In a strategic move with the federal budget announcement just around the corner, the Federal Board of Revenue (FBR) has executed a significant reshuffle by transferring key personnel of Pakistan Customs.
(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.
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Govt. may exempt customs duty in emergency situation
Section 19 till 19C of Customs Act, 1969 explains that government may exempt customs duty in emergency situations.
The 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 19 till 19C of the Customs Act, 1969:
19. General power to exempt from customs-duties.- (1) The Federal Government, whenever circumstances exist to take immediate action for the purposes of national security, natural disaster, national food security in emergency situations, protection of national economic interests in situations arising out of abnormal fluctuation in international commodity prices, implementation of bilateral and multilateral agreements, and to any international financial institution or foreign government-owned financial institution operating under a memorandum of understanding an agreement or any other arrangement with the Government of Pakistan, subject to such conditions, limitations or restrictions, if any, as it deems fit to impose, may, by notification in the official Gazette, exempt any goods imported into, or exported from, Pakistan or into or from any specified port or station or area therein, from the whole or any part of the customs-duties chargeable thereon and may remit fine, penalty, charge or any other amount recoverable under this Act.
(2) A notification issued under sub-section (1) shall be effective from the day specified therein, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.
(3) Notwithstanding anything contained in any other law for the time being in force, including but not limited to the Protection of Economic Reforms 1992 (XII of 1992), and notwithstanding any decision or judgment of any forum, authority or court, no person shall, in the absence of a notification by the Federal Government published in the official Gazette expressly granting and affirming exemption from customs duty, be entitled to or have any right to any such exemption from or refund of customs duty on the basis of the doctrine of promissory estoppel or on account of any correspondence or admission or promise or commitment or concessionary order made or understanding given whether in writing or otherwise, by any government department or authority.
(4) The Federal Government shall place before the National Assembly all notifications issued under this section in a financial year.
(5) Any notification issued under sub-section (1) after the commencement of the Finance Act, 2015 shall, if not earlier rescinded, stand rescinded on the expiry of the financial year in which it was issued:
Provided that all such notifications, except those earlier rescinded, shall be deemed to have been in force with effect from first day of July, 2016 and shall continue to be in force till thirtieth day of June, 2018, if not earlier rescinded:
Provided further that all notifications issued on or after the first day of July, 2016, and placed before the National Assembly as required under sub-section (4) shall continue to be in force till thirtieth day of June, 2022, if not earlier rescinded by the Federal Government or the National Assembly.
19A. Presumption that incidence of duty has been passed on to the buyer.- Every person who has paid the customs duty and other levies on any goods under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such customs duty and other levies to the buyer as a part of the price of such goods.
19B. Rounding off of duty, etc.- The amount of duty, interest, penalty, fine or any other sum payable, and the amount of refund, drawback or any other sum due, under the provisions of this Act shall be rounded off to the nearest one hundred rupees and, for this purpose, where such amount is fifty rupees or more, it shall be increased to one hundred rupees and if such part is less than fifty rupees, it shall be ignored.
19C. Minimal duties not to be demanded.- Where the value of imported goods does not exceed five thousand rupees, no duties and taxes shall be demanded, subject to conditions and restrictions as may be prescribed by the Board under the rules.
(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.)
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Banned items: FBR deputes officers 24X7 to facilitate passengers
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday deputed senior Customs officers at all the international airports of the country to facilitate passengers related to imported items that are banned by the government.
The FBR through an order nominated focal persons at all the airports of the country. It said that in wake of the issuance of SRO 598(I)/2022, and to facilitate the genuine passengers arriving at all the international airports of the country, a list of officers has been issued regarding facilitation and compliant redressal.
The list of officers and their contact number can be accessed here.
The FBR directed that all the focal persons should ensure their availability over the respective telephone numbers round the clock.
The government on May 19, 2022 imposed a complete ban on luxury and non-essential items in order to reduce import bill and to prevent rupee devaluation. In this regard, the ministry of commerce issued SRO 598(I)/2022 to impose the ban on imported items.
READ MORE: Import ban not to apply on L/C issued before May 19, 2022
The FBR on May 24, 2022 issued a press statement saying that Pakistan Customs has stepped up enforcement at all International Airports across Pakistan to prevent smuggling of items which have recently been banned by the Federal Government vide SRO No. 598(I)/2022, dated 19.05.2022 by amending Import Policy Order, 2022.
This round-the-clock vigilance at International Terminals to prevent smuggling have already resulted in seizures of these items which were being brought in in the garb of bonafide passenger baggage.
READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months
During scanning and checking at Jinnah International Airport (JIAP), Karachi on 23.05.2022, banned items such as food stuff, fruits, sanitary wares, used mobile phones, and branded shoes, in commercial quantities were recovered. The said items have been detained/seized under Section 168 of the Customs Act, 1969 for violation of SRO 598(I)/2022, dated 19.05.2022, (Import Policy Order, 2022) and Sections 16 and 139 of the Customs Act, 1969.
While commending the efforts of Pakistan Customs, Chairman FBR has reiterated unflinching resolve of the FBR to further strengthen enforcement measures at all airports, seaports, and land border stations to ensure the prevention of smuggling of goods including newly banned items.
READ MORE: Pakistan’s March trade deficit widens by only 5.5%
However, Finance Minister and Chairman FBR have issued instructions not to bother bonafide passengers bringing in goods in noncommercial/small quantities for personal use and to facilitate such passengers at airports to the maximum extent possible as per legal provisions.
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Income tax audit should be once in three years
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has suggested the authorities to conduct income tax audit once in three years.
The KCCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR) stated that through Finance Act 2019 powers of Commissioners Inland Revenue and the FBR have been restored to select cases for audit every year which further creates difficulties for registered persons, whereas prior to FY2019-20 audit could be conducted once in 3 years.
READ MORE: Cut in duty, taxes on tea import suggested to stop smuggling
The commissioners already have various powers to carry out amendments of the income tax returns filed for any tax year by the taxpayer under Section 122 (5A).
Therefore, additional audit powers outside the standard audit parameters are often misused by the tax authorities.
READ MORE: KCCI proposes sales tax exemption to solar panels, inverters
Multiple and overlapping discretionary powers are precisely the hurdle in broadening of tax base, and corruption. Rather than focusing on broadening the tax base, FBR is coming up with novel ways to perpetuate a regime of extortion and harassment. Consequently the country is going nowhere in expanding the tax base and revenue collection.
The KCCI proposed that the audits under Section 177 and 214C should be carried out once in every three years as was introduced through Finance Act 2018, through restoration of clause 105 omitted in Finance Act, 2019.
READ MORE: FBR suggested automatic GD filing extension on system failure
Despite of this restriction the Commissioner can carry out assessment under section 122(1)/(5) or 122(5A) of the Income Tax Ordinance, 2001 on the definite information or where declaration of tax payer is erroneous and prejudicial to the interest of revenue.
Giving rationale to the proposal, the chamber said it would alleviate fears of compliant tax-payers. Further, it will help in removal of harassment and extortion through uncalled for and unnecessary audits.
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FBR’s power to notify customs tariff
Section 18E of Customs Act, 1969 has empowered the Federal Board of Revenue (FBR) to make changes in Pakistan Custom Tariff.
The FBR issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.
READ MORE: Detention of goods violating customs act
Following is the text of section 18E of the Customs Act, 1969:
18E. Pakistan Customs Tariff.- The Board may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, make such changes in the Pakistan Customs Tariff, specified in the First Schedule to this Act, required only for the purposes of statistical suffix of the Pakistan Customs Tariff (PCT) Code:
READ MORE: Rate of customs duty in Pakistan on imports
―Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.
(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: FBR may impose charges for customs clearance services
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FBR transfers additional collectors, directors of Customs
ISLAMABAD: The Federal Board of Revenue (FBR) on Monday May 30, 2022 transferred about 12 BS-19 officers of Pakistan Customs Service (PCS) with immediate effect.
The FBR notified transfer and posting of following officers:
01. Muteen Alam (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, KPK from the post of Additional Collector, Collectorate of Customs Enforcement, Lahore.
READ MORE: FBR transfers BS-20 officers of Pakistan Customs Service
02. Aftab Ullah Shah (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, Quetta from the post of Additional Collector, Collectorate of Customs Appraisement, Quetta.
03. Nawabzada Kamran Khan Jogezai (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Internal Audit-North (customs), Islamabad from the post of Deputy Collector, Collectorate of Customs, Islamabad.
READ MORE: FBR transfers IRS officers of BS-17 to BS-20
04. Ms. Zehra Tahir Naqvi (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs, Jinnah International Airport (JIAP), Karachi from the post of Deputy Director, Directorate General of Customs Valuation, Karachi.
05. Ms. Nausheen Riaz Khan (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Law & Prosecution (Customs), Karachi from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Karachi.
READ MORE: FBR tightens monitoring to prevent currency smuggling
06. Ms. Aneeqa Afzal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Enforcement, Lahore from the post of Deputy Collector, Collectorate of Customs (Adjudication), Faisalabad.
07. Ms. Amna Naeem (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate (HQs), Post Clearance Audit & Internal Audit, Karachi from the post of Deputy Director, Directorate of Post Clearance Audit (South), Karachi.
08. Shah Faisal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Appraisement, Quetta from the post of Deputy Collector, Collectorate of Customs Appraisement, Quetta.
READ MORE: FBR transfers senior IR officers in major reshuffle
09. Mohammad Rehan Akram (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Cross Border Currency Movement, Directorate General of Intelligence & Investigation-FBR, Islamabad from the post of Deputy Collector, Collectorate of Customs Enforcement, Multan.
10. Ms. Palwasha Syed (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore from the post of Deputy Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore.
11. Ms. Haleema Qasim (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate General of Customs Valuation, Karachi from the post of Deputy Director, Directorate of Cross Boarder Currency Movement, Islamabad.
12. Ms. Khansa Mahmood Chaudhry (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi Stationed at Gilgit-Baltistan from the post Deputy Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi.
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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Cut in duty, taxes on tea import suggested to stop smuggling
KARACHI: The Federal Board of Revenue (FBR) has been suggested a drastic cut in duty and taxes on import of black to stop smuggling and increase revenue.
The Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2022/2023 submitted to the FBR said that consumption of black tea in Pakistan is 240,000 metric tons, but the imports through legal channels is hardly 100,000 metric tons due to very high rates of customs duty, sales tax, regularity duty and withholding tax.
READ MORE: KCCI proposes sales tax exemption to solar panels, inverters
Remaining requirement is fulfilled by smuggling, Afghan Transit Trade (ATT), and imports under various exemptions/concessions granted to PATA and Azad Kashmir which conduct 90 per cent of official imports and sold all over Pakistan in tariff areas.
The KCCI said that legitimate importers have been driven out of the market due to distortions in tax and duty regime, while also the government is losing a substantial amount of revenues.
READ MORE: FBR suggested automatic GD filing extension on system failure
The black tea imported in bulk and wholesale packing is treated as finished product in 12th Schedule (Table 3) whereas it should be treated as raw material because black tea goes through a process of blending and packaging while also the taxes are charged on maximum retail price.
The KCCI said that black tea is an essential food item used in every household and common man. Such high tariffs while exemptions to select areas are only supporting misuse of concessions and smuggling. The tariff structure may therefore be rationalized as proposed while exemptions to PATA and Azad Kashmir be withdrawn as these are sources of revenue leakages:
READ MORE: KCCI proposes sales tax exemption to e-commerce
The customs duty should be reduced to 5 per cent from 11 per cent.
The regulatory duty should be brought down to zero per cent from 2 per cent.
The rate of sales tax should be reduced to …. From 17 per cent.
READ MORE: Withholding tax on raw material import should be adjustable
Whereas, the rate of withholding tax should be reduced to 2 per cent from existing 5.5 per cent.
The chamber said that the proposal would prevent misused of exemptions and significantly increase revenue by Rs70 to Rs.80 billion.
Significant relief to entire population in an essential food item which is most expensive in Pakistan.
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FBR may impose charges for customs clearance services
ISLAMABAD: The Federal Board of Revenue (FBR) is contemplating the imposition of charges for customs clearance services, a move empowered by Section 18D of the Customs Act, 1969.
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Customs duty rates under international treaties
Section 18C of Customs Act, 1969 determined rate of duties in Pakistan under international treaties.
The 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 18C of the Customs Act, 1969:
18C. Rates of duty and taxes and determination of origin under trade agreements.- (1) Where under a trade agreement between the Government of Pakistan and the Government of a foreign country or territory, duty at a rate lower than that specified in the First Schedule is to be charged on articles which are the produce or manufacture of such foreign country or territory, the Federal Government may, by notification in the official Gazette, make rules for determining if any article is the produce or manufacture of such foreign country or territory and for requiring the owner to make a claim at the time of importation, supported by such evidence as may be prescribed in the said rules, for assessment at the appropriate lower rate under such agreement.
(2) Where in respect of any article, a preferential rate of duty is specified in the First Schedule, or is admissible by virtue of a notification under sub-section (1), the duty to be levied and collected shall be at the standard rate unless the owner of the article claims at the time of importation that it is chargeable with a preferential rate of duty, being the produce or manufacture of such preferential or free trade area, as is notified under sub-section (3) and the article is determined, in accordance with the rules made under sub-section (1) to be such produce or manufacture.
(3) For the purposes of this section and the First Schedule ―preferential area or free trade area‖ means any country or territory which the Federal Government may, by notification in the official Gazette, declare to be such area.
(4) Notwithstanding anything contained in sub-sections (1) and (2), where the Federal Government is satisfied that, in the interests of trade including promotion of exports, it is necessary to take immediate action for discontinuing the preferential rate or increasing the preferential rate to a rate not exceeding the standard rate, or decreasing the preferential rate, in respect of an article specified in the First Schedule, the Federal Government may, by notification in the official Gazette, direct discontinuation of, or increase or decrease, as the case may be, the preferential rate.
(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.)
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FBR may impose additional custom duty on imports
The Federal Board of Revenue (FBR) has been empowered to impose additional custom duty on import of goods under Section 18A of Customs Act, 1969.
The 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 18A of the Customs Act, 1969:
18A. Special customs duty on imported goods.- The Federal Government may, by notification in the official Gazette, levy a special customs duty on the importation of such of the goods specified in the First Schedule as are of the same kind as goods produced or manufactured in Pakistan, at a rate not exceeding the rate of duty of excise leviable under the Federal Excise Act, 2005, on the goods produced or manufactured in Pakistan:
Provided that the exemption of any goods from the whole or any part of the duty of excise for the time being in force shall not prevent the Federal Government from levying a special customs duty on the importation of goods of the same kind:
Provided further that, for the purposes of the Sales Tax Act 1990 (VII of 1990), the special customs duty shall not constitute a part of the value of supply.
(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.)