ISLAMABAD: The verification of invoices issued through point of sales (POS) by Tier-1 retailers surged by 63 per cent in February 2022, the Federal Board of Revenue (FBR) said on Wednesday.
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Sales tax exempted on all petroleum products
ISLAMABAD: The government on Tuesday granted sales tax holiday on supply of all petroleum products to bring down the impact of high prices.
In order to implement sales tax exemption on all the petroleum products, the Federal Board of Revenue (FBR) issued SRO 321(I)/2022.
As per the SRO the sales tax has brought to zero per cent on petroleum products, including petrol, high speed diesel, kerosene and light diesel oil.
The FBR previously issued SRO 183(I)/2022 on February 10, 2022 to notify reduction the sales tax rates on petroleum products. According to this notification, the light diesel oil was cut to zero per cent sales tax. The sales tax rates on other petroleum products were: 0.79 per cent on petrol; 3.17 per cent on high speed diesel; and 5.3 per cent on kerosene.
READ MORE; FBR announces sharp cut in sales tax on POL products
A day earlier, Prime Minister Imran Khan announced major relief by reducing prices of petroleum products and cut in electricity tariff. The prime minister also announced to keep the prices unchanged till upcoming budget. The prices of petrol and diesel have been slashed by Rs10 per liter on both the products.
The latest move to bring the sales tax at zero per cent on supply of petroleum products is also connected to the announcement. By reducing the sales tax the government has absorbed impact of high oil prices and prevent passing the high prices to the masses.
READ MORE: FBR slashes sales tax rates on petrol, HSD
A statement issued by the Finance Division a day earlier stated that the global prices of petroleum products are tracking the Ukraine-Russia war and resultantly surged to $100 per barrel. “The unprecedented increase is very risky for the domestic fuel prices and inflation,” it added.
The situation leaves very few options for the government, it said, adding that prior to review on February 28, 2022, the government had left more than Rs70 billion per month to keep the prices lower and providing relief to the masses.
READ MORE: Pakistan’s petrol price rises to record high at Rs147.83
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FBR posts 30% revenue collection growth in 8MFY22
ISLAMABAD: The Federal Board of Revenue (FBR) has registered 30.3 per cent growth in revenue collection for the period July – February 2021/2022 (8MFY22), a statement said on Tuesday.
According to the provisional figures, FBR has collected net revenue of Rs 3,799 billion during the period under review, which has exceeded the target of Rs268 billion.
READ MORE: FBR collects Rs2.92 trillion in first half of FY22
“This represents a growth of about 30.3 per cent over the collection of Rs2,916 billion during the same period, last year,” according to the statement.
It is worth sharing that Inland Revenue collection increased by 29.0 per cent during July, 2021 to February, 2022 by collecting Rs. 3,177 Billion against Rs. 2,463 Billion collected in the same period, last year. Likewise, Pakistan Customs has successfully maintained its growth trajectory by collecting Rs. 622 Billion as against Rs. 454 Billion collected during the same period, last year.
READ MORE: Share of sales tax collection increases to 43.7% in 1HFY22
Building further on its ongoing momentum for revenue collection, Federal Board of Revenue (FBR) has not only achieved its assigned target of Rs.441 Billion fixed for February,2022 but also exceeded the same by Rs.2 Billion as it has collected Rs.443 Billion.
The country’s premier tax collection organisation has released the provisional revenue collection figures for the months July, 2021 to February, 2022 of current Financial Year 2021-2022.
The net collection for the month of February, 2022 realized Rs 443 billion representing an increase of 28.3 per cent over Rs 345 billion collected in February, 2021. These figures would further improve before the close of the day and after book adjustments have been taken in to account.
READ MORE: FBR extends sales tax return filing up to February 25
On the other hand, the gross collections increased from Rs3,074 billion during July, 2020 to February, 2021 to Rs 3,996 billion in current Financial Year July, 2021 to February, 2022, showing an increase of 30 per cent. Likewise, the amount of refunds disbursed was Rs 197 billion during July, 2021 to January, 2022 compared to Rs 157 billion paid last year, showing an increase of 25.4 per cent.
It is pertinent to mention that FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, transparency, and taxpayers’ facilitation.
READ MORE: FBR announces promotion of BS-16 Customs officers
This has not only resulted in ensuring the ease of doing business but also translated in a healthy and steady growth in revenue collection. Likewise, the incumbent top leadership of FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid.
READ MORE: FBR makes rules for sealing retail outlets
This has not only fast tracked the process of bridging the trust deficit between FBR and Taxpayers but also ensured the much-needed cash liquidity for business community.
That’s precisely why, for the first time ever in the country’s history, FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.
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FBR registration made mandatory for housing projects
ISLAMABAD: Registration with the Federal Board of Revenue (FBR) has been made mandatory in order to prevent money laundering in real estate industry, according to an official note issued on Monday.
The FBR said that the Anti-Money Laundering Act, 2010 empowers it to license or register Designated Non-Financial Businesses and Professions (DNFBPs), impose conditions to conduct any activities by the DNFBPs and issue directions with respect to the relevant provisions of the AML Act.
READ MORE: FBR transfers IRS officers BS-17 to BS-20
Now, in exercise of powers conferred under section 6A of the AML Act read with clause 1(iii) of Schedule IV ibid, and in pursuance to Condition No.1 of 2021 issued on 25 November 2021, the FBR is pleased to impose the following condition on all the Public Sector Development Departments/Authorities in order to strengthen the anti-money laundering and countering financing of terrorism regime in the country; namely:-
“No Public Sector Development Department/Authority shall provide any NOC/Approval/Permission to any kind of Real Estate Development Authority or Housing Society (commercial/residential) unless the applicant is registered with the Federal Board of Revenue as a Designated Non-Financial Business and Profession (DNFBP) and has also appointed or nominated AIVIL/CFT Compliance Officer.
READ MORE: Sindh High Court stops tax recovery against SSGC
The Public Sector Development Department/Authorities shall also ensure that previously approved Real Estate Authorities or Societies falling in their respective jurisdiction and currently in business are registered with FBR as DNFBPs and have appointed or nominated AML/CFT Compliance Officers.”
READ MORE: FBR says not to extend sales tax return filing date
The Public Sector Development Departments/Authorities shall immediately issue instructions to the staff concerned and respective housing authorities or societies for registration with FBR as DNFBPs and appointment or nomination of AML/CFT Compliance Officers without fail. The real estate development authorities or societies may also be informed to obtain Registration Certificate from the concerned Director, DNFBPs once registered as a DNFBP with FBR.
This Condition comes into effect on March 15, 2022.
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FBR says not to extend sales tax return filing date
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday said that it will not extend the date for filing sales tax return further as filing through national platform is working seamless.
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FBR assures Customs agents of resolving issues
Dr. Muhammad Ashfaq Ahmed, Chairman of the Federal Board of Revenue (FBR), assured a delegation of customs agents of resolving pertinent issues related to imports and exports.
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Customs officer awarded ‘dismissal from service’
ISLAMABAD: An officer of Pakistan Customs has been awarded the major penalty of ‘dismissal from service’ on charges of inefficiency and misconduct.
According to an official order issued by the Federal Board of Revenue (FBR) on Wednesday, disciplinary proceedings under the Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Ghulam Hussain Khoso, Inspector (BS-16) posted in Collectorate of Customs (Enforcement), Quetta through a charge sheet issued on June 20, 2020 on account of ‘Inefficiency’ and ‘Misconduct’ under Rule-3(a)&(b) of the Government Servants (E&D) Rules, 1973.
READ MORE: Customs I&I impounds smuggled fabric in Islamabad
Akbar Jan, the then Deputy Collector (PCS/BS-18), Model Customs Collectorate (Enforcement & Compliance), Quetta was appointed as Inquiry Officer to conduct inquiry into the case on account of acts of omission and commission as detailed in the Charge Sheet / Statement of Allegations.
The inquiry officer submitted the report dated October 09, 2020. According to the report the charges of inefficiency and misconduct were established against the accused officer.
READ MORE: MCC Gwadar seizes huge quantity of methamphetamine
Accordingly, the Collector, Collectorate of Customs (Enforcement), Quetta / Authorized Officer served Show Cause Notice dated November 26, 2020 upon the accused.
Upon receipt of reply to the Show Cause Notice, the accused was granted personal hearings on December 14, 2020, December 22, 2020 and December 31, 2020 to show cause in his defence.
READ MORE: Peshawar Customs seizes narcotics worth Rs80 million
The authorized officer, after considering the inquiry report, reply to Show Cause Notice and oral submissions made during the personal hearings, found the accused guilty of “Inefficiency” & “Misconduct” under Rule-3(a)&(b) of the Government Servants (Efficiency & Discipline) Rules, 1973 and recommended to the Authority i.e Member (Administration/Human Resource), FBR to impose major penalty of “Dismissal from Service” upon the accused officer as prescribed under Rule-4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973.
READ MORE: Gwadar Customs seizes opium worth Rs80 million
The Member (Admn/HR) / Authority after having considered all aspects of the case and submissions made by the accused during the personal hearing granted to him by the Authority, has imposed major penalty of “Dismissal from Service” upon Ghulam Hussain Khoso, Inspector (BS-16), Collectorate of Customs Enforcement, Quetta under Rule-4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973.
The accused shall have the right of appeal as admissible under the Civil Servants (Appeal) Rules, 1977, according to the FBR.
READ MORE: FBR invites applications for 952 vacant posts in Pakistan Customs
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FBR freezes SSGC’s bank accounts for tax recovery
The Federal Board of Revenue (FBR) has taken stringent measures to recover outstanding dues by attaching the bank accounts of the Sui Southern Gas Company Limited (SSGC) amounting to Rs23 billion.
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SECP, FBR integration brings 2,365 companies under tax net
ISLAMABAD: The integration between Securities and Exchange Commission of Pakistan (SECP) and Federal Board of Revenue (FBR) has brought 2,365 companies under tax registration.
A statement issued by the SECP stated that as a result of integration of SECP with FBR and various provincial departments, 2,365 companies were registered with FBR for generation of NTN, 40 companies with EOBI, 16 companies with PESSI/SESSI and 37 companies with Excise and Taxation department.
READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin
The SECP said that the total registration with the commission reached to 160,989 by end of January 2022.
While it registered 2,448 new companies in January 2022 witnessing an increase of 10 per cent as compared to corresponding period, last year.
About 62 percent companies were registered as private limited companies, while 36 percent were registered as single member companies. Two percent were registered as public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnership (LLP).
READ MORE: RDA: SECP exempts banks from obtaining license
About 99.5 percent companies were registered online while 225 foreign users were registered from overseas. Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood at Rs.3 billion.
Foreign investment has been reported in 53 new companies. These companies have foreign investors from Afghanistan, Australia, Canada, China, Egypt, Germany, Hungary, Iran, Italy, Jordan, Korea South, Peru, Philippines, Russia, Saudi Arabia, South Africa, Turkey, the UK and the US.
READ MORE: SECP warns against investing in fraudulent schemes
In January’s incorporations, the real estate development & construction sector took the lead with incorporation of 427, information technology with 365, trading with 290, services with 212, tourism with 129, e-commerce with 119, education with 111, food and beverages with 89, marketing and advertisement with 69, engineering with 58, textile with 56, pharmaceutical with 43, corporate agricultural farming with 42, healthcare with 40, chemical with 35, transport with 34, mining and quarrying, and power generation with 29 each, lodging with 26, auto and allied, and fuel and energy with 22 each, communications, and cosmetics and toiletries with 21 each, cables and electric goods, and paper and board with 17 each, steel and allied with 13, arts and culture with 12, broadcasting and telecasting with 10, and 90 companies were registered in other sectors.
READ MORE: Company registration rises to 145,913 by June 2021: SECP
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FBR exempts regulatory duty on Afghan pine nuts
ISLAMABAD: The Federal Board of Revenue (FBR) has exempted regulatory duty at the rate of 45 per cent on import of pine nuts (chilgoza) from Afghanistan.
The FBR issued SRO 181(I)/2022 dated February 22, 2022 to allow the exemption.
Through the latest SRO, the FBR amended the SRO 840(1)/2021 dated June 30, 2021.
The FBR through the latest SRO noted: “[pine nuts (chilgoza) imported from Afghanistan are exempted from regulatory duty at the rate of 45 per cent.”
Prior to this the Pakistan government expanded the list of goods for export to Afghanistan and through Afghanistan to Central Asian Republics without requirement of E-form and against Pakistan Rupee (PKR).
In this regard the ministry of commerce issued SRO176(I)/2022 dated February 04, 2022 to amend Export Policy Order 2020.
READ MORE: List of goods export to Afghanistan in PKR, no E-form
As per the export policy order, export goods to Afghanistan and through Afghanistan to Central Asian Republics are allowed against Pakistan currency on filing of regular shipping bills without the requirement of E-form.
Prior to the amendment, the allowed goods are included: fruits; vegetables; dairy products; and meat. However, after the amendment more number of goods have been added to the list, which included: rice; fish and fish products; poultry, meat and products; sugar confectionary and bakery products; fruits, nuts and other edible parts of plants; oilcake and other solid residues; vegetable materials and vegetable waste; salt; cement; pharmaceuticals; matches; textile and textile articles; building stone; and surgical instruments.
As per the Export Policy Order, 2021, the goods are not entitled to: zero rating of sales tax on taxable goods; rebate of central excise duty; and payment of drawback of customs duty.