KARACHI: Federal Board of Revenue (FBR) to generate additional revenue of Rs733.47 billion during current fiscal year after abolishing zero-rating of sales tax and other policy and administrative measures.
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Prize bonds, bearer instruments to be registered
KARACHI: Pakistani authorities have assured International Monetary Fund (IMF) of registering prize bonds and other bearer instruments to eliminate the use of these instruments in potential illegal activities and tax avoidance.
The IMF issued Pakistan country report on Monday following successful $6 billion loan program.
In order to make the program successful the Pakistani authorities had assured the fund of strengthening governance and the control of corruption.
The priorities include:
Strengthening the effectiveness of anticorruption institutions. A national committee has been established to implement the recommendations from the UNCAC 2017 report.
A task force will review the institutional framework of the anticorruption institutions to enhance their independence and effectiveness in investigating and prosecuting corruption cases.
A study will be conducted on establishing a dedicated AML unit in the Federal Investigation Agency (FIA). Upgrading the financial investigation capacities of law enforcement agencies will be also prioritized.
Moreover, the authorities are pursuing agreements on information exchange with foreign countries to complement efforts to recover unlawful assets.
An Asset Recovery Unit in the Prime Minister’s Office is cooperating with the FBR’s International Taxation Unit in identifying assets abroad owned by Pakistani residents, in line with the OECD Convention on Mutual Administrative Assistance on Tax Matters.
Advancing anti-corruption efforts through the enhanced used of AML tools, including by (i) ensuring that banks and other reporting institutions improve their capacities to identify politically exposed persons and apply enhanced due diligence measures and (ii) providing adequate resources to the Financial Monitoring Unit to improve the dissemination of financial intelligence that can be used to support corruption investigations.
Moreover, asset declarations of high-level public officials will be comprehensive in scope (i.e., assets beneficial owned or located abroad), filed with a central federal agency, electronically searchable, and appropriately verified.
“Registering prize bonds and other bearer instruments to eliminate their use in potential illegal activities/tax avoidance,” the report said.
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FBR urged to allow filing amnesty scheme declarations
KARACHI: Federal Board of Revenue (FBR) has been urged to allow those persons to file their declarations who have paid duty and taxes under amnesty scheme 2019 by due date.
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FBR rescinds 42 non-operational sales tax general orders
ISLAMABAD: Federal Board of Revenue (FBR) on Monday rescinded 42 non-operational Sales Tax General Orders (STGOs).
The FBR issued STGO 101/2019 and rescinded the following STGOs being non-operational, transposed to Sales tax Act, 1990 or Sales Tax Rules, 2006, with immediate effect:
01. STGO No. 03/2004, Dated 12th June, 2004 related to consolidation of STGOs; desirable provisions being transposed to the Sales Tax Rules, 2006.
02. STGO No. 04/2004, Dated 4th September, 2004, Amendment in STGO 3/2004
03. STGO No. 01/2005, Dated 2ist April, 2005, e-filing of Sales Tax return at LTU, Karachi and Lahore – Redundant STGO
04. STGO No. 02/2005, Dated 15th August, 2005, Amendment in STGO 1/2005.
05. STGO No. 03/2005, Dated 1st September, 2005, Repayment of Sales Tax to Duty Free Shops on locally manufactured goods.
6 STGO No. 04/2005, Dated 29th September, 2005, Special Procedure for collection and payment of S.T. on vehicles.
07. STGO No. 01/2006 Dated 5th June, 2006, procedure for payment of S.T. against advance receipt.
08. STGO No. 03/2006 Dated 28th July, 2006, issues relating to steel sector
09. STGO No. 06/2006 Dated 8th September, 2006, Amendment in STGO 3/2006.
10 STGO No. 01/2007 Dated 10th January, 2007, Mitigating the hardships of Islamabad based taxpayers.
11. STGO No. 02/2007 Dated 6th February, 2007 Refund claims relating to local supply made by the five export oriented zero-rated sectors.
12. STGO No. 03/2007 Dated 30th July, 2007 issues relating to Commercial Importers.
13. STGO No. 04/2007 Dated 21st August, 2007 procedure for e-filing of ST returns.
14. STGO No. 05/2007 Dated 25th August, 2007, payment of S.T. by Steel Melters and re-rolling mills operating on self-generation basis.
15. STGO No. 06/2007 Dated 28th August, 2007, transfer of jurisdiction of collectorate of S.T. & FE now RTO, Rawalpindi to RTO, Islamabad.
16. STGO No. 22/2008 Dated 26th June, 2008, revision of S.T. Rate, printing of retail price.
17. STGO No. 32/2008 Dated 8th July, 2008 issues relating to solvent extraction units.
18. STGO No. 1/2010 Dated 20th January, 2010 Fiscal relief to rehabilitate the economic life in NWFP, FATA, installment in arrears.
19. STGO No.3/2010 Dated 27th January, 2010 Refund of Sales Tax by Customs Collectorate.
20. STGO No. 11/2010 Dated 30th March, 2010, Delivery of sales tax registration certificates to registered persons of Gilgit Baltistan.
21. STGO No. 18/2010 Dated 10th May, 2010, Input tax adjustment to Pakistani registered person against their purchases from AJK registered persons.
22. STGO No. 19/2010 Dated 13th May, 2010 Filing and processing of expeditious refunds by IT system of FBR.
23. STGO No.20/2010 Dated 1st July, 2010 Revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.
24. STGO No.35/2010 Dated 23rd September, 2010 revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.
25. STGO No.37/2010 Dated 24th September, 2010 Establishment of CSTRO.
26. 26 STGO No.49/2010 Dated 30th November, 2010 revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.
27. STGO No.50/2010 Dated 23rd December, 2010 revision of Sales Tax rates w.e.f. 1st July, 2010 printing of retail price.
28. STGO No. 1/2011 Dated 8th January, 2011 filing and processing of expeditious refund by IT system of FBR.
29. STGO No.3/2011 Dated 24th June, 2011 Revision of Sales Tax rates w.e.f. 1st July, 2011 printing of retail price.
30. STGO No.4/2011 Dated 27th June, 2011, monitoring committee for the steel sector.
31. STGO No.9/2011 Dated 26th August, 2011 Monitoring committee for the steel sector.
32. STGO No. 10/2011 Dated 26th August, 2011 Monitoring committee for the steel sector.
33. STGO No.28/2013 Dated 5th July, 2013 Revision of Sales Tax rates w.e.f. 13th June, 2013 Printing of retail price.
34. STGO No.34/2013 Dated 16th August, 2013 Uniform procedure for action under sub-section (4) of Section 21 of the Act.
35. STGO No.27/2014 Dated 18th March, 2014 Levy of 2 percent extra tax on the supply of auto parts and accessories, tyres and tubes etc.
36. STGO No.66/2014 Dated 21st July, 2014 Collection of Sales Tax from retailers in terms of sub-section (9) of section 3 of the Act, read with SRO 608(I)/2014.
37. STGO No.68/2014 Dated 11th August, 2014 Clarification regarding persons liable to be registered but not actually registered in terms of rule-2(3)(ii) of the Sales Tax Special Procedure (Withholding) Rules, 2007.
38. STGO No. 117/2015 Dated 14th July, 2015 Procedure for issuance of STGOs for grant / withdrawal and rejection of zero-rating on electricity and gas to RPs falling under SRO 1125(I)/2011.
39. STGO No. 18/2016 Dated 9th February, 2016 Procedure for adjustment of S.T. by Steel melters under sub-rule-2C of rule-58H.
40. STGO No. 107/2016 Dated 20th September, 2016 Procedure for issuance of STGOs for grant / withdrawal and rejection of zero-rating on furnace oil, diesel oils and coal to RPs falling under SRO 1125(I)/2011.
41. STGO No. 130/2016 Dated 2nd November, 2016 Processing of application of exemption under sr.no. 48 of table-1 of 6th schedule of the Act.(Grant in aid).
42. STGO No. 144/2018 Dated 12th July, 2018 Procedure for adjustment of S.T. by Steel melters under sub-rule-2C of rule-58H.
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Reduced sales tax rates on supply of gold, jewelry imposed
The Federal Board of Revenue (FBR) has introduced significant amendments through the Finance Act, 2019, bringing gold, jewelry, and other precious articles into the sales tax ambit by implementing reduced rates on supplies.
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Immovable property cannot be purchased without bank account: FBR
ISLAMABAD: Federal Board of Revenue (FBR) has barred purchase of immovable property by any persons making payment without banking channels.
FBR sources told PkRevenue.com that in this regard amendment had been made to Income Tax Ordinance, 2001 in this regard.
The sources said that amendment had been made to Income Tax Ordinance, 2001 which explained that immovable property valuing more than Rs5 million and other assets more than Rs1 million cannot be transferred without a bank accounts.
The new section introduced through Finance Act, 2019 is reproduced as under:
“75A. Purchase of assets through banking channel.
(1) Notwithstanding anything contained in any other law, for the time being in force, no person shall purchase—
(a) immovable property having fair market value greater than five million Rupees; or
(b) any other asset having fair market value more than one million Rupees, otherwise than by a crossed cheque drawn on a bank or through crossed demand draft or crossed pay order or any other crossed banking instrument showing transfer of amount from one bank account to another bank account.
(2) For the purposes of this section in case of immoveable property, fair market value means value notified by the Board under sub-section (4) of section 68 or value fixed by the provincial authority for the purposes of stamp duty, whichever is higher.
(3) In case the transaction is not undertaken in the manner specified in sub-section (1),—
(a) such asset shall not be eligible for any allowance under sections 22, 23, 24 and 25 of this Ordinance; and
(b) such amount shall not be treated as cost in terms of section 76 of this Ordinance for computation of any gain on sale of such asset.”
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FBR postpones implementation of new immovable property valuations
ISLAMABAD: Federal Board of Revenue (FBR) has postponed the implementation of new valuation of immovable properties for major cities of the country for calculation of tax.
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FBR allows reduced duty rates for import of certain CBU vehicles
KARACHI: Federal Board of Revenue (FBR) has allowed reduced rate of customs duty on import of certain automotive vehicles in Completely Built Units (CBUs) under Automotive Development Policy 2016-2020.
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Aviation industry allowed duty free import of aircraft, spare parts
KARACHI: Federal Board of Revenue (FBR) has allowed duty free import of aviation related goods including aircraft and spare parts under National Aviation Policy 2015.
According to Finance Act, 2019 following goods related to aviation have been allowed duty free import:
1. Aircraft HS Code 8802.4000 at zero percent customs duty under condition whether imported or acquired on wet or dry lease. In case of M/s Pakistan International Airlines (PIA) Corporation this exemption shall be admissible on and from the 19th March, 2015.
2. Spare parts Respective headings at zero percent for use in aircraft, trainer aircraft and simulators.
3. Maintenance Kits Respective headings at zero percent for use in trainer aircraft (8802.2000 & 8802.3000).
4. Machinery, equipment & tools respective headings at zero percent for setting up Maintenance, Repair & Overall (MRO) workshop by MRO company recognized by Aviation Division.
5. Machinery, equipment, operational tools, furniture& fixture respective headings at zero percent on one time basis for exclusive use of New/Greenfield airports by company authorized by Aviation Division.
6. Aviation simulators Respective headings zero percent on one time basis for aircrafts by airline company recognized by Aviation Division.
The FBR said that for the purposes of this Part, the following conditions shall apply besides the conditions as specified in column (5) of the Table below:—
(i) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall certify that the imported goods/items are the company’s bonafide requirement. He shall furnish all relevant information online to Pakistan Customs Computerized System against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969). In already computerized Collectorates or Customs stations where the Pakistan Customs Computerized System is not operational, the Director Reforms and Automation or any other person authorized by the Collector in this behalf shall enter the requisite information in the Pakistan Customs Computerized System on daily basis, whereas entry of the data obtained from the customs stations which have not yet been computerized shall be made on weekly basis;
(ii) the exemption shall be admissible on production of certificate by the Aviation Division, Government of Pakistan to the effect that the intending importer is operating in the country or intends to operate in the county in the airline sector;
(iii) the list of imported items is duly approved by the Aviation Division, Government of Pakistan in line with Policy Framework approved by the Government of Pakistan;
(iv) the Chief Executive, or the person next in hierarchy duly authorized by the Chief Executive or Head of the importing company shall furnish an undertaking to the customs authority at the time of import that the goods imported shall be used for the purpose as defined/notified by the Aviation Division, Government of Pakistan under the Aviation Policy; and
(v) in case of deviation from the above stipulations, the Collector of Customs shall initiate proceedings for recovery of duty and taxes under the relevant laws.
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FBR transfers 20 sales tax BS-18 auditors
ISLAMABAD: Federal Board of Revenue (FBR) has notified transfers and postings of 20 sales tax auditors (BS-18) with immediate effect and until further orders.
Following sales tax auditors of BS-18 have been transferred through a notification issued on Friday:
01. Zulfiqar Ali Khokhar, Assistant Director, (Audit)/BS-18, Corporate Regional Tax Office, Karachi has been transferred and posted as Directorate of Internal Audit -IR, Karachi.
02. Zahid ul Bari, Assistant Director (Audit)/ BS-18, Directorate of Internal Audit-IR, Karachi has been transferred and posted as Corporate Regional Tax Office, Karachi.
03. Fazal Hameed, Assistant Director (Audit)/ BS-18, Regional Tax Office, Peshawar has been transferred and posted as Office of Commissioner Inland Revenue (Appeals), Peshawar.
04. Ajmal Khan, Assistant Director (Audit)/BS-18, Regional Tax Office, Islamabad has been transferred and posted as Directorate of Internal Audit, Rawalpindi.
05. Inam ul Haq, Assistant Director (Audit)/BS-18, Regional Tax Office, Islamabad has been transferred and posted as Directorate of Internal Audit, Rawalpindi.
06. Saifur Rehman Assistant, Director (Audit)/ BS-18, Directorate of Intelligence & Investigation, Peshawar has been transferred and posted as Regional Tax Office, Peshawar.
07. Syed Mehmood Ali Shah (18), Assistant Director (Audit)/BS-18, Directorate of Intelligence & Investigation, Peshawar has been transferred and posted as Regional Tax Office, Peshawar.
08. Aziz ur Rehman (18), Assistant Director, (Audit)/BS-18, Regional Tax Office, Peshawar has been transferred and posted as Directorate of Intelligence & Investigation, Peshawar.
09. Abidullah Jan Assistant Director (Audit)/ BS-18, Regional Tax Office, Peshawar has been transferred and posted as Directorate of Intelligence & Investigation, Peshawar.
10. Muhammad Javaid Akhtar, (Audit)/BS-18, Chief Commissioner Office, RTO Faisalabad has been transferred and posted as Assistant Director Corporate Zone, RTO Faisalabad.
11. Zaheer Ahmad, Assistant Director (Audit) / BS-18, Chenab Zone, RTO Faisalabad has been transferred and posted as Lyallpur Zone, RTO Faisalabad.
12. Abdul Rashid, Assistant Director (Audit) / BS-18, Lyallpur Zone, RTO Faisalabad has been transferred and posted as Chenab Zone, RTO Faisalabad.
13. Nasir Ijaz, Assistant Director (Audit) / BS-18, Chenab Zone, RTO Faisalabad has been transferred and posted as Lyallpur Zone, RTO Faisalabad.
14.Syed Shakeel Abbas, Assistant Director (Audit) / BS-18, Corporate Zone, RTO Faisalabad has been transferred and posted as Chenab Zone, RTO Faisalabad.
15. Ashiq Ali, Assistant Director (Audit) / BS-18, Jhang Zone, RTO Faisalabad has been transferred and posted as Office of Commissioner (Appeals), Faisalabad.
16. Riaz Hussain Tahir, Assistant Director (Audit) /BS-18, Chenab Zone, RTO Faisalabad has been transferred and posted as Corporate Zone, RTO Faisalabad.
17. Muhammad Nawaz, Assistant Director (Audit) /BS-18, Office of Commissioner (Appeals), Faisalabad has been transferred and posted as Jhang Zone, RTO Faisalabad.
18. Ghulam Abid, Assistant Director (Audit) / BS-18, Chief Commissioner Office (PAC Cell), RTO Faisalabad has been transferred and posted as Chenab Zone, RTO Faisalabad.
19. Ahmad Sohail, Assistant Director (Audit) / BS-18 19. Lyallpur Zone, RTO Faisalabad has been transferred and posted as Corporate Zone, RTO Faisalabad.
20. Syed Azhar Abbas Sherazi, Assistant Director (Audit) / BS-18, Corporate Zone, RTO Faisalabad has been transferred and posted as Chief Commissioner Office, RTO Faisalabad.
The FBR said that the above-named officers, if drawing performance allowance equal to. 100 percent of their basic pay, shall continue to draw the same on their new place of posting.