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.

FBR to refund excess duty, taxes on mobile phone clearance

ISLAMABAD: Federal Board of Revenue (FBR) on Friday said that it will refund excess duty and taxes collected on mobile phone clearance due to glitches found in the WeBOC.

The FBR issued an explanation over excess payment of duty and taxes at the time of clearance of mobile phones.

The FBR said that recently, in a meeting with PTA, it transpired that the passengers can register up to 5 mobile phones on their passports and in case of high end phones of more than USD 500, the difference of duty/taxes between passport and CNIC registration is about Rs. 9,000/.

Accordingly, in order to correct this anomaly and to limit the registration of mobile phone against passport up to one set, the WeBOC module was modified through CRF (change request form).

However, during the process, the exemption of withholding tax was also deleted and thus now the system was showing total taxes on passport as Rs 36,720/-.

FBR stated that the issue has been taken up with Director (R&A) Karachi and the team is reviewing the module to resolve the issue and restore the previous amount of leviable duty/taxes.

The issue will be resolved tomorrow afternoon.

“Due to this glitch in the system, all those who paid more duty would be refunded the excess amount forthwith,” the FBR said.

May 21, 2021
FBR directs IRS officers to submit PERs for promotion into BS-18

The Federal Board of Revenue (FBR) has issued a directive to officers of the Inland Revenue Service (IRS) to submit their performance reports in preparation for the upcoming promotion committee meetings.
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May 19, 2021
FBR issues guidelines for recruitment in BS-01 to BS-05

ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued guidelines for recruitment against vacant posts (BS-1 to BS-5) in the Inland Revenue Department.

The FBR advertised the vacant posts in BS-01 to BS-05 on May 09, 2021.

The authorities had advised the candidates to submit their applications directly to the concerned IR field offices by May 25, 2021.

The recruitment process has to be finalized by the field formations by July 28, 2021, as per instructions of the Establishment Division.

In order to ensure transparency and merit based selection/recruitment, following guidelines have been prepared in the light of relevant rules and latest instructions of the government, to have uniformity in the recruitment process, which are for guidance and compliance of field formations.

These guidelines are of supplemental nature, do not over-ride the relevant rules/regulations and instructions of the Government on the subject:

The advertisement for recruitment shall be affixed on the Notice Board of each field office.

The recruitment process must be transparent, merit based and must be strictly completed

in accordance with the relevant rules/procedures/instructions issued from time to time.

The concerned field formations will conduct requisite test for the posts where warranted under the service rules. No testing agency can be engaged for the recruitment process in the light of latest instruction of the Federal Government conveyed vide Establishment Division 0.M No. 53/1/2008-SP dated 06.05.2020. It may be noted that the Federal Government has withdrawn its O.M. dated 29.07.2019 (Annex-II) regarding conducting balloting for the post in BPS 1-5 vide SRO 198(0/2020 dated 11.03.2020 (Annex-Ill), so there will be no balloting for recruitment against any posts in any grade.

The heads of field formation shall designate an officer of their formation to act as focal person to assist the relevant Departmental Selection Committees (DSCs) in the selection/recruitment process against posts falling under their jurisdiction.

The concerned field formation will prepare the lists/particulars of the qualified candidates with score awarded for the skill test and submit the lists to the concerned departmental Selection Committees (DSCs) specifically constituted in each field formation for the purpose of recruitment.

After compilation of recommendations for selection and signing of minutes of the meetings, the Chairman of the DSCs shall forward the signed minutes to the respective Appointing Authority for approval. The selected candidates shall be issued offer of appointment by the concerned office on prescribed format.

The appointment letters must be issued through Registered post to ensure timely delivery. Result shall be displayed on Notice Board of the respective office.

The number of existing vacant posts in the respective field formation must be re-confirmed from Budget Book prior to issuance of offer of appointment.

The respective Appointing authorities through their designated focal persons will be personally responsible for any lapse i.e recruitment made in excess of the actual number of vacant posts in the respective formation or any procedural lapse / irregularity and record will be saved / preserved for Audit and Accountability by the Focal Person.

Domiciles of candidates shall be verified in the light of Establishment Division’s letter No. 5/7/2009/PPRAC-Vol.X11 dated 31.03.2021 and No. 5/1/2021-(R) dated 06.04.2021 (Annex-VII), (Annex-VIII)

A list of finally selected candidates against the vacant posts may invariably be forwarded to the Board for information and record by each office upon completion of recruitment process.

No candidate shall be appointed without verification of character / antecedent and Medical Fitness Certificate by Authorized Medical Board.

These guidelines are being issued in supersession of earlier one issued on the subject on May, 2021

May 19, 2021
KTBA seeks further date extension for sales tax payment, return filing

KARACHI: Karachi Tax Bar Association (KTBA) on Tuesday urged the Federal Board of Revenue (FBR) to further extend the last date for sales tax payment and filing monthly return as taxpayers are unable to comply with statutory requirement due to extended Eid holidays.

The tax bar asked the tax authorities to extend the date of payment of sales tax and date of e-filing of the monthly sales tax return for the period April 2021 till May 24, 2021 and May 27, 2021, respectively to facilitate members of the bar and the compliant taxpayers to fulfill their legal obligation.

While referring to a notification previously issued by the FBR to extend the date for payment of sales tax and filing monthly return for the period April 2021 issued on May 06, 2021, the date of payment was extended up to May 18, 2021 followed by filing of sales tax return till May 21, 2021.

The KTBA said that may taxpayers and bar members had approached the association informing that the extended date (two days) for payment of sales tax for the tax period April 2021 was insufficient as businesses were not functional properly after Eid Holidays that were during May 10 to May 15, 2021 followed by Sunday on May 16, 2021.

The KTBA also highlighted that in many cases taxpayers were unable to submit Annexure C as the last date of furnishing of Annexure C was May 10, 2021 which was also a holiday on account of Eid. It is important to note that unless Annexure C is submitted, sales tax payment amount cannot be calculated as payment of sales tax is dependent upon submission of Annexure C.

The tax bar further informed that provincial revenue authorities had extended deadline for payments and filing of their respective sales tax returns between May 21 and May 27.

“It is important to highlight that federal sales tax return cannot be furnished before the dates as extended by the provincial revenue authorities owing to the fact that input tax relating to services falling under the provincial domain can only be claimed in federal sales tax return once corresponding provincial sales tax return has been submitted by respective service provider,” the KTBA said.

May 19, 2021
FBR launches module for online hearing in audit, assessment cases

The Federal Board of Revenue (FBR) has taken a significant leap into the digital era with the launch of a software platform for conducting online hearings in audit and assessment cases, as announced by an FBR spokesperson on Tuesday.
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May 18, 2021
Half a million people pay surcharge to get active taxpayer status

ISLAMABAD: Nearly half of a million people have paid surcharge for appearance in Active Taxpayers List (ATL) to get benefit of exempt withholding tax or reduced rate of withholding tax on various types of transactions.

Sources in Federal Board of Revenue (FBR) on Wednesday said that around 500,000 taxpayers who filed their income tax returns after due date had paid surcharge to appear on the ATL for tax year 2020.

The FBR issues a fresh ATL on March 01 every year on the basis of returns filed for the preceding tax year. The FBR issued ATL for tax year 2020 on March 01, 2021. This ATL carried 2.17 million names of taxpayers who filed their income tax returns by due date or those who filed their returns on the date which was extended by Commissioner Inland Revenue (CIR).

The updated ATL – on the basis of surcharge paid by those person who filed their income tax returns after due date – issued on May 10, 2021 is showing around 2.65 million names of active taxpayers.

The filing of income tax returns is mandatory for all the taxpayers who have taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

As per statute the compliance of mandatory return filing was not enough to avail the reduced rate facility. According to Section 182A of Income Tax Ordinance, 2001 the persons who fail to file annual return of income by due date or extended by commissioner Inland Revenue then their names would not be included in the active taxpayers list for the year for which return was not filed.

However, the persons would be included in the taxpayers list on filing return after the due date, if they pay surcharge at: Rs20,000 in case of a company; Rs10,000 in case of an association of persons; and Rs1,000 in case of an individual.

May 12, 2021
Implementing full fledged VAT recommended in budget

Tax experts, gathered under the banner of the Karachi Tax Bar Association (KTBA), have strongly recommended the implementation of a comprehensive Value Added Tax (VAT) by the Federal Board of Revenue (FBR).
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May 12, 2021
FBR reduces sales tax rates on petroleum products

ISLAMABAD: Federal Board of Revenue (FBR) has reduced the rates of sales tax on domestic supply of petroleum products.

The sales tax rates have been reduced in order to maintain the retail prices for end consumers applicable from the first fortnight of May 2021.

The FBR issued SRO 551(I)/2021 dated May 09, 2021 to amend SRO 57(I)/2016 dated January 29, 2016.

Following are the revised sales tax rates on petroleum products from May 01, 2021:

Motor spirit: 17 percent ad valorem

High speed diesel oil: 17 percent ad valorem

Kerosene: 15.44 percent ad valorem

Light diesel oil: 7.56 percent ad valorem

On April 30, 2021, a press statement was issued by the finance division:

“In line with the vision of the Prime Minister to provide relief to the consumers in the holy month of Ramazan, the Government has decided not to increase the prices of the petroleum products. The implementation of this proposal requires an adjustment in the rates of petroleum levy on all petroleum products and a reduction in sales tax as well in case of kerosene oil and light diesel oil.

It is pertinent to mention that the Government was not charging any Petroleum Levy (PL) on Kerosene and light diesel oil.

The cumulative revenue impact of the decision will be Rs. 4.8 billion.

The prices of petroleum products w.e.f 1st May 2021 are as follows: MS Petrol Rs.108.56/liter High Speed Diesel Rs. 110.76/liter Kerosene oil Rs. 80.00/liter Light Diesel Oil Rs. 77.65/liter

A uniform rate of sales tax at 17 percent was announced for all petroleum products through SRO 700(I)/2019 effective from July 01, 2019. However, this notification has been now amended.

May 10, 2021
FBR opens recruitment for over 470 vacancies

ISLAMABAD: Federal Board of Revenue (FBR) has started recruitment process of over 470 vacancies against up to Grade 5 posts.

The FBR invited applications from Pakistani nationals on local basis having local/domicile of the relevant districts against vacant posts in field offices of Inland Revenue (IR).

The FBR announced to recruit 143 sepoy in BS-05, 64 drivers in BS-04 and 266 naib qasid in BS-01.

The FBR said that the applications should be submitted by May 25, 2021.

The FBR advised the eligible candidates to submit their applications on the prescribed form available on FBR website and field offices to the Admin officers of the respective tax office. Candidates applying for more than one post should submit separate application form in separate envelope, clearly marked against the post applied for and obtain separate receiving of the same.

The FBR further instructed the candidates to attach attested copies of CNIC and all relevant documents with application form. Candidates will, however, be required to bring original documents (educational and experience certificate) and one set of attested copies of document at the time of interview.

The FBR further instructed the candidates to prescribe physical test for the posts of sepoy will be conducted for pre-screening of the candidate.

The contract employees (Bs-01- 05) who are appointed under the prime minister assistance package for the families of government employees who died in service may also apply for the posts.

The FBR has allocated 10 percent quota for women, five percent for minorities (non-Muslim) will be observed for all above posts, however, two percent quota for disabled persons will only be observed for the post of Naib Qasid as per government instructions.

Disabled persons are required to submit a certificate as proof of disability duly issued by recognized social welfare board/officer or other authorized government organization.

For further details:

https://pkrevenue.com/wp-content/uploads/2021/05/RecruitmentBS-1-15IRDepartment.pdf

May 10, 2021
Withholding tax collection grows by 91pc as FBR refuses active status to late return filers

KARACHI: Collection of withholding tax has registered 91 percent increase to Rs11.5 billion during April 2021 as compared with Rs6 billion in the same month of the last year, according to statistics of Large Taxpayers Office (LTO) Karachi.

The phenomenal growth has been attributed to significant decline in number of active taxpayers for tax year 2020. A person, as an active taxpayer, is entitled to exemption of withholding tax or reduced rate of withholding tax on various types of transactions.

A large number of income tax return filers have been deprived from appearance on the ATL following change in definition by the FBR. Now a taxpayer will only qualify for active taxpayer if he files his income tax return by due date. In other cases the filing of return is after the due date then the person requires to pay surcharge for late filing the return and for appearance on the ATL.

Appearance on the ATL assures exemption of withholding tax or reduction in rate of withholding tax on various transactions.

The FBR issued the ATL for tax year 2020 on March 01, 2021 and denied the inclusion of names of those taxpayers who filed their returns after the due date i.e. December 08, 2020.

This results only 2.17 million (as per ATL issued on March 01, 2021) taxpayers qualified for active taxpayers as against 3.11 million active taxpayers for tax year 2019.

The sources said that on a weekly basis those taxpayers who filed return after the due date were paying surcharge to appear on the ATL.

The latest ATL issued on May 03, 2021 the number of active taxpayers increased to 2.62 million for the tax year 2020.

May 9, 2021