The Federal Board of Revenue (FBR) has taken stringent measures to recover outstanding dues by attaching the bank accounts of the Sui Southern Gas Company Limited (SSGC) amounting to Rs23 billion.
(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.
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SECP, FBR integration brings 2,365 companies under tax net
ISLAMABAD: The integration between Securities and Exchange Commission of Pakistan (SECP) and Federal Board of Revenue (FBR) has brought 2,365 companies under tax registration.
A statement issued by the SECP stated that as a result of integration of SECP with FBR and various provincial departments, 2,365 companies were registered with FBR for generation of NTN, 40 companies with EOBI, 16 companies with PESSI/SESSI and 37 companies with Excise and Taxation department.
READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin
The SECP said that the total registration with the commission reached to 160,989 by end of January 2022.
While it registered 2,448 new companies in January 2022 witnessing an increase of 10 per cent as compared to corresponding period, last year.
About 62 percent companies were registered as private limited companies, while 36 percent were registered as single member companies. Two percent were registered as public unlisted companies, not for profit associations, trade organizations, foreign companies and limited liability partnership (LLP).
READ MORE: RDA: SECP exempts banks from obtaining license
About 99.5 percent companies were registered online while 225 foreign users were registered from overseas. Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood at Rs.3 billion.
Foreign investment has been reported in 53 new companies. These companies have foreign investors from Afghanistan, Australia, Canada, China, Egypt, Germany, Hungary, Iran, Italy, Jordan, Korea South, Peru, Philippines, Russia, Saudi Arabia, South Africa, Turkey, the UK and the US.
READ MORE: SECP warns against investing in fraudulent schemes
In January’s incorporations, the real estate development & construction sector took the lead with incorporation of 427, information technology with 365, trading with 290, services with 212, tourism with 129, e-commerce with 119, education with 111, food and beverages with 89, marketing and advertisement with 69, engineering with 58, textile with 56, pharmaceutical with 43, corporate agricultural farming with 42, healthcare with 40, chemical with 35, transport with 34, mining and quarrying, and power generation with 29 each, lodging with 26, auto and allied, and fuel and energy with 22 each, communications, and cosmetics and toiletries with 21 each, cables and electric goods, and paper and board with 17 each, steel and allied with 13, arts and culture with 12, broadcasting and telecasting with 10, and 90 companies were registered in other sectors.
READ MORE: Company registration rises to 145,913 by June 2021: SECP
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FBR exempts regulatory duty on Afghan pine nuts
ISLAMABAD: The Federal Board of Revenue (FBR) has exempted regulatory duty at the rate of 45 per cent on import of pine nuts (chilgoza) from Afghanistan.
The FBR issued SRO 181(I)/2022 dated February 22, 2022 to allow the exemption.
Through the latest SRO, the FBR amended the SRO 840(1)/2021 dated June 30, 2021.
The FBR through the latest SRO noted: “[pine nuts (chilgoza) imported from Afghanistan are exempted from regulatory duty at the rate of 45 per cent.”
Prior to this the Pakistan government expanded the list of goods for export to Afghanistan and through Afghanistan to Central Asian Republics without requirement of E-form and against Pakistan Rupee (PKR).
In this regard the ministry of commerce issued SRO176(I)/2022 dated February 04, 2022 to amend Export Policy Order 2020.
READ MORE: List of goods export to Afghanistan in PKR, no E-form
As per the export policy order, export goods to Afghanistan and through Afghanistan to Central Asian Republics are allowed against Pakistan currency on filing of regular shipping bills without the requirement of E-form.
Prior to the amendment, the allowed goods are included: fruits; vegetables; dairy products; and meat. However, after the amendment more number of goods have been added to the list, which included: rice; fish and fish products; poultry, meat and products; sugar confectionary and bakery products; fruits, nuts and other edible parts of plants; oilcake and other solid residues; vegetable materials and vegetable waste; salt; cement; pharmaceuticals; matches; textile and textile articles; building stone; and surgical instruments.
As per the Export Policy Order, 2021, the goods are not entitled to: zero rating of sales tax on taxable goods; rebate of central excise duty; and payment of drawback of customs duty.
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Trade Information Portal of Pakistan
The Trade Information Portal of Pakistan (TIPP) is the single-stop point for all information relating to import and export. The TIPP is hosted by the Pakistan Single Window Company on behalf of all the Government agencies involved in the import/export process. On this portal, traders will be able to get information about all the regulatory requirements they need to fulfill in order to carry out their transactions. These regulatory requirements may involve a number of government agencies.
A number of countries have introduced or are considering the introduction of a trade information portal as a means of facilitating trade and increasing transparency.
For World Trade Organization (WTO) members or countries in the process of acceding to the WTO, a Trade Information Portal (TIP) will assist in complying with new commitments currently being negotiated as part of the Doha Development Round.
READ MORE: KCCI holds awareness seminar on Pakistan Single Window
The negotiations aim to strengthen the provisions of Article X of General Agreement on Tariffs and Trade (GATT), which currently requires that all regulatory trade related information “shall be published promptly in such a manner as to enable governments and traders to become acquainted with them”.
In many developing nations, government agency specific websites may not exist and even when they do they are often incomplete, out of date, or the content may not cover the entire spectrum of information that a trader may wish to obtain to ensure compliance with import, export, or transit requirements. It is therefore desirable to create a single platform where all the information relating to trade from all the various agencies is aggregated under one roof and is readily available for searching and viewing. However, despite much effort and, in some cases, inter-governmental agreements, many countries still lack an effective and sustainable Trade Information Portal. Many fail to take the user’s viewpoint and do not provide practical step-by-step guides, nor answer key questions relevant to traders. Some have limited or outdated content and are difficult to use and navigate. Often established in developing countries as part of a project funded by international development partners, their quality will often slip after the project ends.
READ MORE: PSW to link 27 banks for trade facilitation
What is TIPP? The Trade Information Portal of Pakistan (TIPP) is a website that displays latest and complete regulatory information related to imports, exports and transit trade for any item/HS code as well as useful statistical data for international trade.
The ongoing COVID-19 pandemic is an excellent opportunity for TIPP to demonstrate its usefulness to traders in providing timely information on quickly changing rules and procedures, in particular those relating to the trade of emergency goods. Trade Information Portals deliver a range of benefits. It enhances transparency and access to a wide array of information, which can be pivotal in making decisions related to trade and investments. Under Article X of General Agreement on Tariff and Trade (GATT) Commitment to Transparency Pakistan had to establish Trade Information Portal. Later on under Article 1.2 of WTO Trade Facilitation Agreement (TFA) Pakistan had committed to implement the TIPP by 31 March 2022.
Each piece of information made available in TIPP has been collected and validated from the 77 Other Government Agencies (OGAs) as listed in Schedule-I of PSW Act 2021. The regulatory content has been digitized and connected with Pakistan Customs Tariff (HS Codes) creating thousands of linkages to Legal Documents (all relevant laws, rules, regulations and orders etc), Procedures, Measures, Commodities, Forms, Fee Schedules, etc. As such the OGAs, Economic Operators, investors and academia can freely access useful information on a single click.
READ MORE: PSW to reduce trade cost, time, and complications: Tarin
Background of TIP in Pakistan: Attempts made in the past to develop a trade information portal in Pakistan did not yield result. Since PSW as part of its system, development effort had already done bulk of the work for TIPP under its Integrated Tariff Management System (ITMS) hence it was decided to help the government in meeting its international commitment. With support from USAID, international experts were hired in April 2021 and the TIP related tool kit was obtained from World Bank free of cost. Since then all the 77 OGAs as well as stakeholders from private sector have been engaged by a dedicated team of PSW to undertake the task of content collection, validation and uploading.
TIPP Maintenance Mechanism: Pakistan Single Window Company (PSWC) has placed a robust governance model for the maintenance, management, and support of TIPP. This TIPP Management Team (TMT) housed in PSW HQs is charged with maintaining and updating the portal, liaising with OGAs, and informing and advising Governing Council of PSWC on the management of TIPP. Collaboration among all stakeholders is being ensured through the principles and commitments set out in the MoU to be signed before launch in March, 2022.
READ MORE: Biometric verification for PSW inaugurated at KCAA
Additional Features beyond Fulfillment of TFA commitment: TIPP has been designed from the perspective of traders, Overseas Pakistanis, and potential investors who will get the latest and authentic information. TIPP will also provide latest trade statistics, trade agreements and offer list available to Pakistani exporters in international markets for preferential market access. TIPP will enable them to make informed decisions while undertaking cross-border trade transactions without needing middlemen. Furthermore, TIPP offers guided journeys for visitors through its user-friendly interface available in both English and Urdu in order to attract maximum number of visitors and investors.
The PSW has engaged all public and private sector stakeholders since the inception of the TIPP project. Multiple awareness/engagement webinars and seminars have been arranged during the project life cycle. Two national level workshops have been held in Karachi and Islamabad. As part of its outreach plan the TIPP Project team is undertaking an extensive road show to visit all leading Chambers of Commerce and Trade bodies across the country before formal launch of TIPP. It is hoped that these steps will enhance trade facilitation in the country.
(Brief contributed by Umair Mehmood Siddiqui, Deputy Director (Pakistan Single Window), Federal Board of Revenue. The article is extracted from half year 2021/2022 report of the FBR.)
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Sales tax collection from POL products falls by 40%
ISLAMABAD: The Federal Board of Revenue (FBR) has recorded a decline of 40 per cent in sales tax (ST) collection on petroleum (POL) products during the first half of the current fiscal year, according to official documents made available to PkRevenue.com
According to the official statistics, the collection of sales tax fell to Rs69 billion during July – December of fiscal year 2021/2022 as compared with Rs114.60 billion collected in the same period of the last fiscal year.
READ MORE: Share of sales tax collection increases to 43.7% in 1HFY22
The decline in revenue collection from petroleum products mainly attributed to lower rates of sales tax kept by the government in order to provide relief to the masses by not passing on the actual increase in petroleum prices as surge in international markets.
The flat rate of sales tax is 17 per cent. However, the government decided to keep the rate of sales tax on petroleum products to the minimum level. According to SRO 1839i0/2022 issued on February 10, 2022, the sales tax rates have been reduced as: petrol 0.79 per cent; high speed diesel 3.17 per cent, kerosene oil 5.30 per cent and light diesel oil at zero per cent.
READ MORE: FBR extends sales tax return filing up to February 25
The fall in sales tax collection from supply of petroleum products resulted decline in collection of sales tax on domestic supply.
The overall sales tax collection on domestic supplies fell by 6.2 per cent to Rs382.68 billion during the first half of the current fiscal year as compared with Rs408.13 billion in the corresponding period of the last fiscal year.
However, the fall in sales tax collection domestic was offset by the massive growth in collection of sales tax on imports. The sales tax collection on imports surged by 75.4 per cent to Rs892.30 billion during the first half of the current fiscal year as compared with Rs508.61 billion in the corresponding half of the last fiscal year.
READ MORE: FBR announces promotion of BS-16 Customs officers
The growth in sales tax collection on imports can be attributed to sharp jump in imports and massive decline in rupee value.
The import bill of the country registered a growth of 66.23 per cent to $40.65 billion during first half of the current fiscal year as compared with $24.45 billion in the corresponding half of the last fiscal year.
READ MORE: FBR makes rules for sealing retail outlets
Similarly, the Pak Rupee (PKR) fell sharply by Rs18.97 to the dollar during the first half of the current fiscal year. The rupee ended down by 12.04 per cent from Rs157.54 to the dollar on June 30, 2021 to Rs176.51 on December 31, 2021.
The overall sales tax collection however, recorded 39.1 per cent to Rs1.27 trillion during the first half of the current fiscal year as compared with Rs916 billion in the corresponding half of the last fiscal year.
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Share of sales tax collection increases to 43.7% in 1HFY22
ISLAMABAD: The share of sales tax has increased to 43.7 per cent in total federal tax collection during first half (July – December) of current fiscal year (1HFY22) as compared with 41.6 per cent in the same half of the last fiscal year.
According to biannual report issued by the Federal Board of Revenue (FBR) for the period July – December 2021/2022, showed that the share of direct taxes, which includes income tax, fell to 35 per cent during the half year under review as compared with 37.5 per cent in the same half of the last fiscal year.
READ MORE: FBR extends sales tax return filing up to February 25
The share of customs duty collection improved to 16.3 per cent during the first half of the current fiscal year as compared with 15.2 per cent in same half of the last fiscal year.
Meanwhile, the contribution of federal excised duty collection declined to 5 per cent during July – December 2021/2022 as compared with 5.8 per cent in the same period of the last fiscal year.
The total tax collection of the FBR during first half of the current fiscal year recorded 32.5 per cent growth to Rs2.92 trillion as compared with Rs2.2 trillion in the same half of the last fiscal year.
READ MORE: FBR announces promotion of BS-16 Customs officers
The collection of sales tax recorded an increase of 39.1 per cent to Rs1.275 trillion during the half year under review as compared with Rs917 billion in the corresponding half of the last year.
The direct tax collection posted 23.6 per cent growth to Rs1.02 trillion during the first half of the current fiscal year as compared with Rs826 billion in the same half of the last fiscal year.
The collection of customs duty posted 43 per cent growth to Rs477 billion during the half year under review as compared with Rs334 billion in the same half of the last fiscal year.
READ MORE: FBR makes rules for sealing retail outlets
Likewise, the federal excise duty collection posted 15.3 per cent growth to Rs146.3 billion during July – December 2021/2022 as compared with Rs127 billion in the corresponding period of the last fiscal year.
The FBR issued refunds and rebates to the tune of Rs148.53 billion during the first half of the current fiscal year as compared with Rs111.3 billion in the same half of the last fiscal year.
The issuance of sales tax refunds grew by 26 per cent to Rs123.5 billion during the period under review as compared with Rs98 billion in the same period of the last fiscal year.
READ MORE: LTO Karachi facilitates Tier-1 retailers in POS integration
However, the issuance of income tax refunds fell drastically by 29 per cent to Rs5.14 billion during the first half of the current fiscal year as compared with Rs7.28 billion in the same half of the last fiscal year.
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FBR extends date for sales tax return filing up to February 25
The Federal Board of Revenue (FBR) has officially extended the deadline for filing monthly sales tax returns up to February 25, 2022. The extension applies specifically to the tax period of January 2022.
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FBR announces promotion of BS-16 Customs officers
ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday announced promotion of BS-16 officers of Collectorate of Customs Enforcement, Karachi to the post of Superintendent Preventive Service (BS-16) with immediate effect and until further orders.
READ MORE: No promotion of IRS officers without asset declaration
The following officers are promoted:
1. Athar Ali Jumani, Senior Preventive Officer
2. Ms. Tanveer Zehra, Senior Preventive Officer
3. Syed Muhammad Saleem Aziz, Senior Preventive Officer
READ MORE: FBR issues instructions for promotions to higher ranks
4. Muhammad Ali Memon, Senior Preventive Officer
5. Muhammad Naeem Khan, Senior Preventive Officer
6. Muhammad Hassan, Senior Preventive Officer
7. Muhammad Younas Sabir, Senior Preventive Officer
8. Muhammad Abdul Khaliq, Senior Preventive Officer
READ MORE: FBR notifies transfer, posting of BS-19 IRS officers
The FBR said that the promotion will take effect from the date of their joining, subject to the condition that no disciplinary proceedings/enquiry is pending against them.
They 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 deem 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.
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FBR makes rules for sealing retail outlets
ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday notified rules for sealing and de-sealing business premises of Tier-1 retailers.
In this regard the FBR issued SRO 252/2022 to make amendments in Sales Tax Rules, 2006. Through the amendments, a new chapter has been introduced namely, ‘Procedure for Sealing and De-sealing of Business Premises of Tier-1 Retailers.’
READ MORE: FBR announces prize winners in second POS invoice balloting
The FBR said that the new chapter shall apply to the following persons, namely:
1. Any person who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording such transactions, or issue an invoice which does not carry the prescribed invoice number or barcode or QR code or bears duplicate invoice number or counterfeit barcode or QR code; and
2. Any person who is required to integrate his business as stipulated under sub-section (9A) of Section 3 read with sub-section 43A of Section 2 but fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under the law and rules made thereunder.
READ MORE: FBR announces winners of first POS prize draw
According to procedure for sealing of business premises of integrated Tier-1 retailers, the business premises of such person shall be liable to be sealed in the manner prescribed under:
1. The commissioner Inland Revenue, in whose territorial jurisdiction the business premises of Tier-1 retailer is located, may initiate proceedings for sealing of the business premises on the basis of information that such person was found involved in the issuance of tax invoice that does not carry the invoice number or QR Code as prescribed, bears duplicate invoice number or counterfeit QR Code, the invoice is defaced, or there is any other evidence of tempering;
2. The information referred may be required in the following manner:
(i) Reported as unverified on ‘Tax Asaan’ application or POS Dashboard;
(ii) Physically available or acquired through mystery shopping as referred in sub-section 2 of section 56 of the Sales Tax Act, 1990; or
(iii) Through any other reliable source.
3. The Commissioner Inland Revenue concerned shall verify any invoice through invoice number or QR code before declaring it unverified;
4. Where the commissioner Inland Revenue has evidence as provided, that a Tier-1 retailer has either issued three unverified invoices in a day or five unverified invoices in seven days against a single STRN, the Commissioner Inland Revenue shall seek the approval of the Chief Commissioner Inland Revenue in writing for sealing of the retailer’s business premises besides mentioning the team of officers and officials that shall carry out the process of sealing of the said business premises:
Provided in case the unverified invoices belong to a business premises of Tier-1 retailer having jurisdiction in some other filed formation, the commissioner Inland Revenue concerned shall seek approval from the Chief Commissioner Inland Revenue in whose jurisdiction the integrated Tier-1 retailer falls besides mentioning the team of officers and officials that shall carry out the process of sealing of the said business premises;
(5) The Chief Commissioner Inland Revenue, in whose jurisdiction the integrated Tier-1 retailer falls, shall on receipt of request for approval, issue an order in writing for allowing or disallowing the sealing of such business premises after recording the reasons therein, and, in case of allowing sealing of business premises, shall also notify the team for carrying out the process of sealing immediately:
Provided where the jurisdiction of Tier-1 retailer falls in some other field formation, the concerned Chief Commissioner shall request the FBR for notification of the team;
(6) The Chief Commissioner Inland Revenue in whose jurisdiction the integrated Tier-1 retailer falls shall decide whether one or more branches are to be sealed depending on the unverified invoices issued by the respective branches; and
(7) The sealing order shall be communicated by the concerned Chief Commissioner Inland Revenue to the Member (IR-Operations) for information and a copy thereof shall be sent to Chief (POS) for record.
Through the instant SRO 252/2022 the FBR also issued procedures for sealing of business premises of non-integrated Tier-1 retailers and de-sealing of business premises of integrated Tier-1 retailers.
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FBR announces prize winners in second POS invoice balloting
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced winners of second balloting of invoices issued by Point of Sales (POS) installed by Tier-1 retailers.
Muhammad Aslam has been declared as winner of bumper prize worth Rs1 million in the second draw. The invoice declared for the bumper prize was issued by Tier-1 retailer i.e. Naheed Super Market.
The revenue body also declared Syed Asim Ali and Asad Naeem Chaudhry for second prize of Rs500,000 each.
For further details please download the second draw
Meanwhile, the FBR announced four names for the winners of third prize of Rs250,000 each. The winners of third prize are included Muhammad Amir, Syed Ali Yawar, Mubashir Aftab Sheikh and Iftikhar Hussain.
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
READ MORE: FBR announces winners of first POS prize draw
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.
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
READ MORE: Prize scheme on invoices issued by retailers
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.
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.
READ MORE: FBR launches prize scheme for POS customers
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.