The Federal Board of Revenue (FBR) has initiated the process for the upcoming fiscal year’s budget by inviting customs-related proposals for the financial year 2022/2023 from various stakeholders, including business chambers and associations.
(more…)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.
-
Apex court suspends order in tax notices to overseas assets
The apex court of Pakistan has suspended the order of the higher court related to tax notices to Pakistanis for their overseas assets.
(more…) -
Retail price of sugar may be abolished for sales tax
ISLAMABAD: The government has proposed to withdraw sugar for charging sales tax on retail price by making amendment in the main tax law.
Through Finance (Supplementary) Bill, 2021 dated December 30, 2021, the government proposed to withdraw the condition of collecting sales tax on sugar retail price.
The government after just six months of making legislation regarding sales tax on sugar has proposed to withdraw the law.
READ MORE: Jahangir Tareen’s sugar mill declares 248% rise in annual profit
In case the parliament approve the bill, then whatever retail price is the sales tax to be collected at the value notified by the Federal Board of Revenue (FBR).
The FBR through SRO 1027(I)/2021 dated August 16, 2021, notified the minimum value of the domestically produced white crystalline sugar at Rs72.22 per kilogram from Rs60/kg.
The FBR on July 01, 2021 issued Circular No. 02 of 2021 to explain inclusion of sugar in the Third Schedule to the Sales Tax Act, 1990.
“Currently, the price of white crystalline sugar is fixed at Rs60/kg in terms of SRO 812(I)/2016 dated September 02, 2016, which is considerably below the actual market price of the commodity. In order to address this anomaly, sugar is proposed to be included in the Third Schedule to the Sales Tax Act, 1990, so that sales tax is charged and collected on actual retail price of the product at the manufacturing stage.
READ MORE: Digital tax monitoring yields Rs32.43bn from sugar sector
“This measure would not only ensure due payment but also help in putting a more effective price control mechanism in place for sugar.”
In its memorandum on the finance supplementary bill, PwC A. F. Ferguson & Co. – a chartered accountancy firm, said that goods specified in the Third Schedule are subject to sales tax on their retail price.
“At present, the Government is empowered to include or exclude any goods from the Third Schedule through a notification. The Bill proposes to vest such power to the Board [FBR].”
READ MORE: FBR tightens condition for tax stamped sugar bags
Through the Finance, 2021 sugar was included in the Third Schedule whereby sugar supplied other than as industrial raw material to pharmaceutical, beverage and confectionary industries was subject to sales tax at retail price.
Through SRO 989(I)/2021 dated August 5, 2021, sugar was taken out of Third Schedule for the period from July 1, 2021 till November 30, 2021.
The bill proposes to exclude sugar from Third Schedule w.e.f. December 1, 2021; thus, making it liable to sales tax at its value of supply across the board.
READ MORE: FBR decides posting officials for sugar crushing 2021-22
KPMG Taseer Hadi & Co. – another chartered accountancy firm, explained that the Finance Act, 2021 had put sugar at serial No. 50 of the Third Schedule with the exception of sugar supplied as an industrial raw material to pharmaceutical, beverage and confectionary industries.
“Now the bill proposes to omit the entry, effective from December 01, 2021, meaning thereby that henceforth supply of sugar will be taxable at 17 per cent of the value thereof.”
-
CNIC condition to be waived on digital payment
The Federal Board of Revenue (FBR) is contemplating the withdrawal of the condition mandating the provision of Computerized National Identity Card (CNIC) details for transactions conducted through digital means, as proposed in the Finance (Supplementary) Bill, 2021.
(more…) -
FBR may decide implementing digital payment system
The Federal Board of Revenue (FBR) may be authorized to decide the implementation of payment through digital means.
(more…) -
FBR fixes CNG value for charging sales tax
In a move to streamline and regulate the collection of sales tax on compressed natural gas (CNG), the Federal Board of Revenue (FBR) has issued a new notification, SRO 39(I)/2022 dated January 08, 2022, to establish fixed values for CNG.
(more…) -
Section 72A of Sales Tax Act
ISLAMABAD – In a significant move to streamline the references to authorities within the Sales Tax Act, 1990, Section 72A has been introduced through the Finance Act, 2021.
(more…) -
Obeying FBR’s orders made mandatory
In a bid to ensure effective implementation and enforcement of tax-related regulations, Section 72 of the Sales Tax Act, 1990, mandates that officers of Inland Revenue and other individuals engaged in the execution of the Act must adhere to the orders, instructions, and directions issued by the Federal Board of Revenue (FBR).
(more…) -
Tarin warns tax evaders of strict actions
ISLAMABAD: Finance Minister Shaukat Tarin on Friday warned tax evaders and potential taxpayers to pay their liabilities before harsh actions initiated against them.
At the launching of National Sales Tax Return, by Federal Board of Revenue (FBR), he asked the unregistered potential taxpayers to initiate paying taxes before the government reaches them within a couple of months with documentary evidence of their assets.
“I assure the nation that change is taking place, we are making use of technology and will reach all potential taxpayers.
Tarin said that with the help of technology, the government would reach to all those persons who have taxable assets but were not paying taxes adding that there was now no need to issues notices as the government was already possessing date of millions of taxpayers.
He said, the authorities would reach the tax-avoiders and provide them the tax returns with an opportunity to prove it wrong by consulting panel of auditors or pay the due taxes.
“We will not harass, we will tell them what they possess. If they don’t pay, then the law would take its own course,” he added.
Meanwhile, the minister congratulated federal and provincial revenue divisions for coming on a single platform and making payment of revenues easy for taxpayers.
He said, since sales tax on goods was federal domain and sales tax on services was coming under provinces, hence it was creating hardships for taxpayers.
Now, under the single platform, the taxpayers would be facilitated, adding that in previous system, if a company was operating in all the provinces, it had to deal with around seven agencies for filing returns, with chances of errors. However, now they would be required to file single tax under the new system.
He said that the government was also working on further harmonization of system to facilitate taxpayers and expressed the hope that ease in tax deposit system would help enhance revenues.
The minister said that three was no other way, if the country had to progress and prosper, there is need to enhance revenue collection. He cited example of Germany where he said there was no representation without taxation.
He lamented that there were only 3 million taxpayers out of 220 million population in the country.
He said, out of around Rs18 trillion retail sales, only Rs3 to Rs4 trillion were captured and Rs14 million sales are still missing from the tax system.
-
Senior FBR auditor awarded ‘dismissal from service’ for corruption
ISLAMABAD: A senior auditor of Federal Board of Revenue (FBR) has been awarded major penalty of ‘dismissal from service’ on allegations of corruption, misconduct and inefficiency.
The FBR on Friday through a notification said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Gulraiz Ahmad Raza, Senior Auditor (BS-16), while he was posted in Regional Tax Office-III, Karachi (Now RTO-II, Karachi) through charge sheet issued on January 05, 2016.
READ MORE: Customs official awarded ‘dismissal from service’ for misconduct
Abdul Rehman Khilji, then Additional Commissioner, CTO Karachi was appointed as Inquiry Officer to conduct inquiry on account of acts of omission and commission committed by the accused officer; constituting Inefficiency, Misconduct and Corruption.
The inquiry report proved the charges levelled against the officer.
On the basis of the inquiry report, show cause notice No. 2(856)/2010-MIR-III/104869-R dated 19.07.2021 was issued to the accused officer by the Authorized Officer i.e. Chief (HRM-IR) with the directions to submit reply by 09.08.2021. Later on, upon the request of the accused officer date of submission of reply was extended up to 10.10.2021.
READ MORE: FBR auditor awarded dismissal from service for availing NAB plea bargain
In his reply to the show cause notice vide letter dated 07.09.2021, the accused officer neither commented upon the merits of the case nor submitted any reply to the charges but only requested for provision of previous inquiry report which was regretted vide letter 2(856)/2010-MIR-III/155893-R dated 27.09.2021.
He was also granted an opportunity of personal hearing vide No. 2(856)/2010-MIR-III/155893-R dated 27.09.2021 on 18.10.2021. Nevertheless, the accused did not avail the opportunity of personal hearing and did not show up on the due date of hearing.
It is pertinent to mention that clarification was sought from Establishment Division as to whether who would be Authorized Officer for the inquiries initiated before 08.06.2017.
READ MORE: Single sales tax return to eliminate fake, flying invoices
Establishment Division being custodian of the Civil Servants Act & Rules made thereunder vide Sr.13(10) of schedule II of the Rules of Business 1973 advised vide their O.M. No. 16/18/2000-R-II dated 03.06.2021 that pending cases initiated under Board’s Notification dated 20.04.2010 would continue to be processed by the same Authorized Officer and Authority.
In light of the above and on the basis of the report of the Inquiry Officer, the Authorized Officer, as notified vide Board’s Notification No. 1014-M.III/2010 dated 20.04.2010, under rule 5(1)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973, recommended to the Authority i.e. Member (Admn/HR) for imposition of one of the major penalties, as defined in Rule 4(1)(b)(ii),(iii) & (iv) of the rules ibid upon the accused officer.
READ MORE: Annual sales tax collection from imports climbs up 27%
Now, therefore, the Authority, after considering the facts of the case, has imposed the major penalty of “Dismissal from Service” under Rule 4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973 upon Gulraiz Ahmad Raza, Senior Auditor (BS-16), FBR (Hq), Islamabad.
Gulraiz Ahmad Raza shall have the right of appeal, as admissible under the Civil Servants (Appeals) Rules, 1977.