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ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday made a huge seizure of smartphones and drives worth Rs50 million at Islamabad International Airport.
A FBR spokesman said that in line with the vision of Prime Minister and due focused approach against the menace of smuggling, FBR has seized 10 cartons and 06 bags lying unclaimed on a conveyer belt at Islamabad International Airport.
The bags contained 25 Apple Macbooks, 235 Apple iPhones, 09 LG Thinq V50 smartphones, 200 SanDisk drives, 94 Lexar SSD drives, 217 SSD drives of difference brands, 40 Lexar SD RAMs, 20 Apples watches (Series 6), 30 Apple Air pods, 04 Apples iPad Pro (5th Generation), 12 Apple iPad (8th Generation), 10 Apple power adapters, 05 Apple USB Power adapters, 03 Apple HD TV devices,05 Honey Well dome cameras, 07 used cameras and other miscellaneous goods having market value of Rs.50 million.
FBR will continue its counter smuggling drive to support local industry and to play its role in economic growth of the country.
ISLAMABAD: The Tax Maloomat (information) – a program launched by the Federal Board of Revenue (FBR) has captured details of 53 million citizens who have made transactions and withholding tax was deducted.
An official report revealed that the FBR’s Maloomat (tax profiling system), that was launched on its web portal, had contained data of 53 million citizens, giving access to the filers and non-filers to the information about their assets and bank accounts.
The report further said that FBR had utilized data obtained from DISCOs and gas companies:
More than 650,000 notices have been issued on the basis of data obtained from DISCOs and in lieu of these notices 129,541 returns have been enforced so far, it added.
In order to develop 360 degree view of tax payers, data sources like banks, vehicles and real estate transactions have been captured and a Data Bank has been developed. Based on this data bank, notices to more than 200,000 high net-worth un-registered persons have been issued.
The report further said that number of income tax return filers for Tax Year 2020 has crossed 3.0 million.
The FBR launched Tax Asaan – a mobile phone application – which provides for basic verification features like ATL, Online NTN/STRN inquiry, exemption certificates and sales tax registration.
The FBR has embarked on a plan to integrate all sales outlets of tier-1 retailers with FBR’s central computerized system.
The FBR successfully signed an agreement with traders. The market committees shall not only resolve contentious issues but also ensure registration of un-registered traders.
The FBR has decided to implement Track and Trace System for specified goods/ products i.e. Tobacco, Cement, Sugar, Fertilizer and Beverages imported into or manufactured in Pakistan.
ISLAMABAD: The Federal Board of Revenue (FBR) will bring more retailers into sales tax ambit after the proposal made through Finance Bill, 2021 related to Tier-I retailers.
Tier-I retailers are commonly known for having huge volume sales and operating in a mall, air conditioned environment etc.
Sources in the FBR said that retailer receiving payment through debit card and debit card would also qualify for Tier-I retailers.
KPMG Taseer Hadi & Co. Chartered Accountants in its commentary on Budget 2021/2022 stated that the Section 2(43A) of Sales Tax Act, 1990 provides threshold limit and qualification criteria for tier-1 retailers.
The Finance Bill now proposes to enhance the qualification criteria of tier-1 retailers by following additions
– Retailers of furniture whose shop measures two (2) thousand square feet or more.
– Retailer operating an online market place supplying goods through e-commerce platform, whether the goods are owned by him or not.
– A retailer who has acquired point of sale for accepting payment through debit or credit cards from banking companies or any other digital payment service provider authorized by State Bank of Pakistan.
The Bill further proposes to do away with on incentive of the cash back, up to five percent of the tax involved, to customers of Tier-1 retailer who have integrated their retail outlets with the Board’s computerized system for real-time reporting of sales.
ISLAMABAD: Banks shall not collect/deduct withholding tax on cash withdrawal from July 01, 2021 subject to approval of the Finance Bill by the National Assembly.
The Finance Bill 2021 proposed abolishing levy of withholding tax on cash withdrawals from banking system.
The withholding tax on cash withdrawal was imposed through Finance Act, 2005 in order to bring persons having taxable income but out of tax net.
Initially the withholding tax was imposed at withdrawal of Rs25,000 on all persons making such transaction at 0.5 percent. However, through Finance Act, 2012 this threshold was increased to Rs50,000.
Later, the withholding tax rate was reduced for income tax return filer to 0.3 percent and for non-filer it was increased to 0.6 percent.
Through Finance Supplementary (Second Amendment) Act, 2019 the withholding tax on return filer at the rate of 0.3 percent was abolished and non-filers were required to pay 0.6 percent on making cash withdrawal above Rs50,000 per day.
Now through Finance Bill 2021 proposed to abolish the 0.6 percent withholding tax on persons not on the Active Taxpayers List (ATL) or non-filers.
The changes proposed through Finance Bill 2021 will be applicable from July 01, 2021 subject to the approval from the National Assembly.
In a move aimed at streamlining taxation in the digital era, proposed amendments to the Sales Tax Act, 1990 are set to require individuals operating online marketplaces to collect sales tax on goods sold through their platforms, regardless of ownership.
ISLAMABAD: The government has decided to retain the tax rates for individuals and Association of Persons (AOPs) for the year 2021-2022, sources in Federal Board of Revenue (FBR) said.
Since there is no change proposed through the Finance Bill, 2021 the rates applicable in Tax Year 2021 shall remain applicable in Tax Year 2022.
Rates of Tax for Individuals and Association of Persons
(1) Subject to clause (2), the rates of tax imposed on income of every individual and association of persons except a salaried individual shall be as set out in the following Table, namely:—
TABLE
S. No.
Taxable income
Rate of tax
(1)
(2)
(3)
1.
Where taxable income does not exceed Rs. 400,000
0%
2.
Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000
5% of the amount exceeding Rs. 400,000
3.
Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000
Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000
4.
Where taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000
Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000
5.
Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000
Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000
6.
Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000
Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000
7.
Where taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000
Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000
8.
Where taxable income exceeds Rs. 6,000,000
Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000
ISLAMABAD: The levy of super tax has been permanently imposed on banking companies as it was expiring in the tax year 2021.
Sources in the Federal Board of Revenue (FBR) said that the super tax was only imposed on banking companies while the other taxpayers were exempted from tax year 2020.
The sources said that the Finance Bill 2021 had proposed to continue the levy of super tax at 4 percent on banking companies beyond Tax Year 2021 and onwards.
The government imposed the super tax through Finance Act, 2015 for one year, which was later extended for subsequent years, by inserting Section 4B to the Income Tax Ordinance, 2001.
According to Section 4B:
Super tax for rehabilitation of temporarily displaced persons.― (1) A super tax shall be imposed for rehabilitation of temporarily displaced persons, for tax years 2015 and onwards, at the rates specified in Division IIA of Part I of the First Schedule, on income of every person specified in the said Division.
(2) For the purposes of this section, “income” shall be the sum of the following:—
(i) profit on debt, dividend, capital gains, brokerage and commission;
(ii) taxable income (other than brought forward depreciation and brought forward business losses) under section (9) of this Ordinance, if not included in clause (i);
(iii) imputable income as defined in clause (28A) of section 2 excluding amounts specified in clause (i); and
(iv) income computed, other than brought forward depreciation, brought forward amortization and brought forward business lossess under Fourth, Fifth, Seventh and Eighth Schedules.
(3) The super tax payable under sub-section (1) shall be paid, collected and deposited on the date and in the manner as specified in sub-section (1) of section 137 and all provisions of Chapter X of the Ordinance shall apply.
(4) Where the super tax is not paid by a person liable to pay it, the Commissioner shall by an order in writing, determine the super tax payable, and shall serve upon the person, a notice of demand specifying the super tax payable and within the time specified under section 137 of the Ordinance.
(5) Where the super tax is not paid by a person liable to pay it, the Commissioner shall recover the super tax payable under subsection (1) and the provisions of Part IV,X, XI and XII of Chapter X and Part I of Chapter XI of the Ordinance shall, so far as may be, apply to the collection of super tax as these apply to the collection of tax under the Ordinance.
(6) The Board may, by notification in the official Gazette, make rules for carrying out the purposes of this section.
Therefore tax rate and slabs will remain unchanged for tax year starting from July 01, 2021.
Following is the table for tax rates on taxable income of salaried persons prevailed during tax year 2021:
Where the income of an individual chargeable under the head “salary” exceeds seventy-five per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—
01. Where taxable income does not exceed Rs. 600,000: the tax is zero per cent
02. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000: the tax rate is 5% of the amount exceeding Rs. 600,000
03. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000: the tax rate is Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000
04. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000: the tax rate is Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
05. Where taxable income exceeds Rs.2,500,000 but does not exceed Rs. 3,500,000: the tax rate is Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
06. Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000: the tax rate is Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
07. Where taxable income exceeds Rs. 5,000,000 but does not exceeds Rs. 8,000,000: the tax rate is Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
08. Where taxable income exceeds Rs. 8,000,000 but does not exceeds Rs. 12,000,000: the tax rate is Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
09. Where taxable income exceeds Rs. 12,000,000 but does not exceeds Rs. 30,000,000: the tax rate is Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
10. Where taxable income exceeds Rs. 30,000,000 but does not exceeds Rs. 50,000,000: the tax rate is Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
11. Where taxable income exceeds Rs. 50,000,000 but does not exceeds Rs. 75,000,000: the tax rate is Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
12. Where taxable income exceeds Rs. 75,000,000: the tax rate is Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000
In a bid to enhance regulatory oversight and combat counterfeiting, the proposal to make brand licensing mandatory for manufacturers of specified goods has been put forward. In the event of non-compliance, the Federal Board of Revenue (FBR) is poised to be empowered with the authority to confiscate such items.
ISLAMABAD: The Federal Board of Revenue (FBR) on Friday formed committees to identify and remove technical and legal anomalies in the Finance Bill, 2021.
The FBR formed following committees:
Sultan Ali Allana, Chairman, HBL has been appointed as chairman of the business anomaly committee. Ch. Muhammad Tarique, Member (IR- Policy), FBR is co-chairman of the committee. The other members of the committee are included:
01. Ehsan A Malik, CEO, Pakistan Business Council
02. M. Shariq Vohra, President, Karachi Chamber of Commerce and Industry
03. Irfan Siddiqui, President, Overseas Investors Chamber of Commerce and Industry
06. Mian Naseer Hayat Maggo, President, Federation of Pakistan Chambers of Commerce and Industry
07. Mian Tariq Misbah, President, Lahore Chamber of Commerce and Industry
08. Adil Bashir, Chairman, All Pakistan Textile Mills Association
09. Asif Peer, President, American Business Council
10. Asad Shah, Director (External Affairs), PTC
11. Amir Waheed, ex-President of Islamabad Chamber
Naeem Akhtar Sheikh, UHY Hassan Naeem & Co. has been appointed as chairman of the anomaly technical committee constituted by the FBR. The co-chairman of the committee are: Ch. Muhammad Tarique, Member (IR-Policy), FBR; and Syed Hamid Ali, Member (Customs –Policy), FBR,
The other members of the committee are:
01. Ashfaq Tola, FCA, FCMA
02. Abdul Qadir Memon, Patron Pakistan Tax Bar, Karachi
03. Syed Yawar Ali, Chairman, Pakistan Business Council, Karachi
04. Shahzad Hussain, Ex- Partner, A F Ferguson & Co.
05. Khurram Mukhtar, Patron-in-Chief, PTEA
06. Ms. Sadia Nazeer, FCA, Partner KPMGA
07. Hafiz Muhammad Idrees, Advocate, Supreme Court, Ex-President, Tax Bar
08. Habib Fakhruddin, CA
09. Abdul Wahab Kodvai
The committees have been given tasks to review the anomalies identified and to advise FBR on removal of anomalies.
