Islamabad, January 21, 2024 – The Federal Board of Revenue (FBR) issued a clarification in response to recent news reports, asserting that the tax collection on services provided by foreign exchange companies falls under the jurisdiction of provinces.
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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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FBR issues updated rates of duty, taxes on mobile phones
ISLAMABAD: The Federal Board of Revenue (FBR) has issued the updated applicable rates of duty and taxes for clearance of mobile phones.
The FBR said that following rate of duty and taxes for the clearance of mobile phones shall be applicable during (2021-2022) (with passport applied within 60 days of arrival in Pakistan):
READ MORE: FBR collects mobile phone tax, PTA clarifies
Mobile Phones having cost and freight (C&F) value up to $30, the rate of duty and tax has been fixed at Rs430.
Mobile Phones having C&F value above $30 and up to $100, the rate of duty and tax has been fixed at Rs3,200.
Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs9,580.
Mobile Phones having C&F value above $200 and up to $350, the rate of duty and taxes shall be Rs12,200 + 17 per cent Sales Tax Ad Valorem.
READ MORE: FBR increases income tax to 15% on cellular services
Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs17,800 + 17 per cent Sales Tax Ad Valorem.
Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs27,600 + 17 per cent Sales Tax Ad Valorem.
Rate of duty and taxes on mobile phones 2021/2022 (Applied with CNIC):
Mobile Phones having C&F value up to $30, the rate of duty and tax has been fixed at Rs550.
READ MORE: FBR issues new FED rates on motor vehicles
Mobile Phones having C&F value above $30 and up to $100, the rate of duty and taxes has been fixed at Rs4,323.
Mobile Phones having C&F value above $100 and up to $200, the rate of duty and tax has been fixed at Rs11,561.
Mobile Phones having C&F value above $200 and up to $350, the rate of duty and tax shall be Rs14,661 + 17 per cent Sales Tax Ad Valorem.
Mobile Phones having C&F value above $350 and up to $500, the rate of duty and tax shall be Rs23,420 + 17 per cent Sales Tax Ad Valorem.
READ MORE: Banks to share business account details to FBR
Mobile Phones having C&F value above $500, the rate of duty and tax shall be Rs37,007 + 17 per cent Sales Tax Ad Valorem.
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FBR eyes Rs6 trillion collection in current fiscal year
ISLAMABAD: Dr. Ashfaq Ahmed, Chairman, Federal Board of Revenue (FBR) on Wednesday hoped that the revenue collection for the current fiscal year will increase to Rs6 trillion – surpassing the target of Rs5.83 trillion.
“Our revenue target is Rs 5.830 trillion which is expected to increase till Rs6 trillion by June 2022. We have collected Rs 300 billion more revenue than our target till December 31,” Dr. Ashfaq said.
READ MORE: DG Customs Valuation powers strengthened
He expressed his hope that this year, the FBR would achieve all its revenue targets and would further play its role in the country’s economy.
The FBR chief hinted for achieving revenue target of Rs 8 trillion by 2023 as it would set the country’s economy in a new direction.
He said that Prime Minister Imran Khan has his own vision for revenue collection and economic development in the country, in which, achieving revenue target of up to Rs 8 trillion is one of top priorities.
READ MORE: Tax imposed to protect domestic entertainment industry
Chairman expressed these views while talking to the journalists here.
Replying to a question, he said that Pakistan Customs was the protector of economic borders of the country and that they have always been playing its role for trade promotion.
He said that Pakistan Customs was playing its best role in enforcing trade laws at Chaman and Torkham borders.
He said that transparent trade brought prosperity and development in the country.
READ MORE: FBR slaps sales tax at 17% on supply of food stuff
He vowed that, “we would digitalize every FBR’s agency”.
He said that FBR currently has the largest data portal which is in a dire need of digitization.
This data can be very important in the trade and economic development of the country.
He said that at present, the role of FBR was very important in all three trade corridors including Chaman and Torkham, which would be strengthened with China Pakistan Economic Corridor (CPEC).
READ MORE; FBR enhances tax rates on motor vehicle registration
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DG Customs Valuation powers strengthened
ISLAMABAD: The powers of Director General Customs Valuation have been strengthened through amendments made through Finance (Supplementary) Act, 2022.
The powers of Customs Collector to determine customs valuation have been withdrawn through Finance (Supplementary) Act, 2022.
Sources in Federal Board of Revenue (FBR) on Tuesday said that through the Finance (Supplementary) Act, 2022 amendment had been made in Section 25A of the Customs Act, 1969.
READ MORE: Tax imposed to protect domestic entertainment industry
Prior to the amendment the power to determine the customs value was with the collector of customs and the director of customs valuation.
The collector of customs was given power to determine the valuation through Finance Act, 2021. However, after only six months the legislators had abolished the power of customs collector.
Following the latest amendment the power to determine the customs valuation is now with the Director General of Valuation.
READ MORE: FBR slaps sales tax at 17% on supply of food stuff
Another important amendment has been made to Section 25D of the Customs Act, 1969 through Finance (Supplementary) Act, 2022. Prior to the amendment, the Section 25D allowed an aggrieved person to file an appeal before the Member Customs (Policy) against the value determine by the Director General Valuation.
READ MORE; FBR enhances tax rates on motor vehicle registration
Through the Finance (Supplementary) Act, 2022, the proviso in the Section 25D has been omitted so that appeal against the decision of Director General Valuation should not be filed before the Member Customs (Policy) and should be taken up at an appropriate judicial forum to redress the grievances.
The supplementary act further provided that an order passed in revision by the Director General Customs Valuation under section 25D, provided that such appeal shall be heard by a special bench consisting of one technical member and one judicial member.
READ MORE: FBR increases income tax to 15% on cellular services
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FBR collects mobile phone tax, PTA clarifies
In response to the recent surge in taxes and duties on the registration of cellular mobile devices and handsets, the Pakistan Telecommunication Authority (PTA) issued a clarification on Monday, emphasizing that the applicable duty and taxes are solely collected by the Federal Board of Revenue (FBR).
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FBR further extends date for filing sales tax return
ISLAMABAD: Federal Board of Revenue (FBR) on Monday further extended the last date for filing sales tax and federal excise return for the month of December 2021 up to January 28, 2022.
The FBR issued an office order to further extend the date of payment and filing of sales tax and federal excise return for the tax period of December 2021. Previously, the FBR issued an office order on January 17, 2022 to extend the date.
The taxpayers are required to file their sales tax returns for the month of December 2021 through the Single Sales Tax Portal.
READ MORE: FBR launches sales tax return filing through single portal
The FBR on December 27, 2021 issued a notification under which it directed the taxpayers to file their sales tax returns for month of December 2021 through Single Sales Tax Portal.
The payment of sales tax and federal excise duty, which was due on January 15, 2022 had been extended up to January 21, 2022. The FBR further extended the date for payment up to January 25, 2022.
READ MORE: Power of the Board and Commissioner to call for records
Similarly, the last date for filing sales tax and federal excise return for the month of December 2021 was due on January 18, 2022, which was extended up to January 24, 2022. The FBR further extended the date for filing the return for the month of December 2022 up to January 28, 2022.
The single portal for sales tax returns has been launched to facilitate taxpayers, promote ease of doing business and reduce compliance cost.
The FBR said that through this portal, sales tax registered persons shall be able to file a single sales tax return instead of having to file separate returns to the FBR and each of the different provincial sales tax authorities.
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Tax imposed to protect domestic entertainment industry
The Federal Board of Revenue (FBR) has introduced taxes on foreign-produced TV dramas and advertisements as part of its efforts to safeguard and promote the domestic media industry.
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FBR slaps sales tax at 17% on supply of food stuff
The Federal Board of Revenue (FBR) has instituted a significant change in the tax structure for the supply of food items by restaurants, bakeries, caterers, and sweetmeat shops, imposing a 17% sales tax.
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Committee formed to hunt tax evaders in supply chain
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday constituted a committee to hunt for tax evaders in supply chain i.e. manufacturers, importers, distributors, retailers etc.
According to a FBR notification, the committee shall identify wholesalers, distributors, small, medium and large manufacturers/importers who potentially have taxable income but neither, they have been brought into the tax base of Pakistan nor being part of the tax base but are evading and suppressing taxes and invoices.
READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin
It will define the potential target market and quantify the size of the target market.
The committee shall develop a business plan comprising of budget pertaining to project plan, human, IT and infrastructure resources required to bring the potential target market into the tax base, in order to generate incremental tax revenue.
It will obtain legal and regulatory protection, facilitation and support of stakeholders in order to achieve the objective in collaboration and support of the FBR.
READ MORE: FBR enhances tax rates on motor vehicle registration
The committee shall have mandate to define policy and rules for a licensing framework for appointment of intermediaries who will coordinate and facilitate the integration of supply chain to capture and report all sales transactions.
It will coordinate with various associations and trade bodies to facilitate the integration of supply chains.
The committee shall have powers of controlling, monitoring and implementation of supply chain capture integration program in coordination with the IRS Operations.
READ MORE: FBR increases income tax to 15% on cellular services
It will develop a correlation between invoice and digital/electronic payments for the purpose of audit, in coordination with necessary stakeholders including but not limited to State Bank of Pakistan (SBP).
The committee shall have mandate to leverage software to capture the entire supply chain from manufacturer, distributor, wholesaler, retailer and customers to capture transactions, withholding tax information and use the developed database to capture potential taxpayers.
READ MORE: FBR issues new FED rates on motor vehicles
It further have mandate to leverage data analytics to capture sales tax demand on the input/output at each stage of supply chain from manufacturer to end consumer, thereby bringing unregistered distributors, sub-distributors and retailers into the tax net.
The committee will develop organizational structure required to deliver on the above Terms of Reference (TORs) based on size of potential target market, physical dispersion of potential target market, and committed time lines for achieving TORs.
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FBR enhances tax rates on motor vehicle registration
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday notified the enhanced rates of advance tax on those vehicles, which sold prior to first registration.
The tax rates have been enhanced through Finance (Supplementary) Act, 2022 through making amendment in Section 231(B)(2A) of Income Tax Ordinance, 2001.
The FBR said that advance tax on vehicle registration under Section 231(B)(2A) of the Ordinance has been increased for the persons who register such motor vehicles which have been sold prior to their first registration.
READ MORE: FBR increases income tax to 15% on cellular services
The FBR issued Circular No. 12 of 2012 to explain amendments in the Income Tax Ordinance, 2001 made through Finance (Supplementary) Act, 2022.
The purpose is to discourage huge ‘on money’ on such vehicles which are booked by investors as a result of which the vehicles remain unavailable to the genuine buyers.
READ MORE: FBR issues new FED rates on motor vehicles
New rates under Division VII of Part IV of First Schedule to the Ordinance shall be as following:
01. Motor vehicle with engine capacity up to 1000CC, the advance tax has been increased to Rs100,000 from Rs50,000.
02. Motor vehicle with engine capacity between 1001cc to 2000cc, the advance tax has been increased to Rs200,000 from Rs100,000.
03. Motor vehicle with engine capacity 2001cc and above, the advance tax has been increased to Rs400,000 from Rs200,000.