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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 withdraws order to examine taxpayers’ information

    FBR withdraws order to examine taxpayers’ information

    ISLAMABAD: Federal Board of Revenue (FBR) has withdrawn the order to examine persons’ information for identifying potential taxpayers and tax evasion.

    The FBR on Wednesday issued an order to withdraw the establishment of Tax Information Processing Unit (TIPU) in Inland Revenue (IR) – Operation Wing, FBR.

    The FBR constituted TIPU for utilization of information available at multiple databases of the tax authorities on May 29, 2020.

    The TIPU was aimed at enhancing revenues, through efficient utilization power of IT for overall system improvement.

    “There is an emerging need for transforming existing raw data, available in multiple databases of the FBR, into meaningful insights, through which actionable steps may be suggested to field formation with regard to untapped revenue potential and potential leakages,” the previous order said.

    To realize the true potential of IT system, developed over years, it is imperative to engage a cross-functional team of professionals, available in FBR, who may perform following tasks, before generating meaningful insights from the datasets available in its IT systems: data mining; statistical analysis; data analytics; and MIS Reporting.

    The insights gained through data analysis may potentially generate actionable data which IR Operations Wing may convey to field offices, so that untapped revenue potential may be realized and potential leakages may be checked.

    The FBR said that in view of foregoing a cross functional TIPU had been established in IR Operations Wing, FBR manned by FBR’s regular workforce and temporary hiring of IT-experts, on need basis.

    The following officers are designated as domain team of the defunct TIPU, under the supervision of Member IR Operatoins:

    a. Tariq Hussain Shaikh, Chief (IR&I)-Coordinator

    b. Ms. Rezwana Siddiqui, Chief (IR-Analysis)

    c. Zulfiqar Ali Gopang (S.S. IT)

    d. Naveed Afgan (Dy. Dir/Secy MIS)

    e. Syed Asif Jamil (AD/S.S

    f. Imran Ullah (AD-Audit)

    The FBR said that the TIPU was to be operated IT experts, who would be hired on market-based salaries. The IT experts would design and develop IT modules, for data analytics.

  • FBR suggested to reduce customs duty to 5 percent on steel products

    FBR suggested to reduce customs duty to 5 percent on steel products

    The Karachi Chamber of Commerce and Industry (KCCI) has proposed a significant reduction in customs duty on steel products in its budget proposals for 2020/2021.

    (more…)
  • FBR pays homage to officials die of COVID-19

    FBR pays homage to officials die of COVID-19

    ISLAMABAD: Federal Board of Revenue (FBR) has paid homage to officials who died of coronavirus in the line of duty.

    The FBR in a statement on Monday paid homage to all its employees who died in the line of duty due to outbreak of Covid-19 and heartily condoled with their bereaved families.

    FBR appreciates the services of these martyrs and call them real heroes who preferred to sacrifice their lives while performing their national duties even on national holidays and weekends.

    The martyred employees include Islah-ud-Din of Regional Tax Office, Quetta, Naeem Iqbal of Directorate of Internal Audit Faisalabad, Khawar Mansoor of Regional Tax Office Faisalabad, Mirza Shahab Baig of Large Taxpayers Unit-II Karachi and Muhammad Arif of FBR (HQ), Islamabad.

    FBR resolves not only to stay with the families of these heroes in these saddest moments and beyond but also to continue its all possible efforts in generating much needed revenue.

  • Tax officials’ power to select income tax return for audit should be withdrawn

    Tax officials’ power to select income tax return for audit should be withdrawn

    Tax practitioners have called for a significant reform in the income tax audit process, urging that the Federal Board of Revenue (FBR) alone should have the authority to select income tax returns for audit, withdrawing this power from the commissioners.

    (more…)
  • Online verification of tax withheld should be available

    Online verification of tax withheld should be available

    KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to ensure verification of tax withheld on the IRIS portal in order to facilitate taxpayers in making adjustment or claiming refunds.

    Pakistan Tax Bar Association (PTBA) submitted proposals for budget 2020/2021 saying that withholding tax regime should be simplified by reducing the categories of withholding taxes and the rates thereon.

    It said that the withholding agent should be facilitated through robust IRIS; wherein the visibility of tax deduction should be provided to the taxpayer instead of relying on the withholding agents’ certificates.

    The rates of tax for all withholding taxes under one provision of law should be minimized and the differentiation should be on the basis of Active and Non-Active Taxpayer only.

    Withholding agents should be given incentive in the form of tax credit for facilitating the Government withholding/collecting taxes and in identifying potential tax evaders.

    The withholding tax challans should be made available on the IRIS to every registered person, instead of collecting the same from registered person(s) deducting and depositing the tax.

    The concept of Minimum Tax should be done away with for all the corporate Sector companies, who file their tax returns and pay tax on actual income regular basis.

    The government departments including defence should pay the tax withheld on FBR IRIS instead of book adjustment.

    Sales tax (including provincial sales tax on services) and other government levies should be excluded for the purpose of withholding collection of tax.

    A ‘Small Company’ including company having similar business and turnover should be brought at par with an Individual or AOP having turnover limit up to Rs 50 million.

  • CNIC should be made mandatory for purchase of moveable, immovable properties

    CNIC should be made mandatory for purchase of moveable, immovable properties

    KARACHI: Federal Board of Revenue (FBR) has been proposed to make computerized national identity card (CNIC) mandatory for purchase of movable and immovable properties for bringing potential taxpayers into the tax net.

    A presentation made on behalf of Pakistan Tax Bar Association (PTBA) for submission of proposals for budget 2020/2021, it is highlighted that Pakistan has a lower tax-to-GDP ratio as compared to regional and other countries, which is causing serious disparity between various sectors of the Economy.

    All the segments of the society are not contributing their due share of tax on their income in accordance with their contribution in the GDP.

    The number of Active Taxpayers are substantially low, as such broadening of tax base at fast pace is the needed.

    For broadening the tax base and to improve the tax to GDP ratio following recommendations are made:-

    FBR should extract information from withholding statements, details of government supplies and maintain a database of above third party information. Conduct the data mining and data analysis to generate complete profile for cross verification of data of the existing taxpayers as well as discovery of new taxpayers;

    CNIC/NICOP/Passport should be made mandatory for purchase of any moveable or immovable properties, assets and major expenditure;

    Relevant organizations, departments, institutions including utility companies, banks, NADRA and information obtained related to offshore transactions should submit prescribed information on quarterly basis to the FBR.

    Exemption under Section 111(4) of the Income Tax Ordinance, 2001 may be allowed only to the foreign remittance brought into Pakistan through proper banking channel for investment for Balancing, Modernization and Replacement (BMR) of existing industrial undertakings or for making fresh investment in industrial undertakings;

    Effective enforcement should be ensured for compliance of filing of Return of Income under section 114 of the Ordinance, 2001;

    Atleast for five years jurisdiction (other than LTUs, CRTOs) should be made and fixed on territorial basis to avoid slippages of potential taxpayers.

  • COVID-19 claims four more taxmen as IR offices open on Saturdays

    COVID-19 claims four more taxmen as IR offices open on Saturdays

    KARACHI: Four more officials of Inland Revenue have died of COVID-19 as field offices of Federal Board of Revenue (FBR) were remained opened on Saturday.

    The offices of Federal Board of Revenue (FBR) were remained opened on Saturday as four more officials of Inland Revenue died of coronavirus, sources said.

    The officers were posted at Large Taxpayers Unit (LTU) – II Karachi and Corporate Regional Tax Office (CRTO). These officers were included Masood Anwar, Riffat Kamal, Mirza Shahab Baig and Khawaja Muhammad.

    Earlier, three officials of RTO Quetta and RTO Faisalabad reportedly had also died of the infection.

    The sources said that score of cases had been tested positive in various RTOs and LTUs across the country in recent days.

    Latest statistics updated on Saturday reported that the cases of COVID-19 increased to 93,983 out of which 1,935 deaths were reported.

    The sources said that during 10 -15 days the cases had been reported at more faster pace in the FBR.

    However, despite the fact the FBR had decided to open the IR offices on Saturdays.

    A notification issued by the FBR a day earlier stated that the IR offices would observe normal working day on Saturdays from June 06 to June 30, 2020.

    The decision to open the offices was taken to achieve Rs415.5 billion during June 2020 in order the meet the revenue collection target of around Rs3,933 billion for the current fiscal year.

  • COVID levy on wealth of individuals, AOPs under consideration

    COVID levy on wealth of individuals, AOPs under consideration

    ISLAMABAD: In order to generate revenue in the wake of coronavirus pandemic the government is considering to impose COVID levy, which may be on the wealth of individuals and Association of Persons (AOPs), sources said.

    The sources said that the levy may be collected up to one percent of Rs100 million wealth declared by individuals / AOPs.

    The government may introduce this levy through Finance Bill, 2020.

    However, in case the income tax liability is more than the proposed levy then the chargeability of tax may under normal tax regime.

    Further, this levy may not be imposed on corporate entities.

    The COVID tax may be imposed as was introduced through Income Support Levy in 2013.

    The sources said that the revenue collection of the Federal Board of Revenue (FBR) was adversely affected due to coronaviurs. They said that in the present scenario the government was not intending to burden the taxpayers, especially business concerns, through introduction of new taxes.

    However, through this levy may be utilities for the support the efforts to combat against the pandemic.

    The sources said that the estimated amount to be generated through this levy was may be around Rs30 billion.

  • FBR starts payment of income tax refunds

    FBR starts payment of income tax refunds

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday started payment of income tax refunds directly to the bank accounts of those taxpayers who have provided their IBAN.

    FBR sources said that the FBR had received Rs10 billion from the finance division for the payment of income tax refunds. The FBR issued cumulative up to Rs5 million to a taxpayer.

    The FBR explained term cumulative as the total amount of refund in respect of a taxpayer (for the tax year 2014 to 2019) duly processed and sanctioned under the law.

    The release of income tax refunds is under Prime Minister’s relief package in order to reduce impact of the coronavirus on businesses.

    Under the prime minister package an amount of Rs100 billion has been allocated for the payment of claims under sales tax, income tax and duty drawback.

    FBR sources said that so far around Rs58 billion, including income tax refunds, had been disbursed to the claimants.

    The business community was not happy with the decision to put restriction on disbursement of income tax refunds.

    It is most unfortunate and disappointing to know that FBR has put ceiling of Rs. 5 million (cumulative of 5 years).

    This has closed the access to even those business entities which have cumulated tax refunds of even one rupee more than Rs. 5 million in 5 years from 2014-15 to 2018-19income tax refunds.

    Nisar said that the said ceiling instructions issued by FBR is discriminatory and strongly asked Finance Ministry to instruct for releasing of at least Rs. 5 million income tax refunds to all businessmen regardless of level of their income tax refunds accumulation in the last 5 years.

    He said that the apex body is of the view that Ministry of Finance should also consider to release half of the accumulated income tax refunds to help in economic revival exercise under taken by the government.

  • FBR decides opening IR offices on Saturdays as coronavirus spreads rapidly

    FBR decides opening IR offices on Saturdays as coronavirus spreads rapidly

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to open its field offices on Saturdays to meet monthly target of Rs415 billion despite rapid spread of coronavirus, which already claimed lives of tax officials.

    The FBR on Thursday issued a notification directing all chief commissioners of Large Taxpayers Units (LTUs), Regional Tax Offices (RTOs) and Corporate RTOs to observe Saturdays as normal working hours till June 30, 2020.

    “In order to enhance the efforts to meet the assigned revenue target of Rs415.5 billion for the current month [June 2020], all field offices will remain open on the Saturdays with effect from June 06, 2020 till June 30, 2020,” the notification said.

    FBR sources said that at least three tax officials had died of coronavirus during the past two days. Islah ud Din, Assistant Commissioner, RTO Quetta died on coronavirus on June 04, 2020. While, two other officials of RTO Faisalabad also lost their lives due to the pandemic.

    The sources said that there were many cases in field offices some were tested positive and others were yet to gone through the test.

    It is also worth mentioning that during past 10-15 days the cases were rapidly increased in the country.

    First corona case was reported in Pakistan during February 2020 and then the Sindh province was the first to impose lockdown on March 23, 2020. This resulted in halt of business activities and subsequent affected the revenue collection efforts.

    The revenue collection in May 2020 registered 31 percent decline to Rs227 billion as the collection was Rs330 billion in same month last year.

    The FBR sources said that same collection position would prevail during June 2020 as most of the collection was to be received of May 2020. The entire month of May was also under lockdown besides long holidays for Eid-ul-Fitr.

    The FBR collected Rs518 billion in June 2019. If consider 31 percent decline in June as well the collection for June 2020 may be at Rs358 billion.

    The FBR collected Rs3,518 billion during July – May 2019/2020 as compared with Rs3,266 billion collected in the corresponding period of the last fiscal year, showing growth of 7.7 percent.