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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.

  • Finance ministry, IMF meeting to finalize budget proposals

    Finance ministry, IMF meeting to finalize budget proposals

    ISLAMABAD: An important meeting of the ministry of finance with representatives of International Monetary Fund (IMF) will be held today evening (Thursday evening) to finalize the recommendations for budget 2021/2022.

    Senior officials of the ministry of finance, three representatives, including country head, of IMF and senior officials of Federal Board of Revenue (FBR) will attend the meeting, sources said.

    Officials of the IMF will attend the meeting through video link.

    The meeting will discuss important points of the budget, which will include salary income tax and sales tax reforms.

    The sources said that the meeting would finalize tax slabs for salaried persons.

    The IMF had proposed reduction in salary tax slabs from 11 to five. Further the meeting will discuss sales tax incentives and reduced rates.

    The sources said that the government would finalize the proposals after discussions with the IMF.

    The source said that the government is considering an increase of 10 percent in salaries and pension. This increase would be given through adhoc basis. However, the government is not considering to grant the increase in basic pay scale.

    The government has decided to allocate an amount of Rs900 billion for Public Sector Development Program (PSDP).  The budget deficit may be curtailed at six percent of the GDP.

    In his recent statement, Finance Minister Shaukat Tarin had already made it clear that the government was not in position to take strict measures due to covid pandemic.

  • FBR directs officials to avoid initiating audit on assumptions

    FBR directs officials to avoid initiating audit on assumptions

    ISLAMABAD: The Federal Board of Revenue (FBR) has directed the officials of Inland Revenue (IR) to avoid opening audit cases merely on surmises and assumptions, sources said on Wednesday.

    The FBR issued instructions to all chief commissioners of tax offices regarding proceedings under section 122(5) of Income Tax Ordinance, 2001.

    The FBR said that it had received representations suggesting that the field offices were recklessly issuing notices under section 122(5) read with section 122(9) of Income Tax Ordinance, 2001 where purportedly the threshold of ‘definite information’ as defined under section 122(8) was not met.

    “It goes without saying that amendment proceedings under section 122(5) of the Ordinance, merely on basis of audit suspicion picked from within the declarations lodged by the taxpayers themselves, is an enforcement travesty and need to abate,” the FBR said.

    The scheme of law warrants that a taxpayer must be dealt with precisely as per principle of justice and fair play, it added.

    The FBR directed the field formation to adhere with law and due diligence must be ensured in respect of each taxpayer and no case should be opened merely on surmises and assumptions. “All taxpayers must be provided adequate opportunity of being heard, too,” the FBR added.

  • Duty free import of Land Cruiser vehicles allowed

    Duty free import of Land Cruiser vehicles allowed

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday allowed exemption of federal excise duty (FED) on import of Land Cruiser vehicles for the purpose of locust control.

    The FBR issued SRO 591(I)/2021 to exempt whole of FED payable on the import of ten soft skin land cruiser 79 series pick-up 4.2 L-3 vehicles having PCT Code 9901 by the Food and Agriculture Organization of the United Nations (FAO) to be used by the department of plant protection for locust control operations.

  • FBR exempts income tax on import of oxygen generators

    FBR exempts income tax on import of oxygen generators

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday exempted withholding income tax on import of oxygen generators and oxygen gas in order to ensure sufficient supply of products for treatment of coronavirus pandemic.

    The FBR issued SRO 589(I)/2021 to make amendment in the Second Schedule of the Income Tax Ordinance, 2001.

    The FBR said that the provisions of Section 148 of Income Tax Ordinance, 2001 shall not apply on import of following goods (PCT Code) for a period of 180 days starting from May 14, 2021, namely:

    01. Oxygen (2804.4000)

    02. Oxygen Cylinders (7311.0090)

    03. Cryogenic  – Tanks/Vessles (7311.0030)

    04. Oxygen concentrators / generators/ manufacturing plants of all specifications and capacities (respective headings).

    A day earlier, the FBR also exempted customs duty on import of oxygen gas, cylinders and oxygen manufacturing plants.

  • FBR announces panel of advocates for customs service

    FBR announces panel of advocates for customs service

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday announced panel of advocates, who will represent the tax authorities in cases relating to matters of Pakistan Customs Service (PCS).

    The panel of advocates has been appointed for a period of three years.

    Pakistan Customs (North)

    1. Arslal Amjad Hashmi North

    2. Malik Nasir Abbas

    3. Saleh Zada

    4. Ms. Syeda Mirbaz

    5. Barrister Dr. Waseem Qureshi

    6. Ms. Shamin Choudhry

    7. Javaid Alchtar

    8. Ms. Momina Khayal

    9. M. Irshad Chaudhry

    10. Dilnawaz A. Cheema

    Pakistan Customs (Central)

    1. Omar Arshad Hakeem

    2 Barrister Qadir Buksh

    3 Barrister Hans Azmat

    4. Tahir Zia Mahar

    5. Syed Hamid Raza Bokhari

    6. Amir Farooq

    7. Muhammad Asif Butt

    8. Saif ullah Khan

    9. Ms. Firoza Gohar

    10. Fawad Ahmad Cheema

    11. Habib Rehman

    12. Muhammad Shabaz Sharif

    13. Khurram Virk

    14. Mustafa Haroon

    15. Sheikh Muhammad Ali

    16. Ms. Shagufta Arif

    17. Rai Amer Ijaz Kharal

    18. Ch. Muhammad Shahid Iqbal

    19. Faisal Akbar

    20. Mesum Mehdi

    21. Muhammad Saleem

    22. Muhammad Hafeez

    23. Usman Afi Virk

    24. Waqar Ahmad Sheikh

    25. Khawar Nawaz Bharwana

    26. Hasnan Maqsood

    27. Ahmad Wasim

    28. Amir Ali

    29. Muhammad Ahmad Mehboob

    Pakistan Customs (South)

    1. Rana SalchawatAli

    2. Irfan Mir Halepota

    3. Imran Ahmed Maitlo

    The FBR said that advocates may be assigned Court cases for pleading before various Courts /

    Tribunals at relevant stations on the basis of merit, keeping in view their experience and facts of the each case.

    Matter relating to professional fee/ special professional fee, appointment, performance evaluation, de-notification, conduct of the Panel Advocates and other related matters will be governed by the SOPs/ policy guidelines circulated vide FBR’s letter C.No.8 (70)s(P.A)/2020/176432-R dated 12.10.2020 and any other notification issued or to be issued from time to time.

  • FBR allows duty free import of oxygen manufacturing plants

    FBR allows duty free import of oxygen manufacturing plants

    The Federal Board of Revenue (FBR) in Pakistan announced on Monday the grant of duty exemption on the import of critical oxygen-related goods.

    (more…)
  • IR intelligence unearths Rs4.27bn sales tax fraud

    IR intelligence unearths Rs4.27bn sales tax fraud

    ISLAMABAD: The Directorate General of Intelligence and Investigation (Inland Revenue) has unearthed a sales tax fraud to the tune of Rs4.27 billion by M/s. Innovative Biscuits (Pvt).

    A statement issued by the Federal Board of Revenue (FBR) on Monday said that the Directorate of Intelligence & Investigation (IR), Lahore on receipt of credible information related to sales tax fraud carried out action under Section 38 read with Section 40 of the Sales Tax Act, 1990 against M/s. Innovative Biscuits (Pvt.) Limited, Lahore.

    Assessment order was issued wherein an amount of Rs. 4.27 billion as sales tax along with default surcharge and 100 percent penalty for tax fraud was imposed upon the registered person

    Accordingly, accused Sheikh Munir Hussain, one of the Directors of M/s. Innovative Biscuits (Pvt.) Limited was arrested. Due to proper presentation of case by Directorate of Intelligence & Investigation (IR), Lahore, two bail applications filed by the accused were rejected by Special Judge, the FBR said.

    Subsequently, the accused filed another application for bail before Lahore High Court. The Lahore High Court, Rawalpindi Bench, Rawalpindi granted post arrest bail to the petitioner on deposit of an amount of Rs 300 million and submission of post dated cheque of Rs. 100 million. The legal process is underway against the accused.

    Directorate General of Intelligence & Investigation-IR has performed commendably well in the current Financial Year from July-2020 to April 2021.

    The Directorate General has forwarded 653 Investigation Reports involving revenue of Rs. 197.714 billion to the field formations. The Directorate General conducted 40 raids where estimated revenue amounting to Rs. 761 million is involved. Directorate General filed 67 complaints under Anti-Money Laundering Act, 2010 against 75 accused persons involving Rs. 55.385 million. Directorate General also seized 6667 cartons of illegal cigarettes.

  • Procedure issued for enrollment with FBR system of AJK/GB registered persons

    Procedure issued for enrollment with FBR system of AJK/GB registered persons

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday issued standard operating procedure for enrollment with FBR system of persons registered with Azad Jammu Kashmir (AJK) and Gilgit-Baltistan (GB).

    The FBR said that the Sales Tax Act, 1990 mandates a Registered Person (RP) registered with Federal Board of Revenue (FBR) to claim input tax credit on supplies made to RPs registered with Azad Jammu & Kashmir (AJK) Tax Department and vice versa. Rule 161 of the Sales Tax Rules, 2006, however, warrants that RPs registered with AJK Tax Administration to have enrollment with FBR so as to be able to avail the benefits of input adjustments.

    Apart from a few isolated memoranda issued every now and then, no systematic set of instructions have so far been formulated. Similar instructional void exists when it comes to Gilgit-Baltistan (GB) registered persons intending to undertake imports/exports and have to enroll with FBR’s WeBOC System.

    Sub-rule (3) of Rule 161 supra also stipulates that “when the AJK authorities institute e-filing for their registered persons, the adjustment as aforesaid shall only be available against electronic data of supplies as provided to the Board by AJK authorities.” In the intervening period when AJK Tax Department and Pakistan Revenue Automation Limited (PRAL) were negotiating and signing the Service Level Agreement (SLA), cross adjustment of input tax credit was allowed manually. Rule 161(2) warranted all AJK-RPs to “furnish an undertaking that they will provide their supply record and the return filed in AJK” as and when required by the respective RTO or LTO, where their buyers are registered to ascertain correctness of their sales. In anticipation of signing of the SLA between AJK Tax Department and PRAL, manual adjustments stand disallowed.

    Accordingly, it has been decided that hereinafter, in order to ensure certainty, transparency and across-the-board, Standard Operating Procedures (SOPs) are being devised that shall govern enrollment of AJK and GB RPs with FBR systems for all purposes.

    A. Status pre-conditions:

    All AJK/GB taxpayers seeking enrollment with FBR systems for input adjustment and import/export purposes would need to fulfill the following pre-conditions:-

    (i) That, the business is physically located within the territorial boundaries of AJK and GB administrations.

    (ii) That, the business should have been registered with the AJK/GB tax roll.

    (iii) That, the applicant taxpayer must not be involved in a criminal or tax  fraud proceedings at the time of filling of application anywhere in the country.

    B. Application requirements

    (i) The AJK/GB registered persons intending to enroll with the FBR would make a formal request on its letter head to his Commissioner concerned in AJK/GB duly enclosed by a copy of CNICs of owner(s) of the business, and directors and partners in case of an association of persons or a company along with partnership deed for an AOP, and memorandum of articles of association/ Form 29 for companies.

    (iv) A copy of National Tax Number (NTN) certificate issued by the AJK / GB tax department.

    (v) A copy of sales tax registration certificate issued by the AJK/GB tax department.

    (vi) Proof of being active taxpayer with the AJK/GB’s tax department.

    (vii) Online NTN/STRN verification (principal activity manufacturer/importer/exporter from AJK and GB tax department.)

    (viii) A copy of NTN of all directors/partners issued by the FBR in case of limited company/AOPs.

    (ix) Emails and mobile numbers of the lead/authorized director/partner.

    (x) Incorporation number for SECP registered companies.

    (xi) The verification report of premises of the AJK/GB taxpayer/manufacturer must be forwarded internally by commissioner Inland Revenue, AJK or GB, as the case may be.

    (xii) Undertaking /affidavit by the applicant seeking enrollment as regards provision of documents/records, as and when required by the IR field formations for the FBR in terms of Rule 161 of Sales Tax Rules, 2006.

    (xiii) Recommendation of AJK Chamber of Commerce and Industry or GB as the case may be.

    (c) Procedures

    (i) The aforementioned documents shall be accompanied with the verification of manufacturing unit/business by the AJK/GB Tax Department. The AJK/GB shall forward the request electronically to Registration Cell for Enrollment (RCFE) established in FBR for enrollment with FBR automated system. FBR would establish and notify RCFE as and when automated transmission of data is operationalized by AJK/GB, IR department.

    (ii) The RCFE, shall process the application of AJK/GB-RPs in FBR automated system through link as provided by PRAL and generate NTN/STRN in FBR system. The generated NTN/STRN shall be forwarded to IT Wing/PRAL for auto-population in FBR automated system/ WeBOC system with STRN/NTN as issued by the AJK.

    (iii) In case of any discrepancy observed in provided data/documents of applicant by Registration Cell, the same shall be referred back to concerned AJK/GB  department for removal of same.

    The FBR said that the SOPs laid down in this STGO, mutatis mutandis, would also apply to the GD registered persons as and when requirement for the same are met.

  • FBR enhances refund to export ratio

    FBR enhances refund to export ratio

    ISLAMABAD: Federal Board of Revenue (FBR) has revised the processing parameters and increased refund to export ratio to 15 percent.

    According to Sales Tax General Order (STGO) No. 05 of 2021, the FBR announced to re-fix the ceiling of parametric refund-to-export ratio from the previous 12 percent to 15 percent of the export value for processing of sales tax refunds of the commercial exporters.

    The FBR defined the commercial exporters as those exporters who do not have a manufacturing facility, and are not registered in the manufacturer category under the Sales Tax Act, 1990.

    “This shall be maximum ceiling of admissible refund processed through FASTER against valid exports after confirmation of realization of export proceeds as per rule,” the FBR said.

  • IR officer awarded major penalty of removal from service

    IR officer awarded major penalty of removal from service

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed major penalty of ‘removal from service’ an officer of BS-18 Inland Revenue Service (IRS) for misconduct.

    According to a notification issued by the FBR stated that disciplinary proceedings were initiated against Syed Nasir Jamal Shah (IRS/BS-18) Deputy Commissioner-IR, Corporate Tax Office, Lahore under Rule 7 of Civil Servants (Efficiency & Discipline) Rules, 2020 on account of unauthorized absence from duty w.e.f. September 28, 2020; through Direct Show Cause Notice dated January 11, 2021 on the charges of misconduct.

    Syed Nasir Jamal Shah (IRS/BS-18) furnished reply to the show cause notice wherein the officer stated that he applied for leave of 400 days and submitted application to the Commissioner-IR, CTO, Lahore on November 03, 2020 for onward submission to the Member (Admn), FBR, Islamabad and the same was forwarded to the Board on November 09, 2020.

    The officer further stated that the allegation of absence without any intimation is based on some omission in record. The accused officer also requested for opportunity of personal hearing before finalization of the proceedings. Secretary, Revenue Division/Chairman, FBR being Authority in the instant case appointed Member (Admn/HR) as Hearing Officer to grant personal hearing to the accused officer under Rule 17 of Civil Servants (Efficiency and Discipline) Rules, 2020.

    Hearing Officer/Member (Admn/HR) granted personal hearing to the accused officer on March 15, 2021. During the course of personal hearing the accused officer was asked to put forward his defence, but the accused officer did not have anything substantial to elaborate in his defence.

    The contentions of the officer that his higher officers in CTO, Lahore were aware of his leave submission was also found unsatisfactory in purview of the prevailing instruct ions of the government which are very clear i.e. the officer cannot absent himself until and unless the leave applied by the officer is approved by the Competent Authority.

    Reference in this regard is made to Establishment Division’s O.M No.1/34/57-ME dated 12-11-1957 which states that “a government servant should not absent himself from office without leave”.

    Furthermore, Establishment Division’s O.M.No.6/3/81-RI(DI) dated 26-07-1981 states that “a civil servant continues to be in service till his resignation is accepted and cannot absent himself from his duties without proper leave” Establishment Division’s O.M No.15/6/85-R.2 dated 03-03-1986 states that “if a civil servants absents himself from duty, till his resignation is accepted by the Competent Authority, he is liable to be proceeded against under the (Efficiency & Discipline) Rules which may also result in dismissal from Government Service”. Moreover, leave application of Syed Nasir Jamal Shah (IRS/BS-18) was silent about date of availing of the requested leave.

    The failure to comply with the instructions of the government construes misconduct on part of the officer. Furthermore, during the case of personal hearing the accused officer failed to bring up justification/reasons to defend his unauthorized absence from duty. Attitude and conduct of the accused officer was highly casual and irresponsible.

    Information collected from field revealed that he is running his own academy in Lahore, doing business and is not at all interested in government service and keeping this as a standby option.

    After considering the charges framed in the Show Cause Notice and available record including the reply furnished by the accused officer, the Hearing Officer came to the conclusion that the accused officer has nothing new to add in his defence.

    Hearing Officer/Member (Admn/HR) forwarded the case record to the Authority i.e. Secretary, Revenue Division/Chairman, FBR for decision.

    Secretary, Revenue Division/Chairman, FBR being Authority in the instant case has decided the major penalty of “Removal from Service” upon Syed Nasir Jamal Shah (IRS/BS-18) Deputy Commissioner-IR, Corporate Tax Office, Lahore under rule 4(3)(d) of Civil Servants (Efficiency & Discipline) Rules, 2020 with immediate effect.

    The period of unauthorized absence from duty w.e.f. 28.09.2020 of Syed Nasir Jamal Shah (IRS/BS-18) shall be treated as Extra Ordinary Leave (without pay). Outstanding dues/recoverable amount shall be recovered from Syed Nasir Jamal Shah (IRS/BS-18).

    Syed Nasir Jamal Shah (IRS/BS-18) shall have a right to appeal to the Appellate Authority under Civil Servants (Appeal) Rules, 1977 within a period of thirty (30) days from the date of communication of this notification.