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.

Taxpayers urged to use electronic payment facility

ISLAMABAD: Federal Board of Revenue (FBR) has urged the taxpayers to avail electronic mode of payment for duty and taxes. The e-payment facility has been introduced for convenient and hassle free payment, said a statement issued on Monday.

In continuation of FBR reforms and modernization drive, E-Payment facility for payment of all FBR taxes as well as some provincial taxes has been introduced for convenient and hassle free payment.

On the one hand, traders can electronically pay all import duties and taxes through Customs computerized system WeBOC at ports and border stations across Pakistan.

While on the other hand, taxpayers can also electronically pay income tax, sales tax and Federal Excise duty sitting in their homes.

E-Payment system provides round the clock facility to taxpayers and traders to make online payment of customs duties and other FBR taxes as well as provincial cess and stamp duty.

The facility is available through internet and mobile banking by using more than 15000 ATMs of 16000 Over the Counters (OTC) bank branches of commercial banks spreading across the country.

The taxpayers’ confidence and interest in E-payment is growing fast and it can be gauged from the fact that the proportion of number of E-payments of Income Tax, Sales Tax and Federal Excise Duty has increased from 6.26 percent of total payments during July to December 2019 to 40.5 percent during same period of 2020.

Similarly the proportion of amount deposited in these E-payments has increased from 13.55 percent of total payments to 76.5 percent during the comparative periods.

E-payment facility has greatly helped the traders and other taxpayers’ during the COVID pandemic since all transactions can be completed without physical interaction.

Currently 18.6 percent of import duties and taxes are being collected by Pakistan Customs through E-Payment system. More than 80,000 consignments consisting of nearly 22 percent of total imports were cleared in WeBOC through E-Payment in the last 6 months.

Apart from major Customs stations including Karachi, Lahore, Islamabad and Peshawar, the facility is also being availed by importers in remote areas like Taftan and Khunjerab.

FBR urges the traders and other taxpayers to utilize E-Payment facility as it reduces their cost of doing business and contributes significantly towards improving the ease of doing business.

It also expedites the clearance of goods, enhances transparency in the duty payment mechanism and ensures timely revenue reconciliation. Acknowledging E-payment as a major step towards trade facilitation, World Trade Organization’s Trade Facilitation Agreement also promotes the use of electronic payment methods amongst the traders.

FBR has launched an awareness campaign to enhance the use of E-payment facility. In this regard, a number of seminars have been conducted to educate trade bodies and Customs Agents about the benefits of E-Payment. The traders can also take benefit of the FAQs section relating to E-payment available on the WeBOC web page.

January 11, 2021
Income tax return filing touches new peak at 3.03 million

ISLAMABAD: Income tax return filing hit record high at 3.03 million for tax year 2019, according to weekly Active Taxpayers List (ATL) updated on Monday.

The FBR issued the weekly ATL – 2019 updated on the basis of returns filed up to January 10, 2021.

The ATL-2019 will remain applicable till February 28, 2021 as the FBR will issue new ATL for tax year 2020 on March 01, 2021.

The return filers including salaried persons, business individuals, Association of Persons (AOPs) and companies can check their names on the ATL by visiting How to check ATL status?

The filing of income tax return is mandatory for persons driving taxable income or specified under Section 114 of Income Tax Ordinance, 2001.

The appearance of names on the ATL is only possible after filing income tax returns within due date. In case persons are not on the ATL then the rate of withholding tax shall be increased by 100 percent on various transactions.

Persons fail to file their returns by due date but file after the date will also not qualify to enlist their name on the ATL until fine is not paid to the Federal Board of Revenue (FBR).

A taxpayer should check his/her status on the ATL before making transactions in order to avail reduced rate of tax rates.

January 11, 2021
FBR launches mega crackdown against illegal petrol pumps

ISLAMABAD: Federal Board of Revenue (FBR) has launched massive crackdown against illegal petrol pumps from Monday (January 11, 2021) on the directives of Prime Minister Imran Khan.
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January 11, 2021
Three years imprisonment for sales tax registration failure

ISLAMABAD: A person who makes taxable supplies but fails to get sales tax registration shall be liable to pay fine and penalties besides the person is also liable to imprisonment up to three years.

Sources in the Federal Board of Revenue (FBR) said that the tax offices had launched operations to identify persons making taxable supplies but are not in the sales tax net.

The sources said that under Sales Tax Act, 1990, any person who is required to apply for registration under the Act fails to make an application for registration before making taxable supplies:

“Such person shall pay a penalty of Rs10,000 or five percent of the amount of tax involved, whichever is higher;

“Provided that such person who is required to get himself registered under this Act, fails to get registered within sixty days of the commencement of taxable activity, he shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to an amount equal to amount of tax involved, or with both.”

Section 14 of the Sales Tax Act, 1990 requires a person to get registration under this Act, who is making taxable services.

Following is the tax of the Section 14:

Section 14: Registration

(1) Every person engaged in making taxable supplies in Pakistan, including zero-rated supplies, in the course or furtherance of any taxable activity carried on by him, falling in any of the following categories, if not already registered, is required to be registered under this Act, namely:-

(a) a manufacturer who is not running a cottage industry;

(b) a retailer who is liable to pay sales tax under the Act or rules made thereunder, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3;

(c) an importer;

(d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;

(e) a wholesaler, dealer or distributor; and

(f) a person who is required, under any other Federal law or Provincial law, to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.

(2) Persons not engaged in making taxable supplies in Pakistan, if required to be registered for making imports or exports, or under any provisions of the Act, or any other Federal law, may apply for registration.

(3) The registration under this Act shall be regulated in such manner as the Board may, by notification in the official Gazette, prescribe.

January 9, 2021
Committee to review tax structure for stock market

ISLAMABAD: Federal Board of Revenue (FBR) on Friday set up a consultative committee to review tax structure for stock market.

The FBR constituted the consultative committee on capital markets tax reforms, which comprising following members:

Member Inland Revenue Policy, FBR as chairman

Shauzab Ali, Commissioner Securities Market Division, SECP as Member

Farrukh H. Khan, Chief Executive Officer, PSX as Member

Ahmed Ali Mitha, Chief Financial Officer, PSX as Member

Chief (Income Tax Policy), FBR as Secretary.

According to the terms of reference for the committee, it shall act as a forum till budget making exercise for the year 2021/2022, to review tax policies and suggest specific short-term and medium to long term measures for the development of debt and equity market, commodity futures, mutual funds, REITs, corporate and insurance sector, amongst others.

Broadly it will review and recommend all measures that impinge upon the capital markets and its stakeholders.

The committee may invite proposals from relevant stakeholders, deliberate and finalize tax reforms in the aforementioned areas.

The proposals shall be categorized into immediate, medium term and long-term reforms and shall accordingly be prioritized.

First report of the committee shall be submitted to the FBR within 20 days of its constitution.

The FBR said that necessary amendments to the tax laws shall be initiated in consultation with the committee for implementation of the agreed proposals.

January 8, 2021
Customs officials promoted to post of principal appraisers

ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified promotions of appraising officers and assistant private secretary of Pakistan Customs Department to the post of principal appraisers (BS-16) with immediate effect until further orders.

FBR notified promotions of following officers:

01. Khalid Hassan Awan posted at Directorate General Transit Trade, Karachi.

02. Salman Ahmed posted at Model Customs Collectorate (MCC) Appraisement and Facilitation (East) Karachi.

03. Aijaz Ahmed Butt posted at MCC Appraisement and Facilitation (East), Karachi.

04. Rana Insaram Rabbani posted at MCC Export, Customs House, Karachi.

05. Ejaz Ahmed posted at MCC Appraisement and Facilitation (East), Karachi.

06. Muhammad Khalid posted at MCC Appraisement and Facilitation (West), Karachi.

07. Nasir Ahmed posted at MCC Export, Customs House, Karachi.

08. Mirza Irfan Baig posted at MCC Appraisement and Facilitation (East) Karachi.

09. Zaka ullah posted at MCC Export, Customs House, Karachi

10. Muhammad Zaman Khan Tarar posted at MCC Allama Iqbal International Airport, Lahore.

11. Muhammad Ashfaq Ghouri posted at Post Clearance Audit (Central), Lahore.

12. Arshad Nazir posted at Post Clearance Audit (Central), Lahore.

13. Sarfraz Ahmad posted at MCC Islamabad.

14. Faiz Muhammad Awan posted at MCC Appraisement and Facilitation, Lahore.

15. Syed Muhammad Jaffar posted at Post Clearance Audit (Central) Lahore.

16. Shahzad Malik posted at MCC Appraisement and Facilitation, Lahore.

17. Dost Mohammad posted at Directorate General of Intelligence and Investigation, Customs, Karachi.

18. Naveed Iqbal Cheema posted at MCC Enforcement and Compliance, Lahore.

19. Muhammad Qadeer Khan posted at MCC Export Karachi.

20. Ijaz Ahmed Siddiqui posted at Post Clearance Audit (Central) Lahore.

21. Khurram Rafique posted at MCC Appraisement and Facilitation (East) Karachi.

22. Zia Hassan posted at MCC Islamabad.

23. Miraj Muhammad posted as Assistant Private Secretary, MCC Exports, Karachi.

The FBR said that the promotions of the officers would take effect from the date of their joining, subject to the condition that no disciplinary proceedings/inquiry was pending against them.

The promoted officers will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order.

The officers already drawing performance allowance equal to 100 percent of basic pay will continue to draw it on their promotion.

January 8, 2021
FBR constitutes committee for tax return form simplification

ISLAMABAD: Federal Board of Revenue (FBR) on Friday constituted a committee for simplification of income tax return for Tax Year 2021.

As a part of various reform initiatives and in pursuance to the special instructions of the Prime Minister of Pakistan, FBR chairman has constituted a committee for timely designing/finalization and simplification of Income Tax Return forms for individuals, AOPs and companies for tax Year 2021.

While departing from the previous practice, the FBR aims at designing the return forms in much advance so that forms are available to the taxpayers on the very first day of the tax year.

The committee shall be chaired by Member (IR-Policy) whereas Chief Information Officer, Chiefs of Inland Revenue Operations & Inland Revenue Policy and Second Secretary, Domain Business Team (DBT) of FBR’s Information Technology Wing would be members of the committee.

The committee aims at simplifying the income tax return forms to the best possible extent besides developing the return forms that require least possible interventions on year to year basis. International best practices shall be a guiding principle for the committee.

The idea behind this endeavor is to facilitate the taxpayers’ and make the income tax return form more user-friendly and free from unnecessary complications.

In order to make this initiative more fruit bearing and result oriented, FBR through a separate communication has requested the ICAP, ICMAP, Pakistan Tax Bar Associations and various Chambers of Commerce and Industry to give their input for designing a simplified version of the returns.

January 8, 2021
Customs to confiscate properties acquired through proceeds of smuggling

ISLAMABAD: Customs authorities have been empowered to confiscate properties that are acquired through proceeds of smuggling.
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January 8, 2021
Customs Rules tightened for International Transshipment

ISLAMABAD: Federal Board of Revenue (FBR) has tightened the monitoring of international transshipment of imported cargo from gateway port to a foreign port.

The FBR issued SRO 03(I)/2021 to amend Customs Rules, 2001.

The FBR amend Rule 510A regarding transshipment of imported cargo from gateway port to a foreign port and made it mandatory the weight, seal number and container number for international transshipment cargo.

The following procedure has been prescribed for the movement of the International Transshipment cargo other than LCL cargo through any sea port in Pakistan, which shall be distinctly manifested as such in the IGM or carrier declaration uploaded electronically in the Customs Computerized System by the shipping line (VOCCs/NVOCCs) having valid shipping agent licenses. Such manifest shall necessarily include the following information, namely:

(a) Port of loading;

(b) Via port (name of the transshipment port of Pakistan);

(c) Port of destination (final port of discharge at foreign destination);

(d) Bill of lading (B/L) No.;

(e) Name of foreign exporter;

(f) Name of foreign importer;

(g) Weight;

(h) Seal No.; and

(i) Container No.

The FBR made amendment to rule 510B and stated that the Terminal Operator (TO) after unloading shall store International Transshipment containers at a place earmarked for them in the notified premises of a seaport. Further, a complete trail of IT containers including the time, location where they are placed and subsequent movements shall be electronically reported and updated in the Customs Computerized System by the Terminal Operator so that the location of the said containers is traceable at any given point in time.

Further, the terminal operator shall deploy enough manpower to verify the shipper seals against the manifested seals and in case, a container is found without seal or with a different seal or any broken seal, such container shall be re-sealed and immediately released with the Customs seal in the presence of the custodian and same shall be recorded. The new seal number will be entered into the system before stacking of the container.

Rule 510D regarding delay in clearance of transshipment goods has been substituted. Following is the text of the substituted rule:

(1) The International Transshipment goods shall not be subject to payment of import or export duties and taxes provided the activities are in conformity with these rules.

(2) If the goods stores for transshipment are not transshipment within thirty days of their arrival, a notice shall be sent to the shipping line or its agent on the address given in the shipping documents for transshipment of goods from the port. An extension of up to thirty days may be granted for the storage of such goods once a written request mentioning the reasons for delay in removal of goods in submitted to the concerned assistant collector of customs and such a request is approved by him.

(3) If goods still remain on the port after sixty days of their arrival, the shipping line shall be responsible to remove them immediately unless the delay is attributed to the port authorities. The goods shall only be allowed for auction or destruction by approval of the concerned collector of customs who shall only allow in extraordinary conditions where the shipping line shows its complete inability to ship them out. The said reasons shall be recorded in writing.

(4) In case of any hazardous material left at the port, the concerned shipping line shall have the responsibility to take the cargo back to the port of origin.

The Rule 510E has also be amended and substituted the following text:

“Execution of bond by shipping line: Shipping lines engaged in the business of international transshipment of containers and bulk cargo shall execute an indemnity bond for ensuring to follow customs rules and regulations.”

January 8, 2021
FBR sets up cell for registration of manufacturers for concessionary power, gas tariff

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday established a cell for registration of manufacturers in export-oriented sector to allow concessionary tariff on supply of electricity and gas.

The FBR issued an office order to set up Export-oriented Sector Registration Cell (ESRC) for manufacturers of export-oriented sectors (erstwhile zero-rated sector) to process requests for concessionary tariff rates on supply of electricity and gas.

The FBR deputed officers to the cell, who are included: Khalid Mehmood, Second Secretary (ST-L&P), Imran Ullah Khan, Senior Auditor (ST-L&P) and Majid Hussain Abbasi, Inspector (ST-L&P).

The functions of the ESRC are to:

Examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc. as required, and forward the case to the ministry of commerce for further necessary action.

Liaise with Inland Revenue field formations for ground-check, report and recommendations, in case any discrepancies in the verification report and data available with the FBR are spotted.

Earlier in a notification issued on December 30, 2020, the FBR said that the economic coordination committee of the cabinet had approved the reduced rate to manufacturers on supply of electricity and gas in a meeting held on December 12, 2020. The ECC also directed the FBR, ministry of commerce and other stakeholders to devise a standard operating procedure (SOP) for enrollment of registered persons under the export-oriented sectors (erstwhile zero-rated sectors) to quality concessionary regime of electricity, RLNG and gas tariff.

Accordingly, a meeting was held in FBR on December 22, 2020 and as a result of thorough deliberations amongst all stakeholders the requisite SOP has been agreed upon and being rolled onto.

The FBR said the following SOP adopted for enrollment of manufacturers for grant of reduced tariff rate:

(i) For new registration of manufacturers for concessionary tariff rates, applicants may apply respective representative association.

(ii) The Association concerned, after verifying the particulars on the prescribed format, may forward the application along with its element recommendations, duly signed by its chairman/president, to the export oriented sector registration cell (ESRC) of the FBR.

(iii) The ESRC shall examine the particulars and recommendations of the respective associations and counter-verify particulars of the taxpayer including declarations in the registration profile etc. as required, and forward the case to the ministry of commerce for allowing concessionary tariff through respective Distribution Companies (DISCOs)/Gas companies.

(iv) In case the ESRC spots any discrepancies in the verification report and data available with the FBR, the matter will be referred to Inland Revenue field formations for ground-check, report and recommendations.

(v) The newly enrolled taxpayers shall be entitled to avail concessionary tariff prospectively.

(vi) The DISCOs/gas companies shall ensure that the taxpayers are active on FBR’s (Sales Tax) Active Taxpayers List (ATL) as shared with DISCOs/gas companies each month before generating the monthly utility bills. In case the taxpayer is found non-active on the ATL, standard utility tariff shall apply on supply of utilities for the relevant period.

(vii) Any taxpayer aspiring to avail concessionary utility rates and who is not registered with the respective sector association, may approach the Inland Revenue field formation concerned for verification of its business particulars and onward submission of report on the prescribed format to the RSRC within 15 days of the submission of the application.

The procedure for the registration of new entrants in export oriented sectors shall become applicable with effect from January 01, 2021.

Following is the list of export oriented sectors associations:

01. All Pakistan Textile Mills Association (APTMA)

02. Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA)

03. Pakistan Hosiery Manufacturers Association (PHMA)

04. Pakistan Textile Exporters Association (PTEA)

05. Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA)

06. Pakistan Sports Goods Manufacturers & Exporters Association

07. Surgical Instruments Manufacturing Association of Pakistan

08. Pakistan Denim Manufacturers and Exporters Association

09. All Pakistan Textile Processing Mills Association (APTPMA)

January 7, 2021