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 takes action against non-compliant return filers owned immovable properties

ISLAMABAD: Federal Board of Revenue (FBR) shall take penal action against persons who owned immovable property and remained non-compliant with filing of income tax returns.

Officials at the FBR said that date for filing income tax returns had expired on February 28, 2020. However, individuals and companies still can file their returns by paying penal amount besides late filing payment to appear on Active Taxpayers List (ATL) 2019.

The officials said that tax offices would scrutinize cases of persons who owned immovable properties during tax year 2019 i.e. July 01, 2018 to June 30, 2019.

They said that as per Section 114 of Income Tax Ordinance, 2001 every individual requires to file annual income tax returns, who owns immovable property with a land area of two hundred and fifty square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government Laws in the provinces; or areas in a Cantonment; or in Islamabad Capital Territory.

Besides, those individuals also require to file annual returns, who own immovable properties with a land area of five hundred square yards or more located in a rating area.

Further person, who owns flat, having covered area of two thousand square feet or more located in a rating area.

The FBR officials said that reportedly the real estate sector of the economy was known to be parking area for black money and money laundering. They said that the FBR had already launched aggressive drive to eliminate incidence of black money.

They said that persons who filed their income tax returns for tax year 2018 but not filed their returns for tax year 2019 and purchase immovable properties during tax year 2019 would be screened.

The tax authorities have obtained record of sales and purchase information from provincial registrars of immovable properties.

They said that those persons, who concealed their money used for purchase of immovable properties, would face action.

March 2, 2020
FBR offers jobs to primary, matriculation pass individuals

ISLAMABAD: Federal Board of Revenue (FBR) has offered jobs for primary and matriculation passed persons in BS-01 and BS-05 for the post of Naib Qasid and Sepoy.

The FBR said that vacancies shall ordinarily be filled on local basis (Islamabad/Rawalpindi) through balloting.

The revenue body said that intending candidates may submit applications within 15 days of the announcement.

According to general information and instructions, the FBR said that the scrutiny committee shall scrutinize the eligibility of candidates in terms of recruitment rules of the posts concerned read with recruitment policy of the federal government and prepare a panel of shortlisted candidates for each post.

For the post of sepoy, physical fitness of the candidate is a pre-requisite for which the candidate shall have to meet the laid down physical standards before the scrutiny committee prior to inclusion of name in the balloting process.

The department selection committee shall consider the candidates shortlisted by the scrutiny and ensure that names of all eligible / shortlisted candidates have been included in the balloting and ballot paper of each candidate is included in the ballot box.

A list shall be prepared in sequence of draw of names of candidates. The candidate whose names is drawn first shall rank senior to the candidate whose name is subsequently drawn.

Three names shall be drawn against each vacancy. Where there are, for example, three vacancies, the first three names drawn shall be the principal candidates and in case the first principal candidate fails to join the service, the first alternate candidate i.e. the fourth name drawn, shall be offered the post from amongst the list of alternate candidates.

The FBR said that a selected candidate has to submit medical fitness certificate as required under Rule 17 of the Civil Servants (Appointment, Promotion and Transfer) Rules, 1973 and in case a candidate is declared medically unfit the alternate candidate shall be offered the post.

March 1, 2020
FBR launches new Active Taxpayers List; return filing grows by 58%

ISLAMABAD: Federal Board of Revenue (FBR) on Sunday launched the new Active Taxpayers List (ATL) for Tax Year 2019 enabling taxpayers to avail reduced rate of withholding tax till March 2021.

According to the new ATL around 2.53 million persons and companies filed their returns till February 29, 2020. The FBR issues the new ATL on March 01 every year on the basis of income tax returns filed for the preceding tax year.

The income tax return filing has increased by over 58 percent when compared with 1.6 million returns filed as per the ATL issued on March 01, 2019.

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).

Currently the ATL is in applicable on the basis of income tax returns filed for tax year 2018. The FBR will issue new ATL on the basis of returns filed for tax year 2019 on March 01, 2020.

The last date for filing of income tax returns for tax year 2019 is February 28, 2020. The new ATL shall carry the names of those taxpayers who filed their income tax returns up to February 28, 2020.

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

March 1, 2020
FBR receives 2.45 million returns for TY2019, no date extension

ISLAMABAD: Federal Board of Revenue (FBR) has received 2.45 million income tax returns for tax year 2019 till evening of February 28, 2020, which is the last date for filing the returns.

A statement issued on Friday, the FBR said that the last date for filing income tax returns would not be extended further. The new active taxpayers list (ATL) for tax year 2019 will be updated by mid-night February 29, 2020.

The FBR said that those persons who were on the ATL-2018 but not filed their returns for tax year 2019 would not get their names on the new ATL.

The FBR said that it had received 2.45 million income tax returns for tax year 2019, which was 45 percent higher when compared with 1.68 million on the same date of the last year.

The FBR said that around 2.34 million individuals including salaried and business filed their returns for tax year 2019. Association of Persons (AOPs) filed 62,403 returns and companies filed 40,988 returns.

February 28, 2020
Dr. Najeebullah posted as Commissioner LTU Karachi

ISLAMABAD: Federal Board of Revenue (FBR) on Friday transferred Dr. Najeebullah, an officer of Inland Revenue Service (BS-19) as Commissioner, Large Taxpayers Unit (LTU), Karachi.

The FBR notified transfers and postings of IRS officers of BS-19 and BS-20.

Following officers have been transferred and posted:

01. Dr. Najeebullah (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) (Zone-IV) Large Taxpayers Unit, Karachi from the post of Additional Commissioner, (IR) Large Taxpayers Unit, Karachi.

02. Zubair Bilal (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Multan from the post of SA to Chairman, Federal Board of Revenue (Hq), Islamabad.

03. Yasir Ali (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Corporate Zone) Regional Tax Office, Multan from the post of Director, Directorate of Intelligence & Investigation (Inland Revenue), Multan.

04. Zulfiqar Ali Memon (Inland Revenue Service/BS-19) has been transferred and posted as SA to Chairman, Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (OPS) (Zone-IV) Large Taxpayers Unit, Karachi.

The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

February 28, 2020
Sectoral analysis shows massive decline in sales tax from OMCs

ISLAMABAD: Federal Board of Revenue (FBR) has conducted sectoral analysis to identify reasons behind shortfall in revenue collection. The analysis showed massive decline in sales tax from Oil Market Companies (OMCs) during July – January 2019/2020.

According to official documents, the collection of sales tax from OMCs was at Rs13.56 billion during first seven months of current fiscal year as compared with Rs18.94 billion in the corresponding period of the last year, showing 28 percent decline.

The fall in sales tax collection from OMCs is much higher than the decline in domestic sales of the oil market companies. The domestic oil sales fell by 10 percent to 10.14 million tons during the period under review as compared with 11.3 million tons in the same period of the last fiscal year.

The analysis also revealed that the collection of sales tax from iron and steel products declined by 29 percent to Rs4.93 billion as compared with Rs6.92 billion in the same period of the last fiscal year.

Similarly, the collection of sales tax from sales of motor cars fell by 43 percent to Rs2.22 billion during first seven months of the current fiscal year as compared with Rs3.86 billion in the corresponding period of the last fiscal year.

Reportedly, the FBR is facing huge shortfall in revenue collection to achieve current fiscal year revenue target. The FBR was assigned Rs5.55 trillion target at the start of current fiscal year. However, this target was revised downwards to Rs5.238 trillion.

The FBR provisionally collected Rs2,400 billion during first seven months of current fiscal year as compared with Rs2,067 billion in the same period of the last fiscal year.

The revenue authority is required another Rs2,828 billion in remaining five months to achieve the collection target.

The FBR conducted analysis of 11 sectors, which included: OMCs, Iron and Steel Products; natural gas; auto parts; motor cars; motor cycles; tea; ceramic tiles; pickle in oil; printing industries; and storage batteries.

All the above sectors have shown decline in sales tax during the period under review.

February 28, 2020
FBR to initiate action against non-filers after date expiry

KARACHI: Federal Board of Revenue (FBR) to initiate proceedings against persons failed to file income tax returns for tax year 2019 after expiry of return filing date i.e. February 28, 2020.

Sources in Federal Board of Revenue (FBR) on Thursday said that FBR unlikely to further extend the return filing date. The return filing date for tax year 2019 is expiring today i.e. Friday, February 28, 2020.

The sources said that tax authorities would identify persons who had filed their income tax returns for tax year 2018 but failed to file their returns for tax year 2019 despite grant of several extensions.

They said that the FBR would enforce returns and initiate legal proceedings against non-compliant taxpayers.

The last date for filing annual returns was September 30, 2019 for salaried persons, business individuals and Association of Persons (AOPs). While the last date for filing income tax returns for corporate entities was December 31, 2019.

The FBR while considering difficulties faced by taxpayers granted several extensions for filing tax returns and last was granted up to February 28, 2020.

The sources said that those persons who failed to file their returns would face penalty as prescribed under the Income Tax Ordinance, 2001.

Under Section 114 of Income Tax Ordinance, 2001 following persons/companies are required to file annual returns:

(a) every company;

(ab) every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year; or

(ac) any non-profit organization as defined in clause (36) of section 2;

(ad) any welfare institution approved under clause (58) of Part I of the Second Schedule;

(b) any person not covered by clause (a), (ab), (ac) or (ad) who,—

(i) has been charged to tax in respect of any of the two preceding tax years;

(ii) claims a loss carried forward under this Ordinance for a tax year;

(iii) owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within the municipal limits existing immediately before the commencement of Local Government laws in the provinces; or areas in a Cantonment; or the Islamabad Capital Territory;

(iv) owns immoveable property with a land area of five hundred square yards or more located in a rating area;

(v) owns a flat having covered area of two thousand square feet or more located in a rating area;

(vi) owns a motor vehicle having engine capacity above 1000 CC;

(vii) has obtained National Tax Number; or

(viii) is the holder of commercial or industrial connection of electricity where the amount of annual bill exceeds rupees five hundred thousand;

(ix) is a resident person registered with any chamber of commerce and industry or any trade or business association or any market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan; or

(x) every resident person being an individual required to file foreign income and assets statement under section 116A.

(1A) Every individual whose income under the head ‘Income from business’ exceeds rupees three hundred thousand but does not exceed rupees four hundred thousand in a tax year is also required to furnish return of income from the tax year.

February 28, 2020
FBR issues precautionary measures against coronavirus

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday issued precautionary measures for tax officials to protect themselves against coronavirus and educate taxpayers and general public for prevention.

The FBR said that with the recent outbreak of coronavirus (COVID-19) in China, its subsequent spread across the globe and education of two confirmed cases in Pakistan, it is imperative that in line with the direction of the federal government, all officers and staff of FBR be educated on the cases, symptoms and prevention measures to protect themselves as well as to educate the taxpayers and general population about the same.

A compendium of causes, symptoms and prevention; complied from research of World Health Organization, the Center of Disease Control and Prevention (CDC-USA) and Ministry of National Health Service, Islamabad is summarized as under:

Causes: The coronavirus spreads primarily from person to person contact. CDC-USA attributes it to close contact (6 feet or less) with a person already infected. Prime cause of infection is through the airborne (water) droplets during sneezing and coughing of an already infected person.

Touching an area where an infected person has sneezed or coughed may also be avoided. Furthermore, it may spread from consuming uncooked or undercooked animal organ meat.

Summarized, Coronavirus spreads in similar way to flu. Persons at a higher age bracket and persons with weak/weakened immune system are at most risk.

Symptoms: The Coronavirus may manifest symptoms within 2 to 14 days after being contracted. As such, a non-symptomatic person may also be carrying the virus. Common symptoms include combination of: fever, cough and shortness of breath/breathing difficulties.

Most persons infected with Coronavirus experience only mild symptoms and recover. However, in more severe cases, infection can cause pneumonia, severe acute respiratory syndrome, kidney failure and even death.

Prevention: As a matter of general day to day precautions, measures should be taken, included: use of face masks on mouth and nose; Use of alcohol-based hand sanitizers; avoiding close contact with any person showing symptoms of Coronavirus; covering mouth and nose with hand or elbow while sneezing or coughing; washing of hands with soap for at least 20 seconds; and ensuring that meat is thoroughly cooked.

It is recommended to try and avoid close personal contact with people with a recent travel history from the countries, included: China, South Korea, Italy, Japan and Iran.

Testing: The ministry of national health services, Islamabad has procured testing kits for Coronavirus and provided the same to various laboratories across Pakistan. Following places are recommended for testing of Coronavirus:

National Institute of Health, Islamabad (free of cost)

Shaukat Khanum Labs (Across Pakistan)

Agha Khan Labs (Across Pakistan)

Dow University of Health Sciences, Karachi.

General instructions to Heads of field formations:

Foregoing in view, heads of all field formations are requested to ensure:

Display of precautionary measures including the causes, symptoms and prevention for Coronavirus at conspicuous places;

Placement of alcohol-bases hand sanitizers at all places of public interaction, both for FBR employees and general public;

Wearing of facemasks at all places of public interaction;

Use of disinfectants to wipe surfaces (Desks, tables and counters etc.) and objects (telephones and keyboards etc.) of common use on daily basis.

Reference to travel advisory before proceeding abroad on official work;

Politely discourage personal greetings in form of hugs and handshakes

Discontinuation of biometric attendance till culmination of Coronavirus threat.

February 27, 2020
IR offices to observe extended working hours on Feb 28 for revenue collection

KARACHI: The offices of Inland Revenue will observe extended working hours on Friday, February 28, 2020 to facilitate taxpayers in payment of due taxes and filing of tax returns.

The Federal Board of Revenue (FBR) in an office orders issued to Large Taxpayers Units (LTUs) Corporate Regional Tax Offices (CRTOs) and RTOs, directed to observe extended working hours till 10:00PM on Friday February 28, 2020 to facilitate the taxpayers in payment of duties and taxes and filing of Income Tax Returns / Statements.

The chief commissioners have been directed to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on February 28, 2020 to the respective branches of SBP on the same date so as to account for the same towards the collection for the month of February 2020.

The SBP also issued instructions that NBP branches as well as field offices of the SBP Banking Services Corporation, shall observe extended banking hours up to 8:00PM on February 28, 2020.

The NBP branches will settle their transactions on same day i.e. February 28, 2020 with respective SBP BSC offices for which purpose a special clearing will be arranged at 5:00PM by the NIFT on February 28, 2020.

The NBP shall settle their transactions with SBP BSC field offices/head office latest by 10:00PM on February 28, 2020.

The SBP further said that in order to eliminate the issue of spillover receipts, NBP shall ensure that no instrument containing receipts of the government, shall unattended at any NBP branch and shall be settled in the value date of February 28, 2020 through special clearing.

February 27, 2020
FBR allows sales tax return filing up to February 28

ISLAMABAD: Federal Board of Revenue (FBR) has allowed taxpayers to file their monthly sales tax and federal excise returns up to February 28, 2020.

The FBR on Thursday issued a notification for extension in date of submission of sales tax and federal excise return for the tax period of January 2020.

The notification said that the FBR further extended the date of submission of sales tax and federal excise return up to February 28, 2020 for the tax period of January 2020, which was due on February 18 and was extended up to February 26, 2020.

February 27, 2020