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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 releases Rs51.5bn sales tax refunds through automated system

    FBR releases Rs51.5bn sales tax refunds through automated system

    ISLAMABAD: Federal Board of Revenue (FBR) has released Rs51.5 billion sales tax refunds through fully automated online system since July 2020.

    The FBR on Tuesday released information of release of refunds through Fully Automated Sales Tax E-Refund (FASTER) system.

    As per record, since July 2019, a total of refunds amounting to Rs. 64.5 billion were claimed through FASTR System.

    Out of it, refund cases of rupees Rs57 billion were processed. Out of these processed cases, refund payment of rupees 51.5 billion have been made to the exporters and businessmen so far.

    The remaining unpaid refund cases have been withheld due to incomplete date provision by the exporters and businessmen.

    The FBR introduced FASTER system for repayment of refunds to exporters against the deduction of taxes on their import of raw materials and other input taxes.

    Through Finance Act, 2019 the sales tax zero rating was abolished for all the sectors availing the facility. However, in order to facilitate the exporters the FASTER system was introduced to make payment of their refunds within 72 hours.

    FBR sources said that the tax authority had speed up the disbursement of refund payment to exporters, who were facing liquidity problems due to ongoing lockdown for prevention of coronavirus outbreak.

  • FBR grants tax exemption on donations to PM Corona Relief Fund

    FBR grants tax exemption on donations to PM Corona Relief Fund

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday exempted income tax on donations made to Prime Minister’s Corona Relief Fund.

    The FBR issued SRO 300(I)/2020 to make amendment to Second Schedule of Income Tax Ordinance, 2001 to allow exemption from whole of income tax on donations made to PM Corona Fund.

    The FBR also granted exemption from minimum tax to the donations made towards the Prime Minister’s COVID-19 Pandemic Relief Fund – 2020.

    The FBR also exempted the withholding tax deduction on non-cash banking transactions made by taxpayers not on the Active Taxpayers List (ATL) under Section 236P of the Income Tax Ordinance, 2001.

    Further, Section 151, Section 231A and Section 231AA will also not apply to donations made to the Prime Minister Corona Relief Fund.

  • FBR asks exporters to provide IBAN for duty drawback transfer

    FBR asks exporters to provide IBAN for duty drawback transfer

    ISLAMABAD: Federal Board of Revenue (FBR) has asked exporters to provide their IBAN of their bank account numbers for direct transfer of customs duty drawback.

    The FBR said that it has devised a centralized system of online payment of customs duty drawback directly in the bank account of the exporters.

    For this purpose, FBR has required from the exporters to update their WEBOC profile and provide IBAN of the same bank account whose details are already available in WEBOC profile of the exporters to receive Custom Duty Drawback.

    FBR has required the information to be provided as soon as possible to avail electronic transfer facility for Customs Duty Drawback payments.

  • FBR drafts rules for online income monitoring of services sector

    FBR drafts rules for online income monitoring of services sector

    ISLAMABAD: Federal Board of Revenue (FBR) will make it mandatory for providers of services to install electronic fiscal device (EFD) for real-time monitoring and collection of income tax.

    The FBR issued SRO 296(I)/2020 on Thursday to unveil draft rules for various services sectors to share online data of transactions in order to determine their income and subsequent contribution of income tax.

    Through the SRO the FBR proposed amendment to Income Tax Rules, 2002 and invited comments from stakeholders within seven days before making the rules part of the statute.

    The FBR proposed a new Chapter VIIA to the Income Tax Rules, 2002 namely ‘Online Integration of Businesses.’ All the companies operating in the country shall require installing EFD. In case other than company the taxpayers shall require to install the device operating in eight major cities, which included: Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Multan, Peshawar, and Gujranwala.

    Through the proposed amendment, the FBR is intending to make it mandatory the installation of EFD for services, included:

    01. Restaurants;

    02. Hotels, motels, guest houses, marriage halls, marquees, clubs, including race clubs.

    03. Inter-city travel by road.

    04. Courier Services and cargo services.

    05. Services provided for personal care by beauty parlors, clinics and slimming clinics, body massage centers, pedicure centers, including cosmetic and plastic surgery by such parlors/clinics.

    06. Medical practitioners and consultants.

    07. Pathological laboratories, medical diagnostic laboratories including X-Ray, CT Scan, M.R. Imaging etc.

    08. Hospitals or medical care centers providing medical consultation, hospitalization or other ancillary services.

    09. Health clubs, gyms, physical fitness centers, and body or sauna massage centers.

    10. Photographers.

    11. Accountants.

    12. Pharmacies.

    According to the rules, the services provider has been defined as integrated enterprise. Such kind of service provider is required to install such fiscal electronic device and software.

    Through the device, following tasks will be performed:

    Receive, record, analyze and store fiscal data;

    Format fiscal data into fiscal invoices or bills;

    Transmit the fiscal data to the board’s computerized system through secure means; and

    Print invoice or bills.

    The FBR said that every transactions made through EFD shall be recorded by a CCTV camera and the recording shall be retained for a period of at least three months.

    In case ancillary services or sale of goods are made from notified establishment, the transactions shall also be recorded and the invoice or bill issued in the same manner. Such data shall also be communicated to the board’s computerized system in the same manner.

  • Nausheen Amjad assumes as 27th FBR chairperson

    Nausheen Amjad assumes as 27th FBR chairperson

    ISLAMABAD: Ms. Nausheen Javaid Amjad, BS-22 officers of Inland Revenue Service (IRS) on Wednesday assumed the charge of 27th chairperson of Federal Board of Revenue (FBR).

    A notification issued by the FBR, stated that in pursuance of Establishment Division’s Notification No. 34/1/2018-E-I, dated 08.04.2020, Ms. Nausheen Javaid Amjad, a BS-22 officer of Inland Revenue Service has relinquished the charge of the post of Member (Admn), Federal Board of Revenue (HQ), Islamabad w.e.f 08.04.2020 and assumed the charge of the post of Chairperson, Federal Board of Revenue (HQ), Islamabad on the same date.

    Details of Chairperson, CBR/FBR:

    1)Ms. Nausheen Javaid Amjad08.04.2020
    2)Syed Muhammmad Shabbar Zaidi10.05.201908.04.2020
    3)Mr. Mohammad Jehanzeb Khan29.08.201810.05.2019
    4)Ms. Rukhsana Yasmin02.07.201829.08.2018
    5)Mr. Tariq Mahmood Pasha04.07.201702.07.2018
    6)Dr. Muhamad Irshad19.01.201730.06.2017
    7)Mr. Nisar Muhammad Khan17.11.201518.01.2017
    8)Mr. Tariq Bajwa02-07-201317.11.2015
    9)Mr.Ansar Javed10-04-201330-06-2013
    10)Mr. Ali Arshad Hakeem10-07-201209-04-2013
    11)Mr. Mumtaz Haider Rizvi21.01.201210-07-2012
    12)Mr. Salman Siddique24.12.201021.01.2012
    13)Mr. Sohail Ahmad18.05.200924.12.2010
    14)Mr. Moinuddin Khan02.01.199806.11.1998
    15)Mr. Hafeezullah Ishaq11.11.199602.01.1998
    16)Mr. Shamim Ahmed28.08.199611.11.1996
    17)Mr. Alvi Abdul Rahim13.07.199528.08.1996
    18)Mr. Sajjad Hasan24.07.199103.10.1991
    19)Mr. Ahadullah Akmal16.08.1990 24.07.1991
    20)Mr. Ghulam Yazdani Khan22.01.198911.08.1990
    21)Syed Aitezazuddin Ahmed20.08.198802.01.1989
    22)Mr. I.A. Imtiazi11.08.198520.08.1988
    23)Mr. Fazlur Rahman Khan14.12.198011.08.1985
    24)Mr. N.M. Qureshi12.11.197514.12.1980
    25)Mr. M. Zulfiqar01.10.197412.11.1975
    26)Mr. Riaz Ahmad17.11.197330.09.1974
    27)Mr. M. Zulfiqar11.10.197117.11.1973
  • FBR issues SROs for reducing rate of duty, taxes

    FBR issues SROs for reducing rate of duty, taxes

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued concessionary Statutory Regulator Orders (SROs) for reduction in duty and tax rate for import of pulses and edible oil/seeds.

    The FBR issued two different SROs i.e. SRO 287(I)/2020 and SRO 288(I)/2020 to allow concession of duty and taxes on domestic supply and import of goods.

    Through SRO 287(I)/2020 the government has allowed exemption from withholding income tax on import of pulses till June 30, 2020.

    Similarly, through SRO 288(I)/2020 the FBR also withdrew additional customs duty imposed on import of pulses. This additional customs duty shall not be levied till June 30, 2020.

    Through SRO 287(I)/2020 the rate of tax under Section 153 shall be at 1.5 percent in case of a person, other than a company, as a recipient of payment for goods supplied to Utility Stores Corporation of Pakistan. The tax rate shall be applied on the gross amount of payment in respect of supply of tea, spices, salt, dry milk, sugar, pulses, wheat flour and ghee for the period commencing from the date of issuance of the notification till June 30, 2020.

  • Nausheen Amjad appointed FBR chairperson

    Nausheen Amjad appointed FBR chairperson

    ISLAMABAD: Ms. Nausheen Javaid Amjad, a BS-22 officer of Inland Revenue Service (IRS) has been appointed as the chairperson of Federal Board of Revenue (FBR) and a notification will be issued shortly, sources said on Monday.

    Ms. Nausheen has been appointed as the chief of revenue body on the recommendations of senior tax officers. A vacuum was created after Shabbar Zaidi went on leave for an indefinite period.

    She was serving as acting chairperson since January 31, 2020 after Shabbar Zaidi was granted leave on health grounds.

    Last week a summary for the cabinet was sent for the appointment of FBR chairman.

    Selection Committee for selection of senior officers has unanimously recommended that Ms. Nausheen Javaid Amjad presently posted as Member (Admin) FBR may be appointed as Chairperson FBR.

    Syed Muhammad Shabbar Zaidi, Chartered Accountant, was appointed as Chairman FBR, on May 10, 2019 for a period of two years, on honorary / pro bono basis.

    In view of the above, Establishment Division proposed the following:

    1. The honorary / pro bono appointment of Syed Muhammad Shabbar Zaidi, as Chairman FBR may be terminated with immediate effect.

    2. Ms. Nausheen Javaid Amjad (BS-22/IRS) presently posted as Member (Admin), may be transferred and appointed as chairperson FBR with immediate effect.

  • FBR extends suspension of customs officials

    FBR extends suspension of customs officials

    ISLAMABAD: Federal Board of Revenue (FBR) has extended the suspension period for further three months in case of two customs officials.

    Through a notification, the FBR extended the suspension period of the following inspectors BS-16 of Model Customs Collectorate (Enforcement and Compliance), Lahore for further period of three months with effect from March 30, 2020:

    01. Muzaffar Hussain, Inspector

    02. Khalid Pervaiz Bhutta, Inspector

    Both the customs officials were suspended on December 30, 2019 for inefficiency and misconduct.

  • Immunity under Section 111 is Tax Amnesty

    Immunity under Section 111 is Tax Amnesty

    KARACHI: Granting immunity from Section 111 of Income Tax Ordinance, 2001 is an amnesty, senior tax officials at Federal Board of Revenue (FBR) said. This section of the ordinance deals with unexplained income or assets. This section is powerful tool against concealed or black money.

    This was made part to the ordinance as deterrence against tax evasion. However, respective governments frequently granted immunity from this section to classes of persons to whiten their ill-gotten money at the cost of genuine taxpayers.

    PTI’s ruling government, which was very vocal against amnesty schemes and its chairman and sitting Prime Minister Imran Khan in the past on many occasion vowed to tighten noose around tax evaders instead giving such amnesties.

    In contrast the PTI government in its less than two years granted a general amnesty in 2019 and now is going to grant blanked amnesty to construction sector despite realizing it was parking lot for black money.

    It is lamentable the ministry of finance late last month issued Medium Term Budget Strategy Paper for year 2020-2023 in which it is clearly written: “Amnesty schemes will no longer be offered, and exemptions will be curtailed.”

    Prime Minister Imran Khan on April 03, 2020 announced a package for construction industry and said: “those investing in the construction sector during the year 2020, would not be asked any queries about the source of their income.”

    The story not ends here as the government is going beyond and reverting its decision and announced a fixed tax regime for builders and developers. The fixed tax regime is disaster for taxation system and in the last budget the government itself reinstated minimum tax regime in order to realize income tax from true income.

    The Medium Term Budget Strategy Paper 2020/2023 also pointed out eliminating the final tax regime. “Gradual phasing out of Final Tax Regime will help in taxing real income,” it added.

    Prior to Finance Act, 2019, persons involved in certain transactions were not required to pay tax on their actual income. Instead, the tax collected or deducted on such transactions was treated as their final tax liability.

    “Since the tax deducted was final tax, therefore, such persons were not subjected to detailed scrutiny through audit,” according to Income Tax Circular 09 of 2019.

    It further said the actual tax potential from such transactions is not realized due to presence of final tax regime.

    Tax experts believed that the government was considered only one sector for granting amnesty and allowing immunity from questioning source of income. Granting such amnesty to a particular sector is against fundamental right and may be challenged in the court of law.

  • Highlights of tax amnesty for construction sector

    Highlights of tax amnesty for construction sector

    KARACHI: Federal Board of Revenue (FBR) to offer many incents through amendment to income tax law in order to comply with the announcement of the prime minister to grant tax amnesty to construction sector.

    According to highlights released by Arif Habib Limited, the following incentives to be offered by the FBR:

    1. Special tax provisions for builders and developers

    2. Exemption from provisions of section 111 of the Income Tax Ordinance 2001, on construction activity

    3. Rationalization of the Capital Gains Tax (CGT)

    4. Valuation of Real Estate / Plots

    5. Rationalization / Reduction in Sales Tax on Construction Material

    6. Exemption of taxes on first house

    7. Establishment of special taxes.

    The analysts said that the domestic construction sector has faced enormous challenges in recent times due to changes in the regulatory environment (influenced by the ruling government, FATF etc.) including provision of money trail, assessment of income and increase in valuation of real estate.

    Moreover, regulations such as CNIC requirement, restriction on sale of construction material to non-registered clients of over PKR 10mn etc.) also hindered construction activity.

    The government has recognized the importance of the housing and construction sector and has addressed some of these concerns under the “Special Incentive Package for the Construction Industry” to revive the real estate sector.

    The Government intends to dilute the impact of Covid-19 outbreak on domestic employment and has therefore introduced this package to mitigate its impact to some extent.