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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.

  • Rules amended for sales tax de-registration

    Rules amended for sales tax de-registration

    ISLAMABAD: The Federal Board of Revenue (FBR) has amended rules related to sales tax de-registration of a person or a company.

    The FBR issued SRO 51(I)/2022 dated January 13, 2022 to amend Sales Tax Rules, 2006. Rule 11 of the Sales Tax Rules, 2006 deals with de-registration.

    Under this rule, sub-rule (1) every registered person who ceases to carry on his business or whose supplies become exempt from tax, or who ceases to remain registered shall apply to the Commissioner Inland Revenue having jurisdiction for cancellation of his registration, and the Commissioner, on such application or on its own initiative, may issue order of de-registration or cancellation of the registration of such person from such date as may be specified, but not later than ninety days from the date of such applicant or the date all the dues outstanding against such person are deposited by him, whichever is later and such person shall caused to be de-registered through computerized system accordingly.

    READ MORE: Sales Tax Act, 1990 updated till June 30, 2021

    The FBR made amendment in sub-rule 2 of Rule 11. The sub-rule 2 explains that The Commissioner, upon completion of any audit proceedings or inquiry which may have been initiated consequent upon the application of the registered person for de-registration, shall complete the proceedings or inquiry within ninety days from the date of application and direct the applicant to discharge any outstanding liability which may have been raised therein by filing a final return under section 28 of the Sales Tax Act, 1990:

    Provided that the person applying for de-registration shall not be de-registered unless he provides record for the purpose of audit or inquiry.

    READ MORE: Apex court suspends order in tax notices to overseas assets

    Through the SRO the FBR inserted sub-rule 2A and 2B to the sub-rule 2.

    According to sub-rule 2A: “After receipt of the application for de-registration by the Commissioner Inland Revenue having jurisdiction, the obligation of the registered person to file monthly sales tax return under Section 26 of the Sales Tax Act, 1990 shall remain suspended, until he is de-registered or his application is rejected, as the case may be.”

    The sub-rule 2B explains: “Where the Commissioner Inland Revenue desires to conduct audit or inquiry of the applicant to determine his liability, he shall require the applicant, in writing, to provide the requisite records. On receipts of the complete requisite records, entry to this effect shall be made in the computerized system, which shall automatically de-register the applicant on expiry of ninety days thereof, subject to provision of sub-rule (4).”

    READ MORE: Retail price of sugar may be abolished for sales tax

    The sub-rule (4) explains that the obligations and liabilities of the person whose registration is cancelled under sub-rule (1) relating to the period when he conducted business as a registered person shall not be affected by the fact that his registration has been cancelled or that he has ceased to be a registered person.

  • FBR terminates job of IRS officer on misconduct

    FBR terminates job of IRS officer on misconduct

    ISLAMABAD: The Federal Board of Revenue (FBR) has terminated the job of BS-17 official of Inland Revenue Service (IRS) on the charges of misconduct.

    The FBR issued an office order on Friday to notify the major penalty of ‘dismissal from service’ upon the officer.

    READ MORE: Senior FBR auditor awarded ‘dismissal from service’ for corruption

    The FBR said that disciplinary proceedings were initiated against Masud Humayun (IRS/BS-17/Prob), posted as Assistant Director, Additional Directorate of Internal Audit (IR) Gujranwala on account of multiple offences including exchange of Answer Book, cheating, lying, deceitful conduct and manhandling of the examination supervisor, a BS-19 officer while taking paper of FPO Exam i.e. Principle of Accountancy and unauthorized absence w.e.f. 17.08.2020; constituting “inefficiency” and “misconduct” in terms the Civil Servants (Efficiency and Discipline) Rules, 2020.

    READ MORE: Customs official awarded ‘dismissal from service’ for misconduct

    The Revenue Secretary/Chairman, FBR, while dispensing with holding of formal inquiry under Civil Servants (E&D) Rules, 2020, issued an Order under Rule7 along with Show Cause Notice dated October 12, 2021. However, no reply, to the said show cause notice (within the stipulated time) was received.

    The FBR chairman Chairman after examining the facts and legal position of the case, found the accused officer guilty of the charges of “inefficiency” and “misconduct” levelled against him.

    READ MORE: Three FBR officials awarded ‘dismissal from service’ for misconduct

    The FBR chairman after having considered all aspects of the case, has decided to impose major penalty of “dismissal from service” upon Masud Humayun (IRS-BS-17/Prob) under the Civil Servants (E&D) Rules, 2020.

    The period of his unauthorized absence from duty w.e.f. August 17, 2020 shall be treated as extraordinary leave without pay.

    Masud Humayun / the accused officer, shall have the right to file departmental appeal within a period of thirty (30) days from the date of issuance of this notification.

    READ MORE: FBR auditor awarded dismissal from service for availing NAB plea bargain

  • FBR invites customs proposals for budget 2022/2023

    FBR invites customs proposals for budget 2022/2023

    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.

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  • Apex court suspends order in tax notices to overseas assets

    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.

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  • Retail price of sugar may be abolished for sales tax

    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

    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.

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  • FBR may decide implementing digital payment system

    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.

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  • FBR fixes CNG value for charging sales tax

    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.

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  • Section 72A of Sales Tax Act

    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.

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  • Obeying FBR’s orders made mandatory

    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).

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