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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.

  • Banned items: FBR deputes officers 24X7 to facilitate passengers

    Banned items: FBR deputes officers 24X7 to facilitate passengers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday deputed senior Customs officers at all the international airports of the country to facilitate passengers related to imported items that are banned by the government.

    The FBR through an order nominated focal persons at all the airports of the country. It said that in wake of the issuance of SRO 598(I)/2022, and to facilitate the genuine passengers arriving at all the international airports of the country, a list of officers has been issued regarding facilitation and compliant redressal.

    The list of officers and their contact number can be accessed here.

    The FBR directed that all the focal persons should ensure their availability over the respective telephone numbers round the clock.

    The government on May 19, 2022 imposed a complete ban on luxury and non-essential items in order to reduce import bill and to prevent rupee devaluation. In this regard, the ministry of commerce issued SRO 598(I)/2022 to impose the ban on imported items.

    READ MORE: Import ban not to apply on L/C issued before May 19, 2022

    The FBR on May 24, 2022 issued a press statement saying that Pakistan Customs has stepped up enforcement at all International Airports across Pakistan to prevent smuggling of items which have recently been banned by the Federal Government vide SRO No. 598(I)/2022, dated 19.05.2022 by amending Import Policy Order, 2022.

    This round-the-clock vigilance at International Terminals to prevent smuggling have already resulted in seizures of these items which were being brought in in the garb of bonafide passenger baggage.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    During scanning and checking at Jinnah International Airport (JIAP), Karachi on 23.05.2022, banned items such as food stuff, fruits, sanitary wares, used mobile phones, and branded shoes, in commercial quantities were recovered. The said items have been detained/seized under Section 168 of the Customs Act, 1969 for violation of SRO 598(I)/2022, dated 19.05.2022, (Import Policy Order, 2022) and Sections 16 and 139 of the Customs Act, 1969.

    While commending the efforts of Pakistan Customs, Chairman FBR has reiterated unflinching resolve of the FBR to further strengthen enforcement measures at all airports, seaports, and land border stations to ensure the prevention of smuggling of goods including newly banned items.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

    However, Finance Minister and Chairman FBR have issued instructions not to bother bonafide passengers bringing in goods in noncommercial/small quantities for personal use and to facilitate such passengers at airports to the maximum extent possible as per legal provisions.

  • Income tax audit should be once in three years

    Income tax audit should be once in three years

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has suggested the authorities to conduct income tax audit once in three years.

    The KCCI in its proposals for budget 2022/2023 submitted to the Federal Board of Revenue (FBR) stated that through Finance Act 2019 powers of Commissioners Inland Revenue and the FBR have been restored to select cases for audit every year which further creates difficulties for registered persons, whereas prior to FY2019-20 audit could be conducted once in 3 years.

    READ MORE: Cut in duty, taxes on tea import suggested to stop smuggling

    The commissioners already have various powers to carry out amendments of the income tax returns filed for any tax year by the taxpayer under Section 122 (5A).

    Therefore, additional audit powers outside the standard audit parameters are often misused by the tax authorities.

    READ MORE: KCCI proposes sales tax exemption to solar panels, inverters

    Multiple and overlapping discretionary powers are precisely the hurdle in broadening of tax base, and corruption. Rather than focusing on broadening the tax base, FBR is coming up with novel ways to perpetuate a regime of extortion and harassment. Consequently the country is going nowhere in expanding the tax base and revenue collection.

    The KCCI proposed that the audits under Section 177 and 214C should be carried out once in every three years as was introduced through Finance Act 2018, through restoration of clause 105 omitted in Finance Act, 2019.

    READ MORE: FBR suggested automatic GD filing extension on system failure

    Despite of this restriction the Commissioner can carry out assessment under section 122(1)/(5) or 122(5A) of the Income Tax Ordinance, 2001 on the definite information or where declaration of tax payer is erroneous and prejudicial to the interest  of revenue.

    Giving rationale to the proposal, the chamber said it would alleviate fears of compliant tax-payers. Further, it will help in removal of harassment and extortion through uncalled for and unnecessary audits.

    READ MORE: KCCI proposes sales tax exemption to e-commerce

  • FBR’s power to notify customs tariff

    FBR’s power to notify customs tariff

    Section 18E of Customs Act, 1969 has empowered the Federal Board of Revenue (FBR) to make changes in Pakistan Custom Tariff.

    The FBR issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    READ MORE: Detention of goods violating customs act

    Following is the text of section 18E of the Customs Act, 1969:

    18E. Pakistan Customs Tariff.- The Board may, by notification in the official Gazette, subject to such conditions, limitations or restrictions as it may deem fit to impose, make such changes in the Pakistan Customs Tariff, specified in the First Schedule to this Act, required only for the purposes of statistical suffix of the Pakistan Customs Tariff (PCT) Code:

    READ MORE: Rate of customs duty in Pakistan on imports

    ―Provided further that the Board may constitute a committee or a centre for the purpose of settlement of disputes regarding classification of goods and may prescribe rules or procedure for carrying out the purpose of this section.

    (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.)

    READ MORE: FBR may impose charges for customs clearance services

  • FBR transfers additional collectors, directors of Customs

    FBR transfers additional collectors, directors of Customs

    ISLAMABAD: The Federal Board of Revenue (FBR) on Monday May 30, 2022 transferred about 12 BS-19 officers of Pakistan Customs Service (PCS) with immediate effect.

    The FBR notified transfer and posting of following officers:

    01. Muteen Alam (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, KPK from the post of Additional Collector, Collectorate of Customs Enforcement, Lahore.

    READ MORE: FBR transfers BS-20 officers of Pakistan Customs Service

    02. Aftab Ullah Shah (Pakistan Customs Service/BS-19) has been transferred and posted as Additional Director, Directorate of DNFBPs, Quetta from the post of Additional Collector, Collectorate of Customs Appraisement, Quetta.

    03. Nawabzada Kamran Khan Jogezai (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Internal Audit-North (customs), Islamabad from the post of Deputy Collector, Collectorate of Customs, Islamabad.

    READ MORE: FBR transfers IRS officers of BS-17 to BS-20

    04. Ms. Zehra Tahir Naqvi (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs, Jinnah International Airport (JIAP), Karachi from the post of Deputy Director, Directorate General of Customs Valuation, Karachi.

    05. Ms. Nausheen Riaz Khan (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Law & Prosecution (Customs), Karachi from the post of Deputy Director, Directorate of Intelligence & Investigation, FBR, Karachi.

    READ MORE: FBR tightens monitoring to prevent currency smuggling

    06. Ms. Aneeqa Afzal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Enforcement, Lahore from the post of Deputy Collector, Collectorate of Customs (Adjudication), Faisalabad.

    07. Ms. Amna Naeem (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate (HQs), Post Clearance Audit & Internal Audit, Karachi from the post of Deputy Director, Directorate of Post Clearance Audit (South), Karachi.

    08. Shah Faisal (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Collectorate of Customs Appraisement, Quetta from the post of Deputy Collector, Collectorate of Customs Appraisement, Quetta.

    READ MORE: FBR transfers senior IR officers in major reshuffle

    09. Mohammad Rehan Akram (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Cross Border Currency Movement, Directorate General of Intelligence & Investigation-FBR, Islamabad from the post of Deputy Collector, Collectorate of Customs Enforcement, Multan.

    10. Ms. Palwasha Syed (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore from the post of Deputy Collector, Office of the Chief Collector of Customs Enforcement (Central), Custom House, Lahore.

    11. Ms. Haleema Qasim (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate General of Customs Valuation, Karachi from the post of Deputy Director, Directorate of Cross Boarder Currency Movement, Islamabad.

    12. Ms. Khansa Mahmood Chaudhry (Pakistan Customs Service/BS-19) has been transferred and posted on promotion as Additional Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi Stationed at Gilgit-Baltistan from the post Deputy Director, Directorate of Intelligence & Investigation, FBR, Rawalpindi.

    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.

  • Cut in duty, taxes on tea import suggested to stop smuggling

    Cut in duty, taxes on tea import suggested to stop smuggling

    KARACHI: The Federal Board of Revenue (FBR) has been suggested a drastic cut in duty and taxes on import of black to stop smuggling and increase revenue.

    (more…)
  • FBR may impose charges for customs clearance services

    FBR may impose charges for customs clearance services

    ISLAMABAD: The Federal Board of Revenue (FBR) is contemplating the imposition of charges for customs clearance services, a move empowered by Section 18D of the Customs Act, 1969.

    (more…)
  • Customs duty rates under international treaties

    Customs duty rates under international treaties

    Section 18C of Customs Act, 1969 determined rate of duties in Pakistan under international treaties.

    The FBR issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 18C of the Customs Act, 1969:

    18C. Rates of duty and taxes and determination of origin under trade agreements.- (1) Where under a trade agreement between the Government of Pakistan and the Government of a foreign country or territory, duty at a rate lower than that specified in the First Schedule is to be charged on articles which are the produce or manufacture of such foreign country or territory, the Federal Government may, by notification in the official Gazette, make rules for determining if any article is the produce or manufacture of such foreign country or territory and for requiring the owner to make a claim at the time of importation, supported by such evidence as may be prescribed in the said rules, for assessment at the appropriate lower rate under such agreement.

    (2) Where in respect of any article, a preferential rate of duty is specified in the First Schedule, or is admissible by virtue of a notification under sub-section (1), the duty to be levied and collected shall be at the standard rate unless the owner of the article claims at the time of importation that it is chargeable with a preferential rate of duty, being the produce or manufacture of such preferential or free trade area, as is notified under sub-section (3) and the article is determined, in accordance with the rules made under sub-section (1) to be such produce or manufacture.

    (3) For the purposes of this section and the First Schedule ―preferential area or free trade area‖ means any country or territory which the Federal Government may, by notification in the official Gazette, declare to be such area.

    (4) Notwithstanding anything contained in sub-sections (1) and (2), where the Federal Government is satisfied that, in the interests of trade including promotion of exports, it is necessary to take immediate action for discontinuing the preferential rate or increasing the preferential rate to a rate not exceeding the standard rate, or decreasing the preferential rate, in respect of an article specified in the First Schedule, the Federal Government may, by notification in the official Gazette, direct discontinuation of, or increase or decrease, as the case may be, the preferential rate.

    (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.)

    READ MORE: FBR may impose additional custom duty on imports

  • FBR may impose additional custom duty on imports

    FBR may impose additional custom duty on imports

    The Federal Board of Revenue (FBR) has been empowered to impose additional custom duty on import of goods under Section 18A of Customs Act, 1969.

    The FBR issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 18A of the Customs Act, 1969:

    18A. Special customs duty on imported goods.- The Federal Government may, by notification in the official Gazette, levy a special customs duty on the importation of such of the goods specified in the First Schedule as are of the same kind as goods produced or manufactured in Pakistan, at a rate not exceeding the rate of duty of excise leviable under the Federal Excise Act, 2005, on the goods produced or manufactured in Pakistan:

    Provided that the exemption of any goods from the whole or any part of the duty of excise for the time being in force shall not prevent the Federal Government from levying a special customs duty on the importation of goods of the same kind:

    Provided further that, for the purposes of the Sales Tax Act 1990 (VII of 1990), the special customs duty shall not constitute a part of the value of supply.

    (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.)

    READ MORE: Rate of customs duty in Pakistan on imports

  • Rate of customs duty in Pakistan on imports

    Rate of customs duty in Pakistan on imports

    Section 18 of Customs Act, 1969 has defined rate of customs duty in Pakistan on import of goods.

    The Federal Board of Revenue (FBR) issued updated Customs Act, 1969 up to June 30, 2021. The act has been updated by making amendments brought through Finance Act, 2021.

    Following is the text of section 18 of the Customs Act, 1969:

    18. Goods dutiable.- (1) Except as hereinafter provided, customs duties shall be levied at such rates as are prescribed in the First Schedule or under any other law for the time being in force on,-

    (a) goods imported into Pakistan;

    (b) goods brought from any foreign country to any customs station, and without payment of duty there, transshipped or transported for, or thence carried to, and imported at any other customs-station; and

    (c) goods brought in bond from one customs station to another.

    105(1A) Notwithstanding anything contained in sub-section (1), customs duties shall be levied at such rates on import of goods or class of goods as are prescribed in the Fifth Schedule, subject to such conditions, limitations and restrictions as prescribed therein.

    (2) No export duty shall be levied on the goods exported from Pakistan.

    (3) The Federal Government may, by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods imported or exported, as specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods as determined under section 25 or, as the case may be, section 25A.

    (4) The regulatory duty levied under sub-section (3) shall –

    (a) be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and

    (b) be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.

    (5) The Federal Government may, by notification in the official Gazette, levy an additional customs-duty on such imported goods as are specified in the First Schedule, at a rate not exceeding thirty-five per cent of value of such goods as determined under section 25 or, as the case may be, section 25A:

    Provided that the cumulative incidence of customs-duties leviable under sub-sections (1) and (5) shall not exceed the rates agreed to by the Government of Pakistan under multilateral trade agreements.

    (6) The additional customs-duty levied under sub-section (5) shall be,-

    (a) in addition to any duty imposed under sub-sections (1) and (3) or under any other law for the time being in force; and

    (b) leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the official Gazette in which such notification appears is published at any time after that day.

    (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.)

    READ MORE: Detention of goods violating customs act

  • FBR extends working hours on May 30 – 31 for tax collection

    FBR extends working hours on May 30 – 31 for tax collection

    ISLAMABAD: The Federal Board of Revenue (FBR) on Saturday directed the offices of Inland Revenue to observe extended working hours to facilitate taxpayers in payment of duties and taxes.

    The FBR in an office memorandum directed all Large Taxpayers Offices (LTOs)/ Medium Tax Office (MTO)/ Corporate Tax Offices (CTOs)/ Regional Tax Offices (RTOs) to open and observed extended working hours till 20:00 hrs on Monday May 30, 2022 and till 22:00 hrs on Tuesday, May 31, 2022 to facilitate the taxpayers in payment of duties and taxes.

    READ MORE: FBR to install more scanners for customs clearance

    The FBR asked chief commissioners of Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National bank of Pakistan (SBP) to ensure transfer of tax collected by these branches to the respective branches of the SBP on the same date to account for the same towards collection for the month of May 2022.

    READ MORE: FBR promotes Customs officers to BS-19

    The SBP has also issued a statement in regard. The central bank said that in order to facilitate the collection of government receipts / duties / taxes, it has been decided that the field offices of SBP Banking Services Corporation (SBP-BSC) and authorized branches of National Bank of Pakistan (NBP) will observe extended banking hours till 8:00 P.M. and 10:00 P.M. on 30th and 31st May, 2022 respectively.

    READ MORE: FBR drafts ID evidence rules to subscribe Pakistan Single Window

    Accordingly NIFT has been advised to arrange a special clearing at 8:00 P.M. on 31st May, 2022 (Tuesday) for same day clearing of payment instruments.

    All banks are advised to keep their concerned branches open on 31st May, 2022 (Tuesday) till such time that is necessary to facilitate the special clearing for Government transactions by the NIFT.

    READ MORE: Trade Information Portal of Pakistan