ISLAMABAD: The Federal Board of Revenue (FBR) has surpassed revenue collection target for the first 10 months (July – April) 2021/2022 (FY22) and collected Rs4.86 trillion, a statement said on Saturday.
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Dollar gains six paisas against PKR in interbank
KARACHI: The US dollar gained six paisas against the Pakistan Rupee (PKR) on Saturday due to higher foreign currency demand on the last day before long holidays.
The exchange rate ended at Rs185.69 to the dollar from previous day’s closing of Rs185.63 in the interbank foreign exchange market.
READ MORE: Rupee gains 24 paisas to dollar in interbank
Currency experts said that the market had seen dollar demand for import and other external payments ahead holidays for Eid ul Fitr.
The government has announced holidays from May 02 to May 05, 2022 on account of Eid ul Fitr.
The rupee during the outgoing week made recovery owing to resumption of talks with the IMF.
The appreciation in rupee value to recent talks of Pakistan’s new finance minister with the management of the IMF regarding initiation of stalled loan program.
READ MORE: Dollar appreciates 42 paisas against PKR
Further, both the sides also agreed to remove unnecessary subsidy to ease burden on the government to spare funds for development projects.
The exchange rate is remained volatile during past one month due to uncertain political situation and massive decline in foreign exchange reserves.
READ MORE: Rupee recovers third straight day against dollar
The recent measures of the State Bank of Pakistan (SBP), including raising the key policy rate by 2.5 per cent, have failed to support the local currency.
Previously, the rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.
The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low PKR 188.18 to the dollar on the day of monetary policy announcement.
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FBR issues sales tax refund rules for tractor manufacturers
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday April 29, 2022 issued sales tax refund rules for agriculture tractor manufacturers.
The FBR issued SRO 563(I)/2022 dated April 29, 2022 to insert new rules in the Sales Tax Rules, 2006.
Refund to Agricultural Tractor Manufacturers
READ MORE: FBR transfers senior IR officers in major reshuffle
390. Application.— (1)This Chapter shall apply to existing and future refund claims as filed by the registered agricultural tractor manufacturers engaged in supply of agricultural tractors.
(2) The provisions of these rules shall apply only if the incidence of tax sought to be refunded has not been passed on to the consumers.
39P. Definition.— In this chapter, unless there is anything repugnant in the subject or context,-
(a) “agricultural tractor” means a tractor used by farmers or growers engaged in production of agricultural produce through tractor; and
READ MORE: IR offices to observe extended working hours for collection
(b) “eligible person” means manufacturer of agricultural tractors who supplies tractors to a person holding a valid proof of land holding such as agriculture pass book and copy of record of rights of agricultural land duly verified from Provincial Land Revenue Authorities.
39Q. Condition on supplies of agricultural tractors.— Only eligible persons shall qualify for availing reduced rate under the Sr. No. 25 of Table-1 of the eighth schedule to the Sales Tax Act, 1990.
39R. Filing of refund application.—The eligible person shall file a refund claim through STARR/RCPS system and refund application to the Commissioner Inland Revenue having jurisdiction, along with the following documents, namely:—
(a) a copy of tax paid and e-filed sales tax return;
(b) an undertaking affirming the genuineness of refund as per Sales Tax Act, 1990 and relevant rules made thereunder;
(c) a revolving bank guarantee valid for at least one hundred and twenty days issued by a scheduled bank, to the satisfaction of the Commissioner Inland Revenue having jurisdiction of an amount not less than the average monthly refund claim during last twelve months; and
(d) name, CNIC of buyers along with valid proof of land holding, ledger of already purchased agricultural tractors against each buyer.
39S. Pre-refund audit.— Where the processing officer or the officer-in-charge is of the opinion that any further inquiry or audit is required in respect of refund claim or for any other reason to establish genuineness and admissibility of the claim, he may make or cause to make such inquiry or audit as deemed appropriate, after seeking approval from the concerned Additional Commissioner and inform the refund claimant accordingly. Audit under this rule shall be completed within thirty days of initiation of the proceedings.
39T. Refund of input tax.— The refund of admissible excess input tax shall be allowed and issued within seven days of the completion of proceedings initiated under rule 39S and in case no pre-refund audit is conducted, within fifteen days of filing of the refund claim. In any case the refund of admissible excess input tax under these rules shall not be processed through FASTER module.
39U. Filing of complete refund claim.— Within fifteen days of the sanctioning of refund, the eligible person shall file a complete refund claim along with the requisite supportive documents prescribed under Chapter V of the Sales Tax Rules, 2006.
39V. Post Refund Audit.— Post refund audit of the refund claims processed under these rules shall be carried out by the concerned division based on the documents submitted by the eligible person and any other relevant documents called by the concerned officer to ascertain the admissibility and genuineness of the refund processed and issued under rule 39T. The proceedings under this rule shall be concluded within sixty days of filing of a complete refund claim by the refund claimant under rule 39U.
39W. Cost Audit.— In order to determine that the incidence of excess input tax claimed as refund under these rules by an eligible person has not been passed on to the consumers,
(a) annual cost audit will be conducted by a Cost Accountant authorized by the Board; and
(b) cost audit for a tax year shall be conducted on the basis of twelve sales tax returns for the tax year, documents filed for refund under these rules, and any other documents called by the Cost Accountant.
39X. Amount if found inadmissible.— In case any amount already sanctioned and paid is found inadmissible, the same shall be recovered within seven days of completion of proceedings initiated under rule 39V by encashing the bank guarantee to the extent of adjudged liabilities.
39Y. Section 8B not applicable.— The provisions of sub section (1) of section 8B of the Sales Tax Act, 1990 shall not be applicable on refund claims of admissible excess input tax filed under these rules.
39Z. Repeal.— The refund claims of Recognized Agricultural Tractor Manufacturers Rules, 2012 are hereby repealed.”
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FBR transfers senior IR officers in major reshuffle
ISLAMABAD: The Federal Board of Revenue (FBR) has transferred senior officers of Inland Revenue Service (IRS) following change of its chairman.
The new government appointed Asim Ahmad as FBR chairman, who assumed the charge on April 27, 2022. Asim replaced Dr. Muhammad Ashfaq Ahmed.
After this key transfer, the FBR made major reshuffle by notifying transfers and postings of senior IRS officers.
READ MORE: IR offices to observe extended working hours for collection
The FBR notified transfers of the following officers of BS-19 and BS-20:
01. Aqeel Ahmed Siddiqui (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, Benami Zone-III, Karachi from the post of Commissioner Inland Revenue (Appeals-V), Karachi.
The officer will assume charge after charge relinquishment of Najeeb Ahmad Memon, proceeding on NMC w.e.f 09.05.2022.
02. Adnan Inamullah Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (WHT) Regional Tax Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Sargodha.
03. Ms. Humaira Maryam (Inland Revenue Service/BS-20) has been transferred as Commissioner Inland Revenue, (Audit-I) Corporate Tax Office, Lahore from the post of Commissioner, (Legal) Corporate Tax Office, Lahore.
The officer will assume charge of the post on charge relinquishment of Ms. Laila Ghafoor, proceeding on NMC w.e.f 09.05.2022.
READ MORE: Asim becomes 32nd FBR chairman
04. Dr. Erfa Iqbal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Legal) Corporate Tax Office, Lahore from the post of Chief, (Legal-II) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad.
05. Zulfiqar Ahmad (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Admin Pool Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Enforcement) Large Taxpayers Office, Islamabad.
06. Naeem Babar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-II) Corporate Tax Office, Lahore from the post of Commissioner, (Chenab Zone) Regional Tax Office, Faisalabad.
The officer will assume charge of the post on charge relinquishment of Ms. Iram Shabbir, proceeding on study leave w.e.f 15.05.2022.
07. Ms. Shabana Mumtaz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement) Large Taxpayers Office, Islamabad from the post of Commissioner, (Legal) Large Taxpayers Office, Islamabad.
08. Saleem Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Chief (IMC), Federal Board of Revenue (HQ), Islamabad from the post of Commissioner, (Zone-I) Regional Tax Office, Sargodha.
09. Mohy ud Din Ismail (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue AEOI Zone, Islamabad from the post of Commissioner, (ICTO Zone) Regional Tax Office, Islamabad.
10. Rehan Safdar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Lyallpur Zone) Regional Tax Office, Faisalabad from the post of Commissioner, (WHT) Regional Tax Office, Faisalabad.
READ MORE: POS service fee issue hampers sales tax return filing
The officer is also assigned the additional charge of the post of Commissioner-IR (WHT), Regional Tax Office, Faisalabad, as per Rules.
11. Sajjad Azhar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Legal) Large Taxpayers Office, Islamabad from the post of Commissioner, (WHT) Regional Tax Office, Islamabad.
12. Abdul Hameed Shaikh (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Appeals-V), Karachi from the post of Chief, (IR-Formations) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad.
13. Ms. Sajida Kausar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, Admin Pool Federal Board of Revenue (Hq), Islamabad from the post of Commissioner Inland Revenue AEOI Zone, Islamabad.
14. Murtaza Siddique Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (SPR&S-I) Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Regional Tax Office, Gujranwala.
15. Fazli Malik (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Chenab Zone) Regional Tax Office, Faisalabad from the post of Additional Commissioner, Regional Tax Office, Peshawar.
16. Basit Saleem Shah (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (IR-Formations) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.
The officer is also assigned the additional charge of the post of Chief (OPS) (Analysis), Inland Revenue Operations, FBR (HQ), Islamabad, as per Rules.
17. Muhammad Asif (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (WHT) Regional Tax Office, Sargodha from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Peshawar.
READ MORE: IR officers’ bid to deny tax refund adjustment criticized
18. Pervez Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (WHT) Regional Tax Office, Bahawalpur from the post of Additional Commissioner, Regional Tax Office, Sukkur.
19. Ms. Adeela Yusuf Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (Reforms) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Rawalpindi.
20. Attique-ur-Rehman Mughal (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Jhang Zone) Regional Tax Office, Faisalabad from the post of Additional Commissioner, Large Taxpayers Office, Lahore.
21. Tauqeer Ahmad (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (POS) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Large Taxpayers Office, Islamabad.
22. Rehmatullah Khan Durrani (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue, (OPS) (Zone-II) Regional Tax Office, Quetta from the post of Additional Commissioner, Regional Tax Office, Sukkur.
23. Ihsan Ullah (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Islamabad from the post of Additional Commissioner, Regional Tax Office, Rawalpindi.
24. Qadir Nawaz (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Faisalabad from the post of Additional Commissioner, Corporate Tax Office, Lahore.
The FBR said that 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.
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IR offices to observe extended working hours for collection
The Federal Board of Revenue (FBR) has issued a directive for the extension of working hours at Inland Revenue (IR) offices on April 29 and 30, 2022 (Friday and Saturday) for revenue collection.
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SBP forex reserves shrink to 1.69 months import cover
KARACHI: The official foreign exchange reserves of State Bank of Pakistan (SBP) reduced to provide only 1.69 months covers for import payment.
According to details released by the SBP, the official reserves of the central bank fell by $328 million to $10.558 billion by week ended April 23, 2022 as compared with $10.886 billion a week ago.
READ MORE: Pakistan forex reserves inch up to $17.045 billion
The import bill of Pakistan was $6.425 billion in March 2022. On the basis of import bill in March 2022 the import cover is only for 1.69 months.
The SBP attributed the decline in official foreign exchange reserves to external debt and other payments.
The total foreign exchange reserves of the country declined by $377 million during the week under review.
The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.
Meanwhile, the foreign exchange reserves held by commercial banks fell by $49 million to $6.11 billion by week ended April 23, 2022 as compared with $6.159 billion a week ago.
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Asim becomes 32nd FBR chairman
ISLAMABAD: Asim Ahmad has assumed as the 32nd chairman of the Federal Board of Revenue (FBR) from April 27, 2022.
It is second term of Asim Ahmad to serve the apex tax agency of Pakistan. Prior the present posting, he served as FBR chairman during April 09, 2021 to August 24, 2021. He is the 10th FBR chairman since June 30, 2017.
Asim Ahmed replaced Dr. Muhammad Ashfaq Ahmed. Ashfaq served the FBR as chairman for eight months. He was chairman during August 24, 2021 to April 27, 2022. Dr. Ashfaq was 7th FBR chairman during PTI government.
1) Mr. Asim Ahmad (Current Chairman) 27.04.2022 . 2) Dr. Muhammad Ashfaq Ahmed 24.08.2021 27.04.2022 3) Mr. Asim Ahmad 09.04.2021 24.08.2021 4) Mr. Muhammad Javed Ghani 07.07.2020 09.04.2021 5) Ms. Nausheen Javaid Amjad 08.04.2020 06.07.2020 6) Ms. Nausheen Javaid Amjad (Acting Chairperson) 06.01.2020 08.04.2020 7) Syed Muhammmad Shabbar Zaidi 10.05.2019 06.01.2020 8) Mr. Mohammad Jehanzeb Khan 29.08.2018 10.05.2019 9) Ms. Rukhsana Yasmin 02.07.2018 29.08.2018 10) Mr. Tariq Mahmood Pasha 04.07.2017 02.07.2018 11) Dr. Muhamad Irshad 19.01.2017 30.06.2017 12) Mr. Nisar Muhammad Khan 17.11.2015 18.01.2017 13) Mr. Tariq Bajwa 02-07-2013 17.11.2015 14) Mr.Ansar Javed 10-04-2013 30-06-2013 15) Mr. Ali Arshad Hakeem 10-07-2012 09-04-2013 16) Mr. Mumtaz Haider Rizvi 21.01.2012 10-07-2012 17) Mr. Salman Siddique 24.12.2010 21.01.2012 18) Mr. Sohail Ahmad 18.05.2009 18.03.2010 19) Mr. Moinuddin Khan 02.01.1998 06.11.1998 20) Mr. Hafeezullah Ishaq 11.11.1996 02.01.1998 21) Mr. Shamim Ahmed 28.08.1996 11.11.1996 22) Mr. Alvi Abdul Rahim 13.07.1995 28.08.1996 23) Mr. Sajjad Hasan 24.07.1991 03.10.1991 24) Mr. Ahadullah Akmal 16.08.1990 24.07.1991 25) Mr. Ghulam Yazdani Khan 22.01.1989 11.08.1990 26) Syed Aitezazuddin Ahmed 20.08.1988 02.01.1989 27) Mr. I.A. Imtiazi 11.08.1985 20.08.1988 28) Mr. Fazlur Rahman Khan 14.12.1980 11.08.1985 29) Mr. N.M. Qureshi 12.11.1975 14.12.1980 30) Mr. M. Zulfiqar 01.10.1974 12.11.1975 31) Mr. Riaz Ahmad 17.11.1973 30.09.1974 32) Mr. M. Zulfiqar 11.10.1971 17.11.1973 -
SBP directs all banks to open on April 30 before Eid holidays
KARACHI: The State Bank of Pakistan (SBP) on Thursday directed banks to remain open on Saturday April 30, 2022 to facilitate customers ahead of Eid holidays.
The central bank clarified that all banks and their branches shall remain open on Saturday, April 30, 2022 in line with SBP’s instructions embodied in BPRD Circular Letter No. 11 of April 13, 2022.
In the wake of public holidays announced by the Government of Pakistan on the occasion of Eid-ul-Fitr from 2nd to 5th May, 2022, the general public is encouraged to undertake their banking transactions on Saturday, April 30, 2022.
Further, banks have also been advised to ensure 24/7 availability of Alternate Delivery Channels (ADCs) such as ATMs, Mobile Banking and Internet Banking etc. during these Eid holidays.
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SBP imposes penalty of Rs109 million on four banks
KARACHI: The State Bank of Pakistan (SBP) has imposed an amount of Rs109 million as monetary penalty on four banks for violating regulatory provisions, including anti-money laundering (AML) and countering financing of terrorism (CFT).
READ MORE: SBP imposes Rs1.45 billion penalty on 18 banks in 2021
The central bank on Wednesday issued details of monetary penalty imposed on banks during quarter (January – March) 2022 for regulatory violations.
According to details the highest penalty amount of Rs40.90 million has been imposed on Albaraka Bank (Pakistan) Limited for violating regulatory instructions pertaining to AML/CFT, Asset Quality, FX & General Banking Operations etc.
READ MORE: SBP imposes penalty of Rs58 million on five banks
In addition to penal action, the SBP directed the bank to conduct an internal inquiry on breaches of regulatory instructions and take disciplinary action against the delinquent officials.
The second highest penal amount Rs38.50 million has been imposed on Askari Bank Limited for violation of regulatory instructions pertaining to Customer Due Diligence (CDD) / Know Your Customer (KYC), asset management and general banking operations.
READ MORE: SBP slaps Rs280 million penalty on National Bank
The SBP directed Askari Bank to strengthen its controls/processes in the identified areas.
The central bank also imposed monetary penalty amounting Rs19.27 million and Rs10.265 million on National Bank of Pakistan (NBP) and U Microfinance Bank Limited, respectively.
READ MORE: SBP imposes monetary penalty on eight banks
The SBP from July 2019 started public disclosure of penal action against banks. “Enforcement actions are an integral part of regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by SBP from time to time,” according to a circular issued by the central bank.
In order to bring more transparency and strengthen market discipline, SBP has decided to publicly disclose significant enforcement actions.
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POS service fee issue hampers sales tax return filing
KARACHI: Karachi Tax Bar Association (KTBA) has raised the issue that taxpayers are unable to file sales tax return for the month of March 2022 as online system is denying taxpayers without payment of POS service fee.
The KTBA in a letter sent to FBR chairman on Wednesday urged to take urgent note of the matter and extend the date for filing sales tax return for the tax period March 2022. Further, allow a mechanism to upload the evidence of POS service already paid to enable them to file the Sales Tax Return for March 2022.
READ MORE: IR officers’ bid to deny tax refund adjustment criticized
Through its SRO 1279/(I)/2021 dated 30 September 2021, the FBR levied Point of Sale (POS) service fee of Re1 (one rupee) per invoice on all invoices raised through POS integrated with Board’s computerized system.
It also specified that the above amount collected by the Tier-1 retailers from the customers shall be deposited along with the monthly sales tax returns (STR) in a designated bank account.
However, even before such levy was introduced through the above SRO, the Board vide S.R.O.1006(I)/2021 dated August 9, 2021 had already issued a standardized format for issuance of invoices by Tier-1 retailers through POS.
READ MORE: KTBA recommends separate tax fraud proceedings
The above format provided for separate line/row for collection of the POS service fee.
Further a procedure for operationalization of SRO 1006(1)/2021 dated 9th August 2021” was issued carrying the following directions:
“2. The POS Service Fee of Re1 per invoice shall be collected by T-1Rs from the customers and shall be deposited along with the monthly Sales Tax return which is being amended to include a row for “POS Service Fee”. This row shall be auto populated by the system based on the invoices generated and recorded at the Board’s computerized system. The POS Service Fee collected each month shall be deposited by the T-1 Retailer in a separate head of Account.”
READ MORE: FBR urged to remove irritants in sales tax refund
Subsequently, the taxpayers were intimated through IRIS of the following designated Bank Account for the purpose of deposit of POS service fee charged by them –
Account Title: IRS Common Pool Fund
Account No: PK76ABPA0010002165980013
Bank Name: Allied Bank Limited
Branch Name and Address: Allied Bank Plaza, Blue Area, Jinnah Avenue Islamabad
Branch Code: 07024
The KTBA sought clarification
READ MORE: Unified sales tax law for all tax authorities sought
“Applicability of POS service fee on invoices issued from 01 October 2021
As explained above, since the above service fee was levied through S.R.O.1279/(I)/2021 dated 30 September 2021, we understand that the chargeability of POS service fee is applicable with effect from 01 October 2021.
However, we have been informed by our members that notices are being issued to the taxpayers requiring them to make payment of the POS service fee from August 2021 based on SRO 1006 referred above.
We, therefore, request your office to kindly take notice of the above matter and direct the field offices not to issue notices and demand the T-1 Retailors to deposit the POS service fee in relation to periods prior to October 2021.”
“Adjustment of POS service fee in the STR
As discussed above, the Board directed the T-1 Retailors to collect POS service fee and deposit the same in the designated bank account notified by it. However, the T-1 Retailors are unable to file the Sales Tax Returns (STR) for the tax period March 2022 due to the reasons that IRIS has placed an objection to pay the POS Fee from the date of integration irrespective of the fact that the same has already been deposited in the designated bank account / its applicability from October 2021. Further, the IRIS is not permitting the return to be submitted unless the newly designed payment challan is paid by the taxpayers.”