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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.

  • Sales tax collection from POL products falls by 40%

    Sales tax collection from POL products falls by 40%

    ISLAMABAD: The Federal Board of Revenue (FBR) has recorded a decline of 40 per cent in sales tax (ST) collection on petroleum (POL) products during the first half of the current fiscal year, according to official documents made available to PkRevenue.com

    According to the official statistics, the collection of sales tax fell to Rs69 billion during July – December of fiscal year 2021/2022 as compared with Rs114.60 billion collected in the same period of the last fiscal year.

    READ MORE: Share of sales tax collection increases to 43.7% in 1HFY22

    The decline in revenue collection from petroleum products mainly attributed to lower rates of sales tax kept by the government in order to provide relief to the masses by not passing on the actual increase in petroleum prices as surge in international markets.

    The flat rate of sales tax is 17 per cent. However, the government decided to keep the rate of sales tax on petroleum products to the minimum level. According to SRO 1839i0/2022 issued on February 10, 2022, the sales tax rates have been reduced as: petrol 0.79 per cent; high speed diesel 3.17 per cent, kerosene oil 5.30 per cent and light diesel oil at zero per cent.

    READ MORE: FBR extends sales tax return filing up to February 25

    The fall in sales tax collection from supply of petroleum products resulted decline in collection of sales tax on domestic supply.

    The overall sales tax collection on domestic supplies fell by 6.2 per cent to Rs382.68 billion during the first half of the current fiscal year as compared with Rs408.13 billion in the corresponding period of the last fiscal year.

    However, the fall in sales tax collection domestic was offset by the massive growth in collection of sales tax on imports. The sales tax collection on imports surged by 75.4 per cent to Rs892.30 billion during the first half of the current fiscal year as compared with Rs508.61 billion in the corresponding half of the last fiscal year.

    READ MORE: FBR announces promotion of BS-16 Customs officers

    The growth in sales tax collection on imports can be attributed to sharp jump in imports and massive decline in rupee value.

    The import bill of the country registered a growth of 66.23 per cent to $40.65 billion during first half of the current fiscal year as compared with $24.45 billion in the corresponding half of the last fiscal year.

    READ MORE: FBR makes rules for sealing retail outlets

    Similarly, the Pak Rupee (PKR) fell sharply by Rs18.97 to the dollar during the first half of the current fiscal year. The rupee ended down by 12.04 per cent from Rs157.54 to the dollar on June 30, 2021 to Rs176.51 on December 31, 2021.

    The overall sales tax collection however, recorded 39.1 per cent to Rs1.27 trillion during the first half of the current fiscal year as compared with Rs916 billion in the corresponding half of the last fiscal year.

  • Share of sales tax collection increases to 43.7% in 1HFY22

    Share of sales tax collection increases to 43.7% in 1HFY22

    ISLAMABAD: The share of sales tax has increased to 43.7 per cent in total federal tax collection during first half (July – December) of current fiscal year (1HFY22) as compared with 41.6 per cent in the same half of the last fiscal year.

    According to biannual report issued by the Federal Board of Revenue (FBR) for the period July – December 2021/2022, showed that the share of direct taxes, which includes income tax, fell to 35 per cent during the half year under review as compared with 37.5 per cent in the same half of the last fiscal year.

    READ MORE: FBR extends sales tax return filing up to February 25

    The share of customs duty collection improved to 16.3 per cent during the first half of the current fiscal year as compared with 15.2 per cent in same half of the last fiscal year.

    Meanwhile, the contribution of federal excised duty collection declined to 5 per cent during July – December 2021/2022 as compared with 5.8 per cent in the same period of the last fiscal year.

    The total tax collection of the FBR during first half of the current fiscal year recorded 32.5 per cent growth to Rs2.92 trillion as compared with Rs2.2 trillion in the same half of the last fiscal year.

    READ MORE: FBR announces promotion of BS-16 Customs officers

    The collection of sales tax recorded an increase of 39.1 per cent to Rs1.275 trillion during the half year under review as compared with Rs917 billion in the corresponding half of the last year.

    The direct tax collection posted 23.6 per cent growth to Rs1.02 trillion during the first half of the current fiscal year as compared with Rs826 billion in the same half of the last fiscal year.

    The collection of customs duty posted 43 per cent growth to Rs477 billion during the half year under review as compared with Rs334 billion in the same half of the last fiscal year.

    READ MORE: FBR makes rules for sealing retail outlets

    Likewise, the federal excise duty collection posted 15.3 per cent growth to Rs146.3 billion during July – December 2021/2022 as compared with Rs127 billion in the corresponding period of the last fiscal year.

    The FBR issued refunds and rebates to the tune of Rs148.53 billion during the first half of the current fiscal year as compared with Rs111.3 billion in the same half of the last fiscal year.

    The issuance of sales tax refunds grew by 26 per cent to Rs123.5 billion during the period under review as compared with Rs98 billion in the same period of the last fiscal year.

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

    However, the issuance of income tax refunds fell drastically by 29 per cent to Rs5.14 billion during the first half of the current fiscal year as compared with Rs7.28 billion in the same half of the last fiscal year.

  • FBR extends date for sales tax return filing up to February 25

    FBR extends date for sales tax return filing up to February 25

    The Federal Board of Revenue (FBR) has officially extended the deadline for filing monthly sales tax returns up to February 25, 2022. The extension applies specifically to the tax period of January 2022.

    (more…)
  • FBR announces promotion of BS-16 Customs officers

    FBR announces promotion of BS-16 Customs officers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday announced promotion of BS-16 officers of Collectorate of Customs Enforcement, Karachi to the post of Superintendent Preventive Service (BS-16) with immediate effect and until further orders.

    READ MORE: No promotion of IRS officers without asset declaration

    The following officers are promoted:

    1. Athar Ali Jumani, Senior Preventive Officer

    2. Ms. Tanveer Zehra, Senior Preventive Officer

    3. Syed Muhammad Saleem Aziz, Senior Preventive Officer

    READ MORE: FBR issues instructions for promotions to higher ranks

    4. Muhammad Ali Memon, Senior Preventive Officer

    5. Muhammad Naeem Khan, Senior Preventive Officer

    6. Muhammad Hassan, Senior Preventive Officer

    7. Muhammad Younas Sabir, Senior Preventive Officer

    8. Muhammad Abdul Khaliq, Senior Preventive Officer

    READ MORE: FBR notifies transfer, posting of BS-19 IRS officers

    The FBR said that the promotion will take effect from the date of their joining, subject to the condition that no disciplinary proceedings/enquiry is pending against them.

    They will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order.

    The officers already drawing Performance Allowance equal to 100 per cent of basic pay will continue to draw it on their promotion.

    READ MORE: FBR transfers Sardar Khwaja as Member Audit

  • FBR makes rules for sealing retail outlets

    FBR makes rules for sealing retail outlets

    ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday notified rules for sealing and de-sealing business premises of Tier-1 retailers.

    In this regard the FBR issued SRO 252/2022 to make amendments in Sales Tax Rules, 2006. Through the amendments, a new chapter has been introduced namely, ‘Procedure for Sealing and De-sealing of Business Premises of Tier-1 Retailers.’

    READ MORE: FBR announces prize winners in second POS invoice balloting

    The FBR said that the new chapter shall apply to the following persons, namely:

    1. Any person who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording such transactions, or issue an invoice which does not carry the prescribed invoice number or barcode or QR code or bears duplicate invoice number or counterfeit barcode or QR code; and

    2. Any person who is required to integrate his business as stipulated under sub-section (9A) of Section 3 read with sub-section 43A of Section 2 but fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under the law and rules made thereunder.

    READ MORE: FBR announces winners of first POS prize draw

    According to procedure for sealing of business premises of integrated Tier-1 retailers, the business premises of such person shall be liable to be sealed in the manner prescribed under:

    1. The commissioner Inland Revenue, in whose territorial jurisdiction the business premises of Tier-1 retailer is located, may initiate proceedings for sealing of the business premises on the basis of information that such person was found involved in the issuance of tax invoice that does not carry the invoice number or QR Code as prescribed, bears duplicate invoice number or counterfeit QR Code, the invoice is defaced, or there is any other evidence of tempering;

    2. The information referred may be required in the following manner:

    (i) Reported as unverified on ‘Tax Asaan’ application or POS Dashboard;

    (ii) Physically available or acquired through mystery shopping as referred in sub-section 2 of section 56 of the Sales Tax Act, 1990; or

    (iii) Through any other reliable source.

    3. The Commissioner Inland Revenue concerned shall verify any invoice through invoice number or QR code before declaring it unverified;

    4. Where the commissioner Inland Revenue has evidence as provided, that a Tier-1 retailer has either issued three unverified invoices in a day or five unverified invoices in seven days against a single STRN, the Commissioner Inland Revenue shall seek the approval of the Chief Commissioner Inland Revenue in writing for sealing of the retailer’s business premises besides mentioning the team of officers and officials that shall carry out the process of sealing of the said business premises:

    Provided in case the unverified invoices belong to a business premises of Tier-1 retailer having jurisdiction in some other filed formation, the commissioner Inland Revenue concerned shall seek approval from the Chief Commissioner Inland Revenue in whose jurisdiction the integrated Tier-1 retailer falls besides mentioning the team of officers and officials that shall carry out the process of sealing of the said business premises;

    (5) The Chief Commissioner Inland Revenue, in whose jurisdiction the integrated Tier-1 retailer falls, shall on receipt of request for approval, issue an order in writing for allowing or disallowing the sealing of such business premises after recording the reasons therein, and, in case of allowing sealing of business premises, shall also notify the team for carrying out the process of sealing immediately:

    Provided where the jurisdiction of Tier-1 retailer falls in some other field formation, the concerned Chief Commissioner shall request the FBR for notification of the team;

    (6) The Chief Commissioner Inland Revenue in whose jurisdiction the integrated Tier-1 retailer falls shall decide whether one or more branches are to be sealed depending on the unverified invoices issued by the respective branches; and

    (7) The sealing order shall be communicated by the concerned Chief Commissioner Inland Revenue to the Member (IR-Operations) for information and a copy thereof shall be sent to Chief (POS) for record.

    Through the instant SRO 252/2022 the FBR also issued procedures for sealing of business premises of non-integrated Tier-1 retailers and de-sealing of business premises of integrated Tier-1 retailers.

  • FBR announces prize winners in second POS invoice balloting

    FBR announces prize winners in second POS invoice balloting

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced winners of second balloting of invoices issued by Point of Sales (POS) installed by Tier-1 retailers.

    Muhammad Aslam has been declared as winner of bumper prize worth Rs1 million in the second draw. The invoice declared for the bumper prize was issued by Tier-1 retailer i.e. Naheed Super Market.

    The revenue body also declared Syed Asim Ali and Asad Naeem Chaudhry for second prize of Rs500,000 each.

    For further details please download the second draw

    Meanwhile, the FBR announced four names for the winners of third prize of Rs250,000 each. The winners of third prize are included Muhammad Amir, Syed Ali Yawar, Mubashir Aftab Sheikh and Iftikhar Hussain.

    The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

    READ MORE: FBR announces winners of first POS prize draw

    The FBR previously issued a procedure for participating in the prize scheme.

    The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

    The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

    READ MORE: Prize scheme on invoices issued by retailers

    The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

    In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.

    Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

    In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

    READ MORE: FBR launches prize scheme for POS customers

    The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

    Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

    The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

  • Glitches mar filing of national sales tax return

    Glitches mar filing of national sales tax return

    LAHORE: The Federal Board of Revenue (FBR) has failed to rectify errors in national sales tax form as large number of taxpayers unable discharge their liabilities.

    Pakistan Tax Bar Association (PTBA) in a letter to the chairman of Federal Board of Revenue (FBR) highlighted the issues in the national sales tax return and demanded to extend the date for filing monthly returns for the months of December 2021 and January 2022.

    READ MORE: FBR further extends date for filing sales tax return

    Earlier this month the PTBA highlighted the issues. A committee comprising PTBA General Secretary Ch. Qamar uz Zaman and another person Zahid Ateeq Choudhry pointed out the following issues:

    »             Entering data in Annex-H is not functioning properly, especially, opening stocks are not available for consumption.

    »             Zero rated purchases for the month are not transferred in Annex-F for consumption, hence, creating discrepancy in relation to refund claim as well as income tax declaration.

    »             FASTER rules for pharma industry, which is made subject to zero rated regime through Finance (Supplementary) Act, 2022, are not given until the date. Hence, the industry is unable to file refund claims.

    READ MORE: Single sales tax return to eliminate fake, flying invoices

    »             Input invoices once claimed are again available for reclaim in Annex-A. Hence, double claim of same input tax shall cause loss to the revenue.

    »             Search option in Annex-A is limited to 100 invoices, only. It should search all invoices for the month so that hassle be reduced or eliminated.

    »             Reduce rate sales entered through “sales invoice template” are not validated due to error “rate id is missing” despite proper reduced rate is provided in relevant data field.

    »             Sales entered through “sales invoice template” are not editable.

    READ MORE: FBR launches sales tax return filing through single portal

    »             Option to undo “sales invoice template” once uploaded should be available, which helps in undoing mistake, especially in large number of invoices, presently have to be done one-by-one.

    »             Sales tax Withheld by Government departments are not still available for claim.

    »             In Annexure-C “Retail Consumer” Type is not available.

    »             Sales Related to POS along with manual entry sales without POS, if added through invoice management, manual entries are not loaded in Annexure-C.

    »             Exclusion from 8B in return column # 24 is not available, in many cases which does not fall in any of the STGO’s of POS integration but also disallowing the input credit as POS retailer.

    »             Exporter cum manufacturer, where refund amount or credit to be carried forwarded are shown in decimal.

    Issues in connection with Provincial Sales Tax Return for Services:

    READ MORE: Power of the Board and Commissioner to call for records

    »             The National Sales Tax Return is not transmitting data relating to supplies of goods to the taxpayers registered for sales tax on services despite the fact their suppliers have duly filed their National Sales Tax Returns, hence, service providers are deprived of their legitimate adjustable input tax claim.

    In the light of the aforesaid facts and legal exposition, the date of filing of Sales Tax Return for the Tax Period December-2021 and January-2022 should be extended up to February 25, 2022.

  • Tax offices fail to meet target of integrating retailers

    Tax offices fail to meet target of integrating retailers

    ISLAMABAD: The Federal Board of Revenue (FBR) has expressed annoyance over the lack of interest shown by field offices in integrating Point of Sale (POS) of Tier-1 retailers with the online tax system.

    According to an official document related to Tier-1 Retailers POS Integration – Third Quarter Targets (January 2022), the analyses revealed except for Large Taxpayers Office (LTO) Karachi and Regional Tax Office Bhawalpur, “none of the formations have achieved their assigned targets.”

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

    “This is an alarming situation which reflects negatively on the commitment on you formations,” the FBR informed the tax offices.

    The FBR directed Chief Commissioners Inland Revenue of tax offices to personally look into the state of affairs and ensure a healthy figure of Tier-1 Retailers POS Integration against the assigned monthly targets.

    READ MORE: Prize scheme on invoices issued by retailers

    The Member Inland Revenue – Operations has shown displeasure over the slow pace of integration of Tier-1 retailers, notified through Sales Tax General Orders (STGOs). “… These monthly targets are based on STGO and poor percentage of integration in January 2022 indicates lack of commitment of field formations both in integrating the Tier-1 retailers cleansing of STGOs list of taxpayers,” the official document added.

    READ MORE: FBR decides penal action against defaulting retailers

    According to the details, the tax offices were required to integrate 2828 Tier-1 retailers but those offices were able to integrate only 407 retailers during the month of January 2022.

    READ MORE: Imprisonment for retailers on tax integration failure

  • FBR launches forensic audit of WeBOC

    FBR launches forensic audit of WeBOC

    ISLAMABAD: The Federal Board of Revenue (FBR) has launched forensic audit of Web Based One Customs (WeBOC) to determine the accuracy and correct application of duty and taxes.

    In order to conduct forensic audit, the FBR invited firms for the assignment to conduct audit of the internal controls of WeBOC system for quality assurance for the year 2020/2021, 2019/2020 and 2018/2019.

    READ MORE: Peshawar Customs seizes narcotics worth Rs80 million

    The forensic audit is aimed at assuring that the mechanism of internal controls, business decisions, rules, policies, and procedures are well defined, correctly calculated, and if not then recommend possible solution/ way forward.

    It is meant to analyze that the systems in place are capable – fully automated with seamless integration of all Customs’ business processes.

    The applicant firm is expected to analyze the WeBOC’s capability in carrying out the day-to-day functions, its governance model, business rules, duty calculation across all regimes, correctness of information as an output, and security structures etc.

    READ MORE: No promotion of IRS officers without asset declaration

    The Internal Control Audit will identify the strengths and weaknesses as follows and recommend appropriate actions to FBR, namely:

    i. Whether the rates of Customs Duties, Additional Customs Duties and Regulatory Duties are properly and correctly fed vis-à-vis updated from time to time as applicable in the System?

    ii. Whether the WeBOC System correctly calculates and collect the duties as per statutory rates?

    iii. Review the feeding, calculation, and collection of domestic taxes i.e., Sales Tax, Withholding Tax and Federal Excise Duty at import stage.

    iv. Examine the correctness of feeding of Fifth Schedule in the WeBOC along with its conditions, when and where applicable.

    v. Whether rates of duties and taxes were updated in the WeBOC as and when legally changed since January 01, 2018?

    READ MORE: FBR announces sharp cut in sales tax on POL products

    vi. The firm will also examine and audit whether different SROs have been correctly fed/ updated in the System along with respective conditions. Any difference or deviation in the SROs feeding/ updating and application in the System will be reported accordingly.

    vii. Whether changes were made in the System with corresponding changes in the SROs from time to time in a correct and timely manner?

    viii. Whether Valuation Rulings (VRs) issued by the Directorate General of Customs Valuation have been properly entered into the System?

    ix. Whether the System correctly applies the VRs on the respective goods or not? The required audited period will be for a period of three years.

    Based on the indicated activities, the audit should: (i) map the involved internal control mechanisms; (ii) point out the main weaknesses of the involved internal controls; (iii) identify the main causes; and (iv) propose mitigation measures. The audit and subsequent recommendations should be both quantitative and qualitative considering efficiency and effectiveness of the system, its performance, and corresponding data (input)/ information (output) correctness – real-time and secured operations.

    READ MORE: IR offices to work on Saturdays for revenue target

    The FBR under the Component-II (Technical Assistance) of the Pakistan Raises Revenue (PRR) project requests the services of a reputable consulting firm to conduct a forensic audit of the WeBOC System of FBR for quality assurance through methodological testing.

    The WeBOC system was rolled out in 2012 and has been designed and developed as per the business requirements and vision of Customs i.e., paperless, end-to-end integration, minimum dwell time, 24/7 service, transparency, automated and simplified procedures, improved risk management system including automated feedback mechanisms, better controls, electronic filing, minimum interaction with trader and Customs authorities, efficient information management system, e-gates, online payment, and single window operations.

    The underlying idea was/ is to have compliance of international trade facilitation agreements and to develop Customs system in line with international good practices. It provides real time integration of clearing agents, traders, brokers, terminal operators, cargo handlers, shipping agents, bonded carriers, warehouses, airlines, and customs officials for the clearance of trade consignments.

  • No promotion of IRS officers without asset declaration

    No promotion of IRS officers without asset declaration

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday issued last warning to BS-18 officers of Inland Revenue Service (IRS), who are in promotion zone, and said without asset declaration and performance evaluation reports (PERs) their names will not be considered for promotion.

    The FBR previously issued letter to the officers in the seniority list on December 15, 2021 for completion of their PERs and Declaration of Assets.

    READ MORE: FBR issues instructions for promotions to higher ranks

    The recent scrutiny of personal record of said officers revealed that majority of the officers have not yet submitted their PERs and Declaration of Assets for the period ending on June 30, 2021.

    The meeting of Departmental Selection Board (DSB) for promotion of Inland Revenue Service from BS-18 to BS-I9 is being planned by March 15, 2022 where cases of officer of IRS from seniority No.1 to seniority No.52 shall be considered for promotion by the Departmental Selection Board.

    All aforesaid BS-18 officers of IRS in the promotion zone are once again asked to ensure that their PERs and Declaration of Assets up to June 30, 2021 are submitted to the Board latest by February 28, 2022 positively.

    READ MORE: FBR notifies transfer, posting of BS-19 IRS officers

    Completion of PERs and submission of Declaration of Assets are the pre-requisites for promotion to selection grades under Civil Servants Promotion (BS-18 to BS-21) Rules, 2019.

    The Board is trying hard to ensure that all eligible officers be considered for promotion in the forthcoming DSB meeting. However, your cooperation in timely completion of service record is equally essential.

    READ MORE: FBR transfers Sardar Khwaja as Member Audit

    Any officer who fails to furnish the above documents by due date of February 28, 2022 will himself/herself be responsible for non-consideration/deferment/supersession, and no further reminder shall be issued in this regard.

    The Reporting/Countersigning Officer are also requested to immediately forward the PERs of the aforesaid officers to the Board (ERM Section) without any further delay.