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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.

  • FBR constitutes committees for integration of Tier-I retailers

    FBR constitutes committees for integration of Tier-I retailers

    ISLAMABAD: Federal Board of Revenue (FBR) has constituted central committee and regional committees to oversee the integration of Tier-I retailers with the FBR system.

    The FBR said that in pursuance of the Memorandum of Understanding (MOU) signed between the FBR and the Chainstore Association of Pakistan (CAP) on October 28, 2020, a central committee and regional committees have been constituted to oversee the process of integration of Tier-I Retailers.

    The central committee would look into issues related to input tax issues, HS Code issues, customer incentivization, software problems etc.

    Similarly, the Regional Committees would be responsible for identification Tier-I and Tier-II retailers in their respective areas and to liaise with the chief commissioners concerned besides resolving sectoral as well as individual issues of retailers.

    Following Central and Regional Committees have been constituted comprising of FBR and CAP’s representatives:

    Central Committee:

    FBR Representatives:

    i. Director General Retail

    ii. Chief (IR- Analysis)

    iii. Second Secretary Retail

    CAP’s Representatives:

    i. Tariq Mehboob

    ii. Irfan Iqbal Sheikh

    iii. Asfandyar Farrukh

    iv. Mardan Ali Zaidi

    v. Mohammad Shamsuddin

    vi. Mustafa Bashir

    vii. Raheel Meghani

    viii. Sheikh Owais Mehmood

    ix. Addel Rauf

    x. Tanveer Niaz

    xi. Ch. Asim Ghous

    xii. Mohammad Imran Saleemi

    Karachi Region Committee

    FBR Representatives:

    i. Chief Commissioner Inland Revenue, MTO Karachi

    ii. Focal Person, POS integration, MTO Karachi.

    CAP’s Representatives:

    i. Asfandyar Farrukh

    ii. Junaid Dandia

    iii. Salman Saeed

    iv. Raheel Meghani

    v. Mustufa Bashir

    vi. Rafiq Chamdia

    Lahore Region Committee

    FBR Representatives:

    i. Chief Commissioner Inland Revenue RTO, Lahore

    ii. Focal Person, POS integration, RTO Lahore

    CAP’s Representatives:

    i. Tariq Mehmood

    ii. Wasif Butt

    iii. Mohammad Imran Saleemi

    iv. Mardan Ali Zaidi

    v. Asim Javed

    vi. Omar Saeed

    Islamabad Region Committee

    FBR Representatives:

    i. Chief Commissioner Inland Revenue RTO, Islamabad

    ii. Focal Person, POS integration, RTO Islamabad

    CAP’s Representatives:

    i. Shaikh Owais Mehmood

    ii. Asim A Majeed

    iii. Ahszan Zafar Bakhtawari

    iv. Shamsuddin Sultan Ali

    v. Addel Rauf

    vi. Ch. Tahir

  • No sale to be allowed without tax stamp: FBR

    No sale to be allowed without tax stamp: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday said that no product would be allowed to be removed from a production site without affixation of tax stamps with effect from July 01, 2021.

    The tax stamps to be obtained/procured from and applied by FBR’s Licensee M/s. AJCL/MITAS/Authentix Consortium.

    The FBR said that after awarding license of the Track and Trace system to the successful bidder, FBR has issued four Sales Tax General Orders for Four specified Sectors. These sectors include Tobacco, Sugar, Cement and Fertiliser.

    These Sales Tax General Orders are being issued under the provisions of Section 40C(2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006.

    These laws mandate FBR to notify the date for the implementation of Electronic Monitoring of productions and sales of goods in the manner prescribed in the law on all manufacturing sites.

    FBR has directed All manufacturers of specified Products to make necessary arrangements for importation of applicators and other equipment required for successful installation and implementation of Track and Trace System at their production facilities.

  • FBR criticized for restricting servicing of tax notices through electronic means

    FBR criticized for restricting servicing of tax notices through electronic means

    KARACHI: Karachi Tax Bar Association (KTBA) has criticized the tax authorities for restricting the service of tax notices to electronic means.

    (more…)
  • 100 percent income tax credit proposed for IT sector: FBR

    100 percent income tax credit proposed for IT sector: FBR

    Federal Board of Revenue (FBR) announced on Wednesday a proposal to expand the range of tax concessions for income derived from the export of software, IT services, and IT-enabled services.

    (more…)
  • FBR processes first batch of automated income tax refund payment

    FBR processes first batch of automated income tax refund payment

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday processed first batch of income tax refund payment through automated system.

    Member IR (Operations) inaugurated Centralized Income Tax Refund Office (CITRO) by processing the first batch of income tax refund claims for payment through dedicated VPN tunnel established between FBR and State Bank of Pakistan (SBP).

    This is indeed another milestone achieved by the organization through incessant efforts of Member IR Operations and Member IT of FBR, a statement said.

    This system would eliminate human interaction between tax authority and taxpayers as well as ensure quick relief to business community.

    The FBR said that in line with the vision of the Prime Minister to provide maximum facilitation to the taxpayers and under the guidance of Chairman FBR, the CITRO has been established at FBR in order to facilitate taxpayers by releasing income tax refund payments directly into their bank accounts in an expeditious and transparent manner. This would work in an end-to-end automated manner.

    FBR is in process of enhancing this automation process to the next level by creating linkages between all federal and provincial departments as well as large numbers of withholders so that verification and processing of refund claims can also be made in a machine-enabled environment.

  • FBR inducts 14 fresh chemical examiners in customs department

    FBR inducts 14 fresh chemical examiners in customs department

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday inducted 14 fresh chemical examiners (BS-16) in the Customs department.

    The FBR said that consequent upon the recommendations of Federal Public Service Commission (FPSC), Islamabad vide letter No.F.4-140/2019-R(FS-I), dated 18.01.2021 and having accepted the terms and conditions of appointment contained in the offer of appointment letter No.1(44)/2018-Cus-III dated 25.01.2021, the following candidates are hereby appointed as Deputy Assistant Chemical Examiner (BS-16) in the Customs Department under the Federal Board of Revenue:-

     Sr#FPSC Roll #Name of the CandidatesPlace of posting
    1921Muhammad Waqas AhmadModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    279Arif AliModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    3548Hafiza Fatima YasinModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    4742Sajjad AliModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    5490Ali QasimModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    61105Shakeel KhanModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    7586Maham NaeemModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    8965Taimoor TawseenModel Customs Collectorate of Appraisement & Facilitation-West, Karachi
    9563Husna SarfrazModel Customs Collectorate of Appraisement & Facilitation-East, Karachi
    10306Sobia NoreenModel Customs Collectorate of Appraisement & Facilitation-East, Karachi
    111093Rashid MenhasModel Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi
    121151Shah KhalidModel Customs Collectorate of Exports (Port Muhammad Bin Qasim), Karachi
    13118Ghulam RasoolModel Customs Collectorate of Exports, Customs House, Karachi
    14927Noman SaleemModel Customs Collectorate of Exports, Customs House, Karachi

    The FBR said that their seniority will be maintained in order of merit assigned by Federal Public Service Commission (FPSC) and in accordance with the Civil Servants (Seniority) Rules, 1993. Other terms and conditions of their service will be the same as already conveyed vide FBR letter dated January 25, 2021.

    The officers have been advised to join the concerned Customs field formation mentioned against their names immediately but not later than March 26, 2021.

  • FBR asks taxpayers to update profile for avoiding penal action

    FBR asks taxpayers to update profile for avoiding penal action

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday asked taxpayers to update their profile by March 31, 2021 to avoid penal action.

    The FBR said: “Statutory deadline for furnishing/updating of taxpayers’ profile under section 114A of the Income Tax Ordinance, 2001 is March 31, 2021. Please update your profile before the deadline in order to avoid penal consequences under the law.”

    Updating profile by all the taxpayers registered under Section 181 of the Income Tax Ordinance, 2001 and other conditions specified by the Federal Board of Revenue (FBR) is a mandatory requirement under Section 114A of the Ordinance.

    Through Finance Act, 2020, the Section 114A was introduced to make the updating profile mandatory for following persons:

    (a) every person applying for registration under section 181;

    (b) every person deriving income chargeable to tax under the head, “Income from business”;

    (c) every person whose income is subject to final taxation;

    (d) any non-profit organization as defined in clause (36) of section 2;

    (e) any trust or welfare institution; or

    (f) any other person prescribed by the Board.

    The FBR explained the newly introduced section as: “Complexity of return forms is an embodiment of the complexity of tax law. Nevertheless, there is a dire need to simplify return forms without compromising on data required to verify accuracy of the declared version.”

    The FBR said that instead of endeavoring to obtain all the relevant information in the income tax return, a new section has been added wherein taxpayers profile may be prescribed in order to capture data relevant to the taxpayer.

    It said that persons who are already registered before September 30, 2020 and are deriving business or incomes subject to final taxation, trusts, welfare institutions, non-profit organizations and such other persons prescribed by the FBR are proposed to file a profile on or before December 31, 2020, which is not extended up to March 31, 2021.

    Persons who obtain their registration after September 30, 2020 are proposed to furnish such profile within 90 days of registration. In case of any change in particulars of information, such persons shall update their profile within 90 days of the change in particulars. The profile contains information relevant to income regarding bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer, types of businesses and such other information as may be prescribed by the FBR.

    The FBR said that if a person fails to furnish or update a taxpayer’s profile within the due date or time period as extended by the FBR under Section214A, such person shall not be included in the active taxpayers list for the latest tax year ending prior to the aforesaid due date or extended date.

    However, upon filing or updating the profile, such persons shall be allowed to be placed on the active taxpayers list upon payment of surcharge which is Rs20,000 in the case of a company, Rs10,000 in the case of an association of persons and Rs1,000 in the case of an individual.

    Further, a penalty for non-filing or not updating of profile is also proposed at the rate of Rs2,500 for each day of default subject to minimum penalty of Rs10,000.

  • FBR adds 116,801 names to active taxpayers list

    FBR adds 116,801 names to active taxpayers list

    ISLAMABAD: Federal Board of Revenue (FBR) has added around 116,801 taxpayers to the updated Active Taxpayers List (ATL) for tax year 2020 issued on Monday.

    The FBR updates the ATL on every Monday on a weekly basis. The revenue body issued new ATL for tax year 2020 on March 01, 2021. The recent list is the first update to the new ATL.

    The total number of active taxpayers in the new ATL – 2020 issued a week was 2,178,463. The weekly updated ATL issued on March 08, 2021 is carrying names of around 2,295,264 active taxpayers.

    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.

  • Computation of taxable income defined

    Computation of taxable income defined

    Income Tax Ordinance, 2001 has explained procedure for computation of taxable income.

    The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR), explained COMPUTATION OF TAXABLE INCOME under Sections 9, 10 and 11 of the ordinance.

    9. Taxable income.—The taxable income of a person for a tax year shall be the total income under clause (a) of section 10 of the person for the year reduced (but not below zero) by the total of any deductible allowances under Part IX of this Chapter of the person for the year.

    10. Total Income.— The total income of a person for a tax year shall be the sum of the —

    (a) person’s income under all heads of income for the year; and

    (b) person’s income exempt from tax under any of the provisions of this Ordinance.

    11. Heads of income.— (1) For the purposes of the imposition of tax and the computation of total income, all income shall be classified under the following heads, namely: —

    (a) Salary;

    (b) Income from Property;

    (c) Income from Business;

    (d) Capital Gains; and

    (e) Income from Other Sources.

    (2) Subject to this Ordinance, the income of a person under a head of income for a tax year shall be the total of the amounts derived by the person in that year that are chargeable to tax under the head as reduced by the total deductions, if any, allowed under this Ordinance to the person for the year under that head.

    (3) Subject to this Ordinance, where the total deductions allowed under this Ordinance to a person for a tax year under a head of income exceed the total of the amounts derived by the person in that year that are chargeable to tax under that head, the person shall be treated as sustaining a loss for that head for that year of an amount equal to the excess.

    (4) A loss for a head of income for a tax year shall be dealt with in accordance with Part VIII of this Chapter.

    (5) The income of a resident person under a head of income shall be computed by taking into account amounts that are Pakistan-source income and amounts that are foreign-source income.

    (6) The income of a non-resident person under a head of income shall be computed by taking into account only amounts that are Pakistan-source income.

  • Taxpayers require to update profile by March 31 to avoid exclusion from ATL

    Taxpayers require to update profile by March 31 to avoid exclusion from ATL

    ISLAMABAD: Taxpayers are required to update their profile by March 31, 2021 to avoid exclusion their names from Active Taxpayers List (ATL).

    The last date for updating the profile was December 31, 2020. However, it was extended up to March 31, 2021.

    Updating profile by all the taxpayers registered under Section 181 of the Income Tax Ordinance, 2001 and other conditions specified by the Federal Board of Revenue (FBR) is a mandatory requirement under Section 114A of the Ordinance.

    Through Finance Act, 2020, the Section 114A was introduced to make the updating profile mandatory for following persons:

    (a) every person applying for registration under section 181;

    (b) every person deriving income chargeable to tax under the head, “Income from business”;

    (c) every person whose income is subject to final taxation;

    (d) any non-profit organization as defined in clause (36) of section 2;

    (e) any trust or welfare institution; or

    (f) any other person prescribed by the Board.

    The FBR explained the newly introduced section as: “Complexity of return forms is an embodiment of the complexity of tax law. Nevertheless, there is a dire need to simplify return forms without compromising on data required to verify accuracy of the declared version.”

    The FBR said that instead of endeavoring to obtain all the relevant information in the income tax return, a new section has been added wherein taxpayers profile may be prescribed in order to capture data relevant to the taxpayer.

    It said that persons who are already registered before September 30, 2020 and are deriving business or incomes subject to final taxation, trusts, welfare institutions, non-profit organizations and such other persons prescribed by the FBR are proposed to file a profile on or before December 31, 2020, which is not extended up to March 31, 2021.

    Persons who obtain their registration after September 30, 2020 are proposed to furnish such profile within 90 days of registration. In case of any change in particulars of information, such persons shall update their profile within 90 days of the change in particulars. The profile contains information relevant to income regarding bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets operated or leased by the taxpayer, types of businesses and such other information as may be prescribed by the FBR.

    The FBR said that if a person fails to furnish or update a taxpayer’s profile within the due date or time period as extended by the FBR under Section214A, such person shall not be included in the active taxpayers list for the latest tax year ending prior to the aforesaid due date or extended date.

    However, upon filing or updating the profile, such persons shall be allowed to be placed on the active taxpayers list upon payment of surcharge which is Rs20,000 in the case of a company, Rs10,000 in the case of an association of persons and Rs1,000 in the case of an individual.

    Further, a penalty for non-filing or not updating of profile is also proposed at the rate of Rs2,500 for each day of default subject to minimum penalty of Rs10,000.