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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.

  • Penalty for selling cigarettes with counterfeit tax stamps

    Penalty for selling cigarettes with counterfeit tax stamps

    The Sales Tax Act, 1990 has prescribed penalty and imprisonment for manufacturing, possessing, transporting, distributing, storing or selling cigarettes with counterfeited tax stamps.

    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 33(23) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    23. Any person who manufactures, possesses, transports, distributes, stores or sells cigarette packs with counterfeited tax stamps, banderoles, stickers, labels or barcodes or without tax stamps, banderoles, stickers, labels or barcodes

    (i) Such cigarette stock shall be liable to outright confiscation and destruction. Any person committing the offence shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to three years, or with additional fine which may extend to an amount equal to the loss of tax involved, or with both.

    (ii) In case of transport of cigarettes with counterfeited tax stamps, banderoles, stickers, labels or barcodes, or without tax stamps, banderoles, stickers, labels or barcodes, permanent seizure of the vehicle used for transportation of non-conforming or counterfeit cigarette packs; and

    (iii) In case of repeat sale of cigarettes without or with counterfeited, tax stamps, banderoles, stickers, labels or barcodes, the premises used for such sale be sealed for a period not exceeding fifteen days.

    READ MORE: Imprisonment for unauthorized access to tax system

    (Disclaimer: The text of the 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.)

  • Imprisonment for unauthorized access to tax system

    Imprisonment for unauthorized access to tax system

    Any person who knowingly and without lawful authority gains access to or attempts to gain access to the computerized system shall be liable for imprisonment as stated in Sales Tax Act, 1990.

    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 33(22) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    22. Any person who,-

    (a) knowingly and without lawful authority gains access to or attempts to gain access to the computerized system; or

    (b) unauthorizedly uses or discloses or publishes or otherwise disseminates information obtained from the computerized system; or

    (c) falsifies any record or information stored in the computerized system; or

    (d) knowingly or dishonestly damages or impairs the computerized system; or

    (e) knowingly or dishonestly damages or impairs any duplicate tape or disc or other medium on which any information obtained from the computerized system is kept or stored; or

    (f) unauthorizedly uses unique user identifier of any other registered user to authenticate a transmission of information to the computerized system; or

    (g) fails to comply with or contravenes any of the conditions prescribed for security of unique user identifier.

    Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. He shall, further be liable, upon conviction by the Special Judge, to imprisonment for a term which may extend to one year, or with fine

    which may extend to an amount equal to the loss of tax involved, or with both.

    READ MORE: Penalties under Section 33 (15-21) of Sales Tax Act

     (Disclaimer: The text of the 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.)

  • Penalties under Section 33 (15-21) of Sales Tax Act

    Penalties under Section 33 (15-21) of Sales Tax Act

    Various penalties have been prescribed under Section 33 (15, 16, 17, 18, 19, 21) of Sales Tax Act, 1990, issued by the Federal Board of Revenue (FBR).

    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 33(15, 16, 17, 18, 19, 21) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    15. Any person who obstructs the authorized officer in the performance of his official duties. (Section 31 & General)

    Such person shall pay a penalty of twenty-five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher.

    16. Any person who fails to make payment in the manner prescribed under section 73 of this Act. (Section 73)

    Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.

    17. Any person who fails to fulfil any of the conditions, limitations or restrictions prescribed in a Notification issued under any of the provisions of this Act. (Section 71 & General)

    Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.

    18. Where any officer of Inland Revenue authorized to act under this Act, acts or omits or attempts to act or omit in a manner causing loss to the sales tax revenue or otherwise abets or connives in any such act.

    Such officer of Inland Revenue shall be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to amount equal to the amount of tax involved, or with both.

    19. Any person who contravenes any of the provision of this Act or the rules made thereunder for which no penalty has, specifically, been provided in this section.

    Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher.

    21. Where any person repeats an offence for which a penalty is provided under this Act  Such person shall pay twice the amount of penalty provided under the Act for the said offence.

    (Disclaimer: The text of the 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: Penalty for violating embargo placed on goods removal

  • PTBA highlights taxation problem of NPOs, Trust

    PTBA highlights taxation problem of NPOs, Trust

    KARACHI: Pakistan Tax Bar Association (PTBA) has highlighted problems faced by Non-Profit Organizations (NPOs) and Trust in changing their status as envisaged under Income Tax Ordinance, 2001.

    The PTBA said on Saturday it has sent a letter to the chairman of the Federal Board of Revenue (FBR) in this regard.

    The tax bar pointed out an important aspect, which needs a prompt response from the FBR regarding the change in the definition of ‘company’ vide amendment made in section 80(2)(va) and (vb) through Finance Act, 2013:

    “(va) a non-profit organization;

    (vb)  a trust, an entity or body of persons established or constituted by or under any law for the time being in force”

    Earlier to this amendment, such organizations were assigned the status of “AOP” by the FBR.

    After the said amendment the status of all such organizations should be changed from AOP to Company. But due to systemic error existing in IRIS; a number of such organizations still have the status of AOP in the IRIS system.

    A number of such organizations have applied for approval under section(s) 2(36)/100C of the Income Tax Ordinance, 2001 but these have not been processed due to the reason that these organizations are not appearing in the folder of the relevant Commissioner of Corporate Tax Offices (CTOs), who has been assigned the power of approval under section 2(36)/100C of the Income Tax Ordinance, 2001.

    In the light of the above-stated facts, the PTBA urged the FBR chairman to issue necessary instructions to PRAL to change the status of all such organizations from AOP to Company, so that the concerned commissioners can process the applications filed under section(s) 2(36)/100C of the Income Tax Ordinance, 2001.

    PTBA declares implementing digital payment not practical
  • FBR identifies 482 retailers for POS integration

    FBR identifies 482 retailers for POS integration

    ISLAMABAD: The Federal Board of Revenue (FBR) has identified 482 retailers for mandatory integration of Point of Sale (POS) with the tax online system for sharing sales in real-time.

    The FBR issued the list of 482 retailers by notifying Sales Tax General Order (STGO) No. 6 of 2022 dated December 03, 2021.

    The FBR said that the Finance Act, 2019 added sub-section (6) to section 811 of the Sales Tax Act, 1990 whereby a Tier-1 Retailer who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.

    READ MORE: POS installation offers reduced tax rates: LTO Karachi

    In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 03, 2021.

    Vide the instant STGO No. 6, a list of 482 identified tier-1 retailers has been placed on FBR’s web portal at www.fbr.gov.pk allowing them to integrate with FBR’s system by December 10, 2021, and the procedure of exclusion from this list of 482 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2022 dated 03.8.2021.

    Upon the filing of Sales Tax Return for the month of November 2021 for all hereby notified retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

    FBR issues list of 1136 retailers for POS integration
  • FBR notifies promotion of senior IRS officers to BS-21

    FBR notifies promotion of senior IRS officers to BS-21

    The Federal Board of Revenue (FBR) has issued a notification (No. 2863-IR-I/2021) on Friday, officially announcing the promotion of several senior officers from the Inland Revenue Service (IRS) to BS-21 from their previous BS-20 positions.

    (more…)
  • Inland Revenue officers promoted to BS-20

    Inland Revenue officers promoted to BS-20

    In a significant move aimed at recognizing and rewarding the dedication and service of officers within the Inland Revenue Service (IRS), the Federal Board of Revenue (FBR) issued Notification No. 2864-IR-I/2021 on Friday, announcing the promotion of several officers from BS-19 to BS-20.

    (more…)
  • FBR notifies promotion of Customs officers to BS-20

    FBR notifies promotion of Customs officers to BS-20

    In a move to recognize and reward the dedicated service of officers within the Pakistan Customs Service (PCS), the Federal Board of Revenue (FBR) issued Notification on Friday, announcing the promotion of several officers from BS-19 to BS-20 on a regular basis with immediate effect.

    (more…)
  • Promotion of senior Customs officers to BS-21

    Promotion of senior Customs officers to BS-21

    In a significant development, the Federal Board of Revenue (FBR) announced on Friday the promotion of distinguished officers from the Pakistan Customs Service (PCS) from BS-20 to BS-21 on a regular basis, effective immediately.

    (more…)
  • Penalty for violating embargo placed on goods removal

    Penalty for violating embargo placed on goods removal

    A person shall pay a penalty of Rs25,000 or 10 per cent of the amount of tax for violating any embargo placed on the removal of goods in connection with the recovery of tax under Section 48 of the Sales Tax Act, 1990.

    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 33(14) of the Sales Tax Act, 1990:

    33. Offences and penalties.– Whoever commits any offence shall, in addition to and not in derogation of any punishment to which he may be liable under any other law, be liable to the penalty mentioned against that offence: –

    14. Where any person violates any embargo placed on the removal of goods in connection with the recovery of tax.

    Such person shall pay a penalty of twenty-five thousand rupees or ten per cent of the amount of the tax involved, whichever is higher. He shall further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to one year, or with a fine which may extend to an amount equal to the amount of tax involved, or with both.

     (Disclaimer: The text of the 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.)

    Imprisonment of five years for fraud under sales tax