The federal government of Pakistan has introduced an additional advance income tax (AIT) of up to 35% on the consumption of electricity by individuals not appearing on the Active Taxpayers List (ATL).
(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.
-
NADRA to compute indicative income, tax liability
ISLAMABAD: National Database and Registration Authority (NADRA) has been empowered to compute indicative income and tax liability of persons using artificial intelligence and other modes.
(more…) -
FBR to block mobile phones of non-filers
ISLAMABAD: The Federal Board of Revenue (FBR) has been empowered under income tax statute to block mobile phones or mobile phone SIMs of persons who have taxable income but remained non-filer of annual return.
The government promulgated Tax Laws (Third Amendment) Ordinance, 2021, and made major amendments to the Income Tax Ordinance, 2001.
As per the amendments, the FBR has been empowered to take strict actions against non-filers, including blocking mobile phones or mobile phone SIMs. Besides, the tax authorities have also powers to give orders to utility companies for discontinuations of electricity connection and gas connection of non-filer.
Section 114B has been introduced through the Tax Law to the Income Tax Ordinance, 2001.
Following is the text of the new Section:
“114B. Powers to enforce filing of returns. — (1) Notwithstanding anything contained in any other law for the time being in force, the Board shall have the powers to issue income tax general order in respect of persons who are not appearing on Active Taxpayers List (ATL) but are liable to file return under the provisions of this Ordinance.
(2) The income tax general order issued under sub-section (1) may entail any or all of the following consequences for the persons mentioned therein, namely:-
— disabling of mobile phones or mobile phone sims;
— discontinuance of electricity connection; and
— discontinuance of gas connection.
(3) The Board or the Commissioner having jurisdiction over the person mentioned in the income tax general order may order restoration of mobile phones, mobile phone sims and connections of electricity and gas, in cases where he is satisfied that —
(a) the return has been filed; or
(b) person was not liable to file return under the provisions of this Ordinance.
(4) No person shall be included in the general order under sub-section (1) unless following conditions have been met with, namely:-
(a) notice under sub-section (4) of section 114 has been issued;
(b) date of compliance of the notice under sub-section (4) of section 114 has elapsed; and
(c) the person has not filed the return.
(5) The action under this section shall not preclude any other action provided under the provisions of this Ordinance.
-
FBR slaps extra sales tax up to 17% on unregistered persons
In a move to enhance tax compliance, the Federal Board of Revenue (FBR) has imposed an additional sales tax of up to 17% on unregistered industrial and commercial connection holders of electricity and gas utilities.
(more…) -
FBR reiterates not to extend return filing date
The Federal Board of Revenue (FBR) has reaffirmed its commitment to the September 30, 2021 deadline for filing annual tax returns, emphasizing the importance of improving the tax compliance culture in the country.
(more…) -
Penalty for non-issuance of cash memos
The Federal Board of Revenue (FBR) has introduced a penalty provision under Section 182(2) of the Income Tax Ordinance, 2001 for individuals or businesses failing to issue cash memos, invoices, or receipts when required by the ordinance or related rules.
(more…) -
Penalty for non-filing tax return and wealth statement
Section 182(1) of Income Tax Ordinance, 2001 has prescribed penalty for non-filing of tax return and wealth statement:
(more…) -
Sales tax return filing portal likely to start by next month
ISLAMABAD: The single portal for filing sales tax returns – by registered taxpayers of federal and provincial tax authorities – is likely to start by next month.
Different proposals were considered by the National Tax Council (NTC) for implementing a single portal for filing sales tax returns which are being developed and are likely to be launched by the first week of October 2021.
The launching of the single portal for filing returns will cut the compliance cost for the taxpayers and will help increase Pakistan’s rating on Ease-of-Doing Index.
It was decided that detailed input will be invited from Provincial Revenue Authorities (PRAs) for the development of the single Sales tax portal acceptable to all.
Federal Minister for Finance and Revenue, Shaukat Tarin, presided over the meeting of the NTC at the Finance Division on Thursday.
Provincial Finance Ministers, Secretary Finance Division, Chairman FBR, Chairman Sindh Revenue Board, and other senior officers also participated in the meeting. In his opening remarks, the Finance Minister welcomed the participants and emphasized the need for evolving consensus between the Federation and Provinces in matters relating to Sales tax harmonization.
He stressed the need to resolve tax-related issues in a spirit of cooperation between the Federation and the Federating units.
The Chairman FBR made a detailed presentation and outlined areas for further deliberation to work out an arrangement in a collaborative manner relating to the harmonization of GST amongst the Federal Government and the Provinces.
FBR and the Provincial Finance Ministers narrated their respective positions on the taxation of transportation, restaurants, toll manufacturing and construction.
Different proposals were also considered by the NTC for implementing the single portal for filing Sales Tax returns which are being developed and are likely to be launched by the first week of October 2021.
The launching of single portal for filing returns will cut the compliance cost for the taxpayers and will help increase Pakistan’s rating on Ease-of-Doing Index.
It was decided that detailed input will be invited from Provincial Revenue Authorities (PRAs) for the development of single Sales tax portal acceptable to all.
Similarly, FBR shall also develop a standardized Income tax Return format, in consultation with the Provincial governments.
After due deliberation with all relevant stakeholders, the National Tax Council decided that the sales tax on toll manufacturing will rest with the Federation, while taxation rights on transportation business would be vested in the Provinces.
Regarding taxation on the construction business, it was decided that the taxation right would be shared as per the constitutional arrangements, and a technical committee consisting of all revenue authorities would decide the operational modalities.
On taxation of restaurants, Finance Minister in his capacity as head of National Tax Council (NTC) and after having views of FBR and Provinces, decided that the Provinces will continue to tax restaurants.
However, a reference drafted in consultation with Provinces will be sent to Law Division for an opinion on the decision. All stakeholders agreed to proceed ahead in the spirit of greater national interest and harmony under the umbrella of National Tax Council (NTC).
-
Businesses require to obtain tax license
Section 181D of Income Tax Ordinance, 2001 explains that businesses are required to obtain the tax license.
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 181D of Income Tax Ordinance, 2001:
181D. Business licence scheme.-(1) Every person engaged in any business, profession or vocation shall be required to obtain and display a business licence as prescribed by the Board.
(2) Where a person fails to obtain business licence under sub-section (1), the Commissioner may, in addition to and not in derogation of any punishment to which the person may be liable under this Ordinance or any other law, impose a fine of –
(a) twenty thousand Rupees, in case of a taxpayer deriving income chargeable to tax under this Ordinance; or
(b) five thousand Rupees, in all other cases.
(3) The Commissioner may, by an order in writing, cancel a business licence issued under sub-section (1) after providing an opportunity of being heard to the person, if –
(a) such person fails to notify any change in particulars within thirty days of such charge; or
(b) such person is convicted of any offence under any federal tax law.
(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.)
-
Businesses require displaying NTN
The Federal Board of Revenue (FBR) in Pakistan has reinforced the requirement for businesses to prominently display their National Tax Number (NTN) at all places of operation, in accordance with Section 181C of the Income Tax Ordinance, 2001.
(more…)