Pkrevenue.com

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.

  • Tarin orders release refunds to edible oil importers

    Tarin orders release refunds to edible oil importers

    ISLAMABAD: Finance Minister Shaukat Tarin on Monday directed tax authorities to expeditiously release refunds to importers of edible oil importers.

    He issued the directive at a meeting with a delegation of Pakistan Vanaspati Manufacturers Association (PVMA).

    The finance minister directed the chairman of Federal Board of Revenue (FBR) to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.

    Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue Dr. Waqar Masood, Secretary M/o Industries and Production, Chairman FBR and other senior officers participated in the meeting.

    While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.

    The Chairman PVMA briefed the Finance Minister about the international hike in prices of palm and soyabean oils particularly during ongoing COVID-19 pandemic. The international prices kept fluctuating between the range of $1100 – 1257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.

    The exchange rate also has a significant impact on edible oil prices in the country, he added.

    While taking stock of the situation, the Finance Minister urged PVMA to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend.

    If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid highly fluctuating edible oil market.

    The finance minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries & Production and FBR.

    He constituted a committee comprising representatives of PVMA, Secretary Ministry of Industries and Production and Chairman FBR to workout arrangement for streamlining collection of sales tax and a predictable pricing formula. The Chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.

  • Unauthorized access to taxpayers data pointed out

    Unauthorized access to taxpayers data pointed out

    Karachi Tax Bar Association (KTBA) has pointed out unauthorized access to information of taxpayers by retired tax officials and privately hired persons.

    (more…)
  • Tax rates on unregistered new cars during 2021-2022

    Tax rates on unregistered new cars during 2021-2022

    In order to stop the ‘on money’ phenomenon, the government has slapped withholding tax on unregistered new motor cars or cars sold prior to first registration.

    Through the Finance Act, 2021 the tax rates have been imposed for the year 2021/2022 and onwards. Initially, these rates were imposed through the Tax Laws (Amendment) Ordinance, 2021 for a period of 90 days.

    The  Federal Board of Revenue (FBR) collects the withholding tax under Section 231B (2A) of the Income Tax Ordinance, 2001.

    Every motor vehicle registration authority of Excise and Taxation Department shall, at the time of registration, collect tax at the rates specified in Division VII of Part IV of the First Schedule, if the locally manufactured motor vehicle has been sold prior to registration by the person who originally purchased it from the local manufacturer.

    The provincial excise and taxation authorities collect tax on behalf of the FBR from persons getting new locally manufactured motor vehicles transferred in their name at the time of registration of the new motor vehicles.

    WITHHOLDING TAX CARD 2021/2022

    Following are the rates of withholding tax:

    01. Car engine capacity up to 1000CC: the tax rate shall be 50,000; and in case the person is not on the Active Taxpayers List (ATL) the tax shall be Rs100,000.

    02. Car engine capacity between 1001CC to 2000CC: the tax rate shall be Rs100,000; and in case the person is not on the ATL the rate shall be Rs200,000

    03. Car engine capacity with 2001 and above: the tax rate shall be Rs200,000; and in case the person is not on the ATL the rate shall be Rs400,000

    The tax collected/deducted shall be adjustable against the tax liability of the person.

  • Income Tax Ordinance, 2001 updated till June 30, 2021

    Income Tax Ordinance, 2001 updated till June 30, 2021

    Following is the complete sections of the Income Tax Ordinance, 2001 updated up to June 30, 2001 after incorporating changes brought through Finance Act, 2001.

    (more…)
  • FBR announces 4-hour portal shutdown till August 30

    FBR announces 4-hour portal shutdown till August 30

    The Federal Board of Revenue (FBR) has announced a strategic move to upgrade its technology infrastructure, necessitating a temporary shutdown of its website for four hours daily until August 30, 2021.

    (more…)
  • Tax rates on purchase of motor car during 2021-2022

    Tax rates on purchase of motor car during 2021-2022

    The Federal Board of Revenue (FBR) in Pakistan has released the updated rates of withholding tax on the purchase of motor cars for the fiscal year 2021-2022.

    (more…)
  • FBR’s appeal in bogus sales tax refunds rejected

    FBR’s appeal in bogus sales tax refunds rejected

    An appeal of the Federal Board of Revenue (FBR) has been rejected by the President of Pakistan in issuance of bogus refund cases.

    President Dr Arif Alvi on Sunday disposed of 42 representations of the FBR in cases of bogus sales tax invoices, worth over Rs 1.2 billion. 

    The FBR had filed the representations with the President of Pakistan assailing the orders of the Federal Tax Ombudsman (FTO) passed in suo moto cases, in which bogus sales tax refunds were reimbursed fully or partially by the delinquent officials of the FBR to the fake claimants.

    The huge scam was unearthed by FBR’s Directorate General Intelligence & Investigation-Inland Revenue and the Red Alerts were issued to the concerned field formations. However, no action was initiated against the FBR officials and the fake claimants.

    The FTO on taking suo moto notice of the matter had issued directions to the FBR to investigate and identify the officials involved in verification of the registered persons (RPs) and initiate a disciplinary action.

    In pursuance of the FTO’s recommendations and also the previous orders of the President of Pakistan passed in similar cases, the FBR constituted six fact-finding inquiry committees to deal with 130 suo moto cases relating fake refund claims.

    The Terms of Reference (ToR) of the committees were meant to identify the wrong-doings and involvement of officials in each case, and fix responsibility. Also, these committees were tasked to prepare a draft charge sheet and statement of allegations with respect to each official and submit a report to the Board within 30 days.

    President Alvi, in view of the findings of the committees, disposed of the representations of the FBR pertaining to the cases in which full or partial refunds were paid fraudulently.

    He directed the FBR for submission of a monthly implementation report to the Federal Tax Ombudsman’s Secretariat till the completion of the action on each case.

    He also ordered to afford an opportunity of show-cause and hearing to the official in case of any departmental action proposed against him, to satisfy the requirement of due process and the principles of natural justice.

    Criminal proceedings against officials of RTO-II Karachi in fake sales tax refunds ordered
  • Computing profit, gains of banking companies

    Computing profit, gains of banking companies

    In a bid to ensure clarity and precision in the taxation of banking companies, Section 100A of the Income Tax Ordinance, 2001 has been introduced, providing special provisions related to banking business.

    (more…)
  • Special tax provisions for exploration, production

    Special tax provisions for exploration, production

    The Federal Board of Revenue (FBR) has outlined critical provisions related to the exploration and production of oil, natural gas, and other minerals under Section 100 of the Income Tax Ordinance, 2001. This section, updated through the Finance Act, 2021, provides a framework for taxation specific to the energy and mining sectors, reflecting their importance to Pakistan’s economy.

    (more…)
  • FBR rebuffs report of using pirated software

    FBR rebuffs report of using pirated software

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday strongly rejected the claims of news report about using pirated software for tax system.

    The FBR issued a clarification on the news aired by a leading news channel regarding use of pirated software by FBR for its systems.

    The revenue body clarified that IT services for Federal and Provincial tax authorities such as FBR, SRB, PRA etc are being provided by PRAL which also includes maintaining the data centers.

    In the data centers there are numerous software products which are being used to perform different functions such as cyber security, virtualization, firewall, etc.

    Key companies whose products are being utilized include Oracle, Microsoft, VMware, Kaspersky etc.

    FBR has clarified that the licensed versions of these softwares have been procured. FBR has added that the original license of the product remains intact, if the support to the software expires.

    However, at times support for these services may not get renewed in a timely fashion due to unavoidable circumstances.

    FBR has clarified that in year 2019, issue of VMware licensing was raised by US Government, which was addressed by procuring the requisite licenses after following relevant procedures as laid down in PPRA rules.

    For over a year no such issue regarding VMware has cropped up, FBR added.

    Taxpayers’ information intact; database breach prevented