Section 100BA of the Income Tax Ordinance, 2001 introduces special provisions for persons not appearing on the Active Taxpayers’ List (ATL).
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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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Input tax claim procedure for AJK, GB persons
The Federal Board of Revenue (FBR) has laid out the procedure for claiming input tax credit against supplies made by individuals registered in Azad Jammu and Kashmir (AJK) and Gilgit Baltistan (GB).
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Dr. Ashfaq Ahmed appointed new FBR chairman
Dr. Muhammad Ashfaq Ahmed has been appointed as the new Chairman of the Federal Board of Revenue (FBR), marking a change in leadership at the forefront of Pakistan’s revenue management.
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Tax rates on brokerage, commission for 2021-2022
The Federal Board of Revenue (FBR) has issued updated rates of withholding tax on brokerage and commission during fiscal year 2021-2022.
The tax authorities collect withholding tax on brokerage and commission under Section 233 of the Income Tax Ordinance, 2001. The withholding tax rates have been updated after incorporating amendments brought through Finance Act, 2021.
The withholding tax shall collect by federal government, provincial government, local authority, company, Association of Persons (AOPs) or individual having turnover of Rs100 million or more constituted by or under any law or principal.
The tax shall be collected from recipient of brokerage or commission or agent at the time brokerage or commission is actually paid.
The tax deducted/collected shall be minimum tax liability.
WITHHOLDING TAX CARD 2021/2022
Following is the withholding tax rates:
Where any payment on account of brokerage or commission is made by the Federal Government, a Provincial Government, a Local Government, 22a company or an association of person or individual having turnover of hundred million rupees or more
In case of:
(i) Advertising agents: the tax rate shall be 10 per cent and in case the person is not appearing on the Active Taxpayers List (ATL) issued by the FBR the tax rate shall be 20 per cent.
(ii) Life insurance agents where commission received is less than Rs0.5 million per annum: the tax rate shall be 8 per cent and in case the person is not appearing on the ATL the tax rate shall be 16 per cent.
(iii) Persons not covered in 1 & 2: the tax rate shall be 12 per cent and in case persons are not appearing on the ATL the tax rate shall be 24 per cent.
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Special provisions relating to capital gain tax
Section 100B of Income Tax Ordinance, 2001 presents a special provision outlining the computation of capital gain tax on listed securities, ushering in a more structured approach to the taxation of gains derived from stock market transactions.
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Tarin orders release refunds to edible oil importers
ISLAMABAD: Finance Minister Shaukat Tarin on Monday directed tax authorities to expeditiously release refunds to importers of edible oil importers.
He issued the directive at a meeting with a delegation of Pakistan Vanaspati Manufacturers Association (PVMA).
The finance minister directed the chairman of Federal Board of Revenue (FBR) to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.
Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue Dr. Waqar Masood, Secretary M/o Industries and Production, Chairman FBR and other senior officers participated in the meeting.
While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.
The Chairman PVMA briefed the Finance Minister about the international hike in prices of palm and soyabean oils particularly during ongoing COVID-19 pandemic. The international prices kept fluctuating between the range of $1100 – 1257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.
The exchange rate also has a significant impact on edible oil prices in the country, he added.
While taking stock of the situation, the Finance Minister urged PVMA to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend.
If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid highly fluctuating edible oil market.
The finance minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries & Production and FBR.
He constituted a committee comprising representatives of PVMA, Secretary Ministry of Industries and Production and Chairman FBR to workout arrangement for streamlining collection of sales tax and a predictable pricing formula. The Chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.
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Unauthorized access to taxpayers data pointed out
Karachi Tax Bar Association (KTBA) has pointed out unauthorized access to information of taxpayers by retired tax officials and privately hired persons.
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Tax rates on unregistered new cars during 2021-2022
In order to stop the ‘on money’ phenomenon, the government has slapped withholding tax on unregistered new motor cars or cars sold prior to first registration.
Through the Finance Act, 2021 the tax rates have been imposed for the year 2021/2022 and onwards. Initially, these rates were imposed through the Tax Laws (Amendment) Ordinance, 2021 for a period of 90 days.
The Federal Board of Revenue (FBR) collects the withholding tax under Section 231B (2A) of the Income Tax Ordinance, 2001.
Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.
The provincial excise and taxation authorities collect tax on behalf of the FBR from persons getting new locally manufactured motor vehicles transferred in their name at the time of registration of the new motor vehicles.
WITHHOLDING TAX CARD 2021/2022
Following are the rates of withholding tax:
01. Car engine capacity up to 1000CC: the tax rate shall be 50,000; and in case the person is not on the Active Taxpayers List (ATL) the tax shall be Rs100,000.
02. Car engine capacity between 1001CC to 2000CC: the tax rate shall be Rs100,000; and in case the person is not on the ATL the rate shall be Rs200,000
03. Car engine capacity with 2001 and above: the tax rate shall be Rs200,000; and in case the person is not on the ATL the rate shall be Rs400,000
The tax collected/deducted shall be adjustable against the tax liability of the person.
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Income Tax Ordinance, 2001 updated till June 30, 2021
Following is the complete sections of the Income Tax Ordinance, 2001 updated up to June 30, 2001 after incorporating changes brought through Finance Act, 2001.
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FBR announces 4-hour portal shutdown till August 30
The Federal Board of Revenue (FBR) has announced a strategic move to upgrade its technology infrastructure, necessitating a temporary shutdown of its website for four hours daily until August 30, 2021.
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