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Tag: FBR

FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • Tax through electricity bills not taken back: clarification

    Tax through electricity bills not taken back: clarification

    ISLAMABAD: The federal government on Thursday clarified that the tax through electricity bills has not been taken back so far.

    A clarification has been issued through official media of the government of Pakistan that news being released by some media channels that the government has taken back the decision of tax on electricity bills.

    READ MORE: Pakistan’s tax agency collects Rs458 billion in July 2022

    “It is clarified that there is no authenticity in such news and no decision has so far been taken by the govt. However talks are been held with traders and business community on taxes on electricity bills.”

    The power utilities across the country have started collection of sales tax on retailers through the electricity bills for the month of July 2022.

    The tax has been imposed on all commercial connections irrespective the nature of work or business at the premises where the electricity meter is installed.

    READ MORE: FTO investigates tax collection through electricity bills

    Following the issuance of bills for the month of July 2022 a huge resentment was seen from the retailers as well as service providers.

    Service providers say that they were not liable to pay sales tax to the federal government as the provincial governments have jurisdiction over it.

    READ MORE: Super tax to hammer auto business in Pakistan: Honda Atlas

    However, Finance Minister Miftah Ismail recently held talks with business community and retailers to resolve the issue.

    The finance minister promised that the issue would be resolved soon. He said that bills below 150 units would not be subject to the tax. The finance minister also assured the business community that other taxes on the electricity bills would also be withdrawn once the issue of fixed tax regime for retailers was settled.

    READ MORE: FBR starts filling 502 vacancies in Inland Revenue

  • FBR transfers 45 senior IRS officers in major reshuffle

    FBR transfers 45 senior IRS officers in major reshuffle

    The Federal Board of Revenue (FBR) executed a significant restructuring on Thursday, transferring 45 officers from the Inland Revenue Service (IRS) of BS-19 and BS-20.

    (more…)
  • FBR transfers 20 senior officers in BS-20, BS-21

    FBR transfers 20 senior officers in BS-20, BS-21

    ISLAMABAD: The Federal Board of Revenue (FBR) in a major reshuffle on Monday transferred around 20 senior officers of BS-20 and BS-21 with immediate effect.

    The FBR notified transfers of following officers:

    01. Ch. Muhammad Tarique (Inland Revenue Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (HQ), Islamabad (Stationed at Lahore) from the post of Chief Commissioner, Corporate Tax Office, Lahore.

    02. Tariq Mustafa Khan (Inland Revenue Service/BS-21) has been transferred and posted as Director General (Special Initiatives), Federal Board of Revenue (HQ), Islamabad (Stationed at Karachi) from the post of Chief Commissioner, Regional Tax Office I, Karachi.

    READ MORE: Zubair Tiwana posted as Member IR-Operations

    03. Sardar Ali Khawaja (Inland Revenue Service/BS-21) has been transferred and posted as Member (Public Relations), Federal Board of Revenue (HQ), Islamabad from the post of Member, (Audit & Accounting) Federal Board of Revenue (Hq), Islamabad.

    04. Dr. Aftab Imam (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Medium Taxpayers Office, Karachi from the post of Chief Commissioner, Corporate Tax Office, Karachi.

    05. Dr. Tauqeer Ahmad Memon (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Regional Tax Office II, Karachi from the post of Chief Commissioner, Regional Tax Office, Hyderabad.

    06. Ahmad Shuja Khan (Inland Revenue Service/BS-21) has been transferred and posted as Member (Audit & Accounting), Federal Board of Revenue (HQ), Islamabad from the post of Chief Commissioner, Large Taxpayers Office, Lahore.

    07. Ms. Ambreen Iftikhar (Inland Revenue Service/BS-21) has been transferred and posted at Director General, Directorate General of Anti Benami Initiative, Islamabad from the post of Member (Reforms & Modernization) Federal Board of Revenue (Hq), Islamabad.

    READ MORE: FBR posts Ansari as Member Customs Operations

    08. Mir Badshah Khan Wazir (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Large Taxpayers Office, Lahore from the post of Chief Commissioner, Medium Taxpayers office, Karachi.

    09. Hyder Ali Dharejo (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Regional Tax Office I, Karachi from the post of Chief Commissioner, Regional Tax Office II, Karachi.

    10. Ms. Sadia Sadaf Gillani (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Corporate Tax Office, Lahore from the post of Chief Commissioner, Regional Tax Office, Sialkot.

    11. Muhammad Iqbal (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Large Taxpayers Office, Islamabad from the post of Chief Commissioner, Regional Tax Office, Rawalpindi. The officer will continue to hold the additional charge of the post of DG, DNFBPs, Islamabad. The officer will also continue the additional responsibility of the post of FATF Coordinator assigned vide Board’s Notification dated 08.12.2021.

    12. Muhammad Abid Raza Bodla (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Regional Tax Office, Sialkot from the post of Chief Commissioner, Regional Tax Office, Sukkur.

    13. Ardsher Saleem Tariq (Inland Revenue Service/BS-21) has been transferred and posted as Member (Reforms & Modernization), Federal Board of Revenue (HQ), Islamabad from the post of Director General, Anti Benami Initiatives, Islamabad.

    READ MORE: Tariq Ghani posted as Director Intelligence IR Karachi

    14. Mohammad Farooq Azam Memon (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Regional Tax Off ice, Hyderabad from the post of Member, Federal Board of Revenue (Hq), Islamabad.

    15. Syed Syedain Raza Zaidi (Inland Revenue Service/BS-21) on return from deputation has been posted as Chief Commissioner Inland Revenue, Corporate Tax Office, Karachi.

    16. Abdul Majid Yousfani (Pakistan Customs Service/BS-20) has been transferred and posted as Member (OPS) (Information Technology), Federal Board of Revenue (Hq), Islamabad from the post of Director General (OPS) Directorate General of Law & Prosecution, Islamabad. The officer will assume charge w.e.f 15.08.2022.

    17. Ms. Tehmina Aamer (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue, (OPS) Regional Tax Office, Rawalpindi from the post of Commissioner (Audit – II) Corporate Tax Office, Islamabad

    18. Imtiaz Ali Solangi (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue, Regional Tax Office, Sukkur from the post of Chief Commissioner, Regional Tax Office, Sargodha.

    READ MORE: FBR transfers BS-19, BS-20 Customs officers

    19. Abid Mehmood (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue, (OPS) Regional Tax Office, Multan relieving Ms. Zahida Sarfraz (IRS/BS-20) of the Look After Charge of the post of Chief Commissioner-IR, RTO, Multan. He has been transferred from the post of Chief, (Revenue Operations) Federal Board of Revenue (Hq), Islamabad.

    20. Muhammad Tariq Arbab (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue, Regional Tax Office, Sargodha from the post of Commissioner, Commissioner Inland Revenue (Appeals), Peshawar.

    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.

  • Zubair Tiwana posted as Member IR-Operations

    Zubair Tiwana posted as Member IR-Operations

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday transferred and posted Malik Amjad Zubair Tiwana as Member Inland Revenue – Operations.

    Zubair Tiwana is a BS-21 officer of Inland Revenue Service (IRS) and presently posted as Chief Commissioner, large Taxpayers Office, Islamabad.

    READ MORE: FBR notifies promotion of three IRS officers to BS-22

    The officer has been transferred and posted as as Member (Inland Revenue Operations), Federal Board of Revenue (HQ), Islamabad

    The FBR said that the officer will assume the charge of the post of Member (IR-Operations) with effect from August 22, 2022 on retirement of Qaiser Iqbal (IRS/BS-21) current Member (IR-Operations), Federal Board of Revenue (HQ), Islamabad.

    READ MORE: FBR starts filling 502 vacancies in Inland Revenue

    In the intervening period the officer will serve as Member, Federal Board of Revenue (HQ), Islamabad, the FBR said.

    If the officer is drawing performance allowance, prior to issuance of this notification, he will continue to draw the same on his new place of posting, the FBR added.

    READ MORE: FBR posts Ansari as Member Customs Operations

    The FBR directed the officer to send Charge Relinquishment / Assumption report to FBR after Relinquishment / Assumption of charge for record and further necessary action.

    READ MORE: Commodities’ illegal movement to be treated as smuggling

  • Pakistan’s tax agency collects Rs458 billion in July 2022

    Pakistan’s tax agency collects Rs458 billion in July 2022

    ISLAMABAD: The Federal Board of Revenue (FBR) has achieved a remarkable milestone by collecting net revenue of Rs 458 billion during July 2022. This collection has surpassed the monthly target of Rs 443 billion by Rs 15 billion, as confirmed by an official statement issued by the FBR on Monday.

    (more…)
  • FBR starts filling 502 vacancies in Inland Revenue

    FBR starts filling 502 vacancies in Inland Revenue

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday invited applications for new 502 vacancies against the jobs from grade 1 to grade 15 the Inland Revenue.

    According to the notification the FBR would advertise for filling up 502 posts in BS-1 to 15 in seventeen (17) Inland Revenue field formations of FBR.

    READ MORE: FBR posts Ansari as Member Customs Operations

    As the applicants have to apply online through National Job Portal being maintained by National Information Technology Board (NITB.

    According to the general instructions the eligible candidates are advised to apply online through National Job Portal Link https://nip.gov.pk. No manual or hard copy of application will be accepted by any office. Candidates applying for more than one post should apply online for each post separately.

    READ MORE: Commodities’ illegal movement to be treated as smuggling

    Vacancies for BS-I to 5 shall ordinarily be filled on local basis in terms of Rule 16 of Civil Servants (Appointment, Promotion & Transfer) Rules, 1973, whereas vacancies for BS-6 to 15 shall be filled by appointment of persons domiciled in the respective province or region of each office strictly under Rule 15 of the aforesaid rules and instructions issued by the Establishment Division from time to time.

    Candidates will be required to bring original documents (Educational, domicile and Experience Certificate etc) alongwith one set of all attested copies of documents at the time of test/interview.

    Screening tests and skills tests (where required) will be conducted as per recruitment policy of the Federal Government. Besides screening test for the post of Sepoy, physical fitness i.e. height and chest of the candidates at the requisite standard, shall also be mandatory.

    READ MORE: Special tax regime for pharma sector introduced

    The contract employees (85-1 to 15), who were appointed under the Family Assistance Package for the families of Government employees, who died while in service, may also apply online for any of the above post, if they desire so, subject to their eligibility.

    10% quota for women, 5% quota for minorities (non-Muslims) and 2% quota for disabled persons shall also be strictly observed by each office as per Government instructions. Disabled persons will have to submit a Certificate as proof of disability, duly issued by recognized Social Welfare Board/office or other authorized Government organization, at the time of test/interview.

    The FBR reserves the right not to fill any vacancy or to reduce the number of vacancies, if the circumstances so warranted at the time of final selection.

    READ MORE: Defacing sales tax invoice declared as offence

    The candidates working in Public Sector Departments/Organizations shall have to submit Departmental Permission Certificates from the respective employers at the time of test/interview, failing which they will not be allowed to participate in test/interview process.

    In addition to 05 years general upper age relaxation by the Government, further upper age relaxation shall be restricted up to the following categories of candidates, as per relevant rules/policy of the Federal Government.

    Minimum and Maximum age shall be calculated on the closing date of receipt of applications.

    Information provided in the online Application Form will be verified. In case of any false or forged information, FBR reserves the right to cancel candidature of any candidate at any stage (even after employment, if so revealed later) and to initiate legal action against the applicant.

    Only short-listed candidates will be called for test/ interview. All the candidates will be allowed to appear in the test/interview on provisional basis, subject to detailed scrutiny of their eligibility as per relevant criteria.

    No TA/ DA will be admissible for the Test/ Interview.

    The candidates may apply online within 15 days from the date of publication of this Advertisement in the press. Applications received after 15 days of publication of Advertisement will not be entertained.

  • Withdrawal of sales tax through electricity bills demanded

    Withdrawal of sales tax through electricity bills demanded

    KARACHI: Authorities have been urged to withdraw the collection of sales tax through monthly electricity bills for service providers.

    Ms. Fauzia Rasheed, advocate high court at M/s. Lawyers Inc., a law consultancy firm, has strongly protested over the collection of sales tax by the federal government through monthly electricity bills from service providers.

    READ MORE: Tax through electricity connections on retailers, service providers

    In a letter to K-Electric, the power supply utility in Karachi, and forwarded to the chairman of Federal Board of Revenue (FBR), Federal Ombudsman, and chambers of commerce, Fauzia pointed out that her company had received monthly electricity bill, which included: further tax at 3 per cent; extra tax/retail tax at 5 per cent; and newly introduced sales tax on retailers at Rs6,000 being an inactive taxpayer.

    She claimed that the sales tax collection had been made in the bill for the month of July 2022 as her company was a legal service provider.

    Furthermore, as per the record of the Federal Board of Revenue (FBR) the law firm is an active taxpayer as per requirement under Income Tax Ordinance, 2001.

    READ MORE: FBR explains income tax on export of services

    In her letter, she explained that Section 3(1A) of the Sales Tax Act, 1990 relates to further tax (leviable where taxable supplies are made to a person who has not obtained registration number), Section 3(5) of the Act relates to Extra Tax (The government may imposed extra tax in addition to tax levied under sub section (1), (2) & (4) of Section 3) and Section 3(9) relates to sales tax on retailers, before and after the amendments made through Finance Act, 2022, under the Sales Tax Act, 1990 are applicable on the persons who is/are dealing in retail business of the taxable goods/supplies and required to be registered under the Act, 1990 but did not registered himself /themselves in FBR for the said purpose.

    “Indeed, we [the law firm] are not dealing in supply /retail of taxable goods and as such you have wrongly levied and charged further tax u/s 3(1A), extra tax u/s 3(5) or 3(9) and retail tax u/s 3(9) of the Sales Tax Act, 1990 through the Electric Bills,” according to the letter.

    READ MORE: FBR restores 100% depreciation deduction

    The law firm is only engaged in rendering of legal services on the subject premises, it added.

    Under the Sales Tax Act, 1990, neither the company is required to be registered with FBR nor various sales tax through electric bills i.e., Further Tax, Extra Tax and Retail Sales Tax are applicable on it, being a “Service Provider”.

    Fauzia said that the K-Electric imposed the sales tax on the monthly bill on the basis of assumption that the commercial connection holder was a retailer.

    “You [the K-Electric] have imposed two taxes under the single provision of law i.e., Section i.e., 3(9) of the Act, 1990 relying on prior and post amendment made in Section 3(9) of the Sales Tax Act 1990 through Finance Act, 2022 which cannot be permitted under the law to charge the taxpayer twice, even if it is applicable,” she pointed out towards important provisions of the law.

    The relevant amendment made through Finance Act, 2022 in Section 3(9) of the Act, 1990 is reproduced here as under:-

    READ MORE: FBR notifies graduated tax rates on disposal of securities

    Section 3(9),–

    (i) for the words “five per cent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half percent where the monthly bill amount exceeds the aforesaid amount”, the words “rupees three thousand per month where the monthly bill amount does not exceed rupees thirty thousand, rupees five thousand per month where the monthly bill amount exceeds rupees thirty thousand but does not exceed rupees fifty thousand and rupees ten thousand per month where the monthly bill amount exceeds rupees fifty thousand” shall be substituted;

    (ii) after sub-section (9), the following provisos shall be inserted, namely:–

    Provided that the above rates of tax shall be increased by one hundred percent if the name of the person is not appearing in the Active Taxpayers List issued by the Board under section 181A of the Income Tax Ordinance, 2001 on the date of issuance of monthly electricity bill:

    Provided further that the Board may through a general order prescribe any persons or class of person who shall pay upto rupees two hundred thousand per month through their monthly electricity bill.

    Despite having number of employees who are engaged in monitoring of meter or recording of energy consumption from meter installed on the subject premises, the utility provider has blatantly charged such taxes without verification of status whether the consumers is/are liable to be charged for such taxes or not.

    It came to our knowledge from number of electricity consumers that the K Electric Limited has charged such taxes from all Commercial Consumers irrespective of their business status and FBR’s active taxpayer’s profile and treated all of them as “In-active Retailer of taxable goods” which cannot be justified or allowed under the Act, 1990.

    Such an act of M/s K Electric Limited comes within the meaning of mal-administration as defined under Section 3 of the Federal Tax Ombudsman Ordinance, 2000.

    Keeping in view of above legal position, the imposition of impugned taxes through Electric Bills is illegal, unlawful, harsh and unwarranted under the law.

    The advocate advised the utility provider to remove the taxes mentioned immediately from the subject electricity bills and issue fresh corrected bills. “Otherwise, we have left with no option but to approach the Federal Ombudsman for redress of the grievances,” she warned.

  • Pakistan grants 5-year tax exemption to promote film industry

    Pakistan grants 5-year tax exemption to promote film industry

    ISLAMABAD: Pakistan has granted five-year tax exemption on income derived from cinema operations in order to promote local film industry.

    The tax exemption has been granted under Income Tax Ordinance, 2001 by amendment made through Finance Act, 2022.

    READ MORE: Advance tax on immovable property enhanced by 100%

    The Federal Board of Revenue (FBR), the apex tax collecting agency of Pakistan, issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments introduced through the Finance Act, 2022 to the Income Tax Ordinance, 2001.

    The FBR said that in order to promote local film industry, following new measures have been introduced:

    (i) Five years tax exemption has been granted by inserting clause (151) in Part I of Second Schedule to the Income Tax Ordinance 2001 to a person who derives any income from cinema operations, starting from the commencement of cinema operations.

    READ MORE: FBR explains changes in advance tax on motor vehicles

    (ii) Through insertion of clause (153) in Part I of Second Schedule to the Ordinance, exemption has been granted to profit and gains derived by a resident producer or a resident production house from production of feature films during the period from July 01, 2022 to June 30, 2027.

    READ MORE: Pakistan introduces automated system for withholding tax payments

    (iii) Similarly, exclusion from provisions of section 148 of the Income Tax Ordinance, 2001 has been provided through insertion of Clause (12P) in Part IV of Second Schedule on import of machinery and equipment as listed in serial no. 32 of Part-I of Fifth Schedule to the Customs Act, 1969 subject to the conditions and limitations specified therein.

    (iv) Moreover, through insertion of clause (43H) in Part IV of Second Schedule, exclusion from the provisions of clause (b) of sub-section (1) of section 153 has been provided to an exhibitor or a distributor of a feature film, as payer, on payment made to a distributor, producer or importer of feature film.

    READ MORE: Tax imposed on foreign payments made by exchange companies

  • Advance tax on immovable property enhanced by 100%

    Advance tax on immovable property enhanced by 100%

    ISLAMABAD: The rate of advance tax on sale and purchase of immovable property has been enhanced by 100 per cent.

    The tax rate has been enhanced on property transaction through Finance Act, 2022.

    READ MORE: FBR explains changes in advance tax on motor vehicles

    The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain major amendments brought through Finance Act, 2022 to Income Tax Ordinance, 2001.

    The FBR said that the rate of advance tax on sale or transfer and on purchase or transfer of immovable property has been enhanced from 1 per cent to 2 per cent.

    READ MORE: Pakistan introduces automated system for withholding tax payments

    Moreover, sub-section (3) of section 236C of the Income Tax Ordinance, 2001 has been omitted.

    “Now advance tax on sale or transfer of immovable property will be collected under this section irrespective of holding period,” the FBR added.

    READ MORE: Tax imposed on foreign payments made by exchange companies

    Meanwhile, in case of purchaser of immovable property who is not appearing on the active taxpayers list, rate of tax to be collected under section 236K of the Income Tax Ordinance, 2001 will increase by two hundred and fifty (250) per cent of the rate specified in Division XVIII of Part IV of First Schedule.

    Necessary change has been incorporated in rule 1 of Tenth Schedule to the Income Tax Ordinance 2001, the FBR added.

    READ MORE: Minimum tax for commercial importers enhanced: FBR

  • FBR explains changes in advance tax on motor vehicles

    FBR explains changes in advance tax on motor vehicles

    ISLAMABAD: The Federal Board of Revenue (FBR) has explained changes made to advance tax on motor vehicles through Finance Act, 2022.

    The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments brought through Finance Act, 2022 to the Income Tax Ordinance, 2001.

    The FBR said that provision of section 231B of Income Tax Ordinance, 2001 was limited to private motor vehicles. The scope of withholding tax has now been enhanced though omission of the word ‘private’ from the heading and elsewhere in the section.

    READ MORE: Pakistan introduces automated system for withholding tax payments

    Further, an inclusive definition of motor vehicle has been provided in the substituted sub-section (7) of section 231B with following exclusions:

    (i) a motor vehicle used for public transportation, carriage of goods and agriculture machinery;

    (ii) a rickshaw or a motorcycle rickshaw and

    (iii) any other motor vehicle having engine capacity up to 200cc.

    READ MORE: Tax imposed on foreign payments made by exchange companies

    Except motor vehicles mentioned at i, ii and iii above, provision of section 231B will apply on motor vehicles of all makes and models irrespective of its private or commercial use by the end users.

    The FBR further said that the withholding tax amount required to be collected at the time of purchase or registration of motor vehicle has been enhanced with engine capacity of 1601cc and above.

    In cases of electric vehicles where engine capacity of a vehicle is not available and value of vehicle is rupees five million or more, the amount of tax collected will be 3 per cent of import value as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles.

    READ MORE: Minimum tax for commercial importers enhanced: FBR

    Rates of tax required to be collected at the time of transfer of registration or ownership of a motor vehicles have been provided in clause (2) in the Table in Division VII of Part IV of First Schedule of the Ordinance.

    A new proviso has been inserted whereby a vehicle in which engine capacity is not applicable (electric vehicles) and the value of said vehicle is rupees five million or more, then tax amount of rupees twenty thousand will be collected at the time of transfer of registration or ownership of such vehicle.

    READ MORE: Tax through electricity connections on retailers, service providers

    In case of a person not appearing in active taxpayer list, tax collectible under this section will increase by two hundred percent. Necessary change has been incorporated in rule 1 of Tenth Schedule of the Ordinance, the FBR added.