revenue (FBR) for subsequent use of identifying new taxpayers and tax evasion.

    After the implementation of Finance Act, 2018 and Finance (Supplementary) Act, 2018 there are various changes made to Section 165A of Income Tax Ordinance, 2001 related to furnishing of information by banks.

    Section 165A: Furnishing of information by banks

    Sub-Section (1): Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act, 1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject every banking company shall make arrangements to provide to the Board in the prescribed form and manner,—

    (a) a list of persons containing particulars of cash withdrawals exceeding Rs50,000 (fifty thousand rupees) in a day and tax deductions thereon for filers and non-filers, aggregating to Rupees one million or more during each preceding calendar month.”;

    (b) a list containing particulars of deposits aggregating rupees ten million or more made during the preceding calendar month;

    (c) a list of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month;

    “(d) a list of persons receiving profit on debt exceeding one million rupees for filers and five hundred thousand rupees for non-filers and tax deductions thereon during preceding financial year.”

    Sub-Section (2): Each banking company shall also make arrangements to nominate a senior officer at the head office to coordinate with the Board for provision of any information and documents in addition to those listed in sub-section (1), as may be required by the Board.

    Sub-Section (3): The banking companies and their officers shall not be liable to any civil, criminal or disciplinary proceedings against them for furnishing information required under this Ordinance.

    Sub-Section (5): Subject to section 216, all information received under this section shall be used only for tax purposes and kept confidential.

    Section 165B: Furnishing of information by financial institutions including banks

    Sub-Section (1): Notwithstanding anything contained in any law for the time being in force including but not limited to the Banking Companies Ordinance, 1962 (LVII of 1962), the Protection of Economic Reforms Act,1992 (XII of 1992), the Foreign Exchange Regulation Act, 1947 (VII of1947) and any regulations made under the State Bank of Pakistan Act,1956 (XXXIII of 1956) on the subject, every financial institution shall make arrangements to provide information regarding non-resident or any other reportable persons to the Board in the prescribed form and manner for the purpose of automatic exchange of information under bilateral agreement or multilateral convention.

    Sub-Section (2): All information received under this section shall be used only for tax and related purposes and kept confidential.”

    Sub-Section (3): For the purpose of this section, the terms “reportable person” and “financial institution” shall have the meaning as provided in Chapter XIIA of the Income Tax Rules, 2002.

  • MCC Preventive announces auction of vehicles on March 07

    MCC Preventive announces auction of vehicles on March 07

    KARACHI: Model Customs Collectorate (MCC) Preventive Karachi has announced auction of used / old vehicles to be held on March 07 at Anti-Smuggling Organization (ASO) Headquarter, East Wharf, Karachi.

    Following vehicles will be presented for the auction:

    01. Mitsubishi Pajero Jeep ( Used) GS-2000 Model-1994 Reg.GS-2000 / V46 – 4034791

    02. Used Lexus Car – Reg No. UC-868 -Model-2006 – 3450 cc JTHBG 963905034702

    03. Used Toyota Premio Car VVT – Reg No. AAH-747 – Model-2007, chassis number ZZT240-0140149

    04. Used Toyota Hilux Surt (SSR-X) Fake Plate-BC-5613 – Model-2000 (As per Seat Belt) – 2693cc, Chassis No-RZN-185-0040781 / Engine No.3RZ-FE

    05. Used Toyota Harrier Jeep – Reg.No-JAA-454 – Model-1998 – 2999cc, Chassis No-MCU-10-0013510 – Engine No- IMZ-FE6688090.

    06. Used Toyota Hilux Surf -Reg.No-CP-0693 / Model-1990 / 2958cc, Chassis No- LN-130-0009771

    07. Used Honda Saloon Accord Car / Reg. No-BFT-418 / Model-2003 / 1990cc,Chassis No-LC7-3006339 / Engine No-33101802

    08. Used Toyota Land Cruiser PARADO / Reg. No-BD-9380 / Model 1998 (As per Seat Belt) / 2657cc, Chassis No-RZJ-90-0002888 / Engine No-3RZ-FE(As per Tickly)

    09. Toyota Hiluc Surf SSR-X-3.0 / Reg.No-BD-8045 / Model-KD-KZN130W-GKPQT / 2962cc, Chassis No-KZN 130-9048116 / Engine No-IKZ-TE.

    10. Used Mercedes Benz(AG) FAKE Reg. No-AB-1001 / 2999cc, Chassis No-WDB1240312B476728.

    11. Used Toyota Mark-II Saloon Car / Reg. No-BBL-708 / Model-2000 / 1800HP, Chassis No-JZX110-6000922 / Engine No-1JZ-075-075010

    12. Used Toyota Land Cruiser Prado Jeep / Reg. No-BC-5212 / Model-1994 / 2982cc, Chassis No- KZJ-78-0015267 / Engine No-1KZ-TE

    13. Used Toyota Hilux Surf / Reg.No-BD-1688 / Model-1994 (As per Seat Belt), Chassis No- LN-130-0123784.

    14. Used Toyota Land Cruiser PARADO Jeep – Model-1996 – 3000 cc – BF-8154, Chassis: KNJ 95-0037200 – Engine-IKZTE 0206429

    15. Used Honda Accord – Reg, AUX – 934 – Model – 2004, CL7310078

    16. Used Mercedes Benz Car – Model-2001- 230 SLK -2000cc, WDB2037452A272217

    17. Used Toyota AXIO-X car – White Colour – Reg.No.BFE-068 – 1496 cc – Model-2007, Chassis : NZE-141-6028039 / Engine : INZ-C0360547

    18. Toyota Primo Car Used – Reg. No. AAM-095 – Model-2005 – 1794 cc, Chassis: ZZT-240-5039822 / Engine: IZZFE-12557

    19. Used Honda Civic Saloon Car – White Colour Reg. No: AAM-988 (Quetta) – Model-2007, Chassis : FD-31001100 / Engine: MF-5100586 – 1800cc.

    20. Used Toyota Land Cruiser Jeep – Silver Colour – Reg. No. BG-1131 – Model-1989 – 3431 cc., Chassis: BJ 60-023765 – Engine : 3B-1098887 (As per Reg.Book).

    21. Used Toyota Corolla Car – Model – 2015, Reg. No. BDE-852 – Chassis No-NZE170R4016729

    22. Used Toyota Crown Saloon Car – Model – 2004, Reg – BHK-012 – Chassis No-GRS182-5014910 – Engine-3GR-FSF – 2994 cc.

    23. Used Toyota Saloon Car XE – Model-1999 – 1500 cc, Chassis No-AE-100-5171778 – Engine-SA-FE – 1500 cc.

  • Income Tax Ordinance 2001: Withholding agent requires to provide information of tax deduction

    Income Tax Ordinance 2001: Withholding agent requires to provide information of tax deduction

    KARACHI: Every withholding agent is required to provide details of each person whose withholding tax is deducted or whom withholding tax is paid through a monthly statement to Federal Board of Revenue (FBR).

    According to updated Income Tax Ordinance, 2001 the withholding agent is required to provide information including name, CNIC and address of each persons from whom tax had been collected.

    Section 165: Statements

    Sub-Section (1): Every person collecting tax under Division II of this Part or Chapter XII or deducting tax from a payment under Division III of this Part or Chapter XII shall, furnish to the Commissioner a monthly statement in the prescribed form setting out—

    (a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII in each month;

    (b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII in each month;

    (c) the total amount of tax collected from a person under Division II of this Part or Chapter XII or deducted from payments made to a person under Division III of this Part or Chapter XII in each month; and

    (d) such other particulars as may be prescribed:

    Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period.

    Explanation.— For the removal of doubt, it is clarified that this sub-section overrides all conflicting provisions contained in the Protection of Economic Reforms Act, 1992 (XII of 1992), the Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject, in so far as divulgence of information under section 165 is concerned.

    Sub-Section (2): Every prescribed person collecting tax under Division II of this Part or Chapter XII or deducting tax from payment under Division III of this Part or Chapter XII shall furnish or e-file statements under sub-section (1) by the 15th day of the month following the month to which the withholding tax pertains.

    Sub-Section (2A): Any person who, having furnished statement under sub-section (1) or sub-section (2), discovers any omission or wrong statement therein, may file a revised statement within sixty days of filing of statement under sub-section (1) or sub-section (2), as the case may be.

    Sub-Section (3): Board may prescribe a statement requiring any person to furnish information in respect of any transactions in the prescribed form and verified in the prescribed manner.

    Sub-Section (4): A person required to furnish a statement under sub-section (1), may apply in writing, to the Commissioner for an extension of time to furnish the statement after the due date and the Commissioner if satisfied that a reasonable cause exists for non-furnishing of the statement by the due date may, by an order in writing, grant the applicant an extension of time to furnish the statement.

    Sub-Section (5): The Board may make rules relating to electronic furnishing of statements under this section including,-

    (a) mandatory electronic filing of statements; and

    (b) determination of eligibility of the data of such statements and e-intermediaries, etc.

    Sub-Section (6): Every person deducting tax from payment under section 149 shall furnish to the Commissioner an annual statement in the prescribed form and manner.

    Through Finance Supplementary (Second Amendment) 2019, the following changes have been proposed in section 165,—

    (A) in sub-section (1),—

    (a) for the word “monthly”, wherever occurring, the word “biannual” shall be substituted;

    (b) for the word “month”, wherever occurring, the word “half-year” shall be substituted; and

    (B) for sub-section (2), the following shall be substituted, namely:—

    “(2) Every prescribed person collecting tax under Division II of this Part or Chapter XII or deducting tax under Division III of this Part of Chapter XII shall furnish statements under sub-section (1) as per the following schedule, namely:—

    (a) in respect of the half-year ending on the 30th June, on or before the 31st day of July;

    (b) in respect of the half-year ending on the 31st December, on or before the 31st day of January”; and

    (C) after sub-section (2A), the following new sub-section shall be inserted, namely:—

    “(2B) Notwithstanding anything contained in this section, the Commissioner as he deems fit, may by notice in writing, require any person, collecting or deducting tax under this Ordinance, to furnish a statement for any period specified in the notice within such period of time as may be specified in the notice.”