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.

ITO explains principal officer of company

Income Tax Ordinance (ITO), 2001 has explained principal officer of a company for the purpose or apply law and rules for the purpose of income tax payment.

The Income Tax Ordinance, 2001 updated up to June 30, 2001 issued by the Federal Board of Revenue (FBR) defined ‘principal officer’ with reference to a company or association of persons includes –

(a) a director, a manager, secretary, agent, accountant or any similar officer; and

(b) any person connected with the management or administration of the company or association of persons upon whom the Commissioner has served a notice of treating him as the principal officer thereof.

February 28, 2021
Liaison office defined by Income Tax Ordinance

Income Tax Ordinance, 2001 has defined the meaning of liaison office of a company for the purpose of imposition and calculation of income tax.

The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) defined ‘liaison office’ as a place of business acting for the principal, head office or any entity of which it is a part, and

(a) its activities do not result in deriving income in Pakistan; and

(b) maintains itself out of any amount remitted from outside Pakistan received through normal banking channels.

Explanation,— It is clarified that—

(i) a place of business shall not be treated as liaison office if it engages in –

(a) commercial activities;

(b) trading or industrial activities; or

(c) the negotiation and conclusion of contracts;

(ii) the activities shall be treated to be commercial activities, if these include—

(a) providing after sales services for goods or services; or

(b) marketing or promoting pharmaceutical and medical products or services;

(iii) subject to clause (i), a place of business shall be treated as a liaison office, if it undertakes activities of—

(a) an exploratory or preparatory nature, to investigate the possibilities of trading with, or in, Pakistan;

(b) exploring the possibility of joint collaboration and export promotion;

(c) promoting products where such products are yet to be supplied to, or sold in, Pakistan;

(d) promoting technical and financial collaborations between its principal and taxpayers in Pakistan; or

(e) provision of technical advice and assistance.

February 28, 2021
FBR proposes penalty for late payment by Authorized Economic Operators

KARACHI: Federal Board of Revenue (FBR) has proposed penalty for defaulting in payment for customs clearance by Authorized Economic Operators (AEOs).

The FBR issued SRO 263(I)/2021 dated February 23, 2021 and proposed amendment to Customs Rules, 2002 related to authorized economic operators.

According to the law, the authorized economic operator (AEO) is a certified entity which fulfils the security criteria and other laid down obligations and derives benefits as prescribed in the rules and may include manufacturers, importers, exporters, customs house agents, brokers, shipping lines, carriers, consolidators, intermediaries, port operators, airport operators, terminal operators, integrate operators, warehouse, distributors, freight forwarders and logistic service providers.

According to the proposed amendment the facility of deferred payment of duty and taxes will be provided in such manner that all duty and taxes payment in a month shall be paid within that month by the last day of the month in which the clearance was made, otherwise AEO holder shall pay surcharge at the rate of three percent plus KIBOR from date of clearance of goods, and shall be liable for action deemed appropriate by the regulatory collector under the applicable law, which may include the suspension or revocation of the AEO status.

February 28, 2021
FBR collects Rs1.53 billion as withholding tax from new car sales, registration

KARACHI: The tax authorities have collected Rs1.53 billion as withholding tax from new car sales and registration during seven months (July – January) of the current fiscal year.

The Inland Revenue offices of the Federal Board of Revenue (FBR) located in Karachi have collected Rs1.53 billion as withholding tax on new car sales and registration during first seven months of the current fiscal year as compared with Rs959 million in the corresponding months of the last fiscal year, according to official statistics made available to PkRevenue.com.

Motor registration authorities and car manufacturers collect withholding tax at the time of registration and sale of new car under Section 231B of the Income Tax Ordinance, 2001 on behalf of the FBR.

The tax collection at the time of sale by manufacturers increased to Rs616 million during first seven months of the current fiscal year as compared with Rs428 million in the corresponding months of the last fiscal year, showing an increase of 44 percent.

Similarly, the tax collection at the time of registration of new cars by provincial motor vehicle registration authorities sharply increased by 70 percent to Rs914 million during first seven months of the current fiscal year as compared with Rs531 million in the corresponding period of the last fiscal year.

The sharp increase in revenue collection under this head may be attributed to revival of economic activities after relaxation in restriction that were imposed to prevent coronavirus spread.

The sale of locally manufactured cars registered an increase of 23 percent to 97,469 units during first seven months of the current fiscal year to 79,458 units in the same period of the last fiscal year.

The growth has been seen even more higher while comparing the sale on year on year basis in January 2021. The car sales posted 46 percent to 17,515 units in January 2021 as compared with 11,964 units in the same month of the last year.

February 27, 2021
Pakistan, Saudi Arabia agree to enhance duty, tax cooperation

ISLAMABAD: Pakistan and Saudi Arabia have agreed to promote cooperation in the fields of duty and taxes to facilitate bilateral trade.

In this regard, Ambassador of Saudi Arabia in Pakistan, Nawaf Saeed Al-Malikey here on Saturday had a call on meeting with Chairman Federal Board of Revenue (FBR), Muhammad Javed Ghani during which matters of mutual concern pertaining to cooperation on customs and tax were discussed.

According to press statement issued by the board, 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 Saudi Ambassador about the recent measures taken by FBR for the mobilization of revenue and facilitation of taxpayers.

The ambassador appreciated the recent performance of FBR in the first seven months of current Financial Year and hoped that FBR would successfully achieve the revenue target set for the current year.

February 27, 2021
13 Customs officers promoted to BS-20

ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified promotions of 13 officers of Pakistan Customs Service (PCS) from BS-19 to BS-20 on regular basis with immediate effect.

Following Customs officers have been promoted to BS-20:

1. Hassan Saqib Sheikh

2. Masood Ahmed

3. Fayaz Rasool

4. Sanaullah Abro

5. Muhammad Tahir

6. Muhammad Saleem Memon

7. Muhammad Amir Thahim

8. Yousaf Haider Orakzai

9. Munib Sarwar

10. Muhammad Ismail

11. Farrukh Sajjad

12. Ms. Tayyeba Kayani Moeed

13. Muhammad Nayyar Shafiq

The FBR said that the officers, who are presently posted against BS-20 posts on OPS, will actualize their promotions against their respective BS-20 positions. Postings of the remaining officers will be notified separately.

The officers mentioned at Sr.No.2 and 12 will actualize their promotions on return from deputation in the light of Para 5(5) of the Civil Servants Promotion (BPS-18 to BPS-21) Rules, 2019 issued vide SRO 1493(1)/2019 dated 03.12.2019.

The officers at Sr.No.11 & 13 will actualize their promotions against Board’s Notification No.0426-C-I/2021 dated 26.02.2021.

The officers, if drawing performance allowance prior to issuance of this notification, shall continue to draw the allowance on their promotion.

February 26, 2021
FBR promotes 24 IRS officers to BS-20

ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified promotions of 24 officers of Inland Revenue Service (IRS) from BS-19 to BS-20 on regular basis with immediate effect.

Following IRS officers have been promoted to BS-20:

1. Muhammad Safdar

2. Muhammad Abu Bakar Siddique

3. Ms. Tajamal Bilquis

4. Ms. Fauzia Adil

5. Dr. Razi-ur-Rehman Khan

6. Shaheed Mehboob

7. Muhammad Bilal Malik

8. Barrister Nowsherwan Khan

9. Ms. Iram Shabbir

10. Fazal-e-Subhan

11. Syed Farooq Jamil

12. Mussarat Ullah Khan

13. Naib Ali Pathan

14. Dr. Najeebullah

15. Ms. Zahida Sarfraz

16. Waqas Aslam

17. Naveed Khalid Khan

18. Abdul Malik Durrani

19. Rana Waqar Ali

20. Azhar Erum Memon

21. Muhammad Nawaz

22. Javed Iqbal

23. Sajjad Amjad

24. Ms. Uzma Munir

The FBR said that the officers already posted/working against BS-20 posts on OPS basis will actualize their promotions against their present places of posting. For actualization of promotion of officers at Sr. No. 4,7,9,12,21,22 and 23, the posts are personally upgraded vide Board’s Notification No. 0425-IR-I/2021 dated 26.02.2021 to enable them to assume charge of BS-20 posts on promotion.

The officers at Sr. # 11 will actualize his promotion from the date he will return from deputation and join FBR within the specified time, in terms of Rule 5(5) of Civil Servants Promotion (BPS-18 to BPS-21) Rules, 2019.

The officers if drawing special allowance prior to this notification shall continue to draw this allowance on their promotion.

February 26, 2021
10 IRS officers promoted to BS-21

ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified promotions of 10 BS-20 officers of Inland Revenue Service (IRS) to BS-21 on regular basis with immediate effect.

Following officers have been promoted to BS-21:

1. Tariq Mustafa Khan

2. Mir Badshah Khan Wazir

3. Malik Amjad Zubair Tiwana

4. Muhammad Azam Sheikh

5. Mehmood Hussain Jafari

6. Muhammad Iqbal

7. Muhammad Abid Raza Bodla

8. Ms. Aiysha Khalid

9. Karamatullah Khan Chaudhry

10. Dr. Khalid Mahmood Lodhi

The FBR said that the officers already posted/working against BS-21 posts on OPS basis or as Accountant Member, Appellate Tribunal Inland Revenue, will actualize their promotions against their present places of posting.

The officer at Sr. No. 6 and 8 will actualize their promotion from the date they will return from deputation and join FBR.

The officers if drawing special allowance prior to this notification shall continue to draw this allowance on their promotion.

February 26, 2021
FBR notifies promotions of Customs officers to BS-21

ISLAMABAD: Federal Board of Revenue (FBR) on Friday notified promotions of BS-20 officers of Pakistan Customs Service (PCS) to BS-21 on regular basis with immediate effect.

Following officers have been promoted to BS-21:

1. Muhammad Iqbal Bhawana

2. Wajid Ali

3. Ms. Rabab Sikandar

4. Zulfiqar Younus

5. Ms. Shahnaz Maqbool

6. Ahmad Rauf

7. Ms. Seema Raza Bokhari

The FBR said that the officers, who are presently posted against BS-21 posts on OPS, will actualize their promotions against their respective BS-21 positions. Postings of the remaining officers will be notified separately.

The officers mentioned at Sr.No.4, 5 and 7 shall actualize their promotions on return from deputation in the light of Para 5(5) of the Civil Servants Promotion (BPS-18 to BPS-21) Rules, 2019 issued vide SRO 1493(1)/2019 dated 03.12.2019.

The officer at Sr.No.1 will actualize his promotion against Board’ Notification No. 0424-C-I/2021 dated 26.02.2021.

The officers, if drawing performance allowance prior to issuance of this notification, shall continue to draw this allowance on their promotion.

February 26, 2021
IR offices work on Saturday for collection target

ISLAMABAD: The offices of Inland Revenue shall observe Saturday February 27, 2021 as normal working day in order to achieve revenue collection target for the month.

In a notification issued on Thursday, the FBR said that all Large Taxpayers Offices (LTOs), Medium Tax Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) would remain open and observe normal working day on Saturday, February 27, 2021 to facilitate the taxpayers in payment of duty and taxes. However, extended working hours till 8:00 PM will be observed by officers / officials who are monitoring incharge of collection of duty and taxes.

The FBR directed Chief Commissioner Inland Revenue to establish liaison with State Bank of Pakistan and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on February 27, 2021 to the respective branches of the SBP on the same date so as to account for the same towards the collection for the month of February 2021.

February 26, 2021