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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 issues procedure for verification of sales tax invoice

    FBR issues procedure for verification of sales tax invoice

    KARACHI: Federal Board of Revenue (FBR) has issued procedure for verification of sales tax invoices prepared by Tier-1 retailers.

    According to FBR officials the following procedure shall be adopted for the verification of sales tax invoices.

    — Customer visits the counter to pay for his/her shopping.

    — Counter Boy Prepares the Invoice.

    — Invoice is forwarded to FBR system for invoice number.

    — Fiscal Invoice is generated and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.

    — Point of Sale (POS) generate the QR Code for fiscal invoice.

    — The receipt is printed out from the POS and physically delivered to the customer.

    — Customer receives the printed fiscal invoice and verify it from FBR System using any of proposed mode.

    The officials said that

    Tier -I retailer as defined under Section 2(43A) of Sales Tax Act 1990 are required to integrate their sales with the FBR.

    Tier-1 retailer means:-

    A retailer operating as a unit of a national or international chain of stores.

    A retailer operating in an air conditioned shopping mall plaza or centre, excluding kiosks.

    Retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees six hundred thousands.

    A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers.

    A retailer whose shop measures one thousand square feet in the area or more.

    The officials said that the integrated supplier shall prominently display on each outlet a signboard bearing FBR’s official logo along with the text “Integrated with FBR” and also registration number of each POS verifiable through FBR verification services.

    Explaining the benefits of establishing integration with the FBR, the sources said that supplies of finished fabric and locally manufactured finished articles of textile and textile made ups and leather and artificial leather shall be entitled to reduced rate of 14 per cent subject to condition they have maintained 4 percent value addition during the last six months.

    Further, customers entitled to receive a cash back of up to 5 per cent of the tax involved in the manner and to the extent as may be prescribed.

    The penalty for non-compliance by the Tier-1 retailers, the sources said that under sub section (6) of section 8B of the Act, adjustable in put tax for whole of that tax period shall be reduced by 15 percent.

    Penalty as prescribed at serial No.(19) of the section 33 of the Act besides default surcharge under section 34 of the Act.

  • Return filed on CNIC basis to be treated as registered

    Return filed on CNIC basis to be treated as registered

    KARACHI: A person files income tax return on the basis of Computerized National Identity Card (CNIC) shall be treated as registered taxpayer on the day the person files income tax return.

    The following will be treated as registered person under Income Tax Rules, 2002:

    (1) An individual having CNIC required to file return of total income manually shall be treated as registered under sub-section (4) of section 181 on the day he files the return manually.

    (2) An individual having CNIC required to e-file return of total income shall be treated as registered, when the individual is e-enrolled.

    (3) A company, an association of persons (AOP) or foreign national shall be treated as registered when the company, AOP or the foreign national, is e-enrolled.

    (4) An individual having CNIC who failed to file return, shall be registered by the Commissioner having jurisdiction on the basis of CNIC or NICOP when he is satisfied after providing opportunity to be heard that the income of the individual is taxable and is required to file return of income.

    (5) An individual not having CNIC and required to file return of total income manually shall be registered in the same manner as specified in sub-rules (1) and (4), either on application by the individual or if Commissioner is satisfied that income of individual is taxable after providing opportunity to be heard.

    (6) A company, an AOP or foreign national shall be treated as registered as per sub-rule (3), if the Commissioner, having jurisdiction over the company, an AOP or foreign national, is satisfied after providing opportunity to be heard that the company, the AOP or foreign national requires registration.

  • FBR notifies transfer, postings of 26 IRS officers in BS-17-20

    FBR notifies transfer, postings of 26 IRS officers in BS-17-20

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified transfers and postings of 26 officers of Inland Revenue Service (IRS) from BS-17 to BS-20 with immediate effect until further orders.

    The FBR notified transfers and postings of following officers:

    01. Mehmood Hussain Jafari (Inland Revenue Service/BS-20) on return from NMC, has been transferred Commissioner Inland Revenue (Zone-II) Regional Tax Office II, Lahore.

    02. Dr. Muhammad Sarmad Qureshi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Corporate Zone) Regional Tax Office, Faisalabad from the post of Commissioner-IR, (Zone-IV) Corporate Regional Tax Office, Lahore.

    03. Muhammad Anwar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office, Sargodha from the post of Commissioner, (Corporate Zone) Regional Tax Office, Faisalabad.

    04. Ms. Fiza Batool (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-IV) Corporate Regional Tax Office, Lahore from the post of Commissioner-IR, (Zone-I) Regional Tax Office II, Lahore.

    05. Muhammad Taqi Qureshi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office II, Lahore from the post of Commissioner-IR, (Zone-I) Regional Tax Office, Sargodha.

    06. Muhammad Majid (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Taxpayers Audit) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner-IR, (Zone-II) Regional Tax Office II, Lahore.

    07. Tariq Bakhtiar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (IP/TFD/HRM) Regional Tax Office, Peshawar from the post of Commissioner-IR, (Mardan Zone) Regional Tax Office, Peshawar.

    08. Irfan Aziz (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Mardan Zone) Regional Tax Office, Peshawar from the post of Commissioner-IR, (IP/TFD/HRM) Regional Tax Office, Peshawar.

    09. Najeeb Qadir (Cost Accountant/BS-20) has been transferred and posted as Cost Accountant, Large Taxpayers Unit, Islamabad from the post of Chief , (TPA-II) Federal Board of Revenue (Hq), Islamabad.

    10. Mirza Imtiaz Ahmed (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) (IP/TFD/HRM) Large Taxpayers Unit, Islamabad from the post of Chief, (OPS) (TPA-I) Federal Board of Revenue (Hq), Islamabad.

    11. Babar Nawaz Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Faisalabad from the post of Additional Commissioner-IR, Corporate Regional Tax Office, Lahore.

    12. Ashfaq Ahmad (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Additional Commissioner-IR, Regional Tax Office II, Lahore.

    13. Khawar Siddique (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Lahore from the post of Deputy Commissioner-IR, Regional Tax Office II, Lahore.

    14. Muhammad Naeem Ahmad (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Lahore from the post of Deputy Commissioner-IR, Regional Tax Office II, Lahore.

    15. Umer Zeb Khan (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Faisalabad from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore.

    16. Asim Naseer (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore.

    17. Khan Shahzeb Bashir (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Lahore from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore.

    18. Ali Noor (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Large Taxpayers Unit, Lahore from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore.

    19. Khalil Ahmed Qaiser (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Regional Tax Office II, Lahore from the post of Assistant Commissioner-IR, Regional Tax Office, Bahawalpur.

    20. Ali Ahsan Warraich (Inland Revenue Service/BS-17) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Faisalabad from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore.

    21. Muhammad Adnan (Inland Revenue Service/BS-17) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore.

    22. Qasim Raza Chadhar (Inland Revenue Service/BS-17) has been transferred and posted as Second Secretary, (IT Wing) Federal Board of Revenue (Hq), Islamabad from the post of Assistant Commissioner-IR, Regional Tax Office, Sargodha.

    23. Wazir Ahmed Khushik (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Large Taxpayers Unit, Karachi from the post of Assistant Commissioner-IR, Regional Tax Office II, Karachi.

    24. Muhammad Siddique (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Regional Tax Office, Faisalabad from the post of Assistant Commissioner-IR, Regional Tax Office II, Lahore.

    25. Muhammad Nadeem Asad (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Regional Tax Office, Faisalabad from the post of Assistant Commissioner-IR, Regional Tax Office II, Lahore.

    26. Syed Abaid ur Rehman (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner Inland Revenue Regional Tax Office, Sargodha from the post of Assistant Commissioner-IR, Regional Tax Office II, Lahore.

    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.

  • FBR pays Rs11 billion refunds through FASTER system

    FBR pays Rs11 billion refunds through FASTER system

    ISLAMABAD: Federal Board of Revenue (FBR) has paid sales tax refunds worth Rs11 billion through its newly introduced online system since July 01, 2019.

    In a statement issued on Thursday, the FBR said that it had issued refunds through Fully Automated Sales Tax e-Refund (FASTER) system without human intervention worth Rs11 billion against claims of Rs15 billion.

    While clarifying a news report, the FBR said that the issue of liquidity problems due to imposition of Sales Tax on previously zero rated sectors was raised in the standing committee.

    The FBR acknowledged the issue and explained that in first 6 months, a total of Rs98 billion refunds have been issued as opposed to Rs31 billion in last year.

    Most of these refunds have been given to exporters including encashment of refund bonds issued last year.

    It was also emphasized that if the government on one hand has brought the export oriented sector under VAT regime, it has heavily facilitated the sectors by providing sizable subsidy on gas and electricity despite a very narrow fiscal space available to it.

    So the perception conveyed by the news item is a bit misleading and the Federal Government and FBR are trying to provide maximum facilitation to businesses in a collaborative and consultative process.

  • Taxpayers’ bill of rights must be introduced to ensure equality of treatment

    Taxpayers’ bill of rights must be introduced to ensure equality of treatment

    Taxpayers in Pakistan face significant challenges, including highhandedness, inefficiency, and corruption by tax officials. To address these issues and rebuild trust between taxpayers and the government, it is imperative to introduce a Taxpayers’ Bill of Rights. This initiative would protect citizens from exploitation and harassment while fostering a sense of confidence in the state’s tax collection mechanisms.

    (more…)
  • Valuation of concealed assets for income tax recovery

    Valuation of concealed assets for income tax recovery

    KARACHI: Federal Board of Revenue (FBR) shall conduct valuation for the purpose of income tax recovery on those assets which were identified as concealed.

    According to Income Tax Rules, 2002, the valuation of concealed assets as under Section 111 of Income Tax Ordinance, 2001 would be taken as:

    (1) The valuation of immovable property for the purposes of section 111 shall be taken to be-

    (a) the fair market value of immovable property shall be the value notified by the Board under sub-section (4) of section 68 of the Income Tax Ordinance, 2001, in respect of area or areas specified in the said notifications;

    (b) if the fair market value of any immovable property of any area or areas has not been determined by the Board in the notification referred to in sub-section (4) of section 68, the fair market value of such immovable property shall be deemed to be the value fixed by the District Officer (Revenue) or provincial or any other authority authorized in this behalf for the purposes of stamp duty; and

    (c) in the case of agricultural land, the value shall be equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is situated for the relevant period or time;

    (d) if in a case sale price recorded in the instrument of sale of any property is higher than the fair market value as determined under clauses (a), (b) and (c), the applicable price shall be higher of the two; and

    (e) in the case of sale price of any auctioned property or the fair market value as determined under clauses (a), (b) and (c), the higher price shall be applicable.

    (2) For the purposes of section 111 and subject to sub-rule (2), the value of motor cars and jeeps shall be determined in the following manner, namely:-

    (a) the value of the new imported car or jeep shall be the C.I.F. value of such car or the jeep, as the case may be, plus the amount of all charges, customs-duty, sales tax, levies, octroi fees and other duties and taxes leviable thereon and the costs incurred till its registration;

    (b) the value of a new car or jeep purchased from the manufacturer or assembler or dealer in Pakistan, shall be the price paid by the purchaser, including the amount of all charges, customs-duty, sales tax and other taxes, levies, octroi, fees and all other duties and taxes leviable thereon and the costs incurred till its registration;

    (c) the value of used car or jeep imported into Pakistan shall be the import price adopted by the customs authorities for the purposes of levy of customs-duty plus freight, insurance and all other charges, sales tax, levies octroi, fees and other duties and taxes leviable thereon and the costs incurred till its registration.

  • FBR’s helpline receives 24,270 complaints in December

    FBR’s helpline receives 24,270 complaints in December

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that its helpline received 24,270 complaints so far in December 2019.

    “Out of these complaints, most of the complaints were disposed without any delay. Only some complaints of technical nature took a little time in disposal,” the FBR said.

    Likewise, the number of complaints sent through E-mail was 11447. Out of these, 7126 complaints were addressed immediately, the rest 4321 were resolved after seeking assistance from concerned Wings, the FBR added.

    The FBR said its helpline is a free, fast & reliable service that is committed to provide the very best service to the public.

    FBR’s Helpline not only educates the public but also provides them a forum through which the public can put forward their queries and seek resolution to most of their issues via phone, email or website.

    Helpline team has been at the forefront in resolving issues that come up from time to time such as payment of Surcharge for ATL, guidance for newly launched Online Sales Tax Registration application, guidance for newly launched Biannual Income Tax Withholding Statement, guidance for ST Returns launched for the new financial year.

    The Helpline is providing services to the public in two shifts. Furthermore, the Helpline representatives are providing all possible support to the Taxpayers in ensuring that they are easily able to navigate various Transactional portals such as Income Tax portal (Iris) etc.

    FBR Helpline utilizes international standard Customer Relationship Management (CRM) System, which ensures availability of three (3) tier support lines ensuring that FBR Helpline promptly resolves Taxpayer issues.

    The FBR said that taxpayers are provided a case number for each complaint lodged and resolution of the case is ensured within 24 hours of the complaint lodged.

    Cases of complex nature which require legal and technological modification in the system are resolved within 3 days of the lodged complaint.

    The FBR is committed towards bringing about a Service Oriented Culture– geared towards resolving challenges faced by investors and taxpayers, helping to improve the Ease of Doing Business (EoDB).

    “FBR understands its responsibilities as a Partner in Progress- where its sole responsibility isn’t just to collect taxes but also ensure that it provides the very best service; ushering in a tax compliant culture while providing the necessary tools for economic growth,” the statement said.

    FBR Helpline can be reached through phone (051-111-772-772) and email ([email protected]), plus complaints can also be lodged through the website (www.fbr.gov.pk).

  • FBR constitutes market committees at 17 RTOs

    FBR constitutes market committees at 17 RTOs

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted market committees within the jurisdiction of 17 Regional Tax Offices (RTOs) to resolve the issues of small traders and retailers.

    (more…)
  • No tax on cash withdrawal from banks on active taxpayers: FBR

    No tax on cash withdrawal from banks on active taxpayers: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday said that there is no tax on cash withdrawal from banks for those whose names are on the Active Taxpayers List (ATL).

    Otherwise, the withholding tax rate on cash withdrawal is 0.6 percent for persons not appearing on the ATL.

    In order to ensure names on ATL, taxpayers are required to file their annual income tax returns. The FBR urged the taxpayers to avail the extended the last date for filing income tax returns for tax year 2019, which is December 31, 2019.

    The FBR said that in case of enlistment in the ATL, the taxpayers shall have following benefits:

    — Almost half of the withholding tax as compared with the inactive taxpayers

    — 5.5 percent tax on imports (raw material)

    — 6 percent tax on imports (commercial)

    — 15 percent tax on dividends

    — 10 percent tax on bank and savings scheme profit worth up to Rs0.5 million and 15 percent on above Rs0.5 million

    — 4.5 percent tax on sale of goods by persons except companies

    — 10 percent tax on provision of services by persons except companies

    — 7.5 percent tax on contract executed by person except companies

    — 15 percent tax on prize bonds money of prize bonds

    — 12 percent tax on commission

    — Annual token fee of vehicles from Rs800 to Rs10,000

    — Withholding tax on vehicle registration from Rs7,500 to Rs250,000

    — No tax on cash withdrawal of more than Rs50,000 from banks

    — No tax on bank transactions (cross cheque, pay order, demand draft etc.)

    — One percent tax on purchase of property

    — 10 percent tax on sale by auction

    — Tax on mobile phone import from Rs70 to Rs200

    — 10 percent tax deduction for payment against advertisement to non-resident person

    The FBR said that in case of no enlistment in the ATL, the following tax rates are applicable:

    — Almost double tax rates

    — 11 percent tax on imports (raw material)

    — 12 percent tax on imports (commercial)

    — 30 percent tax on dividends

    — 20 percent tax on bank and savings scheme profit worth up to Rs0.5 million and 30 percent on above Rs0.5 million

    — 9 percent tax on sale of goods by persons except companies

    — 20 percent tax on provision of services by person except companies

    — 15 percent tax on contract executed by person except companies

    — 30 percent tax on prize money of prize bonds

    — 24 percent tax on commission

    — Annual token fee of vehicles from Rs1,600 to Rs20,000

    — Withholding tax on vehicle registration from Rs15,000 to Rs500,000

    — 0.6 percent tax on cash withdrawal of more than Rs50,000 from banks

    — 0.6 percent tax on bank transactions (cross cheque, pay order, demand draft etc.)

    — 2 percent tax on purchase of property

    — 20 percent tax on sale by auction

    — Tax on mobile phone import from Rs140 to Rs400

    — 20 percent tax deduction for payment against advertisement to non-resident person

    The FBR said that those persons failed to file their return then the tax authorities would assess the applicable tax without serving any notice. Further, legal action will be taken resulting into imprisonment of one to three years.

    The FBR also said that late income tax return filers will pay fine.

    The FBR said that the filing of income tax returns is mandatory for all persons with annual income of Rs400,000 or more.

  • FBR needs to collect Rs2,198 billion in first half of current fiscal year

    FBR needs to collect Rs2,198 billion in first half of current fiscal year

    KARACHI: Federal Board of Revenue (FBR) is required to collect Rs2,198 billion during first half of the current fiscal year as per revised performance criteria of International Monetary Fund (IMF).

    The revenue collecting agency has failed to achieve the first quarter performance criteria.

    According to Country Report Pakistan released by IMF on Monday the actual performance criteria for revenue collection was Rs2,367 billion during first half (July – December) of current fiscal year, which has been revised downward by Rs169 billion to Rs2,198 billion.

    This shows that the FBR will need to collect Rs590 billion in the month of December 2019 to achieve the revised performance criteria.

    The FBR’s provisional collection during first five months (July – November) 2019/2020 was Rs1,608 billion.

    As per IMF documents the FBR failed to achieve the first quarter (July – September) 2019/2020 target of Rs1,071 billion and its collection was at Rs964 billion.

    The actual revenue collection target for current fiscal year was Rs5,550 billion. However, the indicative target as per IMF documents has also been revised downward to Rs5,238 billion.

    The FBR has to raise revenue collection to Rs3,520 billion by March 2020 in order to ensure the desired target for current fiscal year.

    As per IMF documents: “Tax revenue is now expected to be 0.5 percent of GDP lower than originally expected: while domestic collection is envisaged to remain strong, growing by over 25 percent y-o-y over FY 2020, growth in trade-related tax revenues is expected to remain subdued as declining imports continue to weigh on collections—more than 40 percent of total tax revenue in Pakistan is collected at the import stage.”

    The FBR has been given revised Indicative Targets for end December 2019 including net tax collection to recognize the faster than expected external adjustment negatively impacting customs revenue, besides net accumulation of tax refund arrears to capture the authorities plan to reflect the end-June stock of tax refund arrears.