The Federal Board of Revenue (FBR) is contemplating the withdrawal of the condition mandating the provision of Computerized National Identity Card (CNIC) details for transactions conducted through digital means, as proposed in the Finance (Supplementary) Bill, 2021.
(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.
-
FBR may decide implementing digital payment system
The Federal Board of Revenue (FBR) may be authorized to decide the implementation of payment through digital means.
(more…) -
FBR fixes CNG value for charging sales tax
In a move to streamline and regulate the collection of sales tax on compressed natural gas (CNG), the Federal Board of Revenue (FBR) has issued a new notification, SRO 39(I)/2022 dated January 08, 2022, to establish fixed values for CNG.
(more…) -
Section 72A of Sales Tax Act
ISLAMABAD – In a significant move to streamline the references to authorities within the Sales Tax Act, 1990, Section 72A has been introduced through the Finance Act, 2021.
(more…) -
Obeying FBR’s orders made mandatory
In a bid to ensure effective implementation and enforcement of tax-related regulations, Section 72 of the Sales Tax Act, 1990, mandates that officers of Inland Revenue and other individuals engaged in the execution of the Act must adhere to the orders, instructions, and directions issued by the Federal Board of Revenue (FBR).
(more…) -
Tarin warns tax evaders of strict actions
ISLAMABAD: Finance Minister Shaukat Tarin on Friday warned tax evaders and potential taxpayers to pay their liabilities before harsh actions initiated against them.
At the launching of National Sales Tax Return, by Federal Board of Revenue (FBR), he asked the unregistered potential taxpayers to initiate paying taxes before the government reaches them within a couple of months with documentary evidence of their assets.
“I assure the nation that change is taking place, we are making use of technology and will reach all potential taxpayers.
Tarin said that with the help of technology, the government would reach to all those persons who have taxable assets but were not paying taxes adding that there was now no need to issues notices as the government was already possessing date of millions of taxpayers.
He said, the authorities would reach the tax-avoiders and provide them the tax returns with an opportunity to prove it wrong by consulting panel of auditors or pay the due taxes.
“We will not harass, we will tell them what they possess. If they don’t pay, then the law would take its own course,” he added.
Meanwhile, the minister congratulated federal and provincial revenue divisions for coming on a single platform and making payment of revenues easy for taxpayers.
He said, since sales tax on goods was federal domain and sales tax on services was coming under provinces, hence it was creating hardships for taxpayers.
Now, under the single platform, the taxpayers would be facilitated, adding that in previous system, if a company was operating in all the provinces, it had to deal with around seven agencies for filing returns, with chances of errors. However, now they would be required to file single tax under the new system.
He said that the government was also working on further harmonization of system to facilitate taxpayers and expressed the hope that ease in tax deposit system would help enhance revenues.
The minister said that three was no other way, if the country had to progress and prosper, there is need to enhance revenue collection. He cited example of Germany where he said there was no representation without taxation.
He lamented that there were only 3 million taxpayers out of 220 million population in the country.
He said, out of around Rs18 trillion retail sales, only Rs3 to Rs4 trillion were captured and Rs14 million sales are still missing from the tax system.
-
Senior FBR auditor awarded ‘dismissal from service’ for corruption
ISLAMABAD: A senior auditor of Federal Board of Revenue (FBR) has been awarded major penalty of ‘dismissal from service’ on allegations of corruption, misconduct and inefficiency.
The FBR on Friday through a notification said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Gulraiz Ahmad Raza, Senior Auditor (BS-16), while he was posted in Regional Tax Office-III, Karachi (Now RTO-II, Karachi) through charge sheet issued on January 05, 2016.
READ MORE: Customs official awarded ‘dismissal from service’ for misconduct
Abdul Rehman Khilji, then Additional Commissioner, CTO Karachi was appointed as Inquiry Officer to conduct inquiry on account of acts of omission and commission committed by the accused officer; constituting Inefficiency, Misconduct and Corruption.
The inquiry report proved the charges levelled against the officer.
On the basis of the inquiry report, show cause notice No. 2(856)/2010-MIR-III/104869-R dated 19.07.2021 was issued to the accused officer by the Authorized Officer i.e. Chief (HRM-IR) with the directions to submit reply by 09.08.2021. Later on, upon the request of the accused officer date of submission of reply was extended up to 10.10.2021.
READ MORE: FBR auditor awarded dismissal from service for availing NAB plea bargain
In his reply to the show cause notice vide letter dated 07.09.2021, the accused officer neither commented upon the merits of the case nor submitted any reply to the charges but only requested for provision of previous inquiry report which was regretted vide letter 2(856)/2010-MIR-III/155893-R dated 27.09.2021.
He was also granted an opportunity of personal hearing vide No. 2(856)/2010-MIR-III/155893-R dated 27.09.2021 on 18.10.2021. Nevertheless, the accused did not avail the opportunity of personal hearing and did not show up on the due date of hearing.
It is pertinent to mention that clarification was sought from Establishment Division as to whether who would be Authorized Officer for the inquiries initiated before 08.06.2017.
READ MORE: Single sales tax return to eliminate fake, flying invoices
Establishment Division being custodian of the Civil Servants Act & Rules made thereunder vide Sr.13(10) of schedule II of the Rules of Business 1973 advised vide their O.M. No. 16/18/2000-R-II dated 03.06.2021 that pending cases initiated under Board’s Notification dated 20.04.2010 would continue to be processed by the same Authorized Officer and Authority.
In light of the above and on the basis of the report of the Inquiry Officer, the Authorized Officer, as notified vide Board’s Notification No. 1014-M.III/2010 dated 20.04.2010, under rule 5(1)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973, recommended to the Authority i.e. Member (Admn/HR) for imposition of one of the major penalties, as defined in Rule 4(1)(b)(ii),(iii) & (iv) of the rules ibid upon the accused officer.
READ MORE: Annual sales tax collection from imports climbs up 27%
Now, therefore, the Authority, after considering the facts of the case, has imposed the major penalty of “Dismissal from Service” under Rule 4(1)(b)(iv) of the Government Servants (Efficiency & Discipline) Rules, 1973 upon Gulraiz Ahmad Raza, Senior Auditor (BS-16), FBR (Hq), Islamabad.
Gulraiz Ahmad Raza shall have the right of appeal, as admissible under the Civil Servants (Appeals) Rules, 1977.
-
Single sales tax return to eliminate fake, flying invoices
The launch of single sales tax return will help the authorities to prevent tax evasion and end the phenomenon of fake and flying invoices.
The Federal Board of Revenue (FBR) said that the single sales tax return will facilitate the taxpayers. Besides it will promote ease of doing business and reduce compliance cost as well.
READ MORE: FBR launches sales tax return filing through single portal
The FBR said that National Sales Tax Return is by all means a watershed initiative towards automation, data integration and harmonization of taxes.
It is pertinent to mention that the National Sales Tax Return was developed after rigorous discussions with the provincial governments and their revenue authorities. The feedback from other stakeholders, including taxpayers and tax practitioners, was incorporated. This digital facility will simplify tax filing procedures and thereby save compliance costs. This has been one of the key recommendations of international agencies such as World Bank and IMF.
READ MORE: Power of the Board and Commissioner to call for records
The National Sales Tax Return will minimize data entry, which will address the common issues of data and calculation errors. The system will automatically apportion input tax adjustment as well as tax payments across the sales tax authorities, eliminating the need for reconciliations and payment transfers. Through this system, officers of all the revenue authorities will be able to make better informed decision regarding matters of the taxpayers. It will enable tax collectors to improve revenue potential and tax compliance without audits. Another benefit of this system is that it will encourage harmonization of tax procedures, definitions and principles between the federal government and the provinces, which will promote national unity and ensure cohesion.
In Pakistan, sales tax on goods is collected by the FBR while sales tax on services is collected by each of the four provinces in their respective territory. Sales tax on services in the Federal Capital Territory in Islamabad is also collected by FBR, while Azad Jammu and Kashmir and Gilgit-Baltistan have their own tax authorities.
READ MORE: Inland Revenue officers promoted to BS-20
For this reason, taxpayers were required to file separate sales tax returns every month to each of the different collecting authorities where they conducted business, which was causing them hardship and increased compliance costs. For example, a telecommunication service provider operating throughout Pakistan had to file returns every month to FBR, Sindh Revenue Board, Punjab Revenue Authority, Khyber Pakhtunkhwa Revenue Authority, Baluchistan Revenue Authority, AJK Council Board of Revenue and Gilgit-Baltistan Revenue Authority. This was a very tedious and cumbersome task, which often led to errors and disputes.
Keeping the above in view, this milestone initiative is going to contribute significantly to not only maximizing revenue potential but also to eliminating the culture of fake/flying invoicing, suppression of sales and thereby ensure tax compliance across Pakistan.
READ MORE: Penalty for repeated miscalculation in sales tax return
-
Annual sales tax collection from imports climbs up 27%
The Federal Board of Revenue (FBR) has reported a remarkable surge in the annual collection of sales tax on imports, marking a growth of over 27% during the fiscal year 2020/2021.
(more…) -
FBR identifies 1,284 retailers for POS integration
ISLAMABAD: The Federal Board of Revenue (FBR) has identified 1,284 retailers for force them to integrate Point of Sale (POS) with the tax system.
(more…)