Section 220 of the Income Tax Ordinance, 2001, explicitly states that the Commissioner is obligated to provide a receipt for any tax or amount paid under this ordinance.
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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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Tax or refund computed to the nearest rupee
Section 219 of Income Tax Ordinance, 2001 now dictates that the amount of tax or refund should be computed to the nearest rupee, with fractions less than fifty paisa disregarded and those equal to or exceeding fifty paisa treated as one rupee.
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“FBR not to take action directly against non-filers”
KARACHI: The Federal Board of Revenue (FBR) will not take any action directly against non-filers or under-filers, Finance Minister Shaukat Tarin assured the members of Karachi Chamber of Commerce and Industry (KCCI).
A statement issued by the KCCI stated that Finance Minister Shaukat Tarin had assured to review the matter of filers and non-filers and look into the possibility of re-examining the term ‘non-filer’ and ‘under-filer’ in consultation with stakeholders whereas in the meantime, “no one will suffer as FBR will not take the action directly.”
FBR will share relevant data with Chambers and also upload the same on its website.
The government intends to take help of artificial intelligence and assessment will be done through third party while appropriate time of 90 days will be provided to non-taxpayers for settlement, the Finance Minister added while speaking at a meeting with a delegation KCCI.
Federal Minister for Energy Hammad Azhar, Advisor to PM on Commerce Abdul Razak Dawood, Chairman Federal Board of Revenue Ashfaq Ahmed and other senior officials of Finance Ministry and FBR also accompanied Shaukat Tarin at the meeting while KCCI’s delegation, which was led by Chairman Businessmen Group & Former President KCCI Zubair Motiwala, comprised of Vice Chairmen BMG Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil and President KCCI Muhammad Idrees.
Referring to Chairman BMG’s remarks about discrimination with export-oriented industries of Sindh with regards to supply of RLNG at $6.5 per MMBTU, Energy Minister Hammad Azhar agreed to supply RLNG at $6.5 per MMBTU to export-oriented industries of Sindh. In this regard, the Ministry of Finance will sanction subsidy and relevant notification will also be issued.
Hammad Azhar stated that the Ministry of Energy will also convene a meeting to discuss KCCI’s concerns over gas crises in winter season so that they could explore ways and means for smooth supply of gas to industries/ consumers of SSGCL in winter season. MD SSGC will also be advised to hold a meeting with KCCI in this regard, he added.
On the occasion, PM’s Advisor Abdul Razak Dawood said that they were considering waiver of duty on import of cotton yarn. It was also concurred that KCCI’s proposal to reduce concessional rate of 0.1 percent to 0.01 percent on Traders/ brokers of Cotton Yarn under SRO.333 (I) 2001 dated 02.05.2011 has been taken into consideration in the larger interest of value-added exports.
Razak Dawood, while appreciating KCCI’s idea of giving Industry status to “Warehousing / Cold Chain / Cold Storage”, said that the government will look into this matter.
He reiterated that Drawback on Local Taxes & Levies (DLTL) will either continue with same rate or the government may increase the rate of drawback whereas the old income tax claims will also be refunded at the earliest.
Speaking on the occasion, Chairman Federal Board of Revenue (FBR) Dr Ashfaq Ahmed assured that the Government will review the matter pertaining to CNIC requirement and 3 percent tax which KCCI believes should not be mandatory but optional as 3 percent tax on sales to unregistered persons was already being collected hence there was no need for demanding CNIC. He also promised to hold a meeting within next week via zoom facility to discuss the progress on various taxation issues.
In response to problems being faced because of the condition to put invoice and packing list inside imported container or consignment, the lawmakers assured to review KCCI’s proposal that the bank should only receive document when invoice and packing list is attached with the documents and consignment should be released with the provision of invoice and packing list from Customs.
It was also assured that the government will also look into KCCI’s proposals to amend provision under S. No.4 in which a new section 114B has been inserted in Income Tax Ordinance 2001, providing discretionary powers to FBR to issue General Orders to disable mobile phones/SIMS, disconnect electricity and gas connection etc. to enforce filing of returns by the persons not appearing on the ATL. The Karachi Chamber, in this regard, has proposed the provision may be amended to substitute the words “Persons not appearing on ATL” with “Unregistered Persons” to achieve the purpose of broadening of tax-base.
KCCI delegation, while conveying gratitude to Finance Minister for fulfilling his commitment of holding today’s meeting in Islamabad along with Hammad Azhar, Razak Dawood and others, expressed confidence over the stewardship and seriousness being exhibited by Shaukat Tarin towards resolving the problems being suffered by the business and industrial community.
Finance Minister, in his concluding remarks, said that he will keep on visiting KCCI after every three months while Chairman FBR will also be visiting the Chamber on a monthly basis.
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Tax to GDP ratio at 20% prime objective: Tarin
Finance Minister Shaukat Tarin has said that the prime objective of the government to take the tax-to-GDP ratio to 20 per cent in coming years which currently stood at 8-12 per cent.
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FBR imposes service charges on POS invoices
ISLAMABAD: Federal Board of Revenue (FBR) on Friday imposed service charges on invoices issued through Point of Sales (POS) that are integrated with the FBR system.
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Service of notices and other documents
Section 218 of Income Tax Ordinance, 2001 describes service of notices and other documents. The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021.
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Authentication of forms, notices and other documents
The Federal Board of Revenue (FBR) has detailed the authentication procedures for forms, notices, and other documents as per Section 217 of the Income Tax Ordinance, 2001.
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FBR surpasses quarterly revenue target by Rs186 billion
ISLAMABAD: Federal Board of Revenue (FBR) has surpassed the revenue collection target for the quarter (July – September) of the current fiscal year by Rs186 billion.
According to provisional figures released by the FBR on Thursday, it collected net revenue of Rs. 1.395 trillion during the first quarter of the current fiscal year against the target of Rs. 1.211 trillion, exceeding by Rs186 billion.
The FBR posted a growth of around 39 per cent in net collection for the quarter as the revenue body collected Rs1.004 trillion in the same quarter of the last fiscal year.
The net collection for the month of September, 2021 realized Rs535 billion representing an increase of 31.2 per cent over Rs. 408 billion collected in September 2020. These figures would further improve before the close of the day and after book adjustments have been taken in to account.
On the other hand, the gross collections increased from Rs. 1.059 trillion during July-September, 2020 to Rs1.454 trillion in the corresponding quarter of the current fiscal year, showing an increase of 37.3 per cent.
The amount of refunds disbursed was Rs59 billion during July-September, 2021 compared to Rs49 billion paid in the same quarter of the last year, reflecting an increase of 20.2 per cent.
This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry, according to a statement issued by the FBR.
It is pertinent to mention that after collecting over 4.7 trillion and exceeding its assigned revenue targets set for tax year 2020-2021, the FBR has successfully maintained the momentum set in July, 2021. Its tax collection posted historic high growth in first quarter of current fiscal year.
During first quarter, FBR has far surpassed its revenue target by Rs186 billion. This spectacular performance at the outset of the year shows that FBR is well on its way to achieving the assigned target of Rs. 5.829 trillion for the year despite the daunting challenges, compelling constraints posed by the corona pandemic, and sporadic tax cuts announced by the government as relief and price stabilization measures.
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FBR admits return filing system failure, extends due date
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday admitted serious technical problems in IRIS – the return filing portal – and extended the date by 15 days.
In a circular issued by the FBR stated that the revenue body had extended the date of filing of the income tax return for tax year 2021 by 15 days i.e. up to October 15, 2021 due to “serious technical problems” in online return filing system (IRIS).
Only a day earlier, the FBR claimed that the IRIS portal was working normally and it had received 150,000 returns on September 28, 2021.
On the basis of the claim, the revenue body categorically refused to extend the date i.e. September 30, 2021 for return filing for tax year 2021.
It is surprising that in the latest circular the FBR admitted the flaws in the online system because it had claimed a day earlier that the system is working seamlessly and around 150,000 returns were filed on September 28, 2021, which was the highest ever number filed in a single day.
It was further claimed by the FBR that it had enhanced its system capacity to provide seamless services to taxpayers.
The FBR made these claims despite serious issues highlighted by Karachi Tax Bar Association (KTBA) in its letter to the FBR chairman on September 21, 2021. After the disappointing response from the FBR, the tax bar also requested the prime minister and the finance minister to intervene in the matter as a large number of taxpayers were facing serious issues in filing their tax returns.
Muhammad Zeeshan Merchange, KTBA, President, said that despite FBR’s denial of system glitches finally the date has been extended. He said that it was not expected from the FBR to admit the return filing system failure, he said in a tweet message.
It is pertinent to mention that Finance Minister Shaukat Tarin in a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI) on Thursday already announced to extend the return filing date for 15 days.
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Proceedings against authority and persons
Section 216A of Income Tax Ordinance, 2001 describes the proceedings against authority and persons.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 216A of Income Tax Ordinance, 2001:
216A. Proceeding against authority and persons.- (1) Subject to section 227, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 207 and officer of the Directorate General mentioned in Part II and Part III of Chapter XI including any person subordinate to the aforesaid authorities or officers of the Directorates General who wilfully and deliberately commits or omits an act which results in under benefit or advantage to the authority or the officer or official or to any other person.
(2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1)
(3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.
(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.)