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Find top stories in this section. Pakistan Revenue brings you the latest and most important news from Pakistan and around the world, keeping you informed with key updates and insights.

FBR slashes sales tax rates on petrol, HSD

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday slashed sales tax rates on petrol and high speed diesel (HSD) in order to reduce the impact of high oil prices at consumer end.

The FBR issued SRO 88(I)/2022 dated January 18, 2022 to notify changes the sales tax rates on supply of petroleum products.

The sales tax on supply of petrol has been reduced to 2.5 per cent ad valorem from 4.77 per cent. Similarly, the rate of sales tax on supply of high speed diesel has been reduced to 5.44 per cent from 9.08 per cent.

The FBR kept unchanged the sales tax rates on kerosene and light diesel oil at 8.30 per cent and 2.70 per cent, respectively.

The revenue body previously issued SRO 01(I)/2022 dated January 3, 2022 to change the rate of sales tax on petroleum products.

Earlier on January 15, 2022, the government announced to increase prices of all petroleum products for next fortnight.

READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

According to the notification, the price of petrol has been increased by Rs3.01 to Rs147.83 per liter from Rs144.82.

The price of high speed diesel (HSD) has been increased by Rs3 to rs144.62 per liter from Rs141.62.

The rate of kerosene has been enhanced by Rs3 to Rs116.48 per liter from Rs113.48.

The price of light diesel oil has been increased by Rs 3.33 toRs114.54 per liter from Rs111.21.

According to a notification issued by the Finance Division on January 15, 2022, the decision to enhance domestic prices of petroleum products because the international oil price had registered 6.2 per cent during the last week. Presently, at the highest level since last year.

READ MORE: Prices of all POL products increased to wish New Year

The existing sales tax rate and petroleum levy on various petroleum products are much below the budgeted targets.

The finance ministry said that against the recommendations of Oil and Gas Regulatory Authority (OGRA) for increase of Rs5.52 per liter in petrol and Rs6.19/liter in high speed diesel prices, the Prime Minister had directed to absorb at the international prices through further cut in sales tax from last fortnight.

“The finance ministry will take Rs2.6 billion revenue hit due to reduced sales tax rates,” it added.

Therefore, the government has decided to make partial increase in the prices of the petroleum products in order to provide relief to the end consumers.

January 18, 2022
FBR to re-notify property values on February 01

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday said it will re-notify the valuation of immovable properties on February 01, 2022. The FBR further said that the valuation issued on December 01, 2021 will remain in abeyance till January 31, 2022.
(more…)

January 18, 2022
Rupee declines by 26 paisas to dollar on import demand

KARACHI: The Pak Rupee (PKR) declined by 26 paisas against the US dollar on Tuesday due to higher foreign currency demand for import payment.

The local unite ended at Rs176.18 to the dollar from last day’s closing of Rs175.92 in the interbank foreign exchange market.

READ MORE: Rupee recovers 15 paisas against dollar in interbank

Currency experts said that the market witnessed higher dollar demand since start of the day. The reports of surge in international oil prices increased the dollar demand.

The international oil prices witnessed significant rise and recorded $87.50 per barrel during the trading.

READ MORE: SBP warns banks of penal action for delaying transaction alerts

Pakistan is one of the major importers of petroleum products. The oil import grew by 113 per cent to $10.18 billion during first half 2021/2022 as compared with $4.77 billion in the corresponding half of the last fiscal year.

The experts said that the falling foreign exchange reserves were also a major threat for rupee’s stability in days ahead.

READ MORE: NBP directed to pay Rs0.5 million to fraud victim

The foreign exchange reserves of the country fell by $118 million to $23.901 billion by the week ended January 07, 2022 as compared with $24.019 billion by the week ended December 31, 2021.

The official reserves of the SBP declined by $88 million to $17.598 billion by the week ended January 07, 2022 as compared with $17.686 billion a week ago.

READ MORE: SBP shortens period to 120 days for bringing export earnings

January 18, 2022
Pakistan’s textile exports jump to record high at $9.4bn

KARACHI: Pakistan’s textile exports recorded all time high to $9.4 billion during first half (July – December) of 2021/2022.

As per the data reported by Pakistan Bureau of Statistics (PBS) on Tuesday, Pakistan textile exports witnessed a record first half (July-December) exports of $9.4 billion in 2021/2022, up by 26 per cent YoY.

READ MORE: Textile exporters urge allowing cotton import from India

In Pak Rupee (PKR terms), the same has clocked in at Rs1,587 billion, up 30 per cent YoY (more than $ terms due to 4 per cent currency devaluation as compared to 1HFY21), analysts at Topline Securities said.

During the first half of the current fiscal year, major export driver was significant increase in value-added exports where knitwear segment contributed the most as it increased by 35 per cent YoY to $2.5 billion followed by Ready-made garments (+23 per cent YoY to $1.8 billion) and Bedwear (+19 per cent YoY to $1.7 billion) exports, respectively.

READ MORE: Value added textile exporters demand 50 percent reduction in withholding tax

On MoM basis, Pakistan textile exports clocked in at $1.6 billion (down by 6 per cent) in Dec 2021, mainly driven by low volumetric sales in all segments excluding raw cotton on account of recent hike in Omicron cases world wide specially in Europe & USA.

READ MORE: Gul Ahmed Textile declares 4-time increase in net profit during nine months

Compared to last year, Pakistan textile exports are up by 16 per cent YoY (28 per cent YoY up in PKR terms) in Dec-21 led by significant recovery witnessed in value-added segments, largely in knitwear (+29 per cent YoY) and Ready-made (+22 per cent YoY). Low base, increased volumetric growth in Knitwear and improved pricing led to higher exports.

The analysts expect textile exports to remain robust in ongoing fiscal year (FY22) and expect it to clock in at $18-18.5 billion. Though, slowdown in European economies and lockdowns due to Omicron remain key risk for the sector.

READ MORE: Value-added textile demands allowing cotton yarn import from India

January 18, 2022
Digital payments defined through Finance Supplementary Act 2022

In an effort to provide clarity and streamline the taxation of digital payments, recent amendments have been made to the Income Tax Ordinance, 2001, through the Finance (Supplementary) Act, 2022.
(more…)

January 17, 2022
SBP warns banks of penal action for delaying transaction alerts

KARACHI: State Bank of Pakistan (SBP) on Monday warned commercial banks of harsh penal action for delaying transmitting transaction alerts to their account holders.
(more…)

January 17, 2022
FBR extends date for filing sales tax return

ISLAMABAD: Federal Board of Revenue (FBR) on Monday extended date for filing sales tax return for the month of December 2021 up to January 24, 2022.

The last date for filing the sales tax return for the month of December 2021 is January 18, 2021.

The taxpayers are required to file their sales tax returns for the month of December 2021 through the Single Sales Tax Portal.

READ MORE: FBR launches sales tax return filing through single portal

The FBR on December 27, 2021 issued a notification under which it directed the taxpayers to file their sales tax returns for month of December 2021 through Single Sales Tax Portal.

The FBR issued a notification to extend the dates for submitting stock details and payment of sales tax and federal excise as well.

READ MORE: Power of the Board and Commissioner to call for records

The FBR said that the date of submission of Annexure – C of Sales Tax and Federal Excise Duty, which was due on January 10, 2022 has been extended up to January 19, 2022.

Similarly, the payment of sales tax and federal excise duty, which was due on January 15, 2022 has been extended up to January 21, 2022.

The single portal for sales tax returns has been launched to facilitate taxpayers, promote ease of doing business and reduce compliance cost.

READ MORE: Inland Revenue officers promoted to BS-20

The FBR said that through this portal, sales tax registered persons shall be able to file a single sales tax return instead of having to file separate returns to the FBR and each of the different provincial sales tax authorities.

January 17, 2022
Dr. Alvi orders action over misconduct with 82-year taxpayer

ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, expressed dismay over misconduct of tax authorities with an 82 year old taxpayers in a refund case.

Dr. Alvi directed the chairman of the Federal Board of Revenue (FBR) to look into the entire system of irresponsibility and corruption and take punitive action against the entire chain of decision makers involved in the case, a statement said on Sunday.

He took exception to the decision of FBR against a senior citizen that refused him to refund a paltry sum of Rs 2,333 on frivolous grounds and dragged him into unnecessary litigation spanning over a year.

READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

Apologizing to the senior citizen Abdul Hamid Khan, the President said that our heads should hang in shame for the inconvenience caused by FBR to the senior citizen.

Abdul Hamid Khan (the complainant), a senior citizen of 82 years of age, had claimed a refund of Rs 2,333 on his income tax return for the year 2020 and submitted requisite documents of advance tax deduction of the PTCL and cell phone company bills on October 19, 2020.

The complainant e-filed refund application on October 19, 2020 followed by representation to FBR Chairman on December 24,2020.

The Unit officer of FBR rejected his refund claim, on January 29, 2021, on the grounds that the applicant had failed to furnish the original certificates required for authentication.

READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints

The complainant then took up the matter with the Federal Tax Ombudsman (FTO) to seek redressal of his complaint. The FTO investigated the matter and ordered FBR on June 02, 2021 to revisit the impugned order ,dated January 19, 2021, and pass a fresh order, under section 170(4) of the ordinance, after providing the complainant the opportunity for hearing as per law.

It further ordered to identify and initiate disciplinary proceedings against the official who passed the impugned order in derogation of the law and procedures and dragged the ageing taxpayer into unnecessary litigation as well as report compliance within 45 days.

Consequently, FBR filed a representation with the President against the original order of FTO on 24.06.2021. President Dr Arif Alvi rejected the representation of FBR.

The President said that the complainant had admittedly furnished copies of advance tax as per certificates collected by telephone authorities. In case the Unit Officer was not satisfied with the copies of certificates, he could have not only got the same verified from the PTCL and Cell Phone Company but verification was also possible through online system.

He observed that it was the responsibility of the duty officer to get the deduction of tax verified from the deducting authorities irrespective of certificates being original or copies/system generated, if the same were not reflecting in the system for one or the other reason.

READ MORE: PTCL registers 7.3% revenue growth for nine months

The President termed the failure of the officer to verify the bills from PTCL and the cell phone company through the online system as shirking from responsibility and an act of maladministration.

He upheld that the act of the officer was a mockery and travesty of law, procedure and instructions of FBR.

It appeared that unlawful treatment was meted out in the instant case with a view to irritate and humiliate the ageing pensioner.

While rejecting the representation of FBR, the President said that this must be the most pitiful and shameful use of bureaucratic authority and regretted that the FBR official had wasted the time of his department, the Tax Ombudsman and the President of Pakistan over a paltry sum of Rs 2,333 and the matter had lingered for over a year.

READ MORE: FBR announces winners of first POS prize draw

He also deplored that no one in the long chain of bureaucrats in FBR deliberated over the issue to take note of the unfairness, pettiness and superfluousness of the matter.

“Punitive action must be taken along the entire line of decision-makers in this case and Chairman FBR should ensure that those responsible, in particular, and others, in general, go through courses to teach them priorities and courtesies,” he directed.

January 17, 2022
FBR announces winners of first POS prize draw

ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday announced the winners of the first draw of prize scheme on invoices obtained from Point of Sales (POS).

According to the FBR, the bumper prize of Rs one million has been won by Tanveer Ahmed.

The second prize of two each Rs0.5 million has been won by Aftab Ahmed and Farhan Akram.

For further details please download the draw

The FBR said that thousands of prizes worth a hundred thousand rupees had been distributed through the draw.

Those buying from POS integrated retailers in the month of December 2021 were included in the balloting.

The revenue body encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

READ MORE: Prize scheme on invoices issued by retailers

The FBR previously issued a procedure for participating in the prize scheme.

The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.

READ MORE: FBR launches prize scheme for POS customers

Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

January 15, 2022
Pakistan’s petrol price rises to record high at Rs147.83

ISLAMABAD: The petrol price in Pakistan has been increased to a record high of Rs147.83 per liter, said a statement issued by the finance ministry on Saturday.

The government announced to increase prices of all petroleum products with effect from January 16, 2022.

READ MORE: Prices of all POL products increased to wish New Year

According to the notification, the price of petrol has been increased by Rs3.01 to Rs147.83 per liter from Rs144.82.

The price of high speed diesel (HSD) has been increased by Rs3 to rs144.62 per liter from Rs141.62.

The rate of kerosene has been enhanced by Rs3 to Rs116.48 per liter from Rs113.48.

READ MORE: Petrol price reduces to Rs140.82 per liter

The price of light diesel oil has been increased by Rs 3.33 toRs114.54 per liter from Rs111.21.

According to the notification the decision to enhance domestic prices of petroleum products because the international oil price had registered 6.2 per cent during the last week. Presently, at the highest level since last year.

The existing sales tax rate and petroleum levy on various petroleum products are much below the budgeted targets.

READ MORE: Govt. keeps petroleum prices unchanged

The finance ministry said that against the recommendations of Oil and Gas Regulatory Authority (OGRA) for increase of Rs5.52 per liter in petrol and Rs6.19/liter in high speed diesel prices, the Prime Minister had directed to absorb at the international prices through further cut in sales tax from last fortnight.

The finance ministry will take Rs2.6 billion revenue hit due to reduced sales tax rates.

Therefore, the government has decided to make partial increase in the prices of the petroleum products in order to provide relief to the end consumers.

READ MORE: Petroleum prices kept unchanged for next fortnight

January 15, 2022