The Federal Board of Revenue (FBR) has issued draft rules to streamline the process of online audit (e-audit) proceedings, enabling taxpayers to attend hearings virtually without the need to visit tax offices.
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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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FBR issues rules for carry forward capital losses by listed securities
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued draft rules for tax treatment on capital loss on disposal of listed securities.
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IR offices to open on Saturdays to meet collection target
ISLAMABAD: The Federal Board of Revenue (FBR) has decided to open the offices of Inland Revenue on all Saturdays during the month of June in order to achieve revenue collection target for fiscal year 2020/2021.
In an official note circulated to all Chief Commissioners Inland Revenue of Large Tax Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs), the FBR said that all field formations will remain open and observe normal working hours on Saturdays from June 05, 2021 till June 30, 2021.
The decision has been taken to enhance the efforts to meet the revenue collection targets for the last few weeks of current financial year 2020/2021, it added.
The chief commissioners Inland Revenue have been directed to ensure that COVID-19 preventive SOPs should be strictly followed.
The revenue collection of the FBR is provisional at Rs4,167 billion during first eleven months of the current fiscal year. The revenue body needs another Rs533 billion in the month of June 2021 to achieve the revised downward collection target of Rs4,700 billion.
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Inland Revenue speeds up action against illicit cigarettes
ISLAMABAD: The Inland Revenue Enforcement Network (IREN) of the Federal Board of Revenue (FBR) has accelerated action against non-duty paid / illicit cigarettes, a statement said on Saturday.
IREN’s Directorate of Intelligent and Investigation (I&I) -IR Faisalabad Unit conducted a raid at Samanabad and discovered 201 cartons (2,000,000 cigarettes) of non-duty paid cigarettes.
The confiscated cigarettes of various local brands such as Gold Mark, Cricket, Grace etc. have been moved to the warehouse of the Directorate.
Similarly, the IREN Unit of Directorate of I& I-IR Karachi, intercepted the vehicle and found 119 Cartons (990920 sticks) of Non-duty paid cigarettes.
The same have been detained on account of non-production of valid documents. The value of federal excise duty and sales tax of confiscated cigarettes is around 6 million. Further investigation is underway.
A team of Directorate of I&I (IR), Hyderabad visited Godown of a Transport Company at Tando Mohammad Khan and found 121 Cartons (1210000 sticks) of different brands of cigarettes stocked in the godown.
The person present there failed to produce any documentary evidence regarding payment of applicable duties and taxes in respect of these Cartons. Hence the stock of 121 cartons involving duty and taxes of Rs. 2.634 million has been detained for further investigation.
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FBR projects Rs5,700bn tax collection for next fiscal year; IMF says ‘do more’
ISLAMABAD: The Federal Board of Revenue (FBR) has estimated Rs5,700 billion as a net revenue collection for the next fiscal year 2021/2022, around Rs263 billion less then projection of International Monetary Fund (IMF).
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FBR issues cadre strength of IRS, Pakistan Customs
ISLAMABAD: The Federal Board of Revenue (FBR) has updated the cadre strength of Inland Revenue Service (IRS) and Pakistan Customs Service (PCS) after creation of 41 additional posts by the finance division.
According to the updated cadre strength, the FBR has seven BS-22 officers; five in IRS and remaining two in the PCS.
In BS-21, the FBR said, there are 52 officers of IRS are serving and 26 in the PCS.
The FBR said that it has 254 officers in BS-20, which included 180 in the IRS and 74 others in the PCS.
Around 261 officers of IRS and 145 officers of PCS are in the BS-19. Likewise, 389 IRS officers and 162 officers of PCS are serving in BS-18.
The FBR has strength of 388 officers of IRS and 113 officers of PCS in BS-17.
The IRS has 1275 officers in BS-17 to BS-22. Meanwhile, the PCS has 522 officers in BS-17 to BS-22.
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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.
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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.
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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.
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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.