Pakistan has increased the regulatory duty on imported motor vehicles from 90% to 100%. The decision, communicated through the issuance of SRO 1571(I)/2022 by the Federal Board of Revenue (FBR), comes as part of the government’s efforts to stabilize the balance of payments and manage the outflow of foreign exchange.
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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.
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Pakistan amends laws to tax retailers
ISLAMABAD: Pakistan on Monday revised laws to impose tax on retailers after suspending fixed tax scheme. President Arif Alvi has signed the bill namely Tax Laws (Second Amendment) Ordinance, 2022 to promulgate the revised taxation on the retailers.
Through the immediate ordinance, amendments have been made to Sales Tax Act, 1990 under which retailers are required to pay sales tax through electricity bill.
READ MORE: FBR allows tax refund deducted through electricity bills
The retailers/shopkeepers are now required to pay 5 per cent of the electricity bill is amounting up to Rs20,000.
The rate of tax is not applicable on the Tier-1 retailers as a separate mechanism for charging sales tax is in vogue.
The sales tax rate shall be 7.5 per cent in case the electricity bill is above Rs20,000.
The amendments have been applicable from July 01, 2022. This means the retailers have to pay the tax on their electricity bill issued for the month of July 2022.
A commissioner of Inland Revenue, Federal Board of Revenue (FBR) has been authorized to issue order to the electricity supplier regarding exclusion of a person who is either a Tier-1 retailer or not a retailer.
READ MORE: Pakistan decides to roll back fixed tax scheme
According to the latest ordinance, notwithstanding anything contained in this Act, the Federal Government may, in lieu of or in addition to the tax under sub-section (9), by notification in the official Gazette, levy and collect such amount of tax at such rates and from such date as it may deem fit, from retailers, other than those falling in Tier-1, through their monthly electricity bill, and may also specify the mode, manner or time of payment of such tax:
Provided that different rates or amounts of tax may be specified for different persons or class of persons.
The ordinance also amended Income Tax Ordinance, 2001 and introduced special provision relating to payment of tax through electricity connections.
READ MORE: FTO investigates tax collection through electricity bills
It said that notwithstanding anything contained in the Ordinance, a tax shall be charged and collected from retailers other than Tier-I retailers as defined in the Sales Tax Act, 1990 (VII of 1990) and specified service providers on commercial electricity connections at the rates specified in the income tax general order issued in terms of sub-section (2).
Sub-Section (2): For the purposes of this section, the Federal Government or the Board with the approval of the Minister in-charge pursuant to the approval of the Economic Coordination Committee of the Cabinet may, issue an income tax general order to-
(a) provide the scope, time, payment, recovery, penalty, default surcharge, adjustment or refund of tax payable under this section in such manner and with such conditions as may be specified;
(b) provide the collection of tax on the amount of bill or on any basis of consumption, in addition to or in lieu of advance tax collectible under sub-section (1) of section 235, at such rates or amounts, from such date and with such conditions as may be specified;
READ MORE: Withdrawal of sales tax through electricity bills demanded
(c) provide record keeping, filing of return, statement and assessment in such manner and with such conditions as may be specified;
(d) provide mechanism of collection, deduction and payment of tax in respect of any person;
(e) include or exempt any person or classes of persons, any income or classes of income from the application of this section, in such manner and with such conditions as may be specified; and
(f) provide that tax collected under this section shall in respect of such persons or classes of persons be adjustable, final or minimum, in respect of any income to such extent and with such conditions as may be specified.
The provisions of sub-section (1) of section 235 shall apply to the persons as specified therein unless specifically exempted under the income tax general order issued under sub-section (2).
The provisions of section 100BA and rule 1 of the Tenth Schedule shall not apply to the tax collectible under this section unless specifically provided in respect of the person or class of persons mentioned in the income tax general order issued under sub-section (2).”
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FBR revises property valuation for Gwadar areas
In a strategic initiative aimed at enhancing tax collection and ensuring fair market valuation, the Federal Board of Revenue (FBR) has revised the valuation of properties in the Gwadar region. The move, outlined in the SRO 1271(I)/2022 dated August 01, 2022, represents a crucial step in aligning property valuations with current market dynamics.
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FBR issues new property valuation for Islamabad from August 01, 2022
The Federal Board of Revenue (FBR) has introduced new valuations for immovable properties in Islamabad, effective from August 01, 2022.
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Income tax return filing date expires on September 30, 2022
ISLAMABAD: The date for filing annual income tax return for the tax year 2022 is expiring on September 30, 2022, official sources told PkRevenue.com on Saturday.
Senior officials at Federal Board of Revenue (FBR) said that the all the taxpayers other than corporate taxpayers are required to file annual return of income for tax year 2022 by September 30, 2022.
READ MORE: How to file returns and other documents?
They said that taxpayers including salaried persons, business individuals, association of persons (AOPs) and companies other than having account year July to June are required to file the return of income.
The corporate entities having financial year between July 01 to June 30 are required to file their income tax returns by December 31 every year.
The FBR through SRO 978(I)/2022 dated June 30, 2022 issued income tax return form for tax year 2022 giving statutory time to taxpayers for making compliance in filing of return.
Section 14 of Income Tax Ordinance, 2001, highlighted the categories of taxpayers, who are required to file their annual return of income and wealth statement.
READ MORE: Who needs to file Tax Year 2022 return in Pakistan?
According to Income Tax Ordinance, 2001, following class of taxpayers are required to file return of income:
— every company
— every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year
— any non-profit organization as defined in clause (36) of section 2;
— every person whose income for the year is subject to final taxation under any provision of this Ordinance
Any person not covered by above clauses are also required to file return of income who,—
(i) has been charged to tax in respect of any of the two
preceding tax years;
(ii) claims a loss carried forward under this Ordinance for a tax year;
(iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;
(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;
(v) owns a flat having covered area of two thousand square feet or more located in a rating area;
(vi) owns a motor vehicle having engine capacity above 1000 CC;
READ MORE: FBR transfers 15 senior customs officers in BS-20, BS-21
(vii) has obtained National Tax Number; or
(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;
(ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or
(x) is a resident person being an individual required to file foreign income and assets statement under section 116A.
The FBR said that filing of income tax return is also mandatory for persons or classes of persons notified by the Board with the approval of the Minister in-charge.
It further said that return of income is also mandatory for every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.
READ MORE: Pakistan Customs foils attempt to clear banned items
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FBR transfers 15 senior customs officers in BS-20, BS-21
ISLAMABAD: The Federal Board of Revenue (FBR) has transferred and posted 15 senior officers of BS-20 and BS-21 in Pakistan Customs Service (PCS) with immediate effect and until further orders.
The FBR through an official communication issued on August 19, 2022 notified transfers and postings of following officers:
READ MORE: Pakistan Customs foils attempt to clear banned items
01. Gul Rehman (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Customs Valuation, Karachi from the post of Project Director, Pakistan Single Window, Federal Board of Revenue (HQ), Islamabad. The officer has been directed to look after the charge of director general, directorate general of risk management, Karachi.
02. Dr. Fareed Iqbal Qureshi (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Post Clearance Audit & Internal Audit, Karachi from the post of Director General, Directorate General of Customs Valuation, Karachi.
READ MORE: FBR starts penal action against non-filing of asset declarations
03. Ahmad Reza Khan (Pakistan Customs Service/BS-21) has been transferred and posted as Member, Federal Board of Revenue (HQ), Islamabad from the post of Chief Collector Customs, Khyber Pakhtunkhwa, Peshawar.
04. Wajid Ali (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Pakistan Customs Academy (PCA), Karachi from the post of Chief Collector of Customs, Appraisement (South), Karachi
05. Muhammad Sadiq (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of IPR (Enforcement), Islamabad (Stationed at Lahore) from the post of Chief Collector of Customs, Balochistan, Quetta.
READ MORE: FBR announces prize winners in eighth draw of POS invoices
06. Abdul Qadir Memon (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs Balochistan, Custom House, Quetta from the post of Chief Collector of Customs Enforcement (South), Karachi.
07. Ahmad Rauf (Pakistan Customs Service/BS-21) has been transferred and posted as Director General, Directorate General of Law and Prosecution, Islamabad (Stationed at Lahore) from the post of Director General, Directorate General of Input Output Coefficient Organization (IOCO), Karachi.
08. Ms. Seema Raza Bokhari (Pakistan Customs Service/BS-21) has been transferred and posted as Project Director, Pakistan Single Window, Federal Board of Revenue (HQ) Islamabad from the post of Director General, Directorate General of Post Clearance Audit & Internal Audit, Karachi (Stationed at Islamabad).
09. Muhammad Ali Raza Hanjra (Pakistan Customs Service/BS-21) has been transferred and posted as Project Director (ITTMS), Federal Board of Revenue (HQ), Islamabad from the post of Chief Collector Customs (North), Islamabad with the additional charge of the post of Project Director (ITTMS), FBR (HQ), Islamabad.
10. Muhammad Imran Khan Mohmand (Pakistan Customs Service/BS-21) has been transferred and posted as Chief Collector of Customs (North), Custom House, Islamabad from the post of Member, Federal Board of Revenue (HQ), Islamabad. The officer has been asked to look after the charge of Director General, Directorate General of Reforms & Automation (Customs), Islamabad in addition to his own duties.
READ MORE: FBR directs Customs officials to declare dual nationality
11. Mirza Mubashir Baig (Pakistan Customs Service/BS-20) has been transferred and posted as Director General (OPS), Directorate General of Input Output Coefficient Organization (IOCO), Karachi (Stationed at Lahore) from the post of Chief, Federal Board of Revenue (Hq), Islamabad.
12. Muhammad Saleem (Pakistan Customs Service/BS-20) has been transferred and posted as chief collector of customs (OPS), Khyber Pakhtunekhwa, Peshawar from the post of Director General (OPS), Directorate General of Reforms & Automation (Customs), Islamabad.
13. Ashhad Jawwad (Pakistan Customs Service/BS-20) has been transferred and posted as Chief Collector of Customs (OPS), Appraisement (South) Karachi from the post of Collector, Collectorate of Customs Appraisement, Port Muhammad Bin Qasim, Karachi.
14. Muhammad Yaqoob Mako (Pakistan Customs Service/BS-20) has been transferred and posted as Chief Collector of Customs (OPS), Enforcement (South), Karachi from the post of Chief, BDT-Customs Federal Boar of Revenue (HQ), Islamabad with the look after charge of the post of Chief/Focal Person, MER IO-8, FATF Cell, FBR (HQ), Islamabad. The officer has been directed to continue to look after the charge of the post of Chief / focal person, MER IO-8, FATF Cell, FBR (HQ), Islamabad (Stationed at Karachi) in addition to his own duties.
15. Muhammad Jamil Nasir Khan (Pakistan Customs Service/BS-20) has been transferred and posted as Collector, Collectorate of Customs Appraisement, Port Muhammad Bin Qasim, Karachi from the post of Chief, Federal Board of Revenue (HQ), Islamabad.
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.
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Pakistan Customs foils attempt to clear banned items
KARACHI: Pakistan Customs has foiled a major attempt to clear items that are banned for importer into the country.
A statement issued on Friday stated that the Collectorate of Customs Appraisement (West), Federal Board of Revenue (FBR) Karachi had foiled a major attempt to clear high value and high tariff miscellaneous goods mostly banned items vide SRO-598(I)/2022.
READ MORE: FBR starts penal action against non-filing of asset declarations
A consignment imported from UAE by M/s. Riz Green Industries declared to contain ‘old & used tyre scrap’ marked by system in yellow channel was suspected and referred for detailed examination at Karachi International Container Terminal (KICT).
Upon thorough examination, miscellaneous goods including artificial jewellery, furnishing fabric, laptops, tablets, mobile phones, auto parts, food supplements, cereals, cosmetics, DVRs and home electronics, etc were recovered from 09 out of 10 containers.
READ MORE: FBR announces prize winners in eighth draw of POS invoices
The assessed value of recovered goods is estimated at Rs. 453 million involving duty and taxes worth around Rs. 400 million.
It is an unprecedented case/detection by any clearance Collectorate. FIR has been lodged and one person has been arrested. Further investigation is underway.
READ MORE: FBR directs Customs officials to declare dual nationality
Chairman FBR/Secretary Revenue Division Asim Ahmad has commended the successful operation by the Customs Appraisement team and reiterated his unflinching resolve to fight the menace of smuggling in all forms and manifestations.
It is also pertinent to mention that Chairman FBR has already issued special instructions to Customs Field Formations for stepping up vigilance at airports and land border stations to frustrate any attempts made for smuggling.
READ MORE: FBR allows tax refund deducted through electricity bills
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FBR starts penal action against non-filing of asset declarations
The Federal Board of Revenue (FBR) has taken a firm stance against tax officials who have failed to submit their annual asset declarations, signaling the commencement of penal action against non-compliant officers.
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FBR announces prize winners in eighth draw of POS invoices
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday announced winners of eighth balloting of invoices issued through Point of Sale (POS) of retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Muhammad Usama Shakeel on the invoice issued by Chase Up.
READ MORE: FBR announces prize winners of 7th draw of POS invoices
The FBR announced winners of two second prizes of Rs500,000 each to Muhammad Faisal Sadiq on the invoice issued by Metro Pakistan (Pvt) Limited and Muhammad Imran on the invoice issued by CSD.
Similarly, the four winners of third prize amounting Rs250,000 each are awarded to Muhammad Talha Asif, Faizan Ali and Abdul Rehman.
The FBR conducts computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was eighth draw as it was started in January 15, 2022.
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
The FBR previously issued a procedure for participating in the prize scheme.
READ MORE: 101 retailers given July 10 as deadline for integration
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.
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.
READ MORE: Sindh integrates 56 restaurants for online tax monitoring
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.
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.
READ MORE: FBR issues procedure for restoration of input tax adjustment
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.
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FBR directs Customs officials to declare dual nationality
ISLAMABAD: The Federal Board of Revenue on Friday directed the officials of Pakistan Customs Service (PCS) to provide information related to dual nationality.
The FBR – the apex tax collecting agency of Pakistan – has circulated an official memorandum in this regard to all chief collectors/collectors of customs and all directors general of customs department.
READ MORE: Sindh reduces sales tax on services for IT sector: SRB
According to the official memo, a format has been provided which will be filled by all officers of Pakistan Customs/Ex-Cadre BS-17 and above, for updation of data maintained by HRIS, FBR.
The officers have been directed that the necessary information should be submitted to the FBR latest by August 23, 2022.
READ MORE: FBR allows tax refund deducted through electricity bills
The customs officers are required to provide information in case of holding dual citizenship. The details must include: name, designation, BPS (grade), service group, CNIC No., Current place of posting and dual nationality.
In case of married, the officers are required to provide details, which include: spouse name, spouse Pakistan’s CNIC Number, Spouse Pakistan Passport Number, Spouse country of other nationality, and date of acquisition of foreign nationality.
READ MORE: Pakistan decides to roll back fixed tax scheme
Whether the government servant is providing services or consultancy (temporary/regular/part time) to the local or international (or both) NGOs, community development organizations, community development corporation, non-profit organizations, thin tans, research organizations/centers, consultancy firms/organizations, in such cases the officers are required to provide details of name of organization/firm, role/designation in that firm and date of engagement with the concerned firm.
READ MORE: FTO investigates tax collection through electricity bills