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 collection from property purchase climbs up 24%

ISLAMABAD: The collection of advance tax from purchase of immovable properties climbed up by 24 per cent during first half of the current fiscal year.

According to official data released by Federal Board of Revenue (FBR), the collection of advance tax on purchase / transfer of immovable property increased to Rs27.7 billion during first half (July – December) of fiscal year 2021/2022 as compared with Rs22.36 billion in the corresponding half of the last fiscal year.

READ MORE: FBR registration made mandatory for housing projects

The FBR collects advance income tax on purchase or transfer of immovable property under Section 236K of the Income Tax Ordinance, 2001. Under this Section any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect advance tax from purchaser or transferee at the rate of one per cent of the fair market value.

READ MORE: Advance tax on purchase of immovable property

The collection of withholding tax from income from property also recorded an increase of 12 per cent during the first half of the current fiscal year.

The FBR collected withholding tax amounting Rs14.90 billion on income from property during first half (July – December) of 2021/2022 as compared with Rs13.32 billion in the corresponding half of the last fiscal year.

The authorities collect withholding tax on income from property under Section 155 of the Income Tax Ordinance, 2001.

READ MORE: Income tax on rental immoveable property

March 8, 2022
Customs officer awarded ‘major penalty’ for corruption

ISLAMABAD: The Federal Board of Revenue (FBR) has imposed major penalty of ‘dismissal from service’ upon an officer of Pakistan Customs on the charges of corruption, misconduct and inefficiency.

The FBR in an office order issued on Tuesday stated that disciplinary proceedings were initiated against Mansab Shah, Inspector (BS-16) posted in Collectorate of Customs (Enforcement), Lahore in September 2020 on account of ‘Inefficiency, Misconduct & Corruption’.

READ MORE: Customs officer awarded ‘dismissal from service’

Muteen Alam, Additional Collector (PCS/BS-19), Collectorate of Customs (Enforcement), Lahore was appointed as Inquiry Officer to conduct inquiry into the case on account of acts of omission and commission as detailed in the Charge Sheet / Statement of Allegations.

The Inquiry Officer submitted the inquiry report, according to which the charges of “Inefficiency, Misconduct & Corruption” were established against the accused officer.

Accordingly, the Collector, Collectorate of Customs (Enforcement), Lahore / Authorized Officer served Show Cause Notice dated February 15, 2021 upon the accused.

READ MORE: Customs I&I impounds smuggled fabric in Islamabad

Upon receipt of reply to the Show Cause Notice, the accused was granted personal hearings on February 24, 2021 and March 24, 2021 to show cause in his defence.

The authorized officer, after considering the inquiry report, reply to Show Cause Notice and oral submissions made during the personal hearings, found the accused officer guilty of “Inefficiency, Misconduct & Corruption” and recommended to the Authority i.e. Member (Administration/Human Resource), FBR to impose major penalty of “Reduction to the lower post of Data Entry Operator” upon the accused officer as prescribed under Rule-4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973.

READ MORE: MCC Gwadar seizes huge quantity of methamphetamine

The Member (Admn/HR)/Authority afforded an opportunity of personal hearing to the accused to defend the case in person on June 21, 2021. However, the accused failed to appear for hearing on the scheduled date and time and Final Show Cause Notice dated August 13, 2021 was served upon the accused by the Member (Admn/HR)/ Authority and he submitted written reply to the Show Cause Notice dated August 25, 2021.

The Member (Admn/HR) / Authority after going through the facts and record of the case, and having considered all aspects of the case submitted before him, did not agree with the recommendations of the Authorized Officer/ Collector regarding imposition of major penalty of “Reduction to lower post of Data Entry Operator” upon the accused and acting in the capacity as Authority, in exercise of powers conferred under Rule 5(1)(iv) of Government Servants (E&D) Rules, 1973 has imposed major penalty of “Dismissal from Service” upon Mansab Shah, Inspector (BS-16), Collectorate of Customs Enforcement, Lahore under Rule-4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973.

READ MORE: Peshawar Customs seizes narcotics worth Rs80 million

The accused shall have the right of appeal as admissible under the Civil Servants (Appeal) Rules, 1977.

March 8, 2022
FBR, PTA introduce temporary registration of cell phones

ISLAMABAD: Federal Board of Revenue (FBR) and Pakistan Telecommunication Authority (PTA) have jointly introduced a temporary registration of cell phones to facilitate overseas Pakistanis.

To address the repeated concerns raised by Overseas Pakistanis (including those working abroad or Pakistani students studying overseas) and foreign nationals visiting Pakistan on short term visits regarding blocking of their mobile devices via DIRBS, FBR and PTA have jointly developed a new system for their temporary registration in collaboration with Federal Investigation Agency (FIA) and Mobile Phone Operators, a statement said on Tuesday.

READ MORE: PM Imran directs implementing incentives for IT industry

This module has been introduced for those overseas Pakistanis and foreign nationals who do not intend to keep their mobile device in Pakistan and will be applicable for only one (1) mobile handset device.

To avail this facility, the applicant shall provide his/her credentials including passport No., date of arrival and intended date of departure, mobile SIM issued in his/her name, and IMEI(s) of the device.

READ MORE: Ufone 4G ranked top voice and data network

The new system shall carry out real time validation from FIA IBMS to verify the date of arrival of the applicant. On lapse of 120 days of the stay of the applicant, the IMEI(s) utilized under this facilitation shall be suspended and swill not be utilized on local network services. In case, same applicant visits Pakistan again, he/she will be required to re-apply for this temporary facilitation, by re-entering the credentials which were used for the 1st or previous registration under this scheme.

This system will not only facilitate overseas Pakistanis and foreign nationals coming to Pakistan on short term basis but will also create a positive image of the country. Likewise, the checks introduced under this system will ensure that only the genuine overseas Pakistani/foreign national avails the said facility.

READ MORE: Supernet wins ZTBL projects worth Rs450 million

It is pertinent to mention that FBR has already introduced a number of innovative digital interventions to ensure taxpayers facilitation and ease of doing business through technology. In the recent past, the country’s premier revenue collection organisation has collaborated with FIA and NADRA in developing an automated facility for Currency Declaration at ports to fight the menace of money laundering and thereby rule out the possible flight of foreign currency from Pakistan.

Therefore, the above initiative comes as yet another wonderful step taken by FBR to maximize taxpayers facilitation, in particular, the Overseas Pakistanis and Foreign Nationals visiting Pakistan for a short period of time.

READ MORE: PM Imran announces setting up technology startup fund

March 8, 2022
FBR introduces refund mechanism for pharma sector

ISLAMABAD: The Federal Board of Revenue (FBR) on Monday introduced mechanism for payment of sales tax refund to pharmaceutical sector.

In order to implement the mechanism the FBR issued SRO 383(I)/2022. The FBR amended Sales Tax Rules, 2006 through the instant SRO.

The government withdrew sales tax exemption on drugs through Finance (Supplementary) Act, 2022 and replaced the exemption with the zero-rated regime.

The FBR said zero-rated regime at import stage is introduced for drugs registered under the Drugs Act, 1976. Pharmaceutical goods and their raw materials were earlier exempt from Sales Tax; as a result, most of the supply chain was undocumented.

READ MORE: PPMA raises tax refund issue with finance minister

This had led to misuse of this facility and revenue leakages. Moreover, the sector had absorbed tax paid on various inputs including packaging material and utilities. These input taxes became part of cost and were passed on to patients. In order to address these issues, pharmaceutical products are made zero rated and any tax paid on their inputs are made refundable.

This measure will bring transparency to the sector and help FBR in documenting the entire supply chain. It will also help the government in controlling and reducing the price of pharmaceutical goods. “In order to process the refund claims of this sector, a refund module on the pattern of FASTER is devised.”

Through the latest SRO, the FBR introduced a new chapter in the sales tax rules, which shall apply to refund claims for the period commencing from 15th day of January, 2022 onwards, as filed by the registered persons engaged in import or supply of zero rated drugs as registered under the Drugs Act, 1976, or medicaments as classified under Chapter 30 of the First Schedule to the Customs Act, 1969 except PCT heading 3005.0000.

Following is the text:

391. Extent of payment of refund claim.—The total amount of refund paid against the claims filed and processed under this Chapter shall not exceed the lower of the two amounts, namely, the amount of input tax actually consumed in goods as supplied at zero-rated rate, or the amount as per ceiling, if any, determined by the Board, in terms of percentage of value or amount per unit of the quantity as deemed appropriate.

39J. Filing and processing of refund claims.—The data provided in the monthly national sales tax return shall be treated as data in support of refimd claim and no separate electronic data shall be required to be provided. The amount specified in column 29 of the return, as prescribed in the form STR-7, shall be considered as amount claimed, once the return has been submitted along with all prescribed annexures thereof:

Provided that the claimant may submit his return without Annex-H and the same may be filed separately at any time but not later than one hundred and twenty days. The date of submission of Annex-H shall be considered as the date of filing of refund claim:

Provided further that the period of one hundred and twenty days, as aforesaid, may be extended for a period not exceeding sixty days, by the Commissioner having jurisdiction, for reasons to be recorded in writing on the basis of an application made by the claimant.

Risk management in refund processing.—After submission of refund claim, in the aforesaid manner, the same shall be processed by risk management system (RMS). Based on the parameters in RMS, a refund claim shall be routed to the processing module referred to as fully automated sales tax e-refund pharma (FASTER Pharma). The claims that do not fulfil RMS parameters for processing through FASTER Pharma module shall be routed for processing under Chapter V.

Processing in FASTER PHARMA module.— The claims routed to FASTER Pharma module shall be electronically processed. The data in the refund claim shall be scrutinized and verified by the system and the payable refund amount shall be determined on the basis of RMS quality check of input consumed in supplies. The refund payment order (RPO) of the amount found admissible shall be generated and the same shall be electronically communicated direct to the State Bank of Pakistan, within seventy-two hours of submission of claim, for onward advice to the respective banks for credit into the notified account of the claimant.

Processing in STARR module.— The part of the refund claim that is not verified or not found admissible shall be subjected to system validation checks every week and RPO shall be generated for the amount found valid during each validation check. After every validation process, the information regarding RPO generated, if any, as well as the objections shall be communicated by the system to the refund claimant and also to the concerned IRS field formation for information. RPO so generated shall be communicated to the State Bank of Pakistan for payment in the aforesaid manner. After eight validation checks, including the initial one, if any amount still remains un-cleared, the same shall then be processed under STARR module as referred to in Chapter V.

39N. Miscellaneous.—The provisions relating to transmission of bank advice to State Bank post-refund scrutiny, supportive documents, responsibility of claimants and action in respect of inadmissible claims, as specified in Chapter V, shall, mutatis mutandis, be applicable to refund claims filed and processed under this Chapter:

Provided, however, that supportive documents shall only be presented by the claimant, if so required by the officer-in-charge of post-refund security, with the approval of Commissioner concerned.”

March 7, 2022
FBR allows 20-year old house value to open plot

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed the value of immovable property constructed more than 20 years equal to the value of open plot.

According to property valuation for Karachi issued through SRO 345(I)/2022, the FBR issued a fresh property valuation for the residential and open plots located in various parts of the city.

READ MORE: FBR re-notifies valuation of immovable properties

The property registrar of the provincial government will collect withholding tax on the behalf of the FBR on the basis of property valuation fixed by the federal tax authority.

The FBR allowed reduction in valuation of properties on the basis of age of the built up structure.

It said that the value of residential built up property (including basement and first floor) is allowed to be reduced according to the following criteria:

01. Age of built up structure up to five years: no reduction is allowed in value.

02. Age of built up structure between five to 10 years: five per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 15 years: 7.5 per cent has been allowed as reduction in value.

04. Age of built up structure between 15 to 20 years: 10 per cent has been allowed as reduction in value.

05. Age of built up structure more than 20 years: the value shall be equal to an open plot.

The FBR further allowed reduction in value of built up properties (flats and apartments) according to following criteria:

01. Age of built up structure up to five years: no reduction will be allowed in value.

02. Age of built up structure between five to 10 years: 10 per cent has been allowed as reduction in value.

03. Age of built up structure between 10 to 20 years: 20 per cent has been allowed as reduction in value.

04. Age of built up structure between 20 to 30 years: 30 per cent has been allowed as reduction in value.

05. Age of built up structure more than 30 years: 50 per cent has been allowed as reduction in value.

The FBR also allowed reduction in value of commercial built up property according to the following criteria:

01. Age of built up structure up to 10 years: no reduction is allowed.

02. Age of built up structure between 10 to 15 years: 5 per cent has been allowed as reduction in value.

03. Age of built up structure between 15 to 20 years: 8 per cent has been allowed as reduction in value.

04. Age of built up structure more than 20 years: 10 per cent has been allowed as reduction in value.

The FBR said that the value of Commercial Plots of Defence Housing Authority facing Khayaban is increased by 10 per cent.

The value of commercial built up excluding ground floor has been reduced by 25 per cent.

The value of Residential Plots (Defence Housing Authority) of following categories may be decreased by 25 per cent:-

01. Nala facing plot

02. Commercial facing plot

03. School facing, mosque facing plot/Graveyard facing plot.

04. Rear plot (Back Side plot)/Triangle plot

For further details download new FBR’s property valuation for Karachi city.

March 7, 2022

FBR re-notifies valuation of immovable properties

ISLAMABAD: The Federal Board of Revenue (FBR) has re-notified fresh and revised valuation of immovable properties.

The FBR on March 02, 2022 issued re-notified the valuation tables of immovable properties for major cities of the country.

The FBR on December 01, 2021 issued fresh and updated valuation tables for around 40 major cities of the country. However, the FBR deferred the implementation of the new valuations of immovable properties till January 15, 2022 and further deferred till January 31, 2022. The FBR once again deferred the implementation on the valuation table till February 28, 2022.

The revenue body decision to defer the implementation came after several complaints received by the FBR those were pertaining to high valuation in the new tables.

The complaints were lodged by stakeholders including real estate agents and town developers, who pointed out extraordinary rise in property rates in the latest valuation tables.

The FBR issued detailed instructions to the tax offices on the procedure to be adopted to review the anomalies in the property rates and rationalize the same.

Accordingly, it has been decided to review and revisit the notified valuation tables wherever overvaluation or undervaluation is pointed out by a stakeholder.

The FBR asked all the Chief Commissioners Inland Revenue (CCIRs) to constitute Valuation Review Committees (VRCs), and notify them by December 10, 2021.

Any stakeholder having any reservations about valuations may lodge a representation before VRC by December 15, 2021. Chief Commissioners will undertake consultative process with the stakeholders and engage SBP’s approved valuers for determination of values, which could be either more or less than the lately notified valuations.

To issue the fresh and revised valuation tables, the FBR exercised its powers vested in the Income Tax Ordinance, 2001. The aim was to bring the FBR values at par with the fair market values.

However, certain objections from stakeholders highlighted anomalies and aberrations in the newly notified valuation tables. Although, the notified valuations have been arrived at by FBR Field Formations through a rigorous consultative process and wherefore have largely been well-received, yet the possibility of error cannot be ruled out, and the same cannot be taken as carved in stone.

Following are the valuation tables re-notified by the FBR:

FBR identifies 1,421 retailers for tax integration

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued a list of 1,421 retailers for mandatory integration with online tax system.

The FBR directed the retailers to integrate with the online tax system by March 10, 2022 in order to avoid harsh action.

The revenue board issued Sales Tax General Order No. 10 of 2022 asking Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.

READ MORE: FBR issues list of 1,358 retailers for mandatory POS

The FBR said that the Finance Act, 2019 added sub-section 6 to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 retailer, who did not integrate its retail outlet in the manner prescribed under sub-section 9A of Section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent through Finance Act, 2021.

The FBR further said that in order to operationalize the important provision of law, a system-based approach has been adopted whereby all Tier-1 retailers, who are liable to integrate but have not yet integrated, with effect from July 2021 (sales tax return filed in August 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 3, 2021.

READ MORE: Prize scheme on invoices issued by retailers

As per latest the STGO No. 10 of 2022, a list of 1,421 identified Tier-1 retailers has been issued allowing them to integrate with FBR’s system by March 10, 2022 and the procedure of exclusion from the list of 1,421 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2022 dated August 03, 2021.

The FBR said upon filing of sales tax return for the month of February 2022 for all notified Tier-1 retailers having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

READ MORE: FBR decides penal action against defaulting retailers

March 3, 2022
Tax amnesty launched for setting up new industrial units

ISLAMABAD: The federal government on Thursday launched a tax amnesty scheme for setting up new industrial units. The amnesty scheme has been introduced through a presidential ordinance.

Under the amnesty scheme, the Federal Board of Revenue (FBR) will not ask the source of funds to be utilized for setting up the new industrial undertaking. However, five per cent tax shall be levied for whitening the money.

READ MORE: FBR issues new list of active taxpayers

According to the Income Tax (Amendment) Ordinance, 2022, any eligible person may file a statement by September 30, 2022, declaring the amount of funds (which have not been declared in any of the returns of income up to tax year 2021 filed by December 31, 2021) for investment in a new company formed for establishing and operating an industrial undertaking in accordance with this section.

The funds shall be deposited in rupees in a dedicated bank account in Pakistan as equity of the newly formed company, incorporated under the Companies Act, 2017 (XIX of 2017), before the filing of the statement and such funds shall only be used for purchase or import of plant and machinery through letter of credit or for construction of building and structure for the industrial undertaking.

READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%

The minimum amount which would qualify for the purposes of this section shall be fifty million rupees.

The provisions of section 111 of the Income Tax Ordinance, 2001 (related to undisclosed income) shall not apply to the funds declared subject to fulfilment of conditions as laid down in this section and payment of an amount equal to five percent thereof along with the statement filed.

The new industrial undertaking in which such investment is made shall commence commercial production by the June 30, 2024 and a certificate to that effect, duly issued by Engineering Development Board, is submitted to the Commissioner along with the return filed for tax year 2024.

READ MORE: POS invoice verification for prize scheme surges by 63%

Any amount of tax paid under this section shall not be refundable or adjustable against any other tax liability of the declarant.

Where a declarant has paid tax under this section in respect of funds declared under sub-section (1), the declarant shall be entitled to incorporate the same in his wealth statement, financial statements or books of accounts, as the case may be.

READ MORE: Sales tax exempted on all petroleum products

For the purposes of this section, eligible person means all persons, except-

(a)          holders of public office, their spouses and dependent children;

(b)          a public company as defined in clause (47) of section 2 of this Ordinance;

(c)           a person who has filed a declaration under the Voluntary Declaration of Domestic Assets Act, 2018, the Foreign Assets (Declaration and Repatriation) Act, 2018, or the Assets Declaration Act, 2019;

(d)          a person that has been declared a bank loan defaulter by a bank or a financial institution within the last three years; or

READ MORE: FBR registration made mandatory for housing projects

(e)          a director of a company who has been declared a bank loan defaulter by a bank or a financial institution within the last three years.

(7)          The provisions of this section shall not apply to —

(a)          any proceeds of crime, corruption, money laundering and terror financing;

(b)          any amount which is subject of any departmental or court proceedings;

(c)           the investments made in following sectors, namely:–

(i)            arms and ammunitions;

(ii)           explosives;

(iii)          sugar;

(iv)         cigarettes;

(v)          aerated beverages;

(vi)         flour mills;

(vii)        vegetable ghee; and

(viii)       cooking oil manufacturing excluding extraction units.

March 3, 2022
FBR issues new list of active taxpayers

ISLAMABAD: The Federal Board of Revenue (FBR) has issued new list of active taxpayers on the basis income tax returns filed for tax year 2021.

According to the new active taxpayers list (ATL), about 2.88 million taxpayers have been placed in the list. About 0.7 million active taxpayers are more in the latest ATL as compared with the previous the last year.

Names of those taxpayers have been added in the new list who either filed by due date or filed after the expiry date with payment of default surcharge.

READ MORE; FBR launches new Active Taxpayers List; return filing grows by 58%

The FBR publishes the ATL every financial year on March 01 and is valid up to the last day of February of the next financial year.

For example, Active Taxpayer List for Tax year 2020 was published on March 01, 2021 and will be valid till February 28, 2022. Similarly, Active Taxpayer List for Tax year 2021 has been published on March 01, 2022 and will be valid till February 28, 2023.

The ATL is updated on every Monday on the Federal Board of Revenue (FBR) website.

A person’s name will be part of the current ATL, if the Tax Return filed pertains to the Tax year of the relevant ATL. For example, to be part of the ATL published on March 01, 2021, a person must have filed a Tax return for the Tax year 2020. Similarly, to be a part of the ATL published on March 01, 2022, a person must have filed a Tax Return for the Tax year 2021.

READ MORE: Late filers may be allowed for Active Taxpayers List

Restriction on including a person’s name on ATL, if the person has not filed Tax Return by the due date specified by Income Tax authorities was introduced through Finance Act, 2018. For example, to be part of the ATL published on March 01, 2022, a person must file a Tax Return by the specified due date for the Tax year 2021.

However, through Finance Act, 2019 a person’s name can be part of ATL, even if the person has filed Tax Return after the due date specified by Income Tax authorities.

Furthermore, a surcharge for placement on ATL after due date of filing of Tax Return will be charged as under: Company, Rs20,000: Association of Persons, Rs10,000; and Individuals, Rs1,000.

READ MORE: Active taxpayers’ list under Income Tax Ordinance

A company or an AOP shall be included in the ATL, whose return is not to be filed due to incorporation or formation after 30th day of June relevant to the Tax year pertaining to the ATL.

Joint account holders as an entity shall be deemed to be part of ATL if any of the persons in the joint account have met the criteria of being included in the ATL.

Bank account held in the name of a minor shall be considered part of ATL if the parents, guardians of the minor or any person who has deposited money in minor’s account are deemed to have met the criteria of being included in the ATL.

READ MORE: How to check active taxpayer status

The late filers of Income Tax Return for Tax Year 2021 can pay Surcharge for ATL as defined under section 182(A) of Income Tax Ordinance 2001 by clicking on Tax Payment Nature “Misc” head in the PSID.

Only after the payment of surcharge will the name of the late filer become part of ATL.

March 2, 2022
POS invoice verification for prize scheme surges by 63%

ISLAMABAD: The verification of invoices issued through point of sales (POS) by Tier-1 retailers surged by 63 per cent in February 2022, the Federal Board of Revenue (FBR) said on Wednesday.

The ongoing outreach campaign and the prize scheme continue to gain momentum as numbers keep growing up.

In February, FBR has witnessed that about 2,49,000 invoices were verified by customers who shopped from outlets integrated with FBR POS System as against 153,000 in January 2022.

READ MORE: Sales tax exempted on all petroleum products

Likewise, around 38 Million invoices were issued by Tier-1 Retailers which are integrated with FBR POS System in February as compared to 37 Million in January, 2022, despite the current month being short of 3 days as compared to January.

Approximately, another 4 million verified invoices would have been added to tally if 3 more days were available in February. The number of customers has also jumped from 27,000 in January to around 39000 in February who successfully verified their invoices.

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

This is a phenomenal increase in public participation and is likely to further grow with every passing day. The second computerized ballot was held on 15th February (Tuesday evening) at FBR Headquarters, Islamabad, with Finance Minister, Shaukat Fayaz Tarin, as the Chief Guest. It is very heartening to see that people at large are excited to engage in this national call to duty.

Amongst various innovative digital interventions made by FBR to maximize tax compliance through automation of its operations and facilitation of taxpayers, Point of Sale System is one key initiative which aims to monitor sales made by Tier-1 Retailers across Pakistan.

READ MORE: FBR registration made mandatory for housing projects

Adding value to this critically important sector and plug revenue leakages, FBR has launched an aggressive awareness campaign on the mainstream national media to educate and engage consumers to ensure that tax collected from them at the point of sale is deposited into state exchequer and not pocketed by the retailers themselves.

Furthermore, the campaign also encompasses a prize scheme worth Rs.53 Million to be disbursed among 1007 lucky winners through a transparent computerized ballot to be held on 15th of every month at FBR Headquarters, Islamabad.

This is truly an unprecedented example of involving citizens in tax compliance and raise their awareness about their national responsibility to not pay their due tax but also safeguard the same from being stolen on its way to national exchequer.

READ MORE: Sindh High Court stops tax recovery against SSGC

In its ongoing country-wide awareness campaign, FBR has appealed the Pakistani citizens to actively promote a culture of tax compliance in the country. The country’s premier revenue collection organization has suggested a three pronged strategy to ensure that Sales Tax collected from customers at the point of sale could actually be deposited in the state exchequer.

FBR has proposed that people should shop only from those Tier-1 retail outlets which are integrated with FBR POS System, demand computerized invoice (Pakki Receipt), and finally verify the same through FBR Tax Asaan App.

It is so very reassuring to witness that citizens have started responding to this call to national duty and are demanding Pakki Receipt from the retail outlets. FBR has already distributed prizes worth Rs.106 million among 2014 lucky winners in two successive computerized ballots held in a transparent manner on 15th of January & February 2022.

More than half of the fortunate winners have already got the prize money transferred into their bank accounts. It is also worth sharing that people are showing a lot of interest in becoming part of next computerized draw, which will be held on 15th March, 2022.

This empowering zeal and exemplary commitment shown by huge number of people at large is a testimony to their trust in FBR and its innovative POS Invoicing Prize Scheme. The national spirit has already triggered an increased sense of responsibility in the people at large to become the custodian of their tax collected by the retailers in order to ensure that the same is safely deposited in the national exchequer.

This innovative initiative of engagement of customers is all set to pick momentum and thus accelerate the desired national drive to promote tax compliance and substantially increase revenues. It also aims to incentivise people to play their role as responsible citizens and compliant taxpayers. The POS Prize Scheme is providing an opportunity to people to win cash prizes after they shop from Tier-1 POS integrated retail outlets by verifying their receipts through Tax Asaan App or SMS.

Furthermore, as a result of strong enforcement by FBR Field Formations across Pakistan, out of around 4200 identified as Tier-1 Retailers, over 3600 have already integrated their business operations with FBR POS System. Their 17000 outlets with over 19500 cash counters are fully integrated with POS System which lends FBR the facility to digitally monitor their sales and thus ensure that Sales Tax being collected from customers is being actually deposited into state exchequer, without fail.

March 2, 2022