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ISLAMABAD: The voluntary payment along with annual income tax return has dropped to Rs54.09 billion during the fiscal year 2020/2021, according to official data made available to PkRevenue.com
The tax payment with return was Rs56.5 billion during the fiscal year 2019/2020, according to data compiled by the Federal Board of Revenue (FBR).
The primary reason for the decline in voluntary payment in the fiscal year 2020/2021 was a bulk amount was paid along with the returns under the head of the amnesty scheme during the fiscal year 2019/2020.
An amount of Rs19.8 billion under the amnesty scheme was paid with the returns during the fiscal year 2019/2020.
On the other hand, the collection of tax under Section 137 of the Income Tax Ordinance, 2001 surged to Rs52.62 billion during the fiscal year 2020/2021 as compared with Rs36.23 billion in the preceding fiscal year.
Furthermore, the collection under Section 113A of the Income Tax Ordinance, 2001, from small retailers also recorded significant growth to Rs1.43 billion during the fiscal year 2020/2021 when compared with Rs418 million in the preceding fiscal year.
66. Refund to be claimed within one year.– No refund of tax claimed to have been paid or over paid through inadvertence, error or misconstruction or refund on account of input adjustment not claimed within the relevant tax period, shall be allowed, unless the claim is made within one year of the date of payment:
Provided that in a case where a registered person did not deduct input tax within the relevant tax period, the Commissioner may, after satisfying himself that input tax adjustment is due and admissible, allow the registered person to take such adjustment in the tax period as specified by the Commissioner:
Provided further that in a case where the refund has become due on account of any decision or judgement of any officer of Inland Revenue or court or the Tribunal, the period of one year shall be reckoned from the date of judgement or decision of such officer, court or Tribunal:
Provided further that the application or claim filed under this section shall be disposed of within a period not exceeding ninety days from the date of filing of such application or claim.
Provided also that no refund shall be admissible under this section if incidence of tax has been passed directly or indirectly to the consumer.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
65. Exemption of tax not levied or short levied as a result of general practice.– Notwithstanding anything contained in this Act, if in respect of any supply the Federal Government is satisfied that inadvertently and as a general practice: –
(a) tax has not been charged in any area on any supply which was otherwise taxable, or according to the said practice the amount charged was less than the amount that should have actually been charged;
(b) the registered person did not recover any tax prior to the date it was discovered that the supply was liable to tax; and (c) the registered person started paying the tax from the date when it was found that the supply was chargeable to tax;
It may, by a notification in the official Gazette, direct that the tax not levied or short levied as a result of that inadvertent practice, shall not be required to be paid for the period prior to the discovery of such inadvertent practice.
(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
In a move that could have significant implications for exporters, the Federal Board of Revenue (FBR) is contemplating the prohibition of drawback against goods exported to specified foreign territories.
ISLAMABAD: The federal government has proposed enhancement in federal excise duty (FED) on imported and locally assembled vehicles through mini-budget.
The government on December 30, 2021 presented Finance (Supplementary) Bill, 2021 to take tax measures to generate additional revenue for improve fiscal situation of the country. One of the major revenue measure is increasing the FED on imported and locally manufactured motor vehicles.
Sources said that the Federal Board of Revenue (FBR) had estimated to generate additional Rs6.5 billion through the changes.
According to the changes proposed, the FED on imported completely built unit (CBU) up to 1,000 CC the rate shall be unchanged at 2.5 per cent ad valorem.
The FED on locally manufactured motor vehicles has been kept unchanged at zero per cent for engine capacity up to 1000CC.
However, motor vehicles with engine capacity between 1000CC to 2000CC and exceeding 2000CC, the FED has been enhanced to 5 per cent from 2.5 per cent and enhanced to 10 per cent from 5 per cent, respectively.
The Federal Board of Revenue (FBR) said that the FED has been announced to increase to 30 per cent from existing rate of 25 per cent on import of double cabin (4X4) pick-up vehicles.
Similarly, the FED on locally manufactured double cabin (4X4) has been increased to 10 per cent from existing rate of 7.5 per cent.
ISLAMABAD: Pakistan and Afghanistan have concluded the second round of talks on double taxation agreement (DTA).
According to a statement issued on Saturday said that Afghanistan Revenue Department (ARD) and Federal Board of Revenue (FBR) concluded second round of negotiations on Double Taxation Agreement (DTA) between Pakistan and Afghanistan.
The four-member delegation of Afghanistan Revenue Department (ARD) were on visit to Pakistan, which commenced from December 27, 2021.
The inaugural session was presided over by Qaiser Iqbal, Director General (International Taxes), FBR who welcomed the delegates and hoped that the proposed DTA between the two brotherly countries would go a long way in fostering economic relationships and would also contribute to the development of both the countries.
The negotiations were conducted in the most cordial and friendly atmosphere. Both the delegations discussed all the outstanding issues of the first round of negotiations held in Islamabad from 28th to 30th March, 2016. Both the sides presented and appreciated each other’s respective positions.
However, it was agreed that the un-resolved issues would be discussed and finalized in the third round of negotiations to be held in Kabul, Afghanistan on mutually agreed dates.
The Afghan delegation was led by Esmatullah Salimi, Revenue Audit Director, ARD and included Abdul Wali Noori, Technical Deputy Director-General, ARD, Nida Mohammad Seddiqi, Legal Services Director, ARD and Najeebullah Ahmadzai, Advisor to MoF, while the Pakistan delegation was headed by Qaiser Iqbal, Director General (International Taxes), FBR and included Barrister Nowsherwan Khan, Chief (International Taxes) and Ms. Hira Nazir, Secretary (Tax Treaties & Conventions), FBR.
The Federal Board of Revenue (FBR) has achieved a significant milestone by provisionally collecting Rs2.92 trillion during the first half (July – December) of the fiscal year 2021/2022 (FY22), surpassing the half-year target of Rs2.63 trillion by an impressive Rs287 billion.
ISLAMABAD: The Federal Board of Revenue (FBR) may generate additional Rs4.5 billion as advance income tax from cellular services as tax rate has been increased through mini-budget.
The government has increased the withholding tax rates on cellular services to 15 per cent from existing 10 per cent in the mini-budget announced on December 30, 2021.
The increase in advance tax rates on cellular services to generate Rs4.5 billion.
The changes in the withholding tax regime on usage of internet and mobile phones services have been brought through the Finance (Supplementary) Bill, 2021.
The FBR said that through the Finance Act, 2021federal excise duty (FED) was levied on telecom services. However, telecom companies challenged the duty and got a favourable decision.
“A marginal increase in adjustable advance tax has been proposed from 10 per cent to 15 per cent to make up for revenue loss from telecos,” the FBR added.
The rate of tax has been proposed to increase to 15 per cent from existing 10 per cent for tax year 2022 and eight per cent onwards of the amount of the bill or sales price of internet prepaid card or prepaid telephone card or sale of units through any electronic medium or whatever form from subscriber of internet, mobile telephone and pre-paid internet or telephone card.
The FBR collects the advance tax on telephone and internet users under Section 236 of Income Tax Ordinance, 2001.
According to the ordinance:
“Telephone and internet users.- (1) Advance tax at the rates specified in Division V Part IV of the First Schedule shall be collected on the amount of – (a) telephone bill of a subscriber; (b) prepaid cards for telephones; (c) sale of units through any electronic medium or whatever form ; and (d) internet bill of a subscriber; and (e) prepaid cards for internet.
(2) The person preparing the telephone or internet bill shall charge advance tax under sub-section (1) in the manner telephone or internet charges are charged.
(3) The person issuing or selling prepaid cards for telephones or the internet shall collect advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards.
(3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.
(4) Advance tax under this section shall not be collected from the Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.”
ISLAMABAD: The government on Thursday presented a mini-budget and introduced income tax rates for foreign produced TV dramas.
The changes have been proposed through the Finance (Supplementary) Bill, 2021 presented before the parliament. Sources in the Federal Board of Revenue (FBR) said that the imposition of tax on foreign TV dramas would general sizeable revenue.
In order to apply the tax rates, a new Section 236CA to Income Tax Ordinance, 2001 has been proposed through Finance (Supplementary) Bill, 2021.
Following is the text of the proposed section:
“236CA. Advance tax on TV plays and advertisements. – (1) Any licensing authority certifying any foreign TV drama serial or a play dubbed in Urdu or any other language, for screening and viewing on any landing rights channel, shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.
(2) Any licensing authority certifying any commercial for advertisement starring foreign actor, for screening and viewing on any landing rights channel shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.
(3) The tax required to be collected under this section shall be minimum tax in respect of income arising from such drama serial or play or advertisement referred to in sub-section (1) or (2) of this section.”
In a bid to curb the practice of on-money transactions on motor vehicles and boost advance tax revenues, the government has introduced significant changes in the Finance (Supplementary) Bill, 2021, commonly referred to as the mini-budget.
