A high-level committee of Pakistan’s leading businessmen, tasked with reviewing budget anomalies, has formally recommended lifting the ban on the import of luxury items.
(more…)Tag: Federal Board of Revenue
The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.
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Pakistan tax offices to work extended hours for revenue collection
ISLAMABAD: Pakistan tax offices have been directed to work extended hours on the last two days of the current fiscal year i.e. June 29, 2022 and June 30, 2022 for collection of duty and taxes.
The Federal Board of Revenue (FBR) on Friday directed that all Large Tax Offices (LTOs), Medium Tax Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax offices (RTOs) would remain open and observe extended working hours till 10:00 PM on Wednesday, June 29, 2022 and till 12:00 AM on Thursday, June 30, 2022, to facilitate the taxpayers in payment of duties and taxes.
READ MORE: Pakistan slaps super tax on industries, individuals
Chief Commissioners Inland Revenue have been asked to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collected by these branches to the respective branches of SBP on the same date to account for the same towards collection for the month of June, 2022 as per SBPs’ letter dated June 23, 2022.
The SBP in its letter stated that pursuant to FBR’s request for opening of banks’ branches for extended hours on 29th and 30th June 2022, and same day settlement of tax collections, following instructions, regarding observance of banking hours on 29th and 30th June 2022, are issued for compliance to facilitate the taxpayers:
READ MORE: Key tax measures taken through Finance Bill 2022
The SBP-BSC offices and NBP branches (A, B and C category) shall observe extended banking hours till 8:00 PM and 12:00 AM on 29th and 30th June 2022, respectively for collection of government taxes and duties through manual mode as well as ADC’s Over-the-Counter (OTC) facility.
In order to ensure same day settlement of tax collections on 30th June 2022 following special clearing and settlement will be arranged through M/s. NIFT and 1Link:-
READ MORE: FPCCI identifies tax anomalies in budget 2022-2023
M/s NIFT shall arrange special clearing at 12:00 AM on 30th June 2022 for same day clearing of payment instruments. M/s NIFT shall submit final returns to SBP-BSC offices for settlement by 10:00 AM on July 01, 2022.
M/s 1Link shall arrange to provide the settlement batch of transactions executed through ADCs platform till 12:00 AM on 30th June 2022 by 09:00 AM on July 01, 2022 to the SBP for settlement in government accounts.
READ MORE: Pakistan announces massive tax reduction for salaried persons
NBP branches shall settle their transactions of 30th June 2022 with respective SBP-BSC field offices / head office latest by 12:00 PM next day i.e. July 01, 2022.
Further, in order to eliminate the issue of spillover of tax receipts. NBP shall ensure that no instrument concerning government receipts, lodged in aforesaid office hours, shall remain unattended at any NBP branch and shall be settled in the value date of 30th June 2022 through special clearing.
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Who needs to file Tax Year 2022 return in Pakistan?
KARACHI: Income Tax Ordinance, 2021 has explained the category of persons who are required to file income tax return for tax year 2022.
The Federal Board of Revenue (FBR) is set to issue finalized income tax return forms to start the filing process from July 01, 2022.
In this regard the FBR has already issued draft return forms and invited comments from stakeholders.
READ MORE: FBR issues draft return forms for tax year 2022
Section 14 of Income Tax Ordinance, 2001 has explained in detail about persons whom the annual return filing is mandatory. According to the Section:
114. Return of income. — (1) Subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely:–
(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
READ MORE: Tax return filing starts from July 01, 2022
(ac) any non-profit organization as defined in clause (36) of section 2;
(ae) every person whose income for the year is subject to final taxation under any provision of this Ordinance;
(b) any person not covered by clause 2[(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;
READ MORE: Penalty amount revised for late filing income tax returns
(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) is a resident person being an individual required to file foreign income and assets statement under section 116A.
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(c) persons or classes of persons notified by the Board with the approval of the Minister in-charge.
(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.
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Procedure notified for TAD under Afghan transit trade
ISLAMABAD: The Federal Board of Revenue (FBR) has notified procedure for issuance of temporary admission document (TAD) under Afghan Transit Trade.
The FBR issued SRO 802(I)/2022 to amend Customs Rules, 2001 by inserting new rule 482A.
In March 2022, Pakistan and Afghanistan implemented movement of transit and bilateral trade through TAD for commercial vehicles.
Under the arrangement, the Pakistan Embassy in Kabul and the consulate generals in Jalalabad and Kandahar will issue TAD for Afghan vehicles. The Afghan Embassy in Islamabad and consulate generals in Peshawar and Quetta will issue the entry documents for Pakistani vehicles.
The move, aimed at improving regional connectivity with the Central Asian States, envisages the provision of TAD to transporters from both sides.
“482A. Procedure for issuance of TAD.- Notwithstanding the provisions of rule 482, initially the following procedure and conditions shall be followed for issuance and regulation of TAD, namely:-
(1) Directorate of Transit Trade, Karachi and Afghanistan Ministry of Transport shall share list of approved transport operators and their vehicles before starting issuance of TAD. When new transport operators and their vehicles are added to the list, the other side shall be informed via email, immediately. Both sides shall nominate focal persons for timely exchange of this information. Proper and complete record of all approved transport operators and their vehicles shall be maintained by the both sides;
(2) The list of approved Afghan transport operators and their registered vehicles shall be forwarded by Directorate of Transit Trade, Karachi to the concerned officers in the Embassy of Pakistan, Kabul and the Consulate General of Pakistan at Kandahar and Jalalabad and the list of approved Pakistani transport operators and their registered vehicles shall be forwarded by Afghan authorities to the concerned officers in the Embassy of Afghanistan in Islamabad or the Consulate General of Afghanistan in Karachi, Quetta and Peshawar.
(3) the application of TAD by Afghan approved transport operators for Afghanistan registered vehicles, as per Appendix-IIIA, along with required documents, shall be collected on all working days at window No. 5 of Pakistan Embassy in Kabul and Pakistan Consulate in Kandahar during 1100 to 1200 hours. Whereas applications for TAD for Pakistan registered vehicles as per Appendix-IIIB shall be collected on all working days at Afghan Embassy in Islamabad, and Afghan Consulate General in Karachi, Quetta and Peshawar during 1000 to 1100 hours;
(4) no fee shall be charged application form. Both availability and shall also or consulate websites downloadable;
(5) Trade Officer or Commercial Assistant posted at commercial section in Pakistan Embassy, Kabul and at the Pakistan Consulate General in Kandahar shall issue the TAD for vehicles registered in Afghanistan. The Transport Attaché, Afghan Embassy at Islamabad, and Afghan Consulate General in Karachi, Quetta and Peshawar Pakistan shall issue the TAD for vehicles registered in Pakistan. The format of TAD is enclosed as Appendix IIIC.
(6) at the time of issuance of TAD, by Pakistani authorities, to approved transport operators of Afghanistan for an Afghan registered vehicle, the particulars of the vehicle shall be cross-verified with the details sent by the Directorate General of Transit Trade, Karachi;
(7) TAD shall be issued against payment of fee of US $ 100. The TAD fee collected by Pakistan Embassy or Consulates in Afghanistan shall be transferred to the account of Directorate General of Transit Trade on monthly basis. A bar code having all the details of the vehicles may be embossed on TAD;
(8) TAD shall be issued within five working days of receipt of applications;
(9) validity of TAD shall be 180 days (06 months) from the date of issue with the option of multiple entries with the maximum one time stay of 30 days in Pakistan and Afghanistan;
(10) statement of TADs issued by Pak Embassy and Consulates shall be finished to the designated focal person of Directorate of Transit Trade, Karachi on daily basis via email and Afghan side will develop same system on their side;
(11) TAD shall be valid for one vehicle at a time and only for the carrier to whom it was issued; it shall not be transferable to other carriers;
(12) any unauthorized entry or tampering in TAD shall render it void and invalid.
(13) Pakistan customs shall be entering each entry or exit journey on the back page of TAD; the same shall be done by Ministry of Transport and Civil Aviation Afghanistan;
(14) security and safety of the TAD in the home country shall be the responsibility of the transport operator. If the TAD is lost in the home county, the transport operator in whose name the TAD is issued shall first register an FIR and then apply for a new TAD by providing a copy of the FIR. The embassies or consulates shall inform the relevant authorities, to cancel that TAD in their record;
(15) security and safety of the TAD in the territory of the other contracting party shall be the responsibility of the driver of the vehicle. If the TAD is lost, the driver shall first register an FIR in the nearest Police station and shall inform the transport or customs authorities. For exit on the crossing points he shall provide the documentary proof of his lawful entry and copy of FIR lodged with the police. The embassies or consulates shall inform the relevant authorities, to cancel that TAD in their record;
(16) if the vehicle goes missing in the territory of Pakistan, the driver will immediately report the incident to the nearest police station and register the FIR. He shall submit the copy of FIR in the office of the nearest Customs Enforcement Collectorate. The transport operator in such cases will be liable to pay duties and taxes leviable on the goods as ascertained by Pakistan Customs. Similar procedure will be adopted by the other contracting party in their territory.
(17) the TAD will be valid for both bilateral and transit trade at following BCPs:-
(a) Torkham (transit and bilateral trade)
(b)
(c) Chaman (transit and bilateral trade)
(d) Ghulam Khan (transit and bilateral trade)
(e) Kharlachi (bilateral trade)
(f) Angoor Adda (bilateral trade)
The cabotage is not allowed. Any violation of this rule will result in black listing of the vehicle and cancellation of TAD.
(18) the respective Directorate of Transit Trade shall act as focal formation for TAD for transportation of transit as well as bilateral goods.
(19) The following documents shall be filed by the applicant transport operator for obtaining TAD:
(a) application form as per format given in Appendix IIIA and Appendix IIIB;
(b) expired TAD of the Vehicle (in original) this shall be required after 180 days of operationalization;
(c) copy of National ID Card or passport of the owner;
(d) copy of registration book of the vehicle;
(e) copy of license or authorization issued by Afghanistan Ministry of Transport to transport operators of Afghanistan for international carriage of goods or copy of license or authorization issued by Pak customs to transport operators of Pakistan for international carriage of goods;
(f) a valid fitness certificate shall be required for Afghan vehicles after every 180 days;
(g) picture of the vehicle for record purpose; and
(h) serially numbered authority letter issued by the
relevant transport operator.
(21) the contracting parties shall, in accordance with their respective laws, rules and regulations, grant multiple entry visa to the driver and one helper of the vehicle valid for a period of one year, each stay not exceeding 30 days. In exceptional circumstances the Ministries of Interior of the two countries will consider the request for extension of VISA after fulfilment of legal requirement.
482B. The arrangement prescribed through rule 482A is a temporary arrangement which will prevail till formalities under Afghanistan-Pakistan Transit Trade Agreement, 2022 are finalized and would cease to have effect from the date FBR notifies.
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Paper merchants slam price hike by local producers
KARACHI: Paper merchants and graphic printers are facing with a severe shortage of paper, while the local producers have increased the prices by over 200 percent pushing the printing and packaging industry towards collapse.
Speaking at a press conference at Karachi Press Club, Chairman Pakistan Association of Printing Graphic Art Industry on Tuesday, Aziz Khalid said there was a severe shortage of paper in the country, and local paper mills were fixing the rates at their will.
“Local mills produce low quality paper and are unable to meet the demand.”
He said due to the scarcity of paper, printers couldn’t print the school syllabus so far, which was impacting the students of Sindh and Punjab Text Book Boards.
Criticizing the policies of the government as negative, Khalid claimed over 18,000 units involved in the printing and packaging supply chain were suffering due to higher taxes on imported paper.
“We have approached the Ministry of Finance, Commerce Division and Federal Board of Revenue FBR apprising them of the problems of the paper and printing industry, but there is no redressal”.
Speaking on the occasion, former Chairman All Pakistan Paper Merchants Association, Muhammad Saleem Bikyia said the government allows them to import paper, and the government revenue would be doubled.
“The former government imposed multiple taxes on educational paper imports, while the locally produced paper is very low quality as well as unable to meet demand.”
It may be mentioned here that the printing and packaging is the second largest value-added industry after textiles.
High prices & inferior quality are the major factors to confine us to enter US$:1000 billion export markets of books/leaflets/ packaging materials etc., which are mainly consumes by Singapore, Malaysia, China, India and UAE, said Bikyia.
Federal Minister of Finance & Revenue unfairly imposed 10 per cent Regulatory Duty (RD) in uncoated woodfree paper (HS Code 4802) in year budget 2021-22 despite of facts that 11 per cent to 39 per cent Anti-Dumping Duty already exists in said item. This is double jeopardy tax. Lawfully, Regulatory Duty (RD) cannot be enforced when Anti-Dumping duty already exists.
Saleem Bikyia said that there is No duty on basis Raw Materials i.e. pulp (H.S Code 47), and tiny 5 per cent duty on finished goods i.e. printed books, literary materials (HS Code 49); however in semi-finished Raw Material (H.S Code 48) i.e. paper & paperboard there is 16 per cent customs duty taxes, 4 per cent Additional Customs Duty, 10 per cent RD, & 11 per cent to 39 per cent Anti-Dumping Duty.
The stakeholders urged Federal Board of Revenue (FBR) to initiate investigation to substantiate how much 90 per cent domestic paper producers produce and pay sales taxes to national exchequer compare with 10 per cent imported paper who pay advance 17 per cent sales tax and 3 per cent value added tax at custom stage, results of billions of rupees of corruption, pilferage, swindle and embezzlement of local paper.
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FBR issues draft return forms for tax year 2022
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued draft income tax return forms for tax year 2022.
The FBR issued SRO 820(I)/2022 to notify the draft income tax return forms. The forms included: electronic return for salaried individuals; electronic return for Association of Person (AOPs); electronic return for business individuals; and electronic return form for companies.
READ MORE: Tax return filing starts from July 01, 2022
The revenue body advised stakeholders to provide objections or suggestions to the draft return forms within seven days of publication of the draft form. “Objection or suggestions which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be taken into consideration by the FBR,” it added.
READ MORE: Penalty amount revised for late filing income tax returns
The FBR may issue the finalized income tax return forms after the expiry of the stipulated time for draft return forms. The formal income tax return filing for tax year 2022 may be started from July 01, 2022.
The last date for filing income tax return tax year 2022 is September 30, 2022. All the taxpayers including salaried persons, business individuals, AOPs and companies having special tax year are required to file their annual income tax returns by September 30, 2022.
READ MORE: FBR to disable mobile SIMs on non-filing of tax returns
However, corporate entities having their accounting year July to June will be required to file annual returns for income by December 30, 2022.
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Tax return filing starts from July 01, 2022
KARACHI: The filing of income tax return for tax year 2022 will start from July 01, 2022 and will remain continue till September 30, 2022.
As per Income Tax Ordinance, 2001, all the taxpayers, other than corporate entities, are required to file their annual income tax returns on or before September 30 every year.
READ MORE: Penalty amount revised for late filing income tax returns
Last year the Federal Board of Revenue (FBR) opened the online portal for filing income tax returns on July 01 for filing return for tax year 2021. The FBR issued draft income tax return forms on June 11, 2021 and issued the finalized income tax return forms on July 01, 2021.
However, for current year the FBR had not issued draft income tax return forms till June 21, 2022.
The tax authorities issue draft form to take input from stakeholders to remove any anomaly or error/mistake.
Tax analysts said that statute allows taxpayers to have three-month period for filing annual income tax returns. The expiry date will be after three month from the issuance date of return forms.
READ MORE: FBR to disable mobile SIMs on non-filing of tax returns
The Section 118 of Income Tax Ordinance, 2001 explains method for furnishing returns and other documents:
Section 118. Method of furnishing returns and other documents. —
(1) A return of income under section 114, a wealth statement under section 116 or a foreign income and assets statement under 116A, if applicable shall be furnished in the prescribed manner.
(2) A return of income under section 114 of a company shall be furnished —
(a) in the case of a company with a tax year ending any time between the first day of January and the thirtieth day of June, on or before the thirty-first day of December next following the end of the tax year to which the return relates; or
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(b) in any other case, on or before the thirtieth day of September next following the end of the tax year to which the return relates.
(2A) Where salary income for the tax year is five hundred thousand rupees or more, the taxpayer shall file return of income electronically in the prescribed form and it shall be accompanied by the proof of deduction or payment of tax and wealth statement as required under section 116 or a foreign income and assets statement under 116A, if applicable”:
“Provided that the Board may amend the condition specified in this sub-section or direct that the said condition shall not apply for a tax year.”;
(3) A return of income for any person (other than a company) shall be furnished as per the following schedule, namely:—
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(a) in the case of a return required to be filed through e-portal in the case of a salaried individual, on or before the 30th day of September next following the end of the tax year to which the statement or return relates; or
(b) in the case of a return of income for any person (other than a company), as described under clause (a), on or before the 30th day of September next following the end of the tax year to which the return relates.
(4) A wealth statement shall be furnished by the due date specified in the notice requiring the person to furnish such statement or, where the person is required to furnish the wealth statement for a tax year under sub-section (2) of section 116, by the due date for furnishing the return of income for that year.
(5) A return required to be furnished by a notice issued under section 117 shall be furnished by the due date specified in the notice.
(6) Where a taxpayer is not borne on the National Tax Number Register and fails to file an application in the prescribed form and manner with the taxpayer’s return of income, such return shall not be treated as a return furnished under this section.
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FBR appoints Dr. Faiz Illahi Memon as Member Admin
The Federal Board of Revenue (FBR) has appointed Dr. Faiz Illahi Memon, a seasoned officer of the Inland Revenue Service (IRS) with a rank of BS-22, as the Member Admin/Human Resource.
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Pakistan’s tax employees announce pen down strike for salary raise
KARACHI: Employees of apex tax collecting agency of Pakistan i.e. Federal Board of Revenue (FBR) have announced pen down strike on June 17, 2022 (Friday) demanding raise in salary and allowances.
Sources in All Pakistan FBR employees said that they had announced a pen down strike all over the country on June 17, 2022 to highlight their demand for a pay raise and increase in fuel allowance.
READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023
The employees have been demanding to de- freeze there IJP (Internal Job Posting) allowance since many years, but the same has not been approved even in this budget.
The officers are demanding a pay raise in terms of special Revenue allowance and increased fuel allowance, being the sole federal breadwinning organization that has been achieving its budgetary targets for quite a few years.
The aggrieved informed that all the demands have been forwarded to Chairman FBR through proper channel.
READ MORE: FBR extends working hours on May 30 – 31 for tax collection
The officials of FBR were ensured a pay raise in this budget but the same was removed from the bill at the eleventh hour, which caused distress among the employees.
It should be noted over here that recently Prime Minister had de-freezed the allowance of all employees of the president house and prime Minister’s secretariat, but the government denied the right to FBR employees.
Several other Federal Government institutions have been given a pay raise and increase in various allowances in the recent budget but the same has been denied to the FBR workforce despite the fact that they have been showing exceptional performance, with regards to achieving their budgetary targets.
Though Finance Minister Miftah Ismail has congratulated the Federal Board of Revenue (FBR) and its Chairman Asim Ahmed for collecting Rs490 billion revenue in May 2022 through his twitter account, yet the long standing demand of de-freezing the IJP allowance of the officials, and that of pay raise was overlooked in the budget.
READ MORE: FBR chairman replaced despite massive collection growth
It should be noted that the federal budget 2020-2021 clearly stated that FBR revenues increased by 17 per cent and the government was on track to achieve the revised target of Rs 4,800 billion, which was then achieved accordingly. Likewise in this financial year 2021-2022, the net revenue collection grew to Rs5,349 billion during July-May (2021-22) as against the collection of Rs.4,164 billion during July-May (2020-21) with a 28.4 percent growth.
This highlights the efforts put in by the officials of FBR in achieving their budgetary targets.
It shall also be highlighted that the FBR employees have been observing Saturday as a working day for the past six months unlike all the other federal and provincial government organizations, and these employees always go an extra mile to perform their duties.
It is because of FBR’s efforts that the government exchequer receives all the needed revenues, and the importance of this organization cannot be denied at all.
READ MORE: FBR surpasses collection target for July – April FY22
It is ironic that FBR employees are deprived of their basic right amid inflation crisis.
The aggrieved have made clear that if their demands are not met, they will observe a pen down strike for even longer periods, as they are finding it difficult to make both ends meet, and because there is a huge disparity between their and other institution’s salaries.
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FBR’s committee to examine service record of customs officials
ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday constituted a scrutiny committee to examine service record of employees of Pakistan Customs Department.
According to a notification, on the directives of FBR chairman, the following scrutiny committee to examine the service record of all those employees of Pakistan Customs Department, who have joined their duties in pursuance of order dated December 17, 2021 passed by Supreme Court of Pakistan:
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i. Mehmood Aslam Butt, Chief (Legal – HR): Chairman
ii. Rai Naheed Ahmad, Secretary (Lit.SC): Member
iii. Muhammad Shakeel Abbasi, Second Secretary (HRM-IR-VI): Member
iv. M. Saeed-ur-Rheman, Secretary (HRM-IV): Secretary
READ MORE: Pakistan slaps 45% corporate tax on banks
The FBR has mandated the committee to obtain the available record of all such employees from the concerned field formations and establishment division, if any of the required documents are not available with the respective offices.
READ MORE: Tax rates for business individuals, AOPs during TY2023
It is also mandated to the committee to examine the complete service record of their initial appointment, termination from service and subsequent reinstatement under the Sacked Employees (Reinstatement) Ordinance Act, 2010, on case to case basis, and to determine their status in accordance with the judgment dated December 17, 2021 passed by the Supreme Court of Pakistan.
The FBR asked the committee to furnish conclusive report/recommendations in each case to Member (Admn/HR) through Chief (HRMC) preferably within two months time.
READ MORE: Pakistan reintroduces advance tax on foreign payments