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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.

  • Glitches mar filing of national sales tax return

    Glitches mar filing of national sales tax return

    LAHORE: The Federal Board of Revenue (FBR) has failed to rectify errors in national sales tax form as large number of taxpayers unable discharge their liabilities.

    Pakistan Tax Bar Association (PTBA) in a letter to the chairman of Federal Board of Revenue (FBR) highlighted the issues in the national sales tax return and demanded to extend the date for filing monthly returns for the months of December 2021 and January 2022.

    READ MORE: FBR further extends date for filing sales tax return

    Earlier this month the PTBA highlighted the issues. A committee comprising PTBA General Secretary Ch. Qamar uz Zaman and another person Zahid Ateeq Choudhry pointed out the following issues:

    »             Entering data in Annex-H is not functioning properly, especially, opening stocks are not available for consumption.

    »             Zero rated purchases for the month are not transferred in Annex-F for consumption, hence, creating discrepancy in relation to refund claim as well as income tax declaration.

    »             FASTER rules for pharma industry, which is made subject to zero rated regime through Finance (Supplementary) Act, 2022, are not given until the date. Hence, the industry is unable to file refund claims.

    READ MORE: Single sales tax return to eliminate fake, flying invoices

    »             Input invoices once claimed are again available for reclaim in Annex-A. Hence, double claim of same input tax shall cause loss to the revenue.

    »             Search option in Annex-A is limited to 100 invoices, only. It should search all invoices for the month so that hassle be reduced or eliminated.

    »             Reduce rate sales entered through “sales invoice template” are not validated due to error “rate id is missing” despite proper reduced rate is provided in relevant data field.

    »             Sales entered through “sales invoice template” are not editable.

    READ MORE: FBR launches sales tax return filing through single portal

    »             Option to undo “sales invoice template” once uploaded should be available, which helps in undoing mistake, especially in large number of invoices, presently have to be done one-by-one.

    »             Sales tax Withheld by Government departments are not still available for claim.

    »             In Annexure-C “Retail Consumer” Type is not available.

    »             Sales Related to POS along with manual entry sales without POS, if added through invoice management, manual entries are not loaded in Annexure-C.

    »             Exclusion from 8B in return column # 24 is not available, in many cases which does not fall in any of the STGO’s of POS integration but also disallowing the input credit as POS retailer.

    »             Exporter cum manufacturer, where refund amount or credit to be carried forwarded are shown in decimal.

    Issues in connection with Provincial Sales Tax Return for Services:

    READ MORE: Power of the Board and Commissioner to call for records

    »             The National Sales Tax Return is not transmitting data relating to supplies of goods to the taxpayers registered for sales tax on services despite the fact their suppliers have duly filed their National Sales Tax Returns, hence, service providers are deprived of their legitimate adjustable input tax claim.

    In the light of the aforesaid facts and legal exposition, the date of filing of Sales Tax Return for the Tax Period December-2021 and January-2022 should be extended up to February 25, 2022.

  • Tax offices fail to meet target of integrating retailers

    Tax offices fail to meet target of integrating retailers

    ISLAMABAD: The Federal Board of Revenue (FBR) has expressed annoyance over the lack of interest shown by field offices in integrating Point of Sale (POS) of Tier-1 retailers with the online tax system.

    According to an official document related to Tier-1 Retailers POS Integration – Third Quarter Targets (January 2022), the analyses revealed except for Large Taxpayers Office (LTO) Karachi and Regional Tax Office Bhawalpur, “none of the formations have achieved their assigned targets.”

    READ MORE: FBR issues list of 1,358 retailers for mandatory POS

    “This is an alarming situation which reflects negatively on the commitment on you formations,” the FBR informed the tax offices.

    The FBR directed Chief Commissioners Inland Revenue of tax offices to personally look into the state of affairs and ensure a healthy figure of Tier-1 Retailers POS Integration against the assigned monthly targets.

    READ MORE: Prize scheme on invoices issued by retailers

    The Member Inland Revenue – Operations has shown displeasure over the slow pace of integration of Tier-1 retailers, notified through Sales Tax General Orders (STGOs). “… These monthly targets are based on STGO and poor percentage of integration in January 2022 indicates lack of commitment of field formations both in integrating the Tier-1 retailers cleansing of STGOs list of taxpayers,” the official document added.

    READ MORE: FBR decides penal action against defaulting retailers

    According to the details, the tax offices were required to integrate 2828 Tier-1 retailers but those offices were able to integrate only 407 retailers during the month of January 2022.

    READ MORE: Imprisonment for retailers on tax integration failure

  • FBR launches forensic audit of WeBOC

    FBR launches forensic audit of WeBOC

    ISLAMABAD: The Federal Board of Revenue (FBR) has launched forensic audit of Web Based One Customs (WeBOC) to determine the accuracy and correct application of duty and taxes.

    In order to conduct forensic audit, the FBR invited firms for the assignment to conduct audit of the internal controls of WeBOC system for quality assurance for the year 2020/2021, 2019/2020 and 2018/2019.

    READ MORE: Peshawar Customs seizes narcotics worth Rs80 million

    The forensic audit is aimed at assuring that the mechanism of internal controls, business decisions, rules, policies, and procedures are well defined, correctly calculated, and if not then recommend possible solution/ way forward.

    It is meant to analyze that the systems in place are capable – fully automated with seamless integration of all Customs’ business processes.

    The applicant firm is expected to analyze the WeBOC’s capability in carrying out the day-to-day functions, its governance model, business rules, duty calculation across all regimes, correctness of information as an output, and security structures etc.

    READ MORE: No promotion of IRS officers without asset declaration

    The Internal Control Audit will identify the strengths and weaknesses as follows and recommend appropriate actions to FBR, namely:

    i. Whether the rates of Customs Duties, Additional Customs Duties and Regulatory Duties are properly and correctly fed vis-à-vis updated from time to time as applicable in the System?

    ii. Whether the WeBOC System correctly calculates and collect the duties as per statutory rates?

    iii. Review the feeding, calculation, and collection of domestic taxes i.e., Sales Tax, Withholding Tax and Federal Excise Duty at import stage.

    iv. Examine the correctness of feeding of Fifth Schedule in the WeBOC along with its conditions, when and where applicable.

    v. Whether rates of duties and taxes were updated in the WeBOC as and when legally changed since January 01, 2018?

    READ MORE: FBR announces sharp cut in sales tax on POL products

    vi. The firm will also examine and audit whether different SROs have been correctly fed/ updated in the System along with respective conditions. Any difference or deviation in the SROs feeding/ updating and application in the System will be reported accordingly.

    vii. Whether changes were made in the System with corresponding changes in the SROs from time to time in a correct and timely manner?

    viii. Whether Valuation Rulings (VRs) issued by the Directorate General of Customs Valuation have been properly entered into the System?

    ix. Whether the System correctly applies the VRs on the respective goods or not? The required audited period will be for a period of three years.

    Based on the indicated activities, the audit should: (i) map the involved internal control mechanisms; (ii) point out the main weaknesses of the involved internal controls; (iii) identify the main causes; and (iv) propose mitigation measures. The audit and subsequent recommendations should be both quantitative and qualitative considering efficiency and effectiveness of the system, its performance, and corresponding data (input)/ information (output) correctness – real-time and secured operations.

    READ MORE: IR offices to work on Saturdays for revenue target

    The FBR under the Component-II (Technical Assistance) of the Pakistan Raises Revenue (PRR) project requests the services of a reputable consulting firm to conduct a forensic audit of the WeBOC System of FBR for quality assurance through methodological testing.

    The WeBOC system was rolled out in 2012 and has been designed and developed as per the business requirements and vision of Customs i.e., paperless, end-to-end integration, minimum dwell time, 24/7 service, transparency, automated and simplified procedures, improved risk management system including automated feedback mechanisms, better controls, electronic filing, minimum interaction with trader and Customs authorities, efficient information management system, e-gates, online payment, and single window operations.

    The underlying idea was/ is to have compliance of international trade facilitation agreements and to develop Customs system in line with international good practices. It provides real time integration of clearing agents, traders, brokers, terminal operators, cargo handlers, shipping agents, bonded carriers, warehouses, airlines, and customs officials for the clearance of trade consignments.

  • No promotion of IRS officers without asset declaration

    No promotion of IRS officers without asset declaration

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday issued last warning to BS-18 officers of Inland Revenue Service (IRS), who are in promotion zone, and said without asset declaration and performance evaluation reports (PERs) their names will not be considered for promotion.

    The FBR previously issued letter to the officers in the seniority list on December 15, 2021 for completion of their PERs and Declaration of Assets.

    READ MORE: FBR issues instructions for promotions to higher ranks

    The recent scrutiny of personal record of said officers revealed that majority of the officers have not yet submitted their PERs and Declaration of Assets for the period ending on June 30, 2021.

    The meeting of Departmental Selection Board (DSB) for promotion of Inland Revenue Service from BS-18 to BS-I9 is being planned by March 15, 2022 where cases of officer of IRS from seniority No.1 to seniority No.52 shall be considered for promotion by the Departmental Selection Board.

    All aforesaid BS-18 officers of IRS in the promotion zone are once again asked to ensure that their PERs and Declaration of Assets up to June 30, 2021 are submitted to the Board latest by February 28, 2022 positively.

    READ MORE: FBR notifies transfer, posting of BS-19 IRS officers

    Completion of PERs and submission of Declaration of Assets are the pre-requisites for promotion to selection grades under Civil Servants Promotion (BS-18 to BS-21) Rules, 2019.

    The Board is trying hard to ensure that all eligible officers be considered for promotion in the forthcoming DSB meeting. However, your cooperation in timely completion of service record is equally essential.

    READ MORE: FBR transfers Sardar Khwaja as Member Audit

    Any officer who fails to furnish the above documents by due date of February 28, 2022 will himself/herself be responsible for non-consideration/deferment/supersession, and no further reminder shall be issued in this regard.

    The Reporting/Countersigning Officer are also requested to immediately forward the PERs of the aforesaid officers to the Board (ERM Section) without any further delay.

  • FBR notifies transfer, posting of BS-19 IRS officers

    FBR notifies transfer, posting of BS-19 IRS officers

    ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday announced transfers and postings of BS-19 officers of Inland Revenue Service (IRS) with immediate effect and until further orders.

    The FBR notified transfers of following officers:

    01. Ashfaq Masood (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, PR Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, IR Regional Tax Office, Peshawar.

    READ MORE: FBR transfers Sardar Khwaja as Member Audit

    02. Muhammad Asif (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Peshawar from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Abbottabad.

    03. Muhammad Muti-ur-Rehman Mumtaz (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Lahore from the post of Additional Commissioner, Large Taxpayers Office, Lahore.

    READ MORE: FBR transfers BS-20 IRS officers in major reshuffle

    04. Asad Khan Luni (Inland Revenue Service/BS-19) is currently posted as Secretary, (Admin Pool) Federal Board of Revenue (Hq), Islamabad is now at the disposal of Project Director, Track & Trace, Islamabad.

    05. Muhammad Arif (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office II, Karachi from the post of Additional Commissioner, Commissioner Inland Revenue AEOI Zone, Karachi.

    06. Khurram Ali Qadri (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Large Taxpayers Office, Multan from the post of Additional Commissioner, Large Taxpayers Office, Lahore.

    READ MORE: FBR invites applications for 952 vacant posts in Pakistan Customs

    07. Ms. Saeeda Islam (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Multan from the post of Additional Commissioner, Large Taxpayers Office, Lahore.

    08. Muhammad Asif Rafique (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Revenue Budget) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner, Regional Tax Office, Faisalabad.

    09. Muhammad Umer Yunus (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Faisalabad from the post of Additional Commissioner, Regional Tax Office, Sargodha.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    10.Bahader Sher Afridi (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Regional Tax Office, Peshawar from the post of Additional Commissioner, Large Taxpayers Office, Islamabad.

    11. Ms. Ayesha Ranjha (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Corporate Tax Office, Lahore from the post of Additional Director, Directorate General of Training & Research (Inland Revenue), Lahore.

    12. Asad Aziz (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Income Tax) Information Technology (IT) Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (Revenue Budget) Inland Revenue Operations Federal Board of Revenue (Hq), Islamabad.

    13. Rashid Javaid Rana (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (HRM-IR) Admin/HR Federal Board of Revenue (Hq), Islamabad from the post of Secretary, (FATE) Federal Board of Revenue (Hq), Islamabad.

    14. Ms. Sana Aslam Janjua (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue, Corporate Tax Office, Lahore from the post of Additional Commissioner, Regional Tax Office, Lahore.

    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 announces sharp cut in sales tax on POL products

    FBR announces sharp cut in sales tax on POL products

    ISLAMABAD: The Federal Board of Revenue (FBR) has announced sharp cut in sales tax on supply of petroleum products.

    The FBR on Thursday issued SRO 183(I)/2022 to reduce the sales tax against normal rate of 17 per cent.

    The revenue body previously issued SRO 88(I)/2022 dated January 18, 2022 to change the sales tax rates.

    READ MORE: FBR slashes sales tax rates on petrol, HSD

    According to the SRO 183(I)/2022, the sales tax rate on light diesel oil has been slashed to zero percent from previous 2.7 per cent.

    The sales tax rate on petrol has been reduced to 0.79 per cent from 2.5 per cent. Similarly, the sales tax on high speed diesel has been reduced to 3.17 per cent from 5.44 per cent.

    The sales tax rate on kerosene oil has been slashed to 5.30 per cent from 8.30 per cent.

    READ MORE: Pakistan’s petrol price rises to record high at Rs147.83

    The federal government had deferred the increase in prices of petroleum products for next fortnight starting February 01, 2022. A statement issued by the Finance Division stated that the petroleum products were showing substantial increase in the international market and presently trading at highest level since 2014.

    The oil prices have witnessed an increase of 14.5 per cent just in January 2022 in the global market. The existing sales tax rate and Petroleum Levy on various petroleum products are much below the budgeted targets.

    READ MORE: Prices of all POL products increased to wish New Year

    The government is bearing the revenue loss of around Rs30 billion (fortnightly) on account of budgeted to existing petroleum levy and sales tax rates and Rs 260 billion annually due to reduced sales tax rate.

    Despite revenue losses due to rising petroleum prices globally, the Prime Minister of Pakistan has deferred the proposal by OGRA to increase up to Rs. 16.79/Litre in the petroleum product prices and desired that petroleum product prices shall remain the same from 1st February, 2022 as notified earlier on January 15, 2022 for providing maximum relief to the general public.

  • FBR seeks practitioners help for tax broadening

    FBR seeks practitioners help for tax broadening

    ISLAMABAD: The Federal Board of Revenue (FBR) has sought assistance from tax practitioners for broadening of tax base.

    In this regard a Memorandum of Understanding (MoU) was signed between the FBR and Pakistan Tax Bar on February 07, 2022 at FBR HQ Islamabad.

    READ MORE: FBR asked to redouble efforts for broadening tax base

    The FBR said that in a historic development it had taken a watershed initiative to ensure facilitation in filing of tax return by new taxpayers for broadening of tax base by signing a memorandum of understanding with Pakistan Tax Bar.

    The FBR is all set to launch yet another out of box digital intervention for broadening of tax base through definite information obtained about non-filers.

    READ MORE: FBR offers help to provinces in broadening agri tax base

    The revenue body said it had already collected information about assets and expenditures of the persons outside the tax net from various sources. This information shall be made available to persons outside tax net through Tax Asaan Portal.

    Under the MoU, Pakistan Tax Bar will share the lists of qualified and willing members of Tax bar to file tax return of the new taxpayers.

    READ MORE: FPCCI calls for broadening of tax base to push GDP growth

    The FBR will make this list of tax consultants available to new taxpayers wanting to file tax returns and will facilitate this by payment of fixed fee for filing of return to the tax consultants.

    The facility will be purely voluntary and a taxpayer will have an option to avail this free of cost facility or hire his/her own tax consultant.

    Broadening of tax Base is a key priority of the government and this facility of filing of tax return is an unprecedented step for facilitation of new tax payers and thus maximize tax compliance in the country.

    READ MORE: FBR to get information of all persons entering, leaving Pakistan for broadening of tax base

  • IR offices to work on Saturdays for revenue target

    IR offices to work on Saturdays for revenue target

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday said that all the offices of Inland Revenue (IR) will work on Saturdays to meet the revenue collection target.

    The FBR in an official memo said that in order to enhance the efforts to meet the revenue target for the current financial year 2021/2022, all field formations will remain open and observe normal working hours on Saturdays with effect from February 12, 2022 till further orders.

    READ MORE: FBR eyes Rs6 trillion collection in current fiscal year

    The FBR directed the Chief Commissioners IR to ensure that COVID-19 preventive SOPs are strictly followed.

    So far the FBR has successfully maintained momentum of its growth trajectory in revenue collection.

    According to the provisional figures FBR collected net revenue of Rs 3,352 billion during July, 2021 to January, 2022 of current Financial Year 2021-22, which has exceeded the target of Rs 3,090 billion by Rs 262 billion. This represents a growth of about 30.4 per cent over the collection of Rs. 2,571 billion during the same period, last year.

    READ MORE: DG Customs Valuation powers strengthened

    The net collection for the month of January, 2022 realized Rs. 430 billion representing an increase of 17.2 per cent over Rs 367 billion collected in January, 2021. These figures would further improve before the close of the day and after book adjustments have been taken in to account.

    READ MORE: Tax imposed to protect domestic entertainment industry

    On the other hand, the gross collections increased from Rs 2,705 billion during July, 2021 to January, 2022 to Rs 3,533 billion in current Financial Year July, 2021 to January, 2022, showing an increase of 30.6 per cent.

    Likewise, the amount of refunds disbursed was Rs 182 billion during July, 2021 to January, 2022 compared to Rs 134 billion paid last year, showing an increase of 35.9 per cent.

    READ MORE: FBR slaps sales tax at 17% on supply of food stuff

  • FBR transfers Sardar Khwaja as Member Audit

    FBR transfers Sardar Khwaja as Member Audit

    ISLAMABAD: The Federal Board of Revenue (FBR) has announced transfers and postings of BS-21 officers of Inland Revenue Service (IRS) and posted Sardar Ali Khawaja as Member Audit and Accounting with immediate effect and until further orders.

    READ MORE: FBR transfers BS-20 IRS officers in major reshuffle

    01. Sardar Ali Khawaja (Inland Revenue Service/BS-21) has been transferred and posted as Member, Audit & Accounting Federal Board of Revenue (Hq), Islamabad from the post of Member, (Admin Pool) Federal Board of Revenue (Hq), Islamabad.

    READ MORE: FBR invites applications for 952 vacant posts in Pakistan Customs

    02. Mir Badshah Khan Wazir (Inland Revenue Service/BS-21) has been transferred and posted as Chief Commissioner Inland Revenue, Medium Taxpayers office, Karachi from the post of Member, Audit & Accounting Federal Board of Revenue (Hq), Islamabad.

    03. Qasim Raza Khan (Inland Revenue Service/BS-21) has been transferred and posted as Director General, Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad from the post of Chief Commissioner, Corporate Tax Office, Islamabad.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    04. Nasir Khan (Inland Revenue Service/BS-20) has been transferred and posted as Chief Commissioner Inland Revenue, (OPS) Corporate Tax Office, Islamabad from the post of Director General, (OPS) Strategic Planning Reforms & Statistics Federal Board of Revenue (Hq), Islamabad.

    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.

    READ MORE: FBR issues list of 1,358 retailers for mandatory POS

  • FBR transfers BS-20 IRS officers in major reshuffle

    FBR transfers BS-20 IRS officers in major reshuffle

    The Federal Board of Revenue (FBR) has executed a significant reshuffle within the Inland Revenue Service (IRS), affecting officers holding the rank of BS-20.

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