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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.

  • FBR directs 81 retailers to integrate with POS system

    FBR directs 81 retailers to integrate with POS system

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday directed 81 retailers to integrate with the online system by September 10, 2022 otherwise action will be taken as per law.

    The FBR issued Sales Tax General Order (STGO) No. 3 of 2023 related to Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.

    READ MORE: 101 retailers given July 10 as deadline for integration

    The Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailers who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.

    READ MORE: FBR issues list of 113 retailers for mandatory integration

    In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 Retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No/ 1 of 2022 issued on August 3, 2021.

    READ MORE: RTO-II Karachi seals electronics shop for integration failure

    Vide the instant Sales Tax General Order, a list of 101 identified Tier-1 Retailers has been placed on FBR’s web portal allowing them to integrate with FBR’s system by July 10, 2022 an the procedure of exclusion from this list of 101 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 dated May 13, 2022.

    READ MORE: RTO-II Karachi seals Baklava Palace for integration failure

    Upon filing of Sales Tax Return for the month of June, 2022 for all hereby notified Tier-1 Retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

  • How to change personal details for filing income tax return

    How to change personal details for filing income tax return

    Many taxpayers are worried about changing their personal details in the registration information with Federal Board of Revenue (FBR).

    The information is key to file income tax return. Any wrong information may lead to serious problem in future.

    READ MORE: KTBA recommends changes in IRIS for calculating deemed income on properties

    However, those taxpayers who are registered with the FBR and want to change their personal details they must read the entire article.

    According to the FBR, a person can change registration information recorded for filing Income Tax Return in three (3) possible ways.

    Changing information through Iris, a person can change/update information by logging into Iris.

    READ MORE: KTBA demands suspending further tax due to practical issues

    Following information can be updated by the person through Registration Form 181 (filed for modification) Income Tax: Mobile number; Email; Personal/Residential Address; Business Address; Addition of Business Branches; Legal Representative u/s 87 of Income Tax Ordinance 2001; Bank Account.

    Changing information through FBR helpline, a person can also change or update information through FBR helpline via phone or email.

    READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022

    Following information can be updated through the helpline: Name; Date of Birth; Gender; Disability Status; Senior Citizen Status; Changing Information by visiting Regional Tax Office (RTO).

    For changes in registration regarding the following issues, the person will have to visit their relevant RTO: Discontinuance of business; Jurisdiction for Income Tax Return assessment; Deregistration; Updating CNIC number; Updating Pakistan Origin Card (POC).

    A person will have to take relevant documents to RTO in order to successfully change details regarding Income Tax Registration.

  • KTBA recommends changes in IRIS for calculating deemed income on properties

    KTBA recommends changes in IRIS for calculating deemed income on properties

    KARACHI: Karachi Tax Bar Association (KTBA) has recommended the tax authorities to make changes in IRIS – return filing portal – to determine the fair market value of immovable properties to pay tax on deemed income.

    (more…)
  • FBR transfers 153 IRS officers in major reshuffle

    FBR transfers 153 IRS officers in major reshuffle

    The Federal Board of Revenue (FBR) has undertaken a significant reshuffle in the Inland Revenue Service (IRS), announcing the transfers and postings of 153 officers in the latest round of administrative changes.

    (more…)
  • FBR transfers 45 senior customs officers of BS-19-20

    FBR transfers 45 senior customs officers of BS-19-20

    The Federal Board of Revenue (FBR) of Pakistan has undertaken a major reshuffle, transferring and posting 45 senior officers from grades BS-19 and BS-20 of the Pakistan Customs Service (PCS).

    (more…)
  • FED on tobacco to promote documentation: experts

    FED on tobacco to promote documentation: experts

    KARACHI: Tax experts believed that newly imposed federal advance excise duty (FED) on tobacco purchase will not impact farmers but manufacturers and would dent the massive tax theft in the tobacco sector.

    They said that tax evaders are pressurizing the FBR through farmers for withdrawal of this major documentation measure and creating a false impression of farmers being taxed.

    Recently, Khyber Pakhtunkhwa Farmers Rights Protection Association (KPFRPA) has opposed the advance excise duty and wrongly associated it with farmers.

    READ MORE: Pakistan Tobacco’s profit falls on high taxes

    Spokesperson of FBR clarifies that, “FED on un-manufactured Tobacco has been enhanced from Rs 10/per kg to Rs 390/per kg w.ef 23.08.2022, through promulgation of Tax Laws (Second Amendment) Ordinance,2022, in terms of S.No 7 of Table 1 of First Schedule to the Federal Excise Act 2005.”

    He added that the FED is chargeable on unmanufactured Tobacco for manufacturers of cigarettes by the Green LEAF Threshing Units (GLT Units) after processing and conversion of tobacco green leaf as defined under sub-section (2A) of section 2 of the Federal Excise Act 2005.

    He said that the amount of FED is adjustable in terms of section 6 of the Federal Excise Act 2005, from the amount of duty collected. Therefore, the main purpose of imposition of FED on unmanufactured tobacco is the documentation dormant undocumented segments of Tobacco industry.

    READ MORE: Habib Bank posts 33% decline in half year profit

    Furthermore, he added that no FED is imposed or chargeable on raw tobacco leaf supplied by the tobacco growers/farmers to the GLT Units.

    Experts believe that the imposition of advance excise duty has been instrumental in documentation of the purchase of tobacco by manufacturers of cigarettes and other tobacco products as all manufacturers who purchase tobacco from farmers must process tobacco through GLT plants.

    READ MORE: FFBL declares Rs1.7 billion in 2QCY22

    It is pertinent to mention that the previous government had increased the tax on tobacco from Rs. 10 per kg to Rs. 300 per kg, however, it had to retract the decision due to pressure from lobby sitting in power corridors, related to illegal cigarette producers.

    The government must take a strong stand on this decision. Otherwise, it may help the rise in illicit trade as it will once again give these illegal manufacturers the opportunity to hide their actual tobacco purchases and channel the unlawfully gained revenues from this evasion into marketing and fiscal violations.

    READ MORE: Hyundai announces second quarter financial results

  • FBR invites proposals for new retailers tax scheme

    FBR invites proposals for new retailers tax scheme

    ISLAMABAD: The Federal Board of Revenue (FBR) is formulating new tax scheme for retailers and in this regard the authority has invited proposals from stakeholders.

    The Chairman FBR invited proposals regarding the features of the proposed tax scheme that would serve the purpose of facilitating filing of income tax returns as well as ensuring revenue for the country.

    READ MORE: Pakistan amends laws to tax retailers

    The government has withdrawn the fixed tax on retailers through the recently promulgated Ordinance. Any new scheme of tax on retailers will be planned and implemented in consultation with the traders.

    The Chairman FBR held a detailed meeting with the representatives of traders from all across the country at the FBR House Islamabad on Thursday afternoon. About 21 representatives of Markazi Tanzeem e Tajiraan Pakistan attended the meeting and some participants joined through video link.

    READ MORE: FBR allows tax refund deducted through electricity bills

    The traders appreciated the initiative of active consultative approach taken by the FBR and put forth various suggestions on the issue.

    Earlier on August 25, a meeting with the representatives from all across Pakistan under All Pakistan Anjuman e Tajiraan was also held by the Chairman FBR in Islamabad.

    READ MORE: Pakistan decides to roll back fixed tax scheme

    While addressing the participants of the two meetings, the Chairman FBR resolved to keep follow-up meetings at the FBR headquarters and also at the regional level so that, through consultation and consensus, a feasible and workable scheme of taxation for retailers & traders is evolved.

    The traders were requested to make in-house deliberations amongst themselves and firm up their suggestions for the future tax scheme to be rolled out next month.

    The next round of meetings will be held with the traders’ bodies next week.

    READ MORE: FTO investigates tax collection through electricity bills

  • Pakistan allows tax exemption on tomato, onion imports

    Pakistan allows tax exemption on tomato, onion imports

    ISLAMABAD: Pakistan on Wednesday granted exemption of income tax and sales tax on imports of tomato and onion during next four months.

    In this regard, the Federal Board issued notifications in this regard. The FBR issue SRO 1639(I)/2022 to allow withholding income tax exemption on import of tomato and onion imported till December 31, 2022.

    READ MORE: FBR collects Rs948 billion as tax revenue during 2MFY23

    Similarly, another SRO 1640(I)/2022 was issued to allow sales tax exemption on import of tomato and onion during September – December 2022.

    Previously, on August 30, 2022, in a meeting at the Ministry of National Food Security and Research (MNFSR), it was decided that the Ministry will issue import permits of onion and tomatoes within 24 hours.

    The Ministry has also proposed to FBR to waive-off taxes and levies on import of onion and tomatoes.

    It is expected that this will be made effective on immediate basis. These steps are taken to ensure a supply of the essential commodity in the market and to stabilize the prices.

    READ MORE: FBR announces tax exemptions for flood relief operation

    According to the details, the importers will be allowed to import onion and tomatoes.

    Ministry of National Food and Security has directed the Department of Plant Protection (DPP) to facilitate the import and ensure that there are no hindrances for importers.

    MNFSR has taken on-board all the stakeholders with an aim to ensure a supply of the essential commodities to the consumers.

    Furthermore, a contact group to facilitate imports is created, where importers will be able to share their problems. While a team at Ministry of National Food Security will monitor the situation and will take necessary action for redressal.

    READ MORE: KTBA demands suspending further tax due to practical issues

    Ministry of National Food Security and Research has taken the above decisions to ensure that onion and tomatoes are available in the market at reasonable rates to the consumers.

    Pakistan Embassies in Iran, Afghanistan, UAE and other countries have been requested to assist imports. Ministry of National Food Security and Research, with stakeholders, will continue to take necessary steps to ensure food security in the country in the times when crops have been heavily damaged because of recent floods and rains.

    READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022

  • FBR collects Rs948 billion as tax revenue during 2MFY23

    FBR collects Rs948 billion as tax revenue during 2MFY23

    ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs948 billion as tax revenue during first two months (July – August) of fiscal year 2022/2023, according to provisional data released on Wednesday.

    The FBR surpassed the revenue collection target of Rs926 billion set for the period.

    READ MORE: FBR announces tax exemptions for flood relief operation

    According to the provisional data for the month of August 2022, the FBR has collected net revenue of Rs. 489 billion, which has exceeded the target of Rs. 483 billion against Rs. 448 billion collected during the same period, last year.

    These figures would further improve after the book adjustments have been taken into account. These collections are the highest ever in the month of August.

    This outstanding revenue performance is a reflection of FBR’s resolve to build on its growth trajectory despite floods, zero rating on POL products, and import compression, the FBR said.

    READ MORE: KTBA demands suspending further tax due to practical issues

    On the other hand, the gross collection increased from Rs. 462 billion during August last year to Rs. 526 billion, showing an increase of 14 per cent.

     Likewise, the amount of refunds disbursed during August was Rs. 37 billion compared to Rs. 14.3 billion paid last year, showing an increase of 161 per cent. This is reflective of FBR’s strong commitment to fast-track refunds and thereby prevent liquidity shortages in the industry.

    The significant revenue increase in August is largely the outcome of various policy and revenue measures introduced by the government in Finance Act 2022. Unlike in the past, there is a visible focus on taxing the rich and affluent.

    READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022

    Owing to this paradigm shift, the growth in domestic Income Tax is almost 38 per cent which is a remarkable shift towards direct taxation. Likewise, there is a significant upsurge in Advance Tax collected during August, which is 72 per cent increase from the corresponding period of the previous year.

    Provisional collection of Income Tax, Sales Tax, Federal Excise and Customs Duty were respectively Rs.165 billion, Rs. 218 billion, Rs.24 billion and Rs. 82 billion as against Rs.124 billion, Rs. 223 billion, Rs. 23 billion and Rs.77 billion during the corresponding period of the previous year.

    READ MORE: Tax rates on mobile phone, internet users during 2022-2023

  • FBR announces tax exemptions for flood relief operation

    FBR announces tax exemptions for flood relief operation

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday announced major tax exemptions for flood relief operation.

    The FBR issued SRO 1634(I)/2022 dated August 30, 2022 to allow the tax exemption.

    In order to enable the exemption, the FBR amended Second Schedule of the Income Tax Ordinance, 2001. It is pertinent to mention that tax is levied on imported goods under Section 148 of the Ordinance.

    According to the amendment: “(123) The provision of Section 148 shall for a period of ninety days not apply to goods required and imported for relief operation for flood affectees, duly certified by the National Disaster Management Authority (NDMA) or the Provincial Disaster Management Authority (PDMA).”

    The FBR issued another SRO 1635(I)/2022 dated August 30, 2022 to allow exemption from sales tax on goods imported for flood relief operation.

    Sales tax exemption has been granted with effect from August 24, 2022 subject to the conditions and restrictions.

    According to the FBR, import of all goods received, in the event of a natural disaster or other catastrophe, as gift and relief consignments or any goods received as gift or donation from a foreign government or organization by the federal or provincial governments or any public sector organization.

    However, this exemption is subject to the same conditions as are envisaged for the purpose of apply zero-rate of customs duty under the Customs Act, 1969.

    Through SRO 1636(I)/2022 dated August 30, 2022, which stated that the federal government has exempted for a period of ninety days the import and supply of the goods as certified by the NDMA or PDMA for relief operation for flood affectees, from the whole of the sales tax.

    Similarly, SRO 1637(I)/2022 dated August 30, 2022 has been issued to exempt federal excise duty leviable on the goods as ceritifed by NDMA or PDMA for relief operation for flood affectees.