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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.

  • Tax on sale of immovable property during Tax Year 2022

    Tax on sale of immovable property during Tax Year 2022

    The rates of income tax on sale of immovable property during tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates on sale or transfer of immovable property that shall be applicable during tax year 2022 under Section 236C:

    The rate of tax to be collected under section 236C shall be 1% of the gross amount of the consideration received.

    Following is the text of Section 236C of Income Tax Ordinance, 2001:

    236C. Advance Tax on sale or transfer of immovable Property.—(1) Any person responsible for registering, recording or attesting transfer of any immovable property shall at the time of registering, recording or attesting the transfer shall collect from the seller or transferor advance tax at the rate specified in Division X of Part IV of the First Schedule:

    Explanation,—For removal of doubt, it is clarified that the person responsible for registering, recording or attesting transfer includes person responsible for registering, recording or attesting transfer for local authority, housing authority, housing society, co-operative society, public and private real estate projects registered/governed under any law, joint ventures, private commercial concerns and registrar of properties.

    Provided that this sub-section shall not apply to a seller, being the dependant of a Shaheed belonging to Pakistan Armed Forces or a person who dies while in the service of the Pakistan Armed Forces or the service of Federal or Provincial Government, in respect of first sale of immovable property acquired from or allotted by the Federal Government or Provincial Government or any authority duly certified by the official allotment authority, and the property acquired or allotted is in recognition of or for services rendered by the Shaheed or the person who dies in service:

    Provided further that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan, the tax collected under this section from such persons shall be final discharge of tax liability in lieu of capital gains taxable under section 37 earned by the seller or transferor from the property so disposed of.

    (2) The Advance tax collected under sub-section (1) shall be adjustable:

    Provided that where immovable property referred to in sub-section (1) is acquired and disposed of within the same tax year, the tax collected under this section shall be minimum tax.

    (3) Advance tax under sub-section (1) shall not be collected if the immovable property is held for a period exceeding four years.

    (4) Sub-section (1) shall not apply to:—

    (a) a seller, if the seller is dependent of:

    (i) a seller, if the seller is dependent of:

    a Shaheed belonging to Pakistan Armed Forces; or

    (ii) a person who dies while in the service of the Pakistan Armed Forces or the Federal and Provincial Governments; and

    (b) to the first sale of immovable property which has been acquired or allotted as an original allottee, duly certified by the official allotment authority.

    (Disclaimer: The text of the 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.)

    Tax rates on immovable properties for 2021-2022
  • KCCI urges SBP to restore PKR at Rs150 to dollar

    KCCI urges SBP to restore PKR at Rs150 to dollar

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has sought State Bank of Pakistan (SBP) intervention to reverse back the Pak Rupee (PKR) to Rs150 against the dollar.

    Chairman Businessmen Group (BMG) and Former President KCCI Zubair Motiwala in a statement issued on Thursday expressed deep concerns over the continuous devaluation of Pakistani rupees against the dollar which after surpassing Rs175 level was still hovering above Rs170.

    He urged the government that it was high time the State Bank, being the regulator, must intervene to stop the further freefall of PKR and devise some kind of an effective mechanism for appreciating the value of the Pakistani rupee to such an extent that the dollar reverses back to its previous level of Rs150 with a view to reducing the impact of inflation on the common man.

    “On the other hand, the Federal Board of Revenue (FBR), which has been taking advantage of higher dollar value, must also be directed to either bring down taxes and duties or keep them charging at the same rate but the calculation for taxes and duties must be done as per dollar rate of June 2021 when the budget was announced and the dollar at that point in time stood at around Rs150 instead of current rate which would certainly help in controlling the inflation”, he added while speaking at a meeting held during the visit of a delegation from All Pakistan Motorcycle Spare Parts Importers & Dealers Association (APMSPIDA) which was led by Rehan Hanif.

    Vice Chairman BMG Anjum Nisar, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain, Patron-in-Chief APMSPIDA Faisal Khalil, Former Presidents KCCI Majyd Aziz, Haroon Agar, Abdullah Zaki, Iftikhar Vohra, Younus Muhammad Bashir, Shamim Ahmed Firpo, Shariq Vohra and others attended the meeting.

    Chairman BMG pointed out that at the time when Federal Budget for current fiscal year 2021-22 was announced in June 2021, the US dollar stood at Rs155 and all the duties and taxes were estimated as per the then dollar rate. As the dollar after surpassing Rs175 level was still hovering above Rs170, it means that the duties and taxes have also risen sharply, which was the core reason behind fostering the inflation.

    He explained that out of the total differential amount of more than Rs15 as the dollar still hovers above Rs170 as compared to the previous rate of Rs155 in June 2021, at least 40 percent of the said differential amount i.e., Rs6 on each dollar was silently being collected by FBR in shape of taxes and duties which was highly unfair as it adds to the cost imported goods and escalates inflation.

    He was of the opinion that a target of Rs5800 billion was set for revenue collection for FY 2021-22 at a time when dollar rate stood at Rs155 hence, the extra money being collected nowadays due to sharp rise in dollar rate must not be considered as an achievement by FBR but as penalty on masses and the business community as it was the FBR which has been playing a major role in fostering the inflation and overburdening the economy.

    Zubair Motiwala said that due to rising dollar rate, high cost of doing business, frequent gas outages, deteriorating infrastructure and other civic issues along with a drastic decline in purchasing power, the local industries have been suffering terribly and facing a severe liquidity crunch which has resulted in limited business activities and it was really unfortunate that the government was not coming up with any workable solution for dealing with all these issues.

    Speaking on the occasion, Vice Chairman BMG Anjum Nisar, while expressing deep concerns over deteriorating economic indicators, stated that economic uncertainty has killed the total business environment, leaving the survival of many businesses at stake in the ongoing era of the highest ever inflation. “Currency, which is considered as a barometer of any economy, cannot be allowed to fall freely as it creates a lot of problems not only for the businesses but also for the economy and the common man”, he added.

    President KCCI Muhammad Idrees said that devaluation of rupees against the dollar and widening trade account deficit if not promptly addressed would create a nightmarish situation not only for the economy and businesses but also for the common man whose purchasing power has descended sharply nowadays and was hardly in a position to ensure bread and butter for his family. “Dollar rate which impacts prices of almost all the household items and raw material has to be controlled by SBP otherwise, the businesses will not be able to stay afloat due to high cost of doing business, unemployment would rise and the situation may trigger even unrest”, he added.

    Leader of APMSPIDA delegation Rehan Hanif, in his remarks, pointed out that importers and dealers of motorcycle spare parts have been facing a lot of problems as motorcycle spare parts remain in the 3rd Schedule list, making it mandatory to put MRP (Retail Price) including GST on motorcycle spare parts at import stage before shipment which was not possible keeping in view the diverse range of hundreds and thousands of spare parts. Moreover, it was a well-known fact that sales of imported spare parts are made all over the country and the freight charges cannot be the same for every city while the fluctuation in exchange rates was also an issue hence it was impossible to calculate MRP in such a varying situation, he added.

    Karachi Chamber appeals subsidizing petroleum prices
  • LEAs to get cash reward under Customs Rules

    LEAs to get cash reward under Customs Rules

    ISLAMABAD: Federal Board of Revenue (FBR) will give cash rewards to law enforcement agencies (LEAs) for recovery and confiscation of smuggled or non-duty paid goods under Customs laws.

    The FBR issued SRO 1398(I)/2021 dated October 20, 2021, and proposed to include law enforcement agencies (LEAs) in Customs Reward Rules, 2021.

    According to the draft amendment, the FBR proposed to include in reward rules the “officers and officials of other law enforcement agencies who assist Customs officers and officials or are actually instrumental in the seizure of smuggled goods and vehicles as confirmed by the respective collectorate of customs, for their meritorious conduct in such cases only after realization of part or whole of the duty and taxes involved in such cases.”

    At present, the eligibility for reward stated that cash reward shall be sanctioned under the rules to the following categories of persons in cases involving evasion of duty and other taxes, and confiscation of goods, namely:

    (a) officers and officials of Pakistan Customs Service for their contribution in such cases; and

    (b) informer providing credible information leading to such confiscation or detection, as the case may be.

    As per SRO 1386(I)/2012 dated November 26, 2021, the determination of reward has been explained as the amount of reward, in cases involving evasion of duty and other taxes, and confiscation of goods shall be determined in the following manner:

    01. Where the amount of customs duty and other taxes realized is Rs500,000 or less, the amount of reward shall be 20 per cent of the customs duty and other taxes.

    02. Where the amount of customs duty and other taxes realized is more than Rs500,000 but not more than Rs1,000,000, the amount of reward shall be Rs100,000 plus 10 per cent of the customs duty and other taxes in excess of Rs500,000.

    03. Where the amount of customs duty and other taxes realized is over Rs1,000,000, the amount of reward shall be Rs150,000 plus 5 per cent of the customs duty and other taxes in excess of Rs1,000,000.

    FBR announces waiver of penal surcharge
  • FBR announces waiver of penal surcharge

    FBR announces waiver of penal surcharge

    The Federal Board of Revenue (FBR) has decided to waive the penal surcharge on goods that have overstayed at warehouses.

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  • Tax rates on transfer of motor vehicles during TY22

    Tax rates on transfer of motor vehicles during TY22

    The rates of income tax on transfer of motor vehicles during tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax transfer of motor vehicles on that shall be applicable during tax year 2022 under Section 231B:

    (1) The rate of tax under sub-sections (1) and (3) of section 231B shall be as set out in the following table:–

    TABLE

    S. No.Engine capacityTax
    (1)(2)(3)
    1.upto 850ccRs. 7,500
    2.851cc to 1000ccRs. 15,000
    3.1001cc to 1300ccRs. 25,000
    4.1301cc to 1600ccRs. 50,000
    5.1601cc to 1800ccRs. 75,000
    6.1801cc to 2000ccRs. 100,000
    7.2001cc to 2500ccRs. 150,000
    8.2501cc to 3000ccRs. 200,000
    9.Above 3000ccRs. 250,000

    2) The rate of tax under sub-sections (2) of section 231B shall be as follows:–

    S. No.Engine capacityTax
    (1)(2)(3)
    1.upto 850cc–
    2.851cc to 1000cc5,000
    3.1001cc to 1300cc7,500
    4.1301cc to 1600cc12,500
    5.1601cc to 1800cc18,750
    6.1801cc to 2000cc25,000
    7.2001cc to 2500cc37,500
    8.2501cc to 3000cc50,000
    9.Above 3000cc62,500

    Provided that the rate of tax to be collected shall be reduced by 10% each year from the date of first registration in Pakistan.

    (3) The rate of tax under sub-section (2A) of section 231B shall be as follows:—

    TABLE

    S. No.Engine capacityTax
    (1)(2)(3)
    1.Up to 1000ccRs. 50,000
    2.1001cc to 2000ccRs.100,000
    3.2001cc and aboveRs.200,000”

    (Disclaimer: The text of the 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.)

    Withholding tax rates on transfer of motor car ownership
  • Tax rates on telephone users during tax year 2022

    Tax rates on telephone users during tax year 2022

    The rates of income tax on telephone users for tax year 2022 to be applicable under Section Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax on telephone users that shall be applicable during tax year 2022 under Section 236:

    The rate of tax shall be 10 per cent of the exceeding amount of bill in case of a telephone subscriber (other than mobile phone subscriber) where the amount of monthly bill exceeds Rs1000.

    The tax rate shall be 10 per cent for tax year 2022 and 8 per cent onwards of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form in the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card.

    Following is the text of Section 236 of Income Tax Ordinance, 2001:

    236. Telephone and internet users.- (1) Advance tax at the rates specified in Division V Part IV of the First Schedule shall be collected on the amount of –

    (a) telephone bill of a subscriber; 

    (b) prepaid cards for telephones;

    (c) sale of units through any electronic medium or whatever form; and

    “(d) internet bill of a subscriber; and

    (e) prepaid cards for internet.”

    (2) The person preparing the telephone or internet bill shall charge advance tax under sub-section (1) in the manner telephone or internet charges are charged.

    (3) The person issuing or selling prepaid cards for telephones or internet shall collect advance tax under sub-section (1) from the purchasers at the time of issuance or sale of cards.

    (3A) The person issuing or selling units through any electronic medium or whatever form shall collect advance tax under sub-section (1) from the purchaser at the time of issuance of sale of units.

    (4) Advance tax under this section shall not be collected from Government, a foreign diplomat, a diplomatic mission in Pakistan, or a person who produces a certificate from the Commissioner that his income during the tax year is exempt from tax.

    Tax rates on usage of phone, internet for 2021-2022

    (Disclaimer: The text of the 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.)

    Tax rates on electricity consumption during TY 2022
  • Tax rates on electricity consumption during TY 2022

    Tax rates on electricity consumption during TY 2022

    The rates of income tax on electricity for tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax on electricity consumption shall be applicable during tax year 2022 under Section 235:

    Electricity Consumption

    (1) The rate of collection of tax from commercial and industrial consumers from gross amount of bills shall be as set out in the following Table, namely:—

    TABLE S. NoGross amount of BillTax
    1upto Rs. 500Rs. 0
    2exceeds Rs. 500 but does not exceed Rs. 20,00010% of the amount
    3exceeds Rs.20,000Rs. 1950 plus 12% of the amount exceeding Rs.20,000 for commercial consumers Rs. 1950 plus 5% of the amount exceeding Rs.20,000 for industrial consumers

    (2) The rate of tax to be collected on domestic electricity consumption shall be—

    (i) zero percent the amount of monthly bill is less than Rs.25,000; and

    (ii) 7.5% if the amount of monthly bill is Rs. 25,000 or more;

    The rates of tax for domestic users under Section 235 have been amended and additional tax has been imposed on domestic electricity consumers. For further details please visit following link:

    Domestic electricity consumers to pay 35% additional AIT

    (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.)

    Tax rates on motor vehicles during tax year 2022
  • ATIR directs FBR to depute competent officers

    ATIR directs FBR to depute competent officers

    The Appellate Tribunal Inland Revenue (ATIR) has issued a directive to the Federal Board of Revenue (FBR), urging the deputation of competent officers to represent tax cases during hearings.

    (more…)
  • Tax rates on motor vehicles during tax year 2022

    Tax rates on motor vehicles during tax year 2022

    The rates of income tax on motor vehicles for tax year 2022 to be applicable under Second Schedule of Income Tax Ordinance, 2001.

    The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

    Following are the rates of income tax on motor vehicles shall be applicable during tax year 2022:

    Rates of collection of tax under section 234,—

    (1) In case of goods transport vehicles, tax of two rupees and fifty paisa per kilogram of the laden weight shall be charged.

    (1A) In the case of goods transport vehicles with laden weight of 8120 kilograms or more, advance tax after a period of ten years from the date of first registration of vehicle in Pakistan shall be collected at the rate of twelve hundred rupees per annum;

    (2) In the case of passenger transport vehicles plying for hire with registered seating capacity of—

    S.No.CapacityRs per seat per annum
    (i)Four or more persons but less than ten persons.50
    (ii)Ten or more persons but less than twenty persons.100
    (iii)Twenty persons or more.300

    (3) In case of other private motor vehicles shall be as set out in the following Table, namely:-

    S. No.Engine capacityTax
    (1)(2)(3)
    1.upto 1000ccRs. 800
    2.1001cc to 1199ccRs. 1,500
    3.1200cc to 1299ccRs. 1,750
    4.1300cc to 1499ccRs. 2,500
    5.1500cc to 1599ccRs. 3,750
    6.1600cc to 1999ccRs. 4,500
    7.2000cc & aboveRs. 10,000

    (4) where the motor vehicle tax is collected in lump sum,

    S. No.Engine capacityTax
    (1)(2)(3)
    1.upto 1000ccRs. 10,000
    2.1001cc to 1199ccRs. 18,000
    3.1200cc to 1299ccRs. 20,000
    4.1300cc to 1499ccRs. 30,000
    5.1500cc to 1599ccRs. 45,000
    6.1600cc to 1999ccRs. 60,000
    7.2000cc & aboveRs. 120,000

    (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.)

    Tax rates on petroleum products during tax year 2022
  • Tax rates on petroleum products during tax year 2022

    Tax rates on petroleum products during tax year 2022

    The Federal Board of Revenue (FBR) has unveiled the income tax rates applicable to petroleum products for the tax year 2022 under the Second Schedule of the Income Tax Ordinance, 2001.

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