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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.

  • Validation of notifications and orders

    Validation of notifications and orders

    Section 74A of Sales Tax Act, 1990 has explained validation of all notifications and orders issued.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 74A of the Sales Tax Act, 1990:

    74A. Validation.– (1) All notifications and orders issued and notified in exercise of the powers conferred upon the Federal Government, before the commencement of Finance Act, 2018 shall be deemed to have been validly issued and notified in exercise of those powers.

    (2) Notwithstanding any omission, irregularity or deficiency in the establishment of or conferment of powers and functions on the Directorate General (Intelligence and Investigation), Inland Revenue and authorities specified in section 30A, all orders passed, notices issued and actions taken, before commencement of the Finance Act, 2018, in exercise or purported exercise of the powers and functions of the officers of Inland Revenue under this Act by the Director General (Intelligence and Investigation), Inland Revenue or the authorities specified in section 30A shall be deemed to have been validly passed, issued and taken under this Act.

    (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.)

    Condonation of time-limit under Sales Tax Act
  • Condonation of time-limit under Sales Tax Act

    Condonation of time-limit under Sales Tax Act

    Section 74 of Sales Tax Act, 1990 has described condonation of time limit.

    The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.

    Following is the text of section 74 of the Sales Tax Act, 1990:

    74. Condonation of time-limit.– Where any time or period has been specified under any of the provisions of the Act or rules made there under within which any application is to be made or any act or thing is to be done, the Board may, in any case or class of cases, permit such application to be made or such act or thing to be done within such time or period as it may consider appropriate:

    Provided that the Board may, by notification in the official Gazette, and subject to such limitations or conditions as may be specified therein, empower any Commissioner to exercise the powers under this section in any case or class of cases.

    Explanation.– For the purpose of this section, the expression “any act or thing is to be done” includes any act or thing to be done by the registered person or by the authorities specified in section 30 of this Act.

    (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.)

    Cash transactions above Rs50,000 not admissible
  • FBR promotes customs officers to principal appraisers

    FBR promotes customs officers to principal appraisers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday May 17, 2022 promoted appraising and valuation officers (BS-16) of Pakistan Customs to the post of principal appraisers with immediate effect.

    Following are the names of promoted officers and their place of posting on promotion;

    01. Amir Shuja, Directorate of Post Clearance Audit (South), Karachi.

    READ MORE: Customs foils bid to smuggle Qatari Riyals

    02. Muhammad Moosa Solangi, Collectorate of Customs Exports, Port Muhammad Bin Qasim (PMBQ), Karachi.

    03. Khaliq-ur-Rehman, Collectorate of Customs Appraisement (PMBQ), Karachi.

    04. Muhammad Abbas Lakhwera, Collectorate of Customs, Jinnah International Airport, Karachi.

    05. Anwer Zaib, Collectorate of Customs, PMBQ, Karachi.

    READ MORE: FBR tightens monitoring to prevent currency smuggling

    06. Muhammad Asghar, Collectorate of Customs (Export), PMBQ, Karachi.

    07. Shafaqat Rasool, Collectorate of Customs Appraisement, Faisalabad.

    08. Maqsood Ahmed, Collectorate of Customs Appraisement (PMBQ), Karachi.

    09. Shair Khan, Directorate General of Transit Trade, Karachi.

    10. Abdul Samad Surahio, Collectorate of Customs (Export), PMBQ, Karachi.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    11. Amir Hussain, Collectorate of Customs Appraisement (PMBQ), Karachi.

    12. Nadeem ur Rehman, Collectorate of Customs Appraisement (PMBQ) Karachi.

    13. Junaid Ahmed, Directorate General of Transit Trade, Karachi.

    14. Iftikhar Ahmad Bhutter, Collectorate of Customs (Allama Iqbal International Airport), Lahore.

    15. Zaki ur Rab Khan, Collectorate of Customs Appraisement (East), Karachi.

    16. Shakir Ali, Collectorate of Customs Appraisement (East) Karachi.

    17. Amjad Ali, Collectorate of Customs Appraisement (West) Karachi.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    18. Miskeen Shah, Directorate of Post Clearance Audit (South) Karachi.

    19. Syed Abbas Raza, Collectorate of Customs Appraisement (PMBQ) Karachi.

    20. Muhammad Ishaq, Collectorate of Customs Appraisement, Faisalabad.

    21. Muhammad Hanif Abid, Collectorate of Customs (Enforcement), Multan.

    22. Imran Ali, Collectorate of Customs Appraisement, Faisalabad.

    23. Ms. Sadia Abdullah, Directorate of Input-Output Coefficient Organization (IOCO) Central, Lahore.

    The FBR said that the officers will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deemed to be held until further order.

    The officers already drawing performance allowance equal to 100 per cent of basic pay will continue to draw it on their promotion, the FBR added.

    They are allowed to actualize their promotion at their present place of posting against the available vacancies in BS-16.

  • Nasira Anjum gets bumper prize of FBR’s 5th POS invoice draw

    Nasira Anjum gets bumper prize of FBR’s 5th POS invoice draw

    ISLAMABAD: Nasira Anjum, a customer of Imtiaz Provision Store, has been awarded with the bumper prize of Rs 1 million in fifth computerized draw conducted by the Federal Board of Revenue (FBR) on Monday.

    The computerized balloting was conducted on the basis of invoices issued by Point of Sales (POS) of Tier-1 Retailers.

    READ MORE: FBR announces prize winners of 4th POS invoice draw

    The second prize of Rs500,000 each won by Shahida Latif on the invoice issued by Shaheen Chemist and Muhammad Rashid Shujja on the invoice issued by Jalal Sons.

    Meanwhile, four prizes of Rs250,000 each awarded to Salman Ahmad Siddiqui, Fahim Badar, Nauman Alfred and Naila Nadeem on the invoices issued by Mine Save Mart, Imtiaz Provision Store, Imtiaz Provision Store and Dwatson Chemist, respectively.

    It was the fifth computerized draw of the ongoing efforts of the Federal Board of Revenue (FBR) to attract people for documenting the sales made through Tier-1 retailers.

    READ MORE: FBR announces winners of third POS invoice draw

    The FBR conducts draw every 15th of the month. This month the 15th was on Sunday so it was held a day after. The first draw was held on January 15, 2022.

    The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.

    The FBR previously issued a procedure for participating in the prize scheme.

    The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.

    READ MORE: FBR announces prize winners in second POS invoice balloting

    The customers are required to verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.

    The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.

    In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.

    Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.

    READ MORE: FBR announces winners of first POS prize draw

    In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.

    The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.

    Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.

    The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.

  • Withholding tax on raw material import should be adjustable

    Withholding tax on raw material import should be adjustable

    KARACHI: The Federal Board of Revenue (FBR) has been suggested to allow adjustment of withholding income tax collected at import of raw material against the actual liability.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2022/2023 submitted to the FBR highlighted that by amendment to Section 148 of Income Tax Ordinance, 2001, through Finance Bill 2018-2019, withholding tax paid on import of raw materials by commercial importers has been converted to minimum tax and the importers have been taken out of Fixed Tax Regime (FTR).

    READ MORE: KCCI suggests VAT removal for commercial importers

    The chamber said that the collection of withholding tax at source is tantamount to putting the burden of tax-collection from undocumented entities on the compliant tax payers and compounds the burden by treating it as minimum tax.

    Concept of treating withholding tax as minimum tax is unique and unfair as it leaves the scope for further squeeze on documented and compliant tax-payers. “Any Tax paid as withholding tax should be adjustable in order to promote the culture of direct taxation and reduce dependence on tax at source,” the KCCI said and added that the rates of withholding tax are already very high and akin to turnover tax.

    READ MORE: FPCCI demands CNIC condition withdrawal

    Giving proposals to the issue, the KCCI said the withholding income tax at import stage on raw materials should be adjustable against actual liability.

    The concept of minimum withholding tax on import of raw materials may be phased out.

    Further, distinction should be made between importers of finished goods and raw materials who mainly cater to the industry and are fully documented.

    Giving rationale to the proposals, the KCCI said commercial importers who are a major source of revenue will be able to resume their business and contribute to revenue as well as promotion of SMEs.

    READ MORE: FBR urged to wave further tax on providing CNIC number

    The KCCI further highlighted that the Finance Bill 2021-2022, imported plant and machinery not manufactured locally, has been omitted from 8th Schedule of Sales Tax Act, 1990, resulting in Increase in the rate of sales tax from 10 per cent to 17 per cent.

    The chamber said this measure will discourage new investment in industry and upgradation of existing industries and BMR. Industrial machinery falls in the category of capital goods for the purpose of production. It should not be treated under the same criteria as consumer product or raw material, subject to 17 per cent sales tax.

    READ MORE: Tax exemption sought for plant, machinery import

    The KCCI proposed to restore plant and machinery not manufactured locally in 8th Schedule of Sales Tax Act, 1990, and exempt from 17 per cent sales tax, to encourage expansion and generate employment.

    It will help to promote industrialization, GDP growth and employment.

  • FBR transfers IRS officers of BS-17 to BS-20

    FBR transfers IRS officers of BS-17 to BS-20

    ISLAMABAD: The Federal Board of Revenue (FBR) has transferred officers of Inland Revenue Service (IRS) of BS-17 to BS-20 with immediate effect under further orders.

    The FBR in a notification issued on May 14, 2022 transferred the following IRS officers:

    01. Sajjad Akbar Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Zone-I) Regional Tax Office, Sargodha from the post of Commissioner, (Audit-II) Large Taxpayers Office, Karachi.

    READ MORE: FBR tightens monitoring to prevent currency smuggling

    02. Sajjad Taslim Azam (Inland Revenue Service/BS-20), who is presently posted as Commissioner, (Audit-I) Large Taxpayers Office, Lahore, has been assigned the additional charge of the post of Commissioner-IR (Legal), Large Taxpayers Office, Lahore, as per Rules.

    03. Nadeem Bashir (Inland Revenue Service/BS-20) has been transferred and posted as Director, (Program Office) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Zone-I) Regional Tax Office, Abbottabad.

    04. Muhammad Ejaz Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-I) Medium Taxpayers office, Karachi from the post of Commissioner, (Legal) Medium Taxpayers office, Karachi. The officer is also assigned the additional charge of the post of Commissioner-IR (Legal), Medium Taxpayers Office, Karachi, as per Rules.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    05. Haroon Masood (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Zone-II) Regional Tax Office, Abbottabad from the post of Commissioner, (WHT) Regional Tax Office, Abbottabad.

    06. Ms. Nafeesa Satti (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (ICTO Zone) Regional Tax Office, Islamabad from the post Director, (Program Office) Reforms & Modernization Federal Board of Revenue (Hq), Islamabad.

    07. Zulfiqar Ali Syed (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Audit-II) Large Taxpayers Office, Karachi from the post of Commissioner, (Enforcement-II) Large Taxpayers Office, Karachi.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    08. Hammal Baloch (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Enforcement-II) Large Taxpayers Office, Karachi from the post of Commissioner, (Enforcement-I) Medium Taxpayers office, Karachi.

    09. Fazal-e-Subhan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue, (Zone-I) Regional Tax Office, Abbottabad from the post of Commissioner, (Zone-II) Regional Tax Office, Abbottabad.

    10. Murtaza Siddique Khan (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (WHT) Directorate General of Withholding Taxes Federal Board of Revenue (Hq), Islamabad from the post Chief (OPS), (SPR&S-I) Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad.

    11. Pervez Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Chief, (OPS) (Legal-II) Legal-IR Wing Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (OPS) (WHT) Regional Tax Office, Bahawalpur.

    12. Ali Muhammad (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Rawalpindi from the post of Secretary, (PAC-IDT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    13. Shakeel Ahmad Ejaz (BS-18) has been transferred and posted as Second Secretary, (PAC-IDT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), Regional Tax Office, Islamabad.

    14. Mian Muhammad Ibrahim (BS-18) has been transferred and posted as Second Secretary, (PAC-DT) Audit & Accounting Federal Board of Revenue (Hq), Islamabad from the post of Assistant Director (Audit), Regional Tax Office, Islamabad.

    15. Irfanullah (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Corporate Tax Office, Islamabad from the post of Deputy Commissioner, Regional Tax Office, Abbottabad.

    16. Iftikhar Masood Khan (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office, Lahore from the post of Deputy Commissioner, Large Taxpayers Office, Lahore.

    17. Muhammad Tariq (Inland Revenue Service/BS-18) has been transferred and posted as Additional Commissioner Inland Revenue, (OPS) Regional Tax Office, Peshawar from the post of Deputy Commissioner, Regional Tax Office, Peshawar.

    18. Rashid Mahmood Khan Bhettani (Inland Revenue Service/BS-18) has been transferred and posted as Additional Director, (OPS) Addl. Directorate of Internal Audit (Inland Revenue), Peshawar from the post of Second Secretary, (PAC-DT) Audit & Accounting Wing Federal Board of Revenue (Hq), Islamabad. The officer is also assigned the additional charge of the post of Additional Director (OPS), Additional Directorate of Internal Audit (IR), Abbottabad, as per Rules.

    19. Ms. Amna Sharif (Inland Revenue Service/BS-17) has been posted (on joining) as Deputy Commissioner Inland Revenue, (OPS) Regional Tax Office, Peshawar.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR tightens monitoring to prevent currency smuggling

    FBR tightens monitoring to prevent currency smuggling

    ISLAMABAD: The Federal Board of Revenue (FBR) has tightened monitoring to prevent currency smuggling in the wake of free-fall in rupee value against the foreign currencies.

    A statement issued on Sunday stated that FBR Chairman Asim Ahmad had instructed customs field formations for stepping up vigilance to ensure monitoring of passengers to stop currency smuggling.

    “Building further on its policy of zero tolerance against currency smuggling, Chairman FBR has instructed Customs field formations for stepping up vigilance at airports and land border stations. Concerned Collectorates to ensure monitoring of all inbound and outbound passengers,” according to a Tweet.

    The US dollar has continued momentum of appreciation against the Pakistan Rupee (PKR) in the interbank foreign exchange market.

    READ MORE: Rupee falls for 8th straight day; dollar hits Rs192.53

    The rupee fell for the eight straight days to the record low of Rs192.53 to the dollar on May 13, 2022. The fall in rupee value may be attributed to fall in foreign exchange reserves and high payments for imports. However, some believed the unrecorded outflow of foreign currency also depressed the foreign exchange market.

    Previously, the FBR on September 24, 2021 issued a clarification rebutting the reports of currency smuggling from Pakistan to Afghanistan.

    READ MORE: FBR rebuts currency smuggling to Afghanistan

    In the statement, the FBR categorically rebutted the unfounded, malicious intent and misleading in content propaganda being advanced by some irresponsible elements that there was a huge flight of dollars from Pakistan.

    It is further clarified that previously the bilateral trade between Pakistan and Afghanistan was carried out in US Dollars but now the same is being conducted in Pak Rupees (PKR).

    Furthermore, FBR has taken very stringent enforcement measures at the Airports to eliminate the possibility of any such an unethical practice.

    Pakistan Customs has made it mandatory for all passengers flying out of the country to undergo thorough personal scrutiny and 100 per cent declaration of currency through an automated process in order to ward off this nefarious illegal activity. This leaves the little possibility of the subject undesirable practice.

    READ MORE: Multan customs auctions smuggled diesel oil on May 18, 2022

    It is most likely that Chairman FBR and Member (Customs Operations) will visit the Pak-Afghan border to oversee the functioning of the above mechanism on the ground.

    It is further reiterated that this transparent and efficient mechanism being adopted at all the airports across Pakistan is facilitating the smooth and easy movement of outbound passengers, thus significantly reducing their time and cost.

  • FBR issues procedure for restoration of input tax adjustment

    FBR issues procedure for restoration of input tax adjustment

    ISLAMABAD: The Federal Board of Revenue (FBR) has issued procedure to restore input tax adjustment claimed by Tier-1 retailers.

    The FBR on Friday issued Sales Tax General Order (STGO) No. 17 of 2022 dated May 13, 2022 regarding Tier-1 retailers – integration with FBR POS System.

    The procedure for reversal of bar on input tax adjustment by 60 per cent (i.e. the exclusion), as provided for in STGO No. 1 of 2022 dated August 3, 2022 has been automated. The STGO No. 1 has now been amended to the extent of reversal of bar on input tax adjustment by 60 per cent / issuance of exclusion certificates.

    READ MORE: POS service fee issue hampers sales tax return filing

    The FBR said a registered person whose adjustable input tax has been reduced by 60 per cent under Section 8B(6) of the Sales Tax Act, 1990, by inclusion in STGO shall file application for removal of this bar / for restoration of input tax adjustment. Application shall be filed through the system (IRIS) by selecting the relevant reason for the exclusion from the purview of the said section, along with any proof / evidence in support of the application.

    Once an application is submitted, the FBR said, adding that it shall be examined and an order (exclusion certificate) shall be passed by the concerned commissioner IR in the system, after such inquiries and examination of such record, as deemed necessary by him/her, as under:

    READ MORE: FBR issues list of 185 retailers for mandatory integration

    A. Acceptance of application (i.e. Exclusion Certificate allowed):

    In the event of acceptance of the application (i.e. exclusion certificate allowed) by the concerned commissioner IR, the system shall automatically restore the input tax adjustment as per law as under:

    i. Application accepted by the concerned commissioner IR for the reason of ‘integration with FBR’s POS system’: Restoration of input tax adjustment shall apply with effect from the tax period next following the tax period(s) during which the Tier-1 Retailer remained non-integrated. As already clarified by the Board, the 60 per cent reduction in input tax adjustment (disallowance) shall apply to the tax period in which the Registered Person integrated with FBR’s system, as well as, to the prior tax period(s) during which the registered person remained non-integrated or remained partially integrated (i.e. not all the terminals and / or branches were integrated).

    READ MORE: Adjustment restrictions hamper return filing by retailers

    Concerned Commissioner – IR, at the time of passing the order in the system shall provide the date of integration and the system shall restore the input tax adjustment accordingly, as above.

    ii. Application accepted by the concerned Commissioner-IR for the reason ‘Not a Tier-1 Retailer as defined under Section 2(43A) of the Sales Tax Act, 1990: In this scenario the reduction in input tax adjustment (disallowance) by 60 per cent, shall be reversed with effect from the date this bar was placed on and no tax period shall remain subjected to reduction in input tax adjustment (which was originally placed under section 8B(6) of the Sales Tax Act, 1990).

    READ MORE: FBR announces winners of third POS invoice draw

    B. Rejection of Application (i.e. Exclusion Certificate disallowed): In the event of rejection of the application, this reduction (disallowance) in input tax adjustment shall continue in all subsequent tax period(s) as before,

    The FBR said the procedure of automation in the hands of concerned commissioner-IR will be effective from May 10, 2022 and cases for restoration of 60 per cent reduction (disallowance) of input tax adjustment (excluded cases) as already communicated to PRAL by the Board, shall be managed/implemented in the system by PRAL.

  • KCCI suggests VAT removal for commercial importers

    KCCI suggests VAT removal for commercial importers

    Karachi Chamber of Commerce and Industry (KCCI) has suggested the tax authorities to withdraw Value Added Tax (VAT) imposed on commercial importers in order to rectify anomaly in the law.

    The KCCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR) said that a three per cent value addition sales tax at import stage on commercial importers of raw materials was removed in the Finance Act 2019-20 after long deliberations with FBR and Ministry of Finance for several years.

    READ MORE: FPCCI demands CNIC condition withdrawal

    It was agreed by FBR that the tax is unjustified because commercial importers do not add any value to raw materials. It is sold to SMEs without any change in form or any process. No inputs such as gas, electricity, labor or machinery are used hence 3 per cent VAT was an obvious anomaly.

    Unfortunately, the very next year through Finance Act, 2020, amendment was made in the Twelfth Schedule to Sales Tax Act, 1990 –under the heading “Procedure and Conditions”, in condition (2), 3 per cent value addition sales tax has been imposed again on commercial import of industrial raw materials, thus restoring the anomaly.

    READ MORE: FBR urged to wave further tax on providing CNIC number

    Also, after re-imposition of this 3 per cent VAT, the exclusion from Section 8 B (1) 2, provided to commercial importers under SRO 647 (I) 2007 was not restored. This has led to double taxation as importers are forced to pay extra 10 per cent value addition over and above 3 per cent paid at custom stage.

    The outcome of these amendment resulted in dual anomaly in the Finance Bill, 2020-21.

    A 3 per cent VAT cannot be imposed on raw materials where no value is added.

    READ MORE: Tax exemption sought for plant, machinery import

    Restriction of 90 per cent adjustment of input is tantamount to double taxation as importers of raw material forced to pay extra 17 per cent (10 per cent of 17 per cent) value addition over and above three per cent paid at customs stage under Section 8B of Sales Tax Act, 1990 through SRO 1190 (I)/2019.

    The KCCI said that this obvious anomaly should be rectified and raw materials imported by commercial importers shall be excluded from the scope of condition (2) under “Procedures and Conditions”   Twelfth Schedule of Sales Tax Act. Thus removing 3 per cent Value Addition Sales Tax on commercial importers which was re-Imposed unjustly.

    READ MORE: Proposed list of higher withholding tax rates for non-filers

    Importers of Finished products paying 3 per cent VAT at custom stage and having no local purchase should be excluded from application of Sec 8 (B).

    The proposed amendment will remove an obvious anomaly and disparity in rates of sales tax on raw materials because all raw materials are ultimately consumed in the industry, and mainly by SMEs.

  • FBR imposes ban on leaves of tax officials

    FBR imposes ban on leaves of tax officials

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday imposed ban on leaves of tax officials during last quarter of the current fiscal year in order to ensure maximum revenue collection for the year.

    The FBR in an office order stated that the last quarter of the fiscal year is of paramount importance for tax collection.

    READ MORE: FBR chairman replaced despite massive collection growth

    All field formations of the FBR are expected to perform at their optimum capacity which entails presence on duty of all available human resources.

    However, it has been observed that some field formations are still forwarding leave requests of officers and officials which is prejudicial to the achievement of target assigned to the FBR during the current fiscal year.

    READ MORE: FBR surpasses collection target for July – April FY22

    The FBR said that foregoing in view, it is decided that competent authorities shall not grant leaves to FBR officers/officials till June 30, 2022 except in the cases: Hajj; extreme hardship cases; and study leaves for officers and officials, who are already selected and have obtained NOCs.

    READ MORE: LTO Karachi posts 41% collection growth in 10 months

    The revenue body further said that leaves forwarded to competent authorities at FBR (HQRs) shall only be considered and granted in the above mentioned cases till June 30, 2022 on case to case basis.

    All field formations are required to strictly adhered to the instructions and play their part in optimization of revenue collection and achievement of revenue target.

    READ MORE: FBR issues sales tax refund rules for tractor manufacturers