Pkrevenue.com

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.

  • Detention of goods violating customs act

    Detention of goods violating customs act

    Section 17 of Customs Act, 1969 explains detention, seizure and confiscation of goods imported in violation of section 15 or section 16.

    The Federal Board of Revenue (FBR) issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 17 of the Customs Act, 1969:

    17. Detention, seizure and confiscation of goods imported in violation of section 15 or section 16.- Where any goods are imported into, or attempted to be exported out of, Pakistan in violation of the provisions of section 15 or of a notification under section 16, such goods shall, without prejudice to any other penalty to which the offender may be liable under this Act or the rules made there under or any other law, be liable to detention, for seizure or confiscation subject to approval of an officer not below the rank of an Assistant Collector of Customs, and seizure for confiscation through adjudication, if required :

    Provided that the period of detention shall not exceed fifteen days which may be extended by the Chief Collector or Director General for a period not exceeding fifteen days.

    (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.)

  • KCCI proposes sales tax exemption to solar panels, inverters

    KCCI proposes sales tax exemption to solar panels, inverters

    Karachi Chamber of Commerce and Industry (KCCI) has proposed restoration of sales tax exemption on supply of solar panels and inverters.

    The KCCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR), stated that solar panels and inverters were earlier granted zero rated of sales tax.

    READ MORE: FBR suggested automatic GD filing extension on system failure

    The exemption from sales tax on supply of solar panels and inverters were withdrawn through supplementary finance bill 2021 thus imposing 17 per cent sales tax.

    The chamber said that imposition of 17 per cent sales tax increased the cost for consumer and discourage use of alternative sources of energy.

    Every household, commercial establishments and industries are opting for alternate sources of energy to reduce their expenditure and cost of doing business. Solar energy is now widely being used in Pakistan and helping to reduce dependence on costly thermal power.

    READ MORE: KCCI proposes sales tax exemption to e-commerce

    Every Household and commercial sector has been affected by exorbitant cost of electricity.

    With imposition of 17 per cent sales tax, cost of solar panels and inverters will increase and discourage substitution.

    It is proposed that exemption of sales tax on solar panel and inverters through Supplementary Finance Bill 2021 should be restored.

    READ MORE: Withholding tax on raw material import should be adjustable

    Giving rationale, the chamber said that the proposal would reduce prices for consumers for saving the electricity and gas for local industries and oil imports. It is Import substantial for the country. Expansion of an industry which has good potential for growth.

    The Karachi Chamber highlighted the issued on indenting agents stating that such agents have to pay 5 per cent withholding tax on inward remittances of commission while the indenting agents based in Sindh also have to pay Sindh Sales Tax on Services at 13 per cent.

    READ MORE: KCCI suggests VAT removal for commercial importers

    To avoid such rates of taxation, indenters now mostly retain the commission outside Pakistan and book import orders on Proforma Invoices or Contracts from suppliers. This results in loss of foreign exchange to the country.

    In the online meeting with KCCI on June03, 2021, the Minister for Finance and Revenue agreed to the proposal that indenting commission should be treated as export proceeds and taken out of the purview of provincial service taxes. Indenting agents serve all of Pakistan and should therefore remain in Export regime just as IT and other service providers. The proposal may therefore be incorporated in budget.

    Encourage remittance of foreign exchange and documentation.

    READ MORE: FPCCI demands CNIC condition withdrawal

    The chamber in another issue stated that large amounts of refund of Drawback of Local Taxes and Levies (DLTL) pertaining to exporters are delayed and remain unpaid for months.

    Exporters face liquidity crunch due to blocked funds and blocked refunds have a negative impact on exports.

    In the meeting with KCCI delegation in Islamabad on September 20, Minister for Finance and Revenue had assured the KCCI delegation that DLTL will continue and pending refunds will be expedited.

    KCCI therefore submits that payments of DLTL should be released and backlog be cleared.

    Improve liquidity for exporters and help to enhance exports.

  • FBR to install more scanners for customs clearance

    FBR to install more scanners for customs clearance

    KARACHI: The Federal Board of Revenue (FBR) will add more scanners for digitization of customs clearance, said Wajid Ali, Chief Collector, MCC Appraisement (South) Karachi.

    Addressing at Federation of Pakistan Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday, he said that more container scanners will added on a regular basis and customs is moving towards best-practices in digitalization; however, accepted that more work needs to be done to facilitate the traders.

    READ MORE: FBR promotes Customs officers to BS-19

    Agreeing to the top demand of FPCCI, Wajid Ali promised that the online complaint mechanism will be launched at Federation House to address all the issues, concerns and complaints of the business community pertaining to customs.

    It will not only promote the liaison between the customs department and the business community; but, will also expedite the complaints resolution process.

    The Chief Collector informed the session that Input/Output Co-efficient Organization (IOCO) has determined the quotas for the erstwhile FATA and PATA region; hence, its misuse will be eliminated.

    He also committed that refunds will be swiftly processed to facilitate the traders. He added that National Single Window (NSW) will contain HS Codes in 12 digits.

    READ MORE: FBR drafts ID evidence rules to subscribe Pakistan Single Window

    Wajid Ali has asked FPCCI to propose the inclusion of its representative into the classification committee and apprised that Alternative Dispute Resolution Committee (ADRC) will also be refreshed.

    He also welcomed the recommendations of appointing a focal person for FPCCI for the greater good of business community; more proactive 90-day advanced rulings and effective implementation of protections covered under SRO 598 to already issued Bill of Lading and Letter of Credit.

    Earlier, Irfan Iqbal Sheikh, President FPCCI, discussed the issues and anomalies endured by the business community with top customs officials in a detailed session at Federation House.

    He enlisted that lack of regulation of container terminals; misuse of erstwhile FATA and PATA exemptions; delay in refunds processing; unfair demurrages charges; insufficient investment into digitalization & container scanners; inadequate diversification in HS and PCT Codes; overlooking cascading principle on raw materials and irregular consultative process with the trading community’s stakeholders are the top impediments in the smooth functioning of the customs operations.

    READ MORE: Trade Information Portal of Pakistan

    Sheikh demanded formation of a regulatory authority for container terminals for a better working environment between traders and container terminals.

    He also expressed his profound concerns over misuse of erstwhile FATA and PATA exemptions as the phenomenon has disturbed the even-playing-field.

    Sheikh also expressed his dismay over paying technology upgradation and container scanner charges since the year 2005; but, no wide-scale upgradation has taken place as yet. He also called upon customs authorities to adopt 16-digit HS Codes to cater to the diverse imports.

    Engr. M. A. Jabbar, Vice President FPCCI, pointed out that tariff rationalization should be an ongoing process to adapt to the ever-changing trade & industry environment and proposed that member policy of FBR should keep consulting the stakeholders.

    READ MORE: PSW to link 27 banks for trade facilitation

    Shabbir Hassan Mansha, VP FPCCI, demanded a focal person for FPCCI and also apprised the session that the business community faces delays in refunds as the pay orders are encashed without informing the traders; and, critical working capital is blocked due to the practice.

    Saqib Fayyaz Maggo, Convener Customs FPCCI, highlighted the lack of uniformity in the disposal of cases under Sections 81, 25A, 25D; on top of the excessive adjudication cases and ever-increasing demurrages charges.

  • FBR suggested automatic GD filing extension on system failure

    FBR suggested automatic GD filing extension on system failure

    KARACHI: The Federal Board of Revenue (FBR) has been urged to allow automatic extension for filing Goods Declaration (GDs) where traders unable to file due to system glitches.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2022/2023 informed the FBR that due to malfunctioning of the online filing system, Importers are unable to file GDs in time.

    READ MORE: KCCI proposes sales tax exemption to e-commerce

    Consequently clearance of cargo is delayed and importers have to bear heavy demurrage and detention charges.

    Similarly the filing of sales tax return is also delayed frequently due to software errors or disruption of the system resulting in expiry of deadline.

    READ MORE: Withholding tax on raw material import should be adjustable

    Due to these reasons, taxpayers are often penalized for delay in filing the sales tax returns within due date due to malfunction of the portal. Registered persons are held responsible for failure of the system which is not their fault.

    READ MORE: KCCI suggests VAT removal for commercial importers

    The chamber recommended adequate provisions shall be inserted in Customs Act 1969 and Sales Tax Act 1990, and necessary modification in the software be made which automatically condone any delay in Filing of GDs and filing of Sales Tax returns. System should allow waiver of demurrage and detention charges for the number of days during which system was down.

    READ MORE: FPCCI demands CNIC condition withdrawal

    It further recommended that delays in filing of Sales Tax Returns which occur due to failure/malfunction in the system should be automatically condoned without recourse to tax authorities and no penalty should be imposed for the delay in filing.

    Giving rationale to the proposal, the KCCI said it would alleviate the hardships faced by importers and sales tax registered persons. It will also enhance confidence of tax-payers in the system and encourage compliance. Save the importers and registered persons from unjust charges and cost of doing business.

  • FBR’s officers found non-compliant in filing asset declaration

    FBR’s officers found non-compliant in filing asset declaration

    ISLAMABAD: The Federal Board of Revenue (FBR) has detected a number of officers in BS-19 and BS-20 are non-compliant in filing mandatory declaration of assets.

    The FBR on Friday issued a circular instructing officers of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) in BS-19 and BS-20 to submit their declaration of assets and Performance Evaluation Reports (PERs) by May 31, 2022.

    READ MORE: FBR promotes Customs officers to BS-19

    The FBR said that the Establishment Division had informed that a meeting of Central Selection Board (CSB) for promotion of IRS/PCS from BS-20 to BS-21 and BS-19 to BS-20 posts, was scheduled to be held shortly and cases for promotion would be submitted to the Establishment Division for CSB by June 01, 2022.

    “It has been observed that PERs of the officers of IRS/PCS, who are in the promotion zone, have not yet been received despite reminders,” the FBR said.

    READ MORE: FBR transfers BS-20 officers of Pakistan Customs Service

    All BS-19 and BS-20 officers of IRS/PCS, who are in the promotion zone have been asked to ensure that their PERs and declaration of assets up to June 30, 2021 are submitted to the FBR latest by May 31, 2022.

    Completion of PERs and submission of declaration of assets are the prerequisites for promotion to selection grades under Civil Servants Promotion (BS-18 to BS-21) Rules, 2019. The FBR is trying hard to ensure that all eligible officers should be considered for promotion in the forthcoming CSB meeting.

    READ MORE: FBR promotes nine IRS officers to BS-19

    The FBR warned that any officer failing to furnish the documents by the due date of May 31, 2022, will himself/herself be responsible for non-consideration / deferment / supersession. The reporting/countersigning officers are also advised to immediately forward PERs of the officers to the Board without any delay.

  • FBR empowered to prohibit goods for import, export

    FBR empowered to prohibit goods for import, export

    The Federal Board of Revenue (FBR) has been granted enhanced authority to regulate the importation and exportation of goods under section 16 of the Customs Act, 1969.

    (more…)
  • Goods prohibited for customs clearance

    Goods prohibited for customs clearance

    Section 15 of Customs Act, 1969 explains prohibitions made for importing and exporting of goods.

    The Federal Board of Revenue (FBR) issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 15 of the Customs Act, 1969:

    15. Prohibitions.- No goods specified in the following clauses shall be brought into or taken out of Pakistan, namely:-

    (a) counterfeit coins, forged or counterfeit currency notes, and any other counterfeit product;

    (b) any obscene book, pamphlet, paper, drawing, painting, representation, figure, photograph, film, or, article, video or audio recording, CDs or recording on any other media;

    (c) goods having applied thereto a counterfeit trade mark within the meaning of the Pakistan Penal Code, 1860 (Act XLV of 1860), or a false trade description within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout-Designs of Integrated Circuits Ordinance, 2000 (XLIX of 2000), the Registered Designs Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001);

    (d) goods made or produced outside Pakistan and having applied thereto any name or trade mark, being or purporting to be the name or trade mark of any manufacturer, dealer or trader in Pakistan, unless,-

    (i) the name or trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place outside Pakistan; and

    (ii) the country in which that place is situated is in that indication shown in letters as large and conspicuous as any letter in the name or trade mark, and in the same language and character as the name or trade mark;

    (e) goods involving infringement of copyright, layout-design of integrated circuits, industrial designs, patents within the meaning of the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Designs Ordinance, 2000 (XLV of 2000), and the Patents Ordinance, 2000 (LXI of 2000), respectively; and

    (f) goods made or produced outside Pakistan and intended for sale, and having applied thereto, a design in which copyright exists under the Copyright Ordinance, 1962 (XXXIV of 1962), the Registered Layout –Designs of Integrated Circuits Ordinance, 2000 (XLV of 2000), the Patents Ordinance, 2000 (LXI of 2000), and the Trade Marks Ordinance, 2001 (XIX of 2001), in respect of the class to which the goods belong or any fraudulent or obvious imitation of such design, patent, copyright except when the application of such design has been made with the license or written consent of the registered proprietor, right holder of the design, patent or copyright, as the case may be:

    Provided that offences relating to goods imported or exported in violation of Intellectual Property Rights shall, notwithstanding any thing contained in any other law for the time being in force, be adjudicated under section 179 by the appropriate officer of customs.

    (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.)

    READ MORE: Facilitations to officers for customs clearance

  • Facilitations to officers for customs clearance

    Facilitations to officers for customs clearance

    Section 14A of Customs Act, 1969 has described any agency or person owning customs port should facilitate complete security and accommodation to customs staff.

    The Federal Board of Revenue (FBR) issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 14A of the Customs Act, 1969:

    14A. Provision of security and accommodation at Customs-ports, etc.- (1) Any agency or person including port authorities managing or owning a customs-port, a customs-airport or a land customs station or a container freight station shall provide at its or his own cost adequate security and accommodation to customs staff for residential purposes, offices, examination of goods, detention and storage of goods and for other departmental requirements to be determined by the Collector of Customs and shall pay utility bills, rent and taxes in respect of such accommodation.

    (2) Any agency or person including, but not limited to port authorities managing or owning a customs port, a customs airport or a land customs station or a container freight station, shall entertain delay and detention certificate issued by an officer not below the rank of Assistant Collector of Customs and also refund demurrage charges which the agency or person has received on account of delay because of no fault of importers or exporters.

    (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.)

    READ MORE: Appointment of stations in or near customs port

  • FBR promotes Customs officers to BS-19

    FBR promotes Customs officers to BS-19

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday May 26, 2022 announced promotion of BS-18 officers of Pakistan Customs Service (PCS) to BS-19 as additional collector on regular basis.

    (more…)
  • FBR transfers BS-20 officers of Pakistan Customs Service

    FBR transfers BS-20 officers of Pakistan Customs Service

    The Federal Board of Revenue (FBR) has implemented a series of strategic transfers and postings within the Pakistan Customs Service (PCS) at the BS-20 level.

    (more…)