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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.

  • FBR collects Rs5.35 trillion in 11 months; up by 28.4%

    FBR collects Rs5.35 trillion in 11 months; up by 28.4%

    ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs5.35 trillion during first 11 months of the current fiscal year 2021/2022.

    The latest collection is about 28.4 per cent higher over the collection of Rs4.16 trillion during the same period last fiscal year, the FBR said on Tuesday.

    READ MORE: FBR surpasses collection target for July – April FY22

    The net collection for the month of May, 2022 realized Rs 490 billion represents an increase of 26.8 per cent over Rs 387 billion collected in May, 2021.

    On the other hand, the gross collection of the FBR increased to Rs5.64 trillion during first eleven months of the current fiscal year as compared with Rs4.39 trillion in the corresponding months of the last fiscal year.

    READ MORE: March collection up over 20% amid political unrest: FBR

    The FBR released an amount of Rs30.4 billion as refunds in the month of May 2022 as compared with Rs21.1 billion refunds released in the same month of the last year, showing a growth of 44.3 per cent.

    Similarly, refunds worth Rs 295.5 billion disbursed during first eleven months of the current fiscal year as compared with Rs224.2 billion in the same period of the last fiscal year, showing an increase of 32 per cent.

    READ MORE: FBR posts 30% revenue collection growth in 8MFY22

    Needless to add that the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to common man.

    For the first time ever in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs. 45 billion in May, 2022. It is also worth sharing that FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, transparency, and taxpayers’ facilitation.

    READ MORE: FBR collects Rs2.92 trillion in first half of FY22

    This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated in a healthy and steady growth in revenue collection.

    Likewise, the incumbent top leadership of FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid.

    This has not only fast-tracked the process of bridging the trust-deficit between FBR and Taxpayers but also ensured the much-needed cash liquidity for business community. That’s precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.

    READ MORE: FBR eyes Rs6 trillion collection in current fiscal year

  • FBR establishes IT center against cyber security attacks

    FBR establishes IT center against cyber security attacks

    ISLAMABAD: The Federal Board of Revenue (FBR) has established a Security Operation Center (SOC) in order to prevent cyber security attacks on its IT system.

    FBR Chairman Asim Ahmad inaugurated the SOC on Tuesday.

    SOC is a state-of-the-art center designed for prevention, detection, and incident response against cyber security attacks on the FBR IT network.

    This most modern digital intervention has been made operational round-the-clock (24x7x365). It is powered by the world’s leading automated solutions and tools for cyber security incident monitoring, inspection for malware and ransomware attacks, data backup/recovery solutions, software vulnerabilities scanning, IT infrastructure penetration testing, and performance monitoring. It is pertinent to mention that these multiple security controls have already been implemented at FBR with sophisticated firewalls, intrusion detection systems, security orchestration and response capability, email threats security, database security, web browser security and end-user security awareness.

    Dr. Ashfaq Ahmad Tunio, Member-IT FBR and Sardar Umar, Secretary IT FBR, briefed the Chairman FBR about its key features and functions.

    He informed that within a short span of 4-5 months, nine different world- class security technology solutions have been procured and implemented or are nearing implementation.

    This robust and high-tech defense-in-depth architecture is a watershed initiative which has inbuilt monitoring mechanisms within the SOC. This has significantly uplifted the security posture of the data and IT network of FBR, he further explained.

    Kamran Meer, the Chief Information Security Officer (CISO)FBR further briefed that a roadmap has been created to implement various other security technology solutions in the coming months to attain a truly world-class posture for FBR in accordance with international best practices, within an overarching Information Security Governance, Risk and Compliance (GRC) framework.

    He also reiterated that the occurrence of cyber attacks was a norm in heavily IT-enabled organizations such as FBR and the most effective approach to cyber defense was to establish a strong program where cyber risk assessments, risk mitigations, SOC operations and rapid incident response were conducted in repetitive cycles 24x7x365 with oversight and support for resources provided by the highest levels of management.

    While commending the outstanding work done by Member IT and his team, Chairman FBR appreciated the digital intervention as a much-needed facility to firewall the repository of high value data of taxpayers. He expressed his unflinching resolve to further upgrade IT infrastructure of FBR in line with the global best practices. He also hoped that all the Field Formations of FBR will soon be connected with this centralised Security Operations Center(SOC) to implement similar security regime in letter and spirit.

  • LTO Karachi collects Rs1.4 trillion July – May

    LTO Karachi collects Rs1.4 trillion July – May

    KARACHI: Large Taxpayers Office (LTO) Karachi has collected Rs1.4 trillion during first 11 months (July – May) of fiscal year 2021/2022, showing a 41 per cent growth over the corresponding period last year.

    According to a statement issued on Tuesday, the LTO Karachi collected Rs1.4 trillion during first 11 months of the current fiscal year as compared with Rs992 billion in the corresponding months of the last fiscal year, showing a sharp increase of 41 per cent.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    The LTO Karachi is the largest revenue collection arm of the Federal Board of Revenue (FBR). It collects around 35 per cent of the revenue collection collected at national level.

    The LTO Karachi also surpassed the assigned target of revenue collection for the period of July – May 2021/2022.

    READ MORE: LTO Karachi surpasses Rs1 trillion mark in 8MFY22

    The tax office has been assigned Rs1.28 trillion as collection target for the period under review. It collected Rs1.4 trillion to surpass the target by Rs117 billion.

    The LTO Karachi also surpassed the monthly target for May 2022. The tax office collected a huge amount of Rs130 billion in the month of May 2022 as against the assigned target of Rs125 billion.

    READ MORE: LTO Karachi facilitates Tier-1 retailers in POS integration

  • Islamabad Customs chief transferred ahead budget

    Islamabad Customs chief transferred ahead budget

    In a strategic move with the federal budget announcement just around the corner, the Federal Board of Revenue (FBR) has executed a significant reshuffle by transferring key personnel of Pakistan Customs.

    (more…)
  • Govt. may exempt customs duty in emergency situation

    Govt. may exempt customs duty in emergency situation

    Section 19 till 19C of Customs Act, 1969 explains that government may exempt customs duty in emergency situations.

    The FBR issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 19 till 19C of the Customs Act, 1969:

    19. General power to exempt from customs-duties.- (1) The Federal Government, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, implementation of bilateral and multilateral agreements, and to any international financial institution or foreign government-owned financial institution operating under a memorandum of understanding an agreement or any other arrangement with the Government of Pakistan, subject to such conditions, limitations or restrictions, if any, as it deems fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon and may remit fine, penalty, charge or any other amount recoverable under this Act.

    (2) A notification issued under sub-section (1) shall be effective from the day specified therein, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.

    (3) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court, no person shall, in the absence of a notification by the Federal Government published in the official Gazette expressly granting and affirming exemption from customs duty, be entitled to or have any right to any such exemption from or refund of customs duty on the basis of the doctrine of promissory estoppel or on account of any correspondence or admission or promise or commitment or concessionary order made or understanding given whether in writing or otherwise, by any government department or authority.

    (4) The Federal Government shall place before the National Assembly all notifications issued under this section in a financial year.

    (5) Any notification issued under sub-section (1) after the commencement of the Finance Act, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued:

    Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from first day of July, 2016 and shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded:

    Provided further that all notifications issued on or after the first day of July, 2016, and placed before the National Assembly as required under sub-section (4) shall continue to be in force till thirtieth day of June, 2022, if not earlier rescinded by the Federal Government or the National Assembly.

    19A. Presumption that incidence of duty has been passed on to the buyer.- Every person who has paid the customs duty and other levies on any goods under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such customs duty and other levies to the buyer as a part of the price of such goods.

    19B. Rounding off of duty, etc.- The amount of duty, interest, penalty, fine or any other sum payable, and the amount of refund, drawback or any other sum due, under the provisions of this Act shall be rounded off to the nearest one hundred rupees and, for this purpose, where such amount is fifty rupees or more, it shall be increased to one hundred rupees and if such part is less than fifty rupees, it shall be ignored.

    19C. Minimal duties not to be demanded.- Where the value of imported goods does not exceed five thousand rupees, no duties and taxes shall be demanded, subject to conditions and restrictions as may be prescribed by the Board under the rules.

    (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    READ MORE: FBR’s power to notify customs tariff

  • Banned items: FBR deputes officers 24X7 to facilitate passengers

    Banned items: FBR deputes officers 24X7 to facilitate passengers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday deputed senior Customs officers at all the international airports of the country to facilitate passengers related to imported items that are banned by the government.

    The FBR through an order nominated focal persons at all the airports of the country. It said that in wake of the issuance of SRO 598(I)/2022, and to facilitate the genuine passengers arriving at all the international airports of the country, a list of officers has been issued regarding facilitation and compliant redressal.

    The list of officers and their contact number can be accessed here.

    The FBR directed that all the focal persons should ensure their availability over the respective telephone numbers round the clock.

    The government on May 19, 2022 imposed a complete ban on luxury and non-essential items in order to reduce import bill and to prevent rupee devaluation. In this regard, the ministry of commerce issued SRO 598(I)/2022 to impose the ban on imported items.

    READ MORE: Import ban not to apply on L/C issued before May 19, 2022

    The FBR on May 24, 2022 issued a press statement saying that Pakistan Customs has stepped up enforcement at all International Airports across Pakistan to prevent smuggling of items which have recently been banned by the Federal Government vide SRO No. 598(I)/2022, dated 19.05.2022 by amending Import Policy Order, 2022.

    This round-the-clock vigilance at International Terminals to prevent smuggling have already resulted in seizures of these items which were being brought in in the garb of bonafide passenger baggage.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    During scanning and checking at Jinnah International Airport (JIAP), Karachi on 23.05.2022, banned items such as food stuff, fruits, sanitary wares, used mobile phones, and branded shoes, in commercial quantities were recovered. The said items have been detained/seized under Section 168 of the Customs Act, 1969 for violation of SRO 598(I)/2022, dated 19.05.2022, (Import Policy Order, 2022) and Sections 16 and 139 of the Customs Act, 1969.

    While commending the efforts of Pakistan Customs, Chairman FBR has reiterated unflinching resolve of the FBR to further strengthen enforcement measures at all airports, seaports, and land border stations to ensure the prevention of smuggling of goods including newly banned items.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    However, Finance Minister and Chairman FBR have issued instructions not to bother bonafide passengers bringing in goods in noncommercial/small quantities for personal use and to facilitate such passengers at airports to the maximum extent possible as per legal provisions.

  • Income tax audit should be once in three years

    Income tax audit should be once in three years

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has suggested the authorities to conduct income tax audit once in three years.

    The KCCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR) stated that through Finance Act 2019 powers of Commissioners Inland Revenue and the FBR have been restored to select cases for audit every year which further creates difficulties for registered persons, whereas prior to FY2019-20 audit could be conducted once in 3 years.

    READ MORE: Cut in duty, taxes on tea import suggested to stop smuggling

    The commissioners already have various powers to carry out amendments of the income tax returns filed for any tax year by the taxpayer under Section 122 (5A).

    Therefore, additional audit powers outside the standard audit parameters are often misused by the tax authorities.

    READ MORE: KCCI proposes sales tax exemption to solar panels, inverters

    Multiple and overlapping discretionary powers are precisely the hurdle in broadening of tax base, and corruption. Rather than focusing on broadening the tax base, FBR is coming up with novel ways to perpetuate a regime of extortion and harassment. Consequently the country is going nowhere in expanding the tax base and revenue collection.

    The KCCI proposed that the audits under Section 177 and 214C should be carried out once in every three years as was introduced through Finance Act 2018, through restoration of clause 105 omitted in Finance Act, 2019.

    READ MORE: FBR suggested automatic GD filing extension on system failure

    Despite of this restriction the Commissioner can carry out assessment under section 122(1)/(5) or 122(5A) of the Income Tax Ordinance, 2001 on the definite information or where declaration of tax payer is erroneous and prejudicial to the interest  of revenue.

    Giving rationale to the proposal, the chamber said it would alleviate fears of compliant tax-payers. Further, it will help in removal of harassment and extortion through uncalled for and unnecessary audits.

    READ MORE: KCCI proposes sales tax exemption to e-commerce

  • FBR’s power to notify customs tariff

    FBR’s power to notify customs tariff

    Section 18E of Customs Act, 1969 has empowered the Federal Board of Revenue (FBR) to make changes in Pakistan Custom Tariff.

    The FBR issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    READ MORE: Detention of goods violating customs act

    Following is the text of section 18E of the Customs Act, 1969:

    18E. Pakistan Customs Tariff.- The Board may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, make such changes in the Pakistan Customs Tariff, specified in the First Schedule to this Act, required only for the purposes of statistical suffix of the Pakistan Customs Tariff (PCT) Code:

    READ MORE: Rate of customs duty in Pakistan on imports

    ―Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.

    (Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

    READ MORE: FBR may impose charges for customs clearance services

  • FBR transfers additional collectors, directors of Customs

    FBR transfers additional collectors, directors of Customs

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday May 30, 2022 transferred about 12 BS-19 officers of Pakistan Customs Service (PCS) with immediate effect.

    The FBR notified transfer and posting of following officers:

    01. Muteen Alam (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, KPK from the post of Additional Collector, Collectorate of Customs Enforcement, Lahore.

    READ MORE: FBR transfers BS-20 officers of Pakistan Customs Service

    02. Aftab Ullah Shah (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, Quetta from the post of Additional Collector, Collectorate of Customs Appraisement, Quetta.

    03. Nawabzada Kamran Khan Jogezai (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Internal Audit-North (customs), Islamabad from the post of Deputy Collector, Collectorate of Customs, Islamabad.

    READ MORE: FBR transfers IRS officers of BS-17 to BS-20

    04. Ms. Zehra Tahir Naqvi (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs, Jinnah International Airport (JIAP), Karachi from the post of Deputy Director, Directorate General of Customs Valuation, Karachi.

    05. Ms. Nausheen Riaz Khan (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Law & Prosecution (Customs), Karachi from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Karachi.

    READ MORE: FBR tightens monitoring to prevent currency smuggling

    06. Ms. Aneeqa Afzal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Enforcement, Lahore from the post of Deputy Collector, Collectorate of Customs (Adjudication), Faisalabad.

    07. Ms. Amna Naeem (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate (HQs), Post Clearance Audit & Internal Audit, Karachi from the post of Deputy Director, Directorate of Post Clearance Audit (South), Karachi.

    08. Shah Faisal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Appraisement, Quetta from the post of Deputy Collector, Collectorate of Customs Appraisement, Quetta.

    READ MORE: FBR transfers senior IR officers in major reshuffle

    09. Mohammad Rehan Akram (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Cross Border Currency Movement, Directorate General of Intelligence & Investigation-FBR, Islamabad from the post of Deputy Collector, Collectorate of Customs Enforcement, Multan.

    10. Ms. Palwasha Syed (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore from the post of Deputy Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore.

    11. Ms. Haleema Qasim (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate General of Customs Valuation, Karachi from the post of Deputy Director, Directorate of Cross Boarder Currency Movement, Islamabad.

    12. Ms. Khansa Mahmood Chaudhry (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi Stationed at Gilgit-Baltistan from the post Deputy Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi.

    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.

  • Cut in duty, taxes on tea import suggested to stop smuggling

    Cut in duty, taxes on tea import suggested to stop smuggling

    KARACHI: The Federal Board of Revenue (FBR) has been suggested a drastic cut in duty and taxes on import of black to stop smuggling and increase revenue.

    The Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2022/2023 submitted to the FBR said that consumption of black tea in Pakistan is 240,000 metric tons, but the imports through legal channels is hardly 100,000 metric tons due to very high rates of customs duty, sales tax, regularity duty and withholding tax.

    READ MORE: KCCI proposes sales tax exemption to solar panels, inverters

    Remaining requirement is fulfilled by smuggling, Afghan Transit Trade (ATT), and imports under various exemptions/concessions granted to PATA and Azad Kashmir which conduct 90 per cent of official imports and sold all over Pakistan in tariff areas.

    The KCCI said that legitimate importers have been driven out of the market due to distortions in tax and duty regime, while also the government is losing a substantial amount of revenues.

    READ MORE: FBR suggested automatic GD filing extension on system failure

    The black tea imported in bulk and wholesale packing is treated as finished product in 12th Schedule (Table 3) whereas it should be treated as raw material because black tea goes through a process of blending and packaging while also the taxes are charged on maximum retail price.

    The KCCI said that black tea is an essential food item used in every household and common man. Such high tariffs while exemptions to select areas are only supporting misuse of concessions and smuggling. The tariff structure may therefore be rationalized as proposed while exemptions to PATA and Azad Kashmir be withdrawn as these are sources of revenue leakages:

    READ MORE: KCCI proposes sales tax exemption to e-commerce

    The customs duty should be reduced to 5 per cent from 11 per cent.

    The regulatory duty should be brought down to zero per cent from 2 per cent.

    The rate of sales tax should be reduced to …. From 17 per cent.

    READ MORE: Withholding tax on raw material import should be adjustable

    Whereas, the rate of withholding tax should be reduced to 2 per cent from existing 5.5 per cent.

    The chamber said that the proposal would prevent misused of exemptions and significantly increase revenue by Rs70 to Rs.80 billion.

    Significant relief to entire population in an essential food item which is most expensive in Pakistan.