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Get the latest FBR news, tax updates, income tax, sales tax, customs, notifications, and policies from the Federal Board of Revenue.

  • Karachi Chamber disagrees with FBR tax collection analysis

    Karachi Chamber disagrees with FBR tax collection analysis

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed disagreement with the analysis released by the Federal Board of Revenue (FBR) regarding tax collection by cities and markets.

    Agha Shahab Ahmed Khan President KCCI in a statement on Tuesday expressed total mistrust over the statistical figures recently disclosed by the FBR in its Tax Directory Analysis 2018.

    He said that FBR recently released an analysis of Tax Directory 2018 based on income tax, in which it made some claims which were based on partial information creating a wrong perception about the income tax collection from different cities while some important information was skipped by which a reader could have verified the data.

    President KCCI noted that under this report, Karachi’s income tax collection was reported to be Rs209 billion while district-wise it revealed that Karachi contributed Rs186.3 billion (Karachi Central added Rs9.06 billion; Karachi East: Rs34.09 billion; Karachi South: Rs114.23 billion, and Karachi West contributed Rs28.89 billion) which clearly indicates a discrepancy of Rs23 billion. It was unclear whether Karachi’s share was Rs209 billion in total or the district wise collection was to be added to it.

    “This mismatch in income tax collection figures has raised serious doubts amongst business circles who are terming it as yet another conspiracy against Karachi.”

    Likewise, he pointed out that the province-wise share was only revealed in percentage terms and the total value was not disclosed anywhere in the document to authenticate the claims.

    Even while disclosing the income tax collection from major markets, many important markets including the DHA’s Gold Mark & Khadda Market and other important markets of Malir, Korangi, Banaras and Bahria Town etc. were not included in the data which gave a wrong impression that the tax collection from Karachi is low in comparison of other cities.

    President KCCI further stated that the selected market data of the cities constituted just 25.7 percent (413,859 filers out of 1,606,424 non-salaried individuals and AOP filers), making it an incorrect estimate of the size and share of any city. President KCCI added that the data analysis given by FBR is just a number game and it is an attempt to undermine the share of Karachi.

    According to the said document, the income tax collection of Rs209 billion from Karachi is very close to Rs204 billion collection from Islamabad which is impossible keeping in view the size, population and the immense industrial & economic activities in Karachi.

    “We totally disagree to FBR’s analysis as Karachi is a port city where most of the Head Offices of multinational companies, banks, DFIs and insurance companies etc. are based while the highest number of institutions, hundreds of commercial markets, shopping malls and plazas etc. are also present in this city, making it the country’s leading industrial and commercial hub.

    How could Islamabad with a population of just 1 million and negligible industrial activity compete with Karachi which holds a whopping population of around 20 million that makes it one of the largest cities of the world with seven industrial zones hosting thousands of industrial units?

    He said: “Such pitiful attempts had been made in the past as well which were widely protested and completely rejected by KCCI and it has been proven from time to time that Karachi contributes the highest revenue of around 65 percent revenue to the national exchequer which has also admitted by the decision makers like Federal Minister Asad Umer and many others.

    Karachi has always been the leading contributor of revenue to the national exchequer, hence we fear that FBR’s figures have been finalized cunningly through statistical juggling and it is a conspiracy to tone down the significance of Karachi which will not be accepted and widely protested at all available platforms”, Agha Shahab warned.

    He requested Prime Minister Imran Khan and his entire team of economic experts to look into this serious matter and grill the FBR for releasing such an irresponsible analysis, besides directing the revenue collection authority to immediately withdraw the fabricated analysis and issue a revised version which must carry comprehensive and accurate fact and figures about Karachi.

  • Revenue collection plunges by 16 percent during March-June COVID lockdown

    Revenue collection plunges by 16 percent during March-June COVID lockdown

    The Federal Board of Revenue (FBR) of Pakistan has experienced a significant decline in revenue collection, with a 16% drop recorded during the four-month period from March to June 2020, compared to the same months last year.

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  • FBR to install surveillance cameras at factory premises

    FBR to install surveillance cameras at factory premises

    ISLAMABAD: Federal Board of Revenue (FBR) has amended sales tax rules for installing surveillance cameras at factory premises to monitor production of goods in various sectors to prevent tax evasion.

    The FBR issued SRO 889(I)/2020 on Monday to amend Sales Tax Rules, 2006 and introduced rules namely ‘Video Analytics Rules for Electronic Monitoring of Production of Specified Goods.’

    The FBR said that the provisions of the rules shall apply to video surveillance for electronic monitoring of production on real-time basis.

    The FBR shall monitor, under these rules, the goods specified in Third Schedule appended to the Sales Tax Act, 1990.

    The FBR said that production of specified goods, manufactured in Pakistan, shall be monitored through intelligent video surveillance, and video analytics by installation of equipment including video cameras, sensors, etc. at production lines, as are approved by the FBR, for:

    — real time collection of data that shows production through object detection and object counting;

    — transmission of data to central control room at FBR on real time basis, storage and archiving of data;

    — detection of unexpected stops;

    — quantitative analyses of productions; and

    — data analytics for required legal actions.

    The FBR further said that no person engaged in manufacturing of specified goods shall remove the production from its business premises unless it has undergone the process of intelligent video surveillance.

    The IT team of the FBR shall ensure that each factory premises is connected to the system with adequate IT infrastructure required for real time electronic monitoring of production and generation of periodic reports.

  • FBR issues procedure for condonation of sales tax cases

    FBR issues procedure for condonation of sales tax cases

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued procedure for condonation of time limit in sales tax cases.

    The FBR issued Sales Tax Circular No. 02 of 2020 for the purpose of disposal of requests for condonation of time limit, and directed field formation including LTOs, MTO, CTOs and RTOs to process the taxpayers’ requests for the condonation of time limit under Section 74 of Sales Tax Act, 1990 read with SRO 394(I)/2009 dated May 21, 2009.

    The FBR directed the field formation to follow the procedure:

    01. Whether any application for condotnation submitted by the taxpayer with field formation?

    If ‘yes’, decision taken thereon by the field formation.

    02. Genuineness/authenticity of the reasons narrated for condonation sought by the taxpayer.

    If ‘yes’, elaborate with details along with supporting document.

    03. Whether the reasons for delay in seeking condonation on the part of the taxpayer are cogent?

    If ‘yes’, elaborate with details along with supporting documents.

    04. Revenue impact (in case of registered person as well as other persons involved), if any.

    If ‘yes’, amount to be mentioned.

    05. Whether any system/technical glitch involved in the case?

    If ‘yes’, details of the system glitch along with supporting documents.

    06. Whether the condonation involved transaction of any closed, de-registered or any person whose registration has been blacklisted or suspended?

    If ‘yes’, then specify with reason.

    07. Whether the condonation involved adjustment/refund of amount which has already been claimed by taxpayer?

    Specify in detail.

    08. Whether supplier discharged due sales tax on supply after issuance of invoice and duly verified from Annex-C in the condonation cases of Power Sectors etc?

    If ‘yes’, specify the date and month of return in which the same has been incorporated.

    09. Both buyer and supplier are active on Active Taxpayers List (ATL).

    ‘Yes’/’No’

    10. Whether payment is made to supplier through banking channel as envisaged under Section 73 of the Act (In the case of Power Sector and provincial revenue authorities input)? In case, partial payment is made to supplier, balance payable to supplier with reason.

    ‘Yes’/’No’.

    The FBR said that the procedure for condonation cases shall become applicable with effect from September 21, 2020.

  • KTBA demands time for return filing as per law

    KTBA demands time for return filing as per law

    KARACHI: The Karachi Tax Bar Association (KTBA) on Monday demanded the Federal Board of Revenue (FBR) to allow extension for filing income tax return for tax year 2020 as per time prescribed under the law.

    In a letter send to FBR chairman, Zeeshan Merchant, President, KTBA praised the FBR for issuing return of income for business, salaried individuals, AOPs and companies concurrently via Notification dated September 08, 2020.

    Additionally simplified return of income for retailer/traders has also been notified per Notification dated September 17, 2020.

    Consequently in line with Section 118(2) and (3) of Income Tax Ordinance 2001 the time prescribed/suggested for filing return in case of a company is 180 days and in other cases is 90 days from the date the relevant amendments have been incorporated in the return of income officially.

    Merchant said that the media campaign launched by the FBR pressing people to file their return of income by due date i.e. September 30, 2020.

    “The BAR members have however quested the soundness of FBR’s media campaign which otherwise represents September 30, 2020 as last date for filing return of income in tax year 2020,” the KTBA president said, and asked the FBR chairman to allow taxpayers and tax professionals to file return of income in tandem with law.

  • List of cities contributing tax above Rs1 billion

    List of cities contributing tax above Rs1 billion

    ISLAMABAD: The Federal Board of Revenue (FBR) has published a comprehensive directory detailing the tax contributions of major cities across Pakistan for the tax year 2018 contributing above Rs1 billion. This directory provides valuable insights into the fiscal landscape of the country, highlighting the significant contributions made by urban centers to the national exchequer.

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  • 71pc return filing companies declare income below Rs500,000

    71pc return filing companies declare income below Rs500,000

    The Federal Board of Revenue (FBR) has revealed that a staggering 71 percent of corporate return-filing entities declared annual income of less than Rs500,000 for tax year 2018. This alarming figure points to a serious compliance and revenue generation gap within Pakistan’s corporate sector.

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  • Highest number of returns filed by persons below threshold income

    Highest number of returns filed by persons below threshold income

    ISLAMABAD – The Federal Board of Revenue (FBR) has published its analysis of income tax returns for the tax year 2018, shedding light on the categories of taxpayers and their income brackets. The report reveals that the largest number of tax returns were submitted by individuals whose income fell below the taxable threshold.

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  • Salaried persons share 42 percent in total return filing

    Salaried persons share 42 percent in total return filing

    ISLAMABAD: Salaried persons have shared 42.12 percent of total income tax return filing with the Federal Board of Revenue (FBR), and they are second largest contributors in return filing after non-salaried individuals.

    According to a directory for tax year 2018 issued by the FBR a day earlier showed that the salaried persons filed 1.2 million income tax returns for the tax year ending June 30, 2018.

    The filing of the tax return by the salaried persons is 42.12 percent out of total returns 2.85 million filed for the tax year.

    Non-salaried individuals are the top contributors in return filing for the tax year under review. The non-salaried individuals filed 1.52 million income tax returns, which was 54 percent of total return filing during the tax year under review,

    Association of Persons (AOPs) filed 64,336 returns and companies only filed 44,609 returns, which are 2.26 percent and 1.56 percent, respectively out of total return filing.

    When analyzed the collection of taxes for the year, the companies contributed 55.84 percent in revenue collection. The share of non-salaried individuals in revenue collection was 21 percent. The salaried persons contributed 14.66 percent in revenue collection. The AOPs shared only 8.9 percent to the total revenue collection.

  • Tax Directory: FBR Issues Details of Tax Payment by Members of Upper, Lower Houses

    Tax Directory: FBR Issues Details of Tax Payment by Members of Upper, Lower Houses

    In a move aimed at promoting transparency and accountability, the Federal Board of Revenue (FBR) has officially released the latest Tax Directory of Parliamentarians, detailing the tax payments made by members of both the National Assembly and the Senate.

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