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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.

  • Wearing uniform made mandatory for all Customs officers

    Wearing uniform made mandatory for all Customs officers

    ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory of wearing uniform for officials in the grades up to BS-21 of Pakistan Customs Service (PCS).

    The FBR issued SRO 722(I)/2021 on Monday to notify draft rules for making mandatory the wearing of uniform by all customs officials from July 01, 2021.

    The FBR said that the purpose of the single uniform is to enhance the espirit de corps.

    The revenue body said that there shall be service and office uniform of Charcoal Grey colour for all the officers and officials as prescribed from BS-I to BS-21, of Pakistan Customs Service.

    Uniform allowance shall be made permanent part of the salary as per admissible limits determined from time to time by the FBR.

    The FBR said that a Customs General Order (CGO) would be issued for the detailed design, description and accessories of the uniform.

    All ranks of Pakistan Customs Service whether serving in Collectorates or Directorates except FBR Headquarters, shall wear the prescribed uniform with specific formation insignia as prescribed in the CGO issued in this regard.

    “All ranks shall abide by the instructions or guidelines contained in the CGO for manners, etiquettes, appearance and official conduct whilst wearing uniform,” the FBR said.

    Any breach of the guidelines as mentioned above, respective CGO or guidance notes annexed to the CGO shall be construed as misconduct under Civil Servants (Efficiency and Discipline) Rules, 2020, and may entail disciplinary proceedings, it added.

  • FBR urged to issue FTNs against withholding tax deduction

    FBR urged to issue FTNs against withholding tax deduction

    KARACHI: Tax practitioners have urged the Federal Board of Revenue (FBR) to issue Fee Tax Numbers (FTNs) to persons who are not liable for withholding tax.

    In its proposals for budget 2021/2022, the Karachi Tax Bar Association (KTBA) said that Section 49(3) of the Income Tax Ordinance, 2001 has specified that any payment received by the Federal Government, a Provincial Government or a Local Government shall not be liable to any collection or deduction of advance tax.

    No clarification or list of FTN entities to whom this subsection applies, the tax bar said.

    In absence of any SRO or underlying Rules causes unease to the withholding agents to determine proper withholding tax treatment in such case.

    FBR should issue a separate list of Fee Tax Numbers (FTNs), who are not liable to tax withholding as provided under section 49(3) of the Ordinance through a S.R.O.

    The KTBA said that this will assist the withholding agents and save considerable time in deciding whether a respective FTN holder is required to produce exemption certificate or not.

  • FBR impounds benami luxury vehicle

    FBR impounds benami luxury vehicle

    ISLAMABAD: Anti-Benami Zone – I Islamabad of the Federal Board of Revenue (FBR) has impounded a luxury vehicle from a residential premise in the capital.

    A FBR spokesman on Friday said that it was first of its kind operation in which the anti-benami zone confiscated a luxury five-door vehicle from a residential premise in the capital.

    Initial clue to this vehicle’s benami ownership was traced from Excise Office Islamabad Capital Territory.

    The suspected benami owner was not enrolled with FBR and upon enquiry he disowned the vehicle and disclosed that he was just a driver whose CNIC was used by the beneficial owner of the vehicle.

    After completion of enquiry and investigation, a reference was filed to the Adjudicating Authority which was decided in favor of ABI.

    Whereabouts of the vehicle were traced to a house in Islamabad which was subsequently searched, and, on 2nd June 2021, the vehicle was confiscated / impounded with the help of local Law Enforcement Agencies (LEAs) under the Benami Transactions Prohibition Act 2017.

    In accordance with the directions of the Prime Minister, momentum against benami assets accelerated in June 2019 with the inception of Anti Benami Zones across Pakistan.

    Newly created zones have so far filed more than 90 references of various categories of assets including shares, bank accounts, vehicles, land etc. Among them are 33 vehicles which shall be confiscated as soon as these references attain finality under the law.

  • KTBA welcomes withdrawal of audit notices

    KTBA welcomes withdrawal of audit notices

    KARACHI: Karachi Tax Bar Association (KTBA) on Friday said that after intervention of the Federal Board of Revenue (FBR) many audit cases have been withdrawn from IRIS Portal, which were initiated under Section 122(5) of the Income Tax Ordinance, 2001.

    KTBA President Muhammad Zeeshan Merchant in a letter to Chief Commissioners of tax offices located in Karachi welcomed the steps taken for deletion of audit cases that were initiated without definite information.

    The KTBA on May 21, 2021 sent communication to all the chief commissioners of tax offices in Karachi informing them that Inland Revenue offices were issuing incorrect audit notices in order to avoid restriction of time limit as defined in the Income Tax Ordinance, 2001.

    The tax bar strongly criticized the issuance of faulty audit notices for tax year 2015 in order to avoid time restrictions.

    The KTBA said that notices had wrongly been issued by the field formation without properly appreciating returns of income tax as well as statements of wealth and also without proper application of mind as host of such cases pertains to income from property, salary, dividend etc. and also because the grounds advanced in the notices do not constitute ‘definite information’ within the meaning of Section of 122(8) of Income Tax Ordinance, 2001.

     “As the time limitation prescribed for initiating proceedings for the tax year 2015 draws closer, bar members are afraid of encountering more such weird notices in days to come, which in no way tend to serve the purpose of the Ordinance and are likely to create chaotic situation,” the tax bar said.

    In response to the KTBA letter, the FBR took notice and directed the IR officials to avoid opening audit cases merely on surmises and assumptions.

    The FBR said that it had received representations suggesting that the field offices were recklessly issuing notices under section 122(5) read with section 122(9) of Income Tax Ordinance, 2001 where purportedly the threshold of ‘definite information’ as defined under section 122(8) was not met.

    “It goes without saying that amendment proceedings under section 122(5) of the Ordinance, merely on basis of audit suspicion picked from within the declarations lodged by the taxpayers themselves, is an enforcement travesty and need to abate,” the FBR said.

    The scheme of law warrants that a taxpayer must be dealt with precisely as per principle of justice and fair play, it added.

    The FBR directed the field formation to adhere with law and due diligence must be ensured in respect of each taxpayer and no case should be opened merely on surmises and assumptions. “All taxpayers must be provided adequate opportunity of being heard, too,” the FBR added.

    In the instant letter, the KTBA said that most of cases notices with provoked and resentful reasons had been deleted/withdrawn from IRIS portal; whereas in some cases where online deleted/withdrawn communication was made the deletion/withdrawal was still awaited.

  • FBR collection target may be fixed at Rs5,829 billion for 2021/2022

    FBR collection target may be fixed at Rs5,829 billion for 2021/2022

    ISLAMABAD: The government likely to fix Rs5,829 billion as revenue collection target for next fiscal year 2021/2022, sources said on Wednesday.

    The tax target for the next fiscal year is around Rs134 billion less than the projected revenue collection by the International Monetary Fund (IMF).

    The IMF has projected an amount of Rs5,963 billion as tax collection by the Federal Board of Revenue (FBR) during the next fiscal year.

    The sources said that the revenue collection by the FBR during the current fiscal year 2020/2021 has been projected at Rs4,961 billion against the actual revenue target of Rs4,963 billion.

    With the current projection of the revenue collection for the current fiscal year, the FBR would need to increase the collection by 24.26 percent to achieve the projected collection target for fiscal year 2021/2022.

    The sources said that the revenue collection target for Inland Revenue would be Rs5,044 billion during the next fiscal year as against project revenue collection of Rs3,991 billion during the outgoing fiscal year.

    The collection targets for fiscal year 2021/2022 under different heads have been projected as: Income Tax Rs2,182 billion; Sales Tax Rs2,506 billion; Federal Excise Duty Rs356 billion; and Customs Duty at Rs785 billion.

  • FBR notifies transfer, postings of IR officers

    FBR notifies transfer, postings of IR officers

    KARACHI: The Federal Board of Revenue (FBR) on Wednesday announced transfers and postings of Inland Revenue (IR) officers with immediate effect until further orders.

    The FBR announced transfers and postings of the following officers:

    Transfers/Postings of the following officers of the Inland Revenue Service

    01. Syed Bilal Mahmood Jafri (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner-IR, Corporate Tax Office, Karachi from the post of Deputy Commissioner/Initiating Officer, Benami Zone-III, Karachi

    02. Ms. Anoshe Fakhruddin (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner / Initiating Officer, Benami Zone-III, Karachi from the post of Deputy Commissioner / Administrator, Benami Zone-III, Karachi.

    03. Ms. Motia Shah (Inland Revenue Service/BS-17) has been transferred and posted as Assistant Commissioner (Prob)/Administrator, Benami Zone-III, Karachi from the post of Assistant Commissioner (Prob), Corporate Tax Office, Karachi.

    The FBr said that if the officers are drawing performance allowance prior to issuance of this notification, they will continue to draw the same on their new place of posting.

  • FBR collects Rs108 billion from auto sector during 11 months

    FBR collects Rs108 billion from auto sector during 11 months

    ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs108 billion from auto sector during first eleven months of the current fiscal year, showing 51 percent growth despite coronavirus pandemic, a statement said on Wednesday.

    The FBR issued details of revenue collection from major sectors during July  – May 2020/2021.

    Tax revenue of Rs. 108 billion is collected from the auto sector so far which was Rs72 billion in the last year showing growth of 51 percent.

    Likewise, revenue of Rs 117 billion is collected from the banks in the current year which was Rs. 87 billion last year exhibiting increase of 34 percent.

    FBR has collected Rs127 billion from the cement sector in the first eleven months which was Rs97 billion last year showing increase of 31 percent.

    The revenue collected from the POL is Rs. 577 billion which was Rs. 516 billion last year showing an increase of 12 percent.

    From the tobacco sector, FBR has collected Rs. 129 billion revenue which was Rs. 104 billion last year thus showing an increase of 24 percent.

    The revenue from sugar sector was Rs. 53 billion which was Rs. 31 billion last year showing a growth of 74 percent.

    The Customs duty collections in the current year from the major items include vehicles, Iron Steel and Machinery and mechanical appliances.

    Customs duty of Rs. 98 billion is collected from vehicles which was Rs. 52 billion last year showing an increase of 86 percent.

    Customs duty from Iron and Steel remained Rs. 53 billion which was Rs. 42 billion last year showing a growth of 24 percent.

    Similarly, Customs duty from machinery and mechanical appliances is Rs. 38 billion which was Rs. 30 billion last year in the same period thus showing a growth of 26 percent.

  • Income tax return filing increases by 11.4pc to 2.93 million

    Income tax return filing increases by 11.4pc to 2.93 million

    ISLAMABAD: The Federal Board of Revenue (FBR) has received 2.93 million income tax returns for tax year 2020 by end of May 2021.

    According to statement issued on Wednesday, the FBR said in an effort to broaden the tax base the income tax return filing increased significantly.

    As on May 31, 2021, income tax returns for tax year 2020 have reached 2.93 million Compared to 2.63 million in tax year 2019, showing an increase of 11.4 percent.

    The tax deposited with returns was Rs.52 billion compared to only Rs.34 billion last year, showing an increase of 55 percent.

    FBR has also released the information about Tier-I retailers who have been integrated with POS system. According to the information, 10,767 sales points have been integrated with Point of Sales Linked Invoicing System.

  • FBR notifies rules for implementing e-audit

    FBR notifies rules for implementing e-audit

    The Federal Board of Revenue (FBR) has issued draft rules to streamline the process of online audit (e-audit) proceedings, enabling taxpayers to attend hearings virtually without the need to visit tax offices.

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  • FBR issues rules for carry forward capital losses by listed securities

    FBR issues rules for carry forward capital losses by listed securities

    ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued draft rules for tax treatment on capital loss on disposal of listed securities.

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