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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.

  • Key proposals to withdraw tax exemptions

    Key proposals to withdraw tax exemptions

    ISLAMABAD: The government is going to withdraw various exemptions allowed under Income Tax Ordinance, 2001.

    The exemption may be withdrawn through Income Tax (Second Amendment) Ordinance, 2021, the sources said on March 21, 2021.

    Following are the highlights of the proposed law:

    It is proposed to omit power of Federal Board of Revenue (FBR) to declare any sector or industry as industrial under taking under Section 2 Clause (29C) of Income Tax Ordinance. 2001.

    Under Section 23A of the Income Tax Ordinance, 2001 it is proposed to omit first year allowance equal to 90 percent of the cost of plant and machinery to mobile phone manufacturers and other industrial undertakings located in underdeveloped areas.

    Under Section 61 of the Income Tax Ordinance, 2001 it is proposed to enhance the scope of tax credit for contribution to non-profit and other organizations as direct deduction of such expense is being proposed to be done away with by omitting clause 61 of part I of the second schedule.

    Under Section 64C of the Income Tax Ordinance, 2001, it is proposed to omit tax credit available to persons employing fresh graduates. It was available maximum up to 5 percent of the tax liability.

    Under Section 65C of Income Tax Ordinance, 2001 it is proposed to omit tax credit to companies equal to 20 percent of tax payable for first two years and 10 percent for next two years  of enlistment at stock exchange.

    Section 65D of Income Tax Ordinance, 2001, it is proposed to omit tax credit available to newly established industrial undertakings.

    Under Section 65F of Income Tax Ordinance, 2001, it is proposed that the exemptions available to persons engaged in coal mining in Sindh, IT exports and startups to be replaced with tax credit.

    Under section 65G of Income Tax Ordinance, 2001, the exemptions available to greenfield industrial undertakings and industries engaged in manufacture of plant, machinery, equipment and items with dedicated use (no multiple uses) for generation of renewable energy have been proposed to be replaced with tax credit on the basis of  investment made in plant machinery, building, computer, hardware and software.

    Under Section 100C of Income Tax Ordinance, 2001 law related to tax credit available to charitable organizations has been re-drafted to make it simpler & easier besides streamlining the regime with other provisions. No substantial change.

    Under Section 152 of Income Tax Ordinance, 2001, technical correction in sub-section (1E) to synchronize with other sub-sections

  • FBR taking all measures to resolve taxpayers’ grievances: Javed Ghani

    FBR taking all measures to resolve taxpayers’ grievances: Javed Ghani

    The Federal Board of Revenue (FBR) is actively pursuing measures for redressal, as affirmed by FBR Chairman Muhammad Javed Ghani on Friday.

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  • FBR collects Rs1.8bn as capital gain tax on sale of securities

    FBR collects Rs1.8bn as capital gain tax on sale of securities

    KARACHI: Federal Board of Revenue (FBR) has collected Rs1.8 billion as capital gain tax on sale of securities during first eight months (July – February) 2020/2021.

    The collection of capital gain tax on sale of securities has increased by 31 percent to Rs1.8 billion during first eight months of the current fiscal year as compared with Rs1.37 billion in the corresponding period of the last fiscal year, sources in Large Taxpayers Office (LTO) Karachi said on Friday.

    The collection was made under Section 147 (5B) of Income Tax Ordinance, 2001.

    Adjustable advance tax on capital gain from sale of securities shall be chargeable as under, namely:—

    Where holding period of a security is less than six months: the rate of advance tax shall be two percent of the capital gains derived during the quarter.

    Where holding period of a security is more than six months but less than 12 months: the tax rate shall be 1.5 percent of the capital gains derived during the quarter.

    Provided that such advance tax shall be payable to the Commissioner within a period of twenty-one days after the close of each quarter: Provided further that the provisions of this sub-section shall not be applicable to individual investors.

  • Pakistan, Qatar agree on promoting tax cooperation

    Pakistan, Qatar agree on promoting tax cooperation

    ISLAMABAD: Pakistan and Qatar on Thursday agreed to promote bilateral relations in customs and taxes.

    Ambassador of Qatar in Pakistan, Sheikh Saoud Abdul Rahman Al-Thani Thursday called on Chairman Federal Board of Revenue (FBR), Muhammad Javed Ghani.

    Matters of mutual concern pertaining to cooperation on customs and tax were discussed in the meeting according to an FBR press statement issued here.

    It was agreed in the meeting that relevant departments of both countries would further promote the cooperation in the field of customs and tax and would learn from each other’s best practices which would result in increasing the trade volume between the two countries.

    Chairman FBR briefed the Qatari Ambassador about the recent measures taken by FBR for the mobilization of revenue and facilitation of taxpayers.

    Qatari Ambassador appreciated the recent performance of FBR in the first eight months of current financial year and hoped that FBR would successfully achieve the revenue target set for the current year.

  • Tax credit for enlistment in stock exchange may be withdrawn

    Tax credit for enlistment in stock exchange may be withdrawn

    ISLAMABAD: The government likely to withdraw tax credit available to companies for enlistment in stock exchange.

    The withdrawal of tax credit is part of proposal to rationalize tax exemption regime in the country. The law to withdraw tax exemption and incentives may be introduced soon.

    The tax credit for enlistment is available under Section 65C of the Income Tax Ordinance, 2001. The tax credit is available for three years. The first year tax credit for enlistment in stock exchange is 20 percent of the tax payable for the year in which the company is enlistment. Meanwhile tax credit for the following two years is 10 percent of the tax payable.

    The government is considering omitting this tax credit. The Federal Board of Revenue (FBR) granted an amount of Rs357 million as tax credit during fiscal year 2019/2020 to the companies listed with stock exchange availing this incentive.

  • 200,000 late filers get active taxpayers status

    200,000 late filers get active taxpayers status

    ISLAMABAD: Around 200,000 income tax return filers paid surcharge to get their names in Active Taxpayers List (ATL) during past 15 days.

    According to latest ATL for tax year 2020 updated up to March 14, 2021 the number of active taxpayers has increased to 2.37 million as compared with 2.17 million persons in the ATL 2020 issued by the FBR on March 01, 2021.

    The appearance of taxpayers’ name on the ATL guarantees exemption from withholding tax on various transactions and reduction of withholding tax rate.

    The FBR includes names of only those taxpayers, who file their annual returns within due date or it was extended by commissioner appeals on the basis of request filed by the taxpayers.

    However, late filers can also enlist their names on the ATL after payment of surcharge.

    The payment of surcharge is Rs1,000 for individuals, Rs10,000 for Association of Persons and Rs20,000 is for corporate entities.

    Subscribe to watch video how to pay surcharge for ATL Inclusion

  • FBR issues preventive measures for stage-III coronavirus

    FBR issues preventive measures for stage-III coronavirus

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued preventive measures for stage-III coronavirus pandemic.

    The FBR directed all the officers of the headquarters and field formations (BS-17 to BS-21) to restrict the working strength of their offices to only one clerical / ministerial staff and one Naib Qasid on weekly/fortnightly rotation basis with effect from March 16, 2021.

    The FBR further said that employees having symptoms of COVID-19 must immediately get themselves tested for the same and in case tested positive, they must immediately quarantine / isolate themselves at homes for fourteen (14) days. “During this period, their entry to concerned offices shall be banned.”

    COVID-19 positive employees shall get themselves tested at the end of fourteen (14) days quarantine/isolation period and only in case of negative results, shall resume their official duties.

    In order to avoid physical contact with door handles and to keep the rooms/offices properly ventilated and well-lit, it is also advised that all offices doors/windows be kept open.

  • FBR appoints panel of advocates for Karachi tax offices

    FBR appoints panel of advocates for Karachi tax offices

    KARACHI: Federal Board of Revenue (FBR) on Tuesday appointed a panel of advocates to present the tax offices in Karachi before various legal forums.

    The FBR placed following advocates, on the panel of the FBR, relating to court matters of Inland Revenue Service for a period of three years:

    01. Ali Tahir

    02. Iftikhar Hussain Qureshi

    03. Ayaz Sarwar Jamali

    04. Sardar Zafar Hussain

    05. Munawar Ali Memon

    06. Chaudhary Mehmood Anwar

    07. Ijazuddin Qureshi

    08. Irfan Mir Halipota

    09. Saif Ali Akbar

    10. Muhammad Taseer Khan

    11. Iqbal Hussain

    12. Qasim Ali

    13. Ghulam Murtaza Korai

    14. Rana Sakhawat Ali

    15. Mansoor ul Haq Solangi

    16. Syed Muhammad Salman Ali

    17. Naureen Iqbal

    18. Syed Zaeem Hyder Musavi

    19. Fayyaz Ali Metlo

    20. Masood Rasool Babar

    21. Farhan Ali Shah

    22. Ms. Abida Perveen Channar

    23. Akhtar Hussain Sheikh

    24. Zafar Imam

    25. Imtiaz Ali Solangi

    The FBR said that the advocates may be assigned court cases for pleading before various courts/tribunals at Karachi Station, on the basis of merit, keeping in view their experience and facts of the each case.

  • Tax collection from new car manufacturing grows by 28pc

    Tax collection from new car manufacturing grows by 28pc

    The collection of withholding income tax from the sales of new cars by manufacturers in Pakistan has seen a notable uptick, marking a 28 percent increase during the first eight months of the fiscal year 2020/2021.

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  • Sales tax record must be retained for six years

    Sales tax record must be retained for six years

    ISLAMABAD – In a bid to enhance transparency and compliance, the Federal Board of Revenue (FBR) has stipulated that registered businesses must retain their sales tax records for a period of six years for audit and examination purposes.

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