KARACHI: Federal Board of Revenue (FBR) has been urged to issue a separate list of exempt list of persons who do not require to pay withholding tax as mentioned in Section 100BA and Tenth Schedule of Income Tax Ordinance, 2001.
(more…)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.
-
Independent appellate recommended to boost taxpayers’ confidence
KARACHI: Business community has recommended to establish an independent tax appellate system in the country to boost taxpayers’ confidence and discourage irrational assessments.
Overseas Investors Chamber of Commerce and Industry (OICCI) in its budget proposals for fiscal year 2020/2021 recommended to establish the independent tax appellate system to boost taxpayer’s confidence and discourage irrational assessments by the tax authority driven by revenue collection targets.
Due to immense delays in conclusion of disputes by the appellate authorities and fear of financial exposure arising from recovery proceedings by FBR, taxpayers have to resort to the High court to cover their financial exposure.
The first appellate authority Commissioner Appeals come under the direct administrative control of FBR whereas the second appellate authority Appellate Tribunal Inland Revenue comes under the administrative control of the Ministry of Law.
There is a need of major reforms in the tax appellate process to expedite resolution and ensure fairness in the process.
The OICCI recommended:
i. Tax appellate forums should come under the direct supervision of High courts and should be independent of FBR.
ii. Professional Tax adjudicators should be appointed in the process with clear tasks of rapid disposal of cases.
iii. Recovery proceedings should not be initiated until tax assessments have passed at least one independent forum.
iv. Decision should be made within 60 days of the filing of the response.
-
FBR directs officers to submit asset declarations
ISLAMABAD: Federal Board of Revenue (FBR) has directed officers of BS-18, who are in promotion zone, to submit their assets declarations of past five years.
The FBR in an official memorandum issued on Friday directed all BS-18 officers of Inland Revenue Service (IRS), Pakistan Customs Service (PCS) and ex-cadre, who are in promotion zone, to forward their declaration of assets for the last five years up to June 30, 2019 by May 15, 2020.
FBR sources said that as per promotion rules the officials had been required to submit their asset declaration besides providing performance evaluation reports (PERs).
The sources said that a large number of officers had not submitted their assets declarations.
They said that in case the officials failed to submit the asset declaration the FBR would initiate departmental proceedings.
-
FBR chief rules out reducing sales tax rate to single digit
KARACHI: Nausheen Javaid Amjad, Chairperson of Federal Board of Revenue (FBR) has ruled out reducing sales tax rate to single digit and said such move would bankrupt the economy of the country.
However, she hinted at reducing the further sales tax rate in the upcoming budget 2020/2021.
A press release issued by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday quoted FBR chairperson as saying. She made these comments while a meeting with the office bearers of the apex trade body.
The chairperson said that refunds are fully automated under FASTER; amendment in Annexures-F and H should be identified by the exporters for FBR consideration; tax on machinery would be abolished.
The FBR chairperson further highlighted proposals to be incorporated in the Finance Bill 2020 which included that tax on distributors would be uniformed; tax rates including minimum tax rates would be reviewed for reduction; withholding tax paid would be appeared on IRIS w.e.f June, 2020; Exemption Certificate Law would be amended and rationalized; option would be given to remain in presumptive tax regime or opt for normal tax regime ; greenfield industry issue would be resolved in consultation with Engineering Development Board (EDB).Regarding CNIC condition the Chairperson, FBR said that agreement has been made with the traders and cannot be reversed.
In response to the customs issues raised by the FPCCI, she replied regulatory duty on tyre would be considered to abolish in the next budget.
She proposed to hold second round of the meeting to discuss the FPCCI Proposals in detail for consideration and incorporation in the forthcoming Federal Budget 2020-21.
-
FBR exempts various properties from attachment for tax recovery
ISLAMABAD: Federal Board of Revenue (FBR) has exempted various properties from attachment for recovery from tax defaulters.
The FBR issued SRO 353(I)/2020 through which the tax officials have been restrained from attaching certain movable properties of a defaulter for recovery of due taxes.
According to the notification, the FBR officials may not attach assets for recovery, which included the necessary wearing apparel, cooking vessels, beds and bedding of the defaulters, his wife and children, and such personal ornaments, as, in accordance with religious usage, cannot be parted with by any women.
The tax official further barred from attaching assets for recovery, which included tools of artisans, and where the defaulter is an agriculturist, his implements of husbandry and such cattle and seed grain as may be necessary to enable him to earn his livelihood.
The FBR also explained the assets, which cannot be attached by the tax officials for recovery. This will include houses and other buildings (with the materials and the sites and the land immediately appurtenant) belonging to an agriculturist and occupied him.
The FBR said that the tax officials may also not attach included: books of account; a mere right to sue for damages; and any right of personal service.
The amendment to sales tax rules also prohibited the tax officials to attach all compulsory deposits and other sums in or derived from fund to which the Provident Fund Act, 1925, for the time being applies in so far as they are declared by the Act not to be liable to attachment.
-
FBR orders food outlets to display tax amount
ISLAMABAD: Federal Board of Revenue (FBR) has made it mandatory for food outlets to display tax amount along with retail price in menus.
The FBR on Wednesday issued SRO 353(I)/2020 to make it mandatory for all the restaurants, bakeries, caterers and sweetmeat shops supplying prepared foods, foodstuff and sweetmeat to show prices and amount of tax separately on menu cards for menu board displayed in their outlets for the end consumers.
The FBR has made this requirement for tier-I retailers, who are required to integrate their point of sales with the FBR’s online system.
The FBR also made amendment through notification and made it mandatory for all the retailers to show prices and amount of tax separately on the price tags attached with finished fabric and locally manufactured finished articles of textile and textile made-ups leathers and artificial leather.
The FBR made these changes in order to ensure revenue generation from the retail sector. The FBR recently allowed input tax adjustment to Tier-1 retailers in order to attract more retailers into this segment.
-
FBR allows duty drawback on supplementary food items
ISLAMABAD: Federal Board of Revenue (FBR) has allowed duty drawback on import of ready to use supplementary food, which included palm oil and skimmed milk.
The FBR on Tuesday issued SRO 341(I)/2020 to allow 5.33 percent freight on board (fob) to the extent of customs duty. The duty drawback is available from April 27, 2020.
The facility has been allowed to items falling under HS Code 2106.9090, which included:
01. RBD Palm Olien
02. RBD Canola Oil
03. Skimmed Milk Powder
04. Emulsifier
05. Vitamin and Mineral Premix
06. Anti Oxidant
07. Whey Powder
08. Peanuts
-
FBR extends time limit for filing goods declaration
KARACHI: Federal Board of Revenue (FBR) has extended time limit for filing goods declaration in order to facilitate trade considering problems faced during lockdown.
The FBR on Monday issued a notification for extension in time limit for filing of goods declaration. The FBR said that it had further extended the time for filing of goods declaration for all IGMs filed between April 07, 2020 to May 09, 2020 provided that this order shall not be applicable in case any fine or penalty had already been paid by the importers.
Earlier, Khurram Ijaz, Vice President, Federation of pakistan Chambers of Commerce and Industry (FPCCI) on May 02, 2020 requested the FBR for further extension in time limit for filing of goods declaration.
Khurram Ijaz in his communication with the FBR appriciated the revenue board for extending the time for filing of goods declaration from 10 days of arrival of goods to further 15 days (total 25 days) for all IGMDs filed between March 17, 2020 and April 07, 2020.
However, the FPCCI vice president apprised the FBR that continued extension in lockdown by the government causing delay in timely filing of goods declaration, hence opportunity provided the revenue board should be extended up to the current lockdown till May 09, 2020.
-
Sales tax rate reduction: Think tank to discuss with FBR
Islamabad – The Federal Government’s think tank convened its third meeting on Sunday to deliberate on fiscal measures, including sales tax, aimed at mitigating the economic challenges arising from the COVID-19-induced slowdown. The discussion, chaired by Advisor to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh, emphasized the critical role of sales tax adjustments in spurring consumer spending and economic recovery.
(more…) -
FBR collection falls by 13.4 percent in April
ISLAMABAD: The revenue collection has registered 13.4 percent decline in April 2020 over the corresponding month of the last year, due to ongoing lockdown to contain spread of coronavirus.
According to provisional statistics of Federal Board of Revenue (FBR), the collection of duty and taxes fell to Rs256.68 billion in April 2020 as compared with Rs296.58 billion in the corresponding month last year.
The FBR issued refunds in April 2020 to the tune of Rs 15.12 billion, which is 127 percent higher when compared with Rs6.66 billion in the corresponding month last year.
Moreover, the Rs16 billion as refunds have been issued to exporters, Rs33 billion as arrear refunds and Rs15 billion as duty drawback in April 2020.
The total collection of the FBR during first ten months (July – April) 2019/2020 increased to Rs3,408.83 billion showing an increase of 10.4 percent compared with the Rs3047.95 billion collected during the corresponding period of the last fiscal year.
The refunds of Rs116.961 billion have been issued during first ten month of current fiscal year, which was Rs6.515 billion during July – April 2019/2020.
The FBR has collected the target revenue of Rs200 billion for April 2020 and collected Rs256 billion out of revised annual revenue target of Rs3908 billion for the current Financial Year.