Pkrevenue.com

Tag: budget 2021-2022

  • Nuclear detection, marine directorates set up in Pakistan Customs

    Nuclear detection, marine directorates set up in Pakistan Customs

    ISLAMABAD: Two new directorates including national nuclear detection architecture and marine will be established in Pakistan Customs.

    According to budget 2021/2022 documents, the Finance Bill 2021 has proposed establishment of Directorate General of National Nuclear Detection Architecture

    The Directorate General of National Nuclear Detection Architecture shall consist of a Director General and as many Deputy Director Generals, Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.”;

    Similarly, the Finance Bill 2021 also proposed to establish Directorate General of Marine.

    The Directorate General of Marine shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors, Assistant Directors and such other officers as the Board may, by notification in the official Gazette, appoint.

  • Condition of updating tax profile withdrawn

    Condition of updating tax profile withdrawn

    ISLAMABAD: The government has withdrawn the mandatory requirement of profile update by all taxpayers on IRIS portal.

    In budget 2021/2022 speech, Finance Minister Shaukat Tarin announced to withdraw the condition.

    He said that taxpayers are subject to multiple compliance.

    Currently they are required to update their profile periodically. This requirement costs time, energy, and resources.

    In view of the fact that significant information is already available through tax returns, and to facilitate taxpayers in line with ease of doing business, the requirement to update tax payers profile is proposed to be withdrawn.

    Through Finance Act, 2020 a new section 114A was introduced to Income Tax Ordinance, 2001, under which following persons were required to furnish a profile, namely:

    (a) every person applying for registration under section 181;

    (b) every person deriving income chargeable to tax under the head, “Income from business”;

    (c) every person whose income is subject to final taxation;

    (d) any non-profit organization as defined in clause (36) of section 2;

    (e) any trust or welfare institution; or

    (f) any other person prescribed by the Board.

    (2) A taxpayer’s profile-

    (a) shall be in the prescribed form and shall be accompanied by such annexures, statements or documents as may be prescribed;

    (b) shall fully state, in the specified form and manner, the relevant particulars of –

    (i) bank accounts;

    (ii) utility connections;

    (iii) business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer;

    (iv) types of businesses; and

    (v) such other information as may be prescribed;

    (c) shall be signed by the person being an individual, or the person’s representative where section 172 applies; and

    (d) shall be filed electronically on the web prescribed by the Board.

    The taxpayers were required to update profile by December 30, 2020. However, the deadline was extended up to June 30, 2021.

  • Budget 2021/2022: Inquiry powers of Commissioner Inland Revenue withdrawn

    Budget 2021/2022: Inquiry powers of Commissioner Inland Revenue withdrawn

    ISLAMABAD: The federal government has withdrawn the discretionary powers of conducing inquiry in certain tax matters by Commissioners Inland Revenue.

    Finance Minister Shaukat Tarin while presenting budget 2021/2022 on Friday announced curtailing the discretionary power of the tax authorities.

    He said that the discretionary powers of the income tax authorities are proposed to be curtailed:

    (1) Tax authorities can conduct inquiry in certain matters regarding amendment of assessment without selection of case for audit. The power to conduct inquiry is proposed to be withdrawn;

    (2) Time limit for disposal of show cause notices is proposed to be 120 days; and

    (3) The power of the commissioner to reject advance tax estimates has also been proposed to be withdrawn.

  • Budget 2021/2022: sales tax on sugar to be imposed on retail price

    Budget 2021/2022: sales tax on sugar to be imposed on retail price

    ISLAMABAD: The government has announced to bring sugar in the third schedule of Sales Tax Act, 1990 to impose sales tax on actual retail price.

    Finance Minister Shaukat Tarin while presenting budget 2021/2022 on Friday announced inclusion of sugar in the third schedule.

    He said that sugar, although not a staple food, is still a source of daily caloric intake for millions of people in Pakistan.

    Recently, an unprecedented increase in the prices of sugar has been witnessed; however, this increase has not resulted in corresponding increase in revenue due to that fact that for the purposes of sales tax the value of sugar is not ad-valorem but specific that is Rs.60 per kg, which is considerably below the actual market price of the commodity.

    To address this anomaly, sugar is proposed to be included in the Third Schedule to the Sales Tax Act so that tax is charged on actual retail price of the product.

    This measure would not only ensure due payment of tax but also help in putting a more effective price control mechanism.

  • Budget 2021/2022: Tax imposed on sales made through online marketplace

    Budget 2021/2022: Tax imposed on sales made through online marketplace

    ISLAMABAD: The domestic sellers on online platforms like Amazon and Daraz have been brought into tax net, Finance Minister Shaukat Tarin announced this while presenting budget 2021/2022 on Friday.

    “We have seen extraordinary sales through online marketplaces especially due to Covid-19 lockdowns.”

    However, contribution made by these e-commerce digital platforms in national exchequer is negligible, he added.

    Accordingly, it is proposed to bring third party sales made through established online marketplaces within the purview of sales tax.

    Industry has rejected the proposal saying that this step is against e commerce policy.

    It is new industry. This step would discourage development of online business in Pakistan, a small seller said.

    This would badly effect development of online small businesses.

    Females can sell goods from home, students and small businesses can sell goods from home as well.

    They have been subjected to 17 percent sales tax without any input tax. New entrepreneurs nipped in the budding phase.

    The small sellers have sought intervention of the prime minster to withdraw such announcement.

    It is alleged that the decision to curb online business taken on the pressure of retail giants.

  • Budget 2021/2022: FED reduced on telecom services

    Budget 2021/2022: FED reduced on telecom services

    ISLAMABAD: The government has announced reduction in Federal Excise Duty (FED) from 17 percent to 16 percent to facilitate businesses and provide relief to the general masses.

    Finance Minister Shaukat Tarin while presenting federal budget 2021/2022 on Friday said the government had decided to reduce FED on telecom services.

    He said that to facilitate businesses and provide relief to the general masses, rate of federal excise duty on telecommunication is proposed to be reduced from 17 percent to 16 percent.

    Further, the finance minister announced withdrawal of federal excise duty on Merchant Discount Rate (MDR) charged on POS by banks, so that businesses are encouraged to carry out transactions through POS machines.

  • Budget 2021/2022: Duty, taxes abolished on cars up to 850cc

    Budget 2021/2022: Duty, taxes abolished on cars up to 850cc

    ISLAMABAD: The government has announced abolishing duty and taxes on locally manufactured and imported cars with engine capacity up to 850cc to enable low earning families to afford motor vehicles.

    Finance Minister Shaukat Tarin while presenting federal #budget 2021/2022 on Friday announced duty and tax incentives for sale and import of motor cars with engine capacity up to 850cc.

    The finance minister made following announcement:

    Withdrawal of FED and Reduction in Sales Tax on Locally Manufactured cars up to 850 cc: Rising prices of locally manufactured small cars is a major concern for low earning families. Accordingly, it is proposed that small cars upto 850 cc capacity may be exempted from levy of FE besides reducing Sales Tax rate from 17% to 12.5% and withdrawing value added tax.

    Exemption from Withholding Tax on Import: It is proposed that no tax may be collected on imports of books, journals, agriculture equipment and motor vehicles in CBU condition upto 850 cc.

    To incentives this sector further additional custom duty and regulatory duty on CBU import of vehicles upto 850cc are being exempted.

    Whereas relief to existing manufacturing industry and new models is also being provided by removing Additional Customs Duty (ACD) and rationalizing the tariff structure.

    Due to these targeted interventions the middle class of this country will be able to afford a car of this specific category and will accrue the benefits of governments flagship projects of “Meri Gari Scheme” which will enable many countrymen who wish to graduate from motorcycle to own their car by providing small car at an affordable price.

    Moreover further incentives in the form of reduction of customs duties are also being provided to electric vehicles for one year to promote the culture of electric vehicle in Pakistan.

    Similarly, keeping in view the changing international motorcycles trend usage of local manufacturing of heavy motorcycles and specific categories of trucks and tractors are also being incentivised by rationalizing the tariff structure.

    Tax Incentives for promoting electric vehicles: To address environmental issues, reduce reliance on gasoline and provide cheaper source of transportation to public, Government of Pakistan is encouraging the manufacture and use of electric vehicles.

    For this purpose, various tax exemptions and concessions are being proposed, which include tax exemption on import of CKD kits for local manufacturing of electric vehicles, reduction in sales tax rate on locally manufactured electric vehicles from 17% to 1%, withdrawal ofvalue addition tax on import of electric vehicles and CKD kits and withdrawal of federal excise duty on 4-wheelers electric vehicles.

  • Budget 2021/2022: Input tax allowed to companies listed on stock exchange

    Budget 2021/2022: Input tax allowed to companies listed on stock exchange

    ISLAMABAD:  The government has announced input sales tax adjustment for companies listed on Pakistan Stock Exchange (PSX) to promote corporatization in the country.

    Finance Minister Shaukat Tarin while presenting federal #budget 2021/2022 on Friday said that relaxation of restriction on input tax adjustment under section 8B of Sales Tax Act, 1990 had been granted.

    He said that removal of restriction on input tax allowance under sales tax law has been a major demand from business community; however, considering the importance of minimum value addition on VAT model, it is proposed to eliminate this restriction on highly regulated corporate sector that is public limited companies listed on Pakistan Stock Exchange.

    This would be a big breakthrough for further corporatization of economy and facilitation of regulated corporate sector.

  • Budget 2021/2022: Turnover up to Rs10 million not required for sales tax registration

    Budget 2021/2022: Turnover up to Rs10 million not required for sales tax registration

    ISLAMABAD: The government has facilitated small businesses and increased the threshold of turnover up to Rs10 million from Rs3 million and they will not be required to get sales tax registration.

    (more…)
  • Budget 2021/2022: Consumers to get prizes on sales tax receipts

    Budget 2021/2022: Consumers to get prizes on sales tax receipts

    ISLAMABAD: Finance Minister Shaukat Tarin on Friday said that the government will incentivize consumers through a system of prizes on sales tax receipts through an open ballot every month.

    The finance minister while presenting the federal budget 2021/2022 on the floor of the house said that a special cell in FBR had been established comprising experienced retail business experts together with a smart complement of young officers who would be engaged in rolling out this plan and ensure its efficient operations.

    The finance minister said that Pakistan Single Window shall be piloted with the view to operationalise it in the near future. This will bring all activities connected with the clearance of imports and exports on a single portal which would lead to significant reduction in the number of days required for cargo clearance.

    The work on harmonisation of sales tax on services with the provinces is moving apace and would be made fully operational during the year.

    The finance minister said that the system of tax would be simplified through introduction of new simplified tax return forms and new tax code and rules.