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Tag: FBR

FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • FBR extends digital payment system till January 31

    FBR extends digital payment system till January 31

    ISLAMABAD: The Federal Board of Revenue (FBR) has deferred the implementation of a digital mode of payment for another month i.e. January 31, 2022.

    The digital mode of payment has been made mandatory for the corporate sector, which was to be implemented from January 01, 2021.

    The FBR issued circular No. 11 of 2021-22 on Monday to allow further extension till January 31, 2021.

    “In exercise of the powers conferred under Section 214A of the Income Tax Ordinance, 2001 (hereinafter “the Ordinance”) and taking cognizance of various representations filed by the taxpayers, the Federal Board of Revenue is pleased to extend the deadline for digital payments by Corporate Sector stipulated in Section 21(1a) of the Ordinance up to January 31, 2022.”

    Previously, the FBR issued Circular No. 09 of 2021-22 to allow an extension in the deadline for implementation of digital mode of payment up to November 30, 2021.

    The new provision was introduced through Tax Laws (Third Amendment) Ordinance, 2021.

    The FBR in its explanation through Circular No. 07 dated September 23, 2021 said: to improve documentation, a new clause (la) has been inserted in section 21 of the Ordinance.

    The Pakistan Tax Bar Association (PTBA) in a letter to the FBR chairman stated that the implementation of digital payment was not practical at the moment.

  • Tax collection from property transactions surges to Rs61 billion

    Tax collection from property transactions surges to Rs61 billion

    ISLAMABAD: The annual collection of withholding tax from transactions of immovable properties has surged by 98 per cent to Rs61.06 billion during fiscal year 2020/2021.

    According to official statistics made available to PkRevenue.com, the collection from sales and purchase of immovable properties was Rs30.77 billion during fiscal year 2019/2020.

    Sources in the Federal Board of Revenue (FBR) attributed the increase in revenue collection to enhanced activities during the fiscal year due ease in restrictions related to coronavirus.

    READ MORE: Advance tax on purchase of immovable property

    They said that the first case of coronavirus was identified in February 2019, and then the government resorted to strict lockdown, which stalled the economic activities.

    However, in the subsequent year the government decided to relax the corona restrictions and brought the economic activities to normal.

    The FBR collects withholding tax under section 236C of the Income tax Ordinance, 2001 on sale and transfer of immovable properties.

    READ MORE: Advance tax on sale or transfer of immovable property

    Furthermore, the FBR collect withholding tax under Section 236K of the Income Tax Ordinance, 2001 on purchase of immovable properties.

    The collection of withholding tax on sale or transfer of immovable properties registered a growth of 76 per cent to Rs7 billion during fiscal year 2020/2021 as compared with Rs12.2 billion in the preceding fiscal year.

    The collection of withholding tax on purchase of immovable properties registered an unprecedented growth of 105 per cent to Rs49 billion during fiscal year 2020/2021 as compared with Rs24 billion in the preceding fiscal year.

    READ MORE: FBR issues new, revised tables of property valuation

    The FBR sources said that the collection during the fiscal year 2021/2022 would increase significantly due to change in valuation tables for the purpose of withholding tax collection from transactions of immovable properties.

    The FBR on December 01, 2021 issued fresh and revised valuation of immovable properties for various cities of the country.

    However, the implementation of the fresh valuation table will be applicable from January 16, 2021.

    READ MORE: FBR postpones property valuation implementation

  • FBR decides to manage, display gifts received by officials

    FBR decides to manage, display gifts received by officials

    ISLAMABAD: The Federal Board of Revenue (FBR) has decided to manage and display gifts received during official meetings, a statement said on Monday.

    The Board in Council of the FBR in its meeting on January 01, 2022, discussed various agenda items and made some very important decisions.

    READ MORE: Tax payment with return drops to Rs54 billion in FY21

    For the first time ever in the organization’s history, the council unanimously agreed to establish Toshakhana under the relevant rules and guidelines of the Cabinet Division.

    The council also discussed the existing rules regarding the acceptance and disposal of gifts.

    After thorough deliberations, it was decided to notify procedures with regards to inventory management and display of the gifts received from dignitaries/guests during official meetings and visits.

    READ MORE: Pak-Afghan 2nd round talks on DTA concludes

    It was further decided that all officers of FBR would voluntarily declare and deposit gifts received by them. The minimum threshold for gifts has been determined to be Rs. 10,000 for FBR instead of Rs. 30,000, currently fixed for the other divisions of the Federal Government.

    The only exception to these rules is applicable on shields and gifts that have an individual’s name engraved. It was also agreed that gifts so far declared will be disposed of as per applicable rules and regulations.

    READ MORE: New rates of FED on local, imported motor vehicles

    Furthermore, the BIC also approved the new nomenclature for FATE Wing which will now be known as Public Relations Wing.

    Likewise, the two training directorates of Inland Revenue Service and Pakistan Customs, FBR have got their new names, IRS Academy and Pakistan Customs Academy, respectively.

    READ MORE: Mini-budget: FBR to generate Rs4.5bn through tax rate increase on cellular services

  • Tax payment with return drops to Rs54 billion in FY21

    Tax payment with return drops to Rs54 billion in FY21

    ISLAMABAD: The voluntary payment along with annual income tax return has dropped to Rs54.09 billion during the fiscal year 2020/2021, according to official data made available to PkRevenue.com

    The tax payment with return was Rs56.5 billion during the fiscal year 2019/2020, according to data compiled by the Federal Board of Revenue (FBR).

    READ MORE: Requirement of filing income tax return by persons

    The primary reason for the decline in voluntary payment in the fiscal year 2020/2021 was a bulk amount was paid along with the returns under the head of the amnesty scheme during the fiscal year 2019/2020.

    An amount of Rs19.8 billion under the amnesty scheme was paid with the returns during the fiscal year 2019/2020.

    READ MORE: Action against concealed, unexplained income or assets

    On the other hand, the collection of tax under Section 137 of the Income Tax Ordinance, 2001 surged to Rs52.62 billion during the fiscal year 2020/2021 as compared with Rs36.23 billion in the preceding fiscal year.

    READ MORE: What is due date for tax payment?

    Furthermore, the collection under Section 113A of the Income Tax Ordinance, 2001, from small retailers also recorded significant growth to Rs1.43 billion during the fiscal year 2020/2021 when compared with Rs418 million in the preceding fiscal year.

    Income Tax Ordinance, 2001 updated till June 30, 2021
  • Refund to be claimed within one year

    Refund to be claimed within one year

    Section 66 of Sales Tax Act, 1990 has described refund to be claimed within one year.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 66 of the Sales Tax Act, 1990:

    66. Refund to be claimed within one year.– No refund of tax claimed to have been paid or over paid through inadvertence, error or misconstruction or refund on account of input adjustment not claimed within the relevant tax period, shall be allowed, unless the claim is made within one year of the date of payment:

    Provided that in a case where a registered person did not deduct input tax within the relevant tax period, the Commissioner may, after satisfying himself that input tax adjustment is due and admissible, allow the registered person to take such adjustment in the tax period as specified by the Commissioner:

    Provided further that in a case where the refund has become due on account of any decision or judgement of any officer of Inland Revenue or court or the Tribunal, the period of one year shall be reckoned from the date of judgement or decision of such officer, court or Tribunal:

    Provided further that the application or claim filed under this section shall be disposed of within a period not exceeding ninety days from the date of filing of such application or claim.

    Provided also that no refund shall be admissible under this section if incidence of tax has been passed directly or indirectly to the consumer.

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

    Exemption of tax not or short levied
  • Exemption of tax not or short levied

    Exemption of tax not or short levied

    Section 65 of Sales Tax Act, 1990 has explained exemption of tax not levied or short levied as a result of general practice.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 65 of the Sales Tax Act, 1990:

    65. Exemption of tax not levied or short levied as a result of general practice.– Notwithstanding anything contained in this Act, if in respect of any supply the Federal Government is satisfied that inadvertently and as a general practice: –

    (a) tax has not been charged in any area on any supply which was otherwise taxable, or according to the said practice the amount charged was less than the amount that should have actually been charged;

    (b) the registered person did not recover any tax prior to the date it was discovered that the supply was liable to tax; and (c) the registered person started paying the tax from the date when it was found that the supply was chargeable to tax;

    It may, by a notification in the official Gazette, direct that the tax not levied or short levied as a result of that inadvertent practice, shall not be required to be paid for the period prior to the discovery of such inadvertent practice.

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

    FBR may prohibit drawback in case of foreign territory
  • FBR may prohibit drawback in case of foreign territory

    FBR may prohibit drawback in case of foreign territory

    In a move that could have significant implications for exporters, the Federal Board of Revenue (FBR) is contemplating the prohibition of drawback against goods exported to specified foreign territories.

    (more…)
  • New rates of FED on local, imported motor vehicles

    New rates of FED on local, imported motor vehicles

    ISLAMABAD: The federal government has proposed enhancement in federal excise duty (FED) on imported and locally assembled vehicles through mini-budget.

    The government on December 30, 2021 presented Finance (Supplementary) Bill, 2021 to take tax measures to generate additional revenue for improve fiscal situation of the country. One of the major revenue measure is increasing the FED on imported and locally manufactured motor vehicles.

    READ MORE: Mini-budget: FBR to generate Rs4.5bn through tax rate increase on cellular services

    Sources said that the Federal Board of Revenue (FBR) had estimated to generate additional Rs6.5 billion through the changes.

     According to the changes proposed, the FED on imported completely built unit (CBU) up to 1,000 CC the rate shall be unchanged at 2.5 per cent ad valorem.

    READ MORE: Mini-budget: income tax rates proposed for foreign TV dramas

    However, CBU imported vehicles between 1001CC to 1799CC the FED has been proposed to enhance to 10 per cent from 5 per cent.

    Similarly, the CBU imported motor vehicles between 1800CC to 3000CC the FED has been increased to 30 per cent from 25 per cent.

    Likewise, the motor vehicles above 3000CC, the FED has been enhanced to 40 per cent from 30 per cent.

    READ MORE: Tax exemptions worth Rs343 billion withdrawn through mini-budget

    The FED on locally manufactured motor vehicles has been kept unchanged at zero per cent for engine capacity up to 1000CC.

    However, motor vehicles with engine capacity between 1000CC to 2000CC and exceeding 2000CC, the FED has been enhanced to 5 per cent from 2.5 per cent and enhanced to 10 per cent from 5 per cent, respectively.

    The Federal Board of Revenue (FBR) said that the FED has been announced to increase to 30 per cent from existing rate of 25 per cent on import of double cabin (4X4) pick-up vehicles.

    Similarly, the FED on locally manufactured double cabin (4X4) has been increased to 10 per cent from existing rate of 7.5 per cent.

    READ MORE: Mini-budget: Advance tax on motor vehicles doubles

  • Pak-Afghan 2nd round talks on DTA concludes

    Pak-Afghan 2nd round talks on DTA concludes

    ISLAMABAD: Pakistan and Afghanistan have concluded the second round of talks on double taxation agreement (DTA).

    According to a statement issued on Saturday said that Afghanistan Revenue Department (ARD) and Federal Board of Revenue (FBR) concluded second round of negotiations on Double Taxation Agreement (DTA) between Pakistan and Afghanistan.

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

    The four-member delegation of Afghanistan Revenue Department (ARD) were on visit to Pakistan, which commenced from December 27, 2021.

    The inaugural session was presided over by Qaiser Iqbal, Director General (International Taxes), FBR who welcomed the delegates and hoped that the proposed DTA between the two brotherly countries would go a long way in fostering economic relationships and would also contribute to the development of both the countries.

    The negotiations were conducted in the most cordial and friendly atmosphere. Both the delegations discussed all the outstanding issues of the first round of negotiations held in Islamabad from 28th to 30th March, 2016. Both the sides presented and appreciated each other’s respective positions.

    However, it was agreed that the un-resolved issues would be discussed and finalized in the third round of negotiations to be held in Kabul, Afghanistan on mutually agreed dates.

    The Afghan delegation was led by Esmatullah Salimi, Revenue Audit Director, ARD and included Abdul Wali Noori, Technical Deputy Director-General, ARD,  Nida Mohammad Seddiqi, Legal Services Director, ARD and Najeebullah Ahmadzai, Advisor to MoF, while the Pakistan delegation was headed by Qaiser Iqbal, Director General (International Taxes), FBR and included Barrister Nowsherwan Khan, Chief (International Taxes) and Ms. Hira Nazir, Secretary (Tax Treaties & Conventions), FBR.

  • FBR collects Rs2.92 trillion in first half of FY22

    FBR collects Rs2.92 trillion in first half of FY22

    The Federal Board of Revenue (FBR) has achieved a significant milestone by provisionally collecting Rs2.92 trillion during the first half (July – December) of the fiscal year 2021/2022 (FY22), surpassing the half-year target of Rs2.63 trillion by an impressive Rs287 billion.

    (more…)