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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.

  • 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.

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  • 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.

  • FBR to refund excess duty, taxes on mobile phone clearance

    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.

  • FBR directs IRS officers to submit PERs for promotion into BS-18

    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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  • FBR issues guidelines for recruitment in BS-01 to BS-05

    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

  • KTBA seeks further date extension for sales tax payment, return filing

    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.