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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 delegates powers, functions to Members

    FBR delegates powers, functions to Members

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday delegated its powers and functions to the Members under tax laws including income tax, sales tax and federal excise.

    The FBR said that in exercise of powers conferred by Section 8 of the Federal Board of Revenue Act, 2001, the Board-in-Council in its 10th meeting held on December 10, 2020 has rescinded notification No. 6(69)S(BIC)/2019 dated February 24, 2020 for recalling and incorporating the provisions related to delegation of powers/functions under various fiscal statutes into this notification for purpose of consolidation and to further delegate to the Members the powers and functions administered by the FBR conferred on Board through FED Act, 2005, Sales Tax Act, 1990 and Income Tax Ordinance, 2001 but still un-delegated;-

    DELEGATION OF POWERS TO MEMBERS’, FBR

    Member (Inland Revenue-Policy)

    1. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Sections 2(20), 2(23a), 3(3), 4(1), 4(2), 4(5), 4(8), 5(2), 5(3), 6(2A), 6(2AB), 6(3), 7(1), 7(2), 12(4), 1st and 2nd proviso 12(4),12(5),16(4), 17(1)(g), 17(2) in consultation with

    Member (IT), 18(3), 18(4), 18(5), 19A(1), 36 in respect of his order, 38(12) to the extent of rule making, 400), 40(2), 42C with approval of Chairman,42(D),46(7) in consultation with Member (Audit), S.No.55D of the Table I of First Schedule and S. NO.13 and 22(f) of Table I of Third Schedule.

    2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    Sections 2(9A), proviso to section 2(33),2(43), 2(43A)(f), 2(46)(g),2(46)(J), 1st & 2nd provisos to 2(46), 3(1B),3(3A),3(6),3(7), 3(8),151 proviso to 3(9A) to the extent of rule making, rd proviso to 3(9A) in consultation with Member (IT) for rule making 7(3),7(5), 8(2),8(6), 8B(2)(ii), 8B(4),8B proviso, 9, 10(1), 11(6),13(6), 14,21(2), 22(1)(f), 22(2), 23(1), 23(3), 23(4),25(2A),26(1) 1″ and 2nd proviso, 26(5),33A(1),38(4),47A(12), 50(1),50B(4) in consultation with Member (IT),55, 61,61A, 63,67A(10), 67A(12),71, 72C to the extent of rule making with approval of Chairman, 72D(2),proviso (d) to 73(4), 76, S.No. 12th of fifth Schedule and clause 48 of 6th Schedule.

    3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 2(19D), 2(19E),2(29C)(aa),2(29C)(b), 2(30A), 2(35AA), 2(36)(c),4B(6), 7C(3), 7D(3),13(3),13(12),21(d),21(p),21(q),24(11),27(c), 28(3) to the extent of formulating criteria of approval of leasing companies etc.,32(3),46(d), 59AA(6), 59B(2)(h),61(5), 67(2), 68(4),74(2A), 76(11), 77(6), 100B(2)(e), 100D(3)(e)(ii)(B), 101A, 105(3)(d), 108(3),108A(2) 108B(1),111(5) ,114(2),114(2A) in consultation with Member(IT), 115(4),116(1),116A(1), 118(1),118(2A), 122D(7), 127(3), 131(2), 134A(12),134A(13) ,138(4), 146B(1),146B(2), 147(7A), 148(1), 148(2), 148(2A), 154(3), 155(3)(vii),158(c), 159(6),160,164(1),165(1), 165(1A), 165(3)for making/ amendment of rules, 165(5), 165(6),165A(1) for making/amendment of rules 165B(1) for making making/amendment of rules, 170(2),170(6),174(1), 174(5), 175(9),175A related to rule making, 177(2A), 177(2AA), 177(17),181, 181A(2), 181D, 183,206, 206A, 213„217 to the extent of rule making, 218(1)(d),218(2)(d), 223(10), 223(11), 227A to the extent of rule making with approval of Chairman, 227B(2),227D, 230F(3), 230F(6), 230F(9), 230F(14), 236B(2A), 236L(3),237(1), proviso in division VII of Part I of First Schedule, Clause 12 of Part 1 of 2″ Schedule, Clause 13(iii) of Part 1 of 2nnt Schedule, clause (53A) of Part I of Second Schedule, Clause 12D & 12E of Part-IV of the Second Schedule and clause (60B) and (72B) of Part IV of Second Schedule,

    4. Exercise powers and perform functions of the Board under following provisions of Income Tax Rules, 2002;

    Rules 19A, 19B, 19C, 19D, 19E, 19F and 231A.

    5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;

    Rules 31(2), 32(2), 33(1), 33(2), 33(3), 40(7), 41A(15), 43(6) and 79.

    6. Exercise powers and perform functions of the Board under the following provisions of Sales Tai Rules, 2005;

    Rules 18 and 150

    Member (Inland Revenue-Operations)

    1. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Sections 2(8a),12(4),16(3), 16(5), 21(4), 22(1),23(1), 29(1AA), 29(3), 30(2), 350), 36, in respect of his order, 38 for implementation and operational purpose, 42D,43, 45(2),45(3),45A,46(1) and 49.

    2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    Sections 2(5AA)(f), 2(9), 2(15), proviso to 2(27),6(2), 6(3),7(2)(i) 8(1)(1),8A,10(3), 210), 21(4), 22(1A), 260), 27(a), 30(2A),31, 320)(a) & (b), 32(1)(c) & (d), 34A,37A, 37B(13), 37 I, 380), 38B(3),40B, 40C, 45A,47A(2) ,47A(3), 47A(7), 47A(8),48(1A),56AB,56AB(1)(0,56AB(2),56C,62, 67A(2), 67A(9), 72C for implementation and operational purpose, 72D(1) and 74.

    3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 2(38A),26(2), 28(3) to the extent of granting approvals in the light of criteria of leasing companies, etc 74(11), 80(2)(b)(vi),107(1A), 108A(5),134A(1)(c),134A(2), 134A(3), 134A(4), 134A(7),I34A(8),134A(9), 165(3), 165A(2),171A(2), 171A(9), 171A(10), 175(9),175A(1),180, 181A, 202, 2090) except for CIR (A), first proviso to section 209(2), 209(3), 211(3), 212 to the extent of powers conferred on him by this distribution/delegation powers order, 214A except for appellate body, 214B(1),217(1) in consultation with Member (IT), 223(8), to 227(A)(1) for implementation and operational purpose, 227B(1) and 230F(11)

    4. Exercise powers and perform functions of the Board under the following provisions of Income Tax Rules, 2002,

    Rules 90, 94, 109, 220B and 231C

    5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;

    Rules 2(b), 2(g), 3(5), 5(1),5(4), 25, 26, 28, 31(1), 33(4) in consultation with Member (IR-Policy), 36(4), 40A(3), 41A(2), 53, 54, 55, 56, 57, 58, 64, 74(3), 76, 77 and 78:

    6. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules, 2006;

    Rules 5,6, 10, 12, 27, 28, 30, 41,44, 52, 62, 64, 65, 66, 67, 68, 69 and 150F.

    Member (Legal)

    1. Exercise powers and functions under the following provisions of Customs Act, 1969;

    Sections 185G (2) and 193 A (3) [1st Proviso]

    2. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    45A (to the extent of orders by CIR(A) and 74 to the extent of granting condonation to CIR(A) in respect of appellate matters.

    3. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 209(1) to the extent of CIR (A), 214A in respect of orders by CIR (A) and 223(7).

    4. Exercise powers and functions under the following provisions of Federal Excise Act, 2005;

    Sections 35(1) and 43 – to the extent of appellate orders.

    Member (Administration)

    1. Exercise powers and perform functions of the Board under the following provisions of Customs Act, 1969;

    Sections 3, 3A, 3AA, 3B, 3BB, 3C, 3CC, 3D, 3DD and 3DDD (all with the with approval of Chairman)

    2. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Section 2(12),19A(2), 22(13) in consultation with Member (Ops), 29(1) with approval of Chairman 29(2)(a),29(2)(b) 29(2)(C), 38(11) and 41(3) in consultation with Member (Ops).

    3. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    Section 2(2), 30 with approval of Chairman 30A(1),30A(2)(a), 30A(2)(b), 30B,30C,30D,30DD,30DDD,30E,33A(2), 47A(11) and 51(3) .

    4. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Sections 134(A)(11), 2080) with approval of Chairman, 208(2), 216(8), 216A(2), 227(2), 228(1), 228(2), 229(1),229(2), 2300), 230(2), 230A(1), 230A(2), 230B(1), 230B(2), 230C(1), 230C(2), 230D(1), 230D(2), 230E(1 ), 230E(2), 230F(1)230F(2)230G(1), 230G(2),230H(1) and 230H(2).

    Member (Fate)

    1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    56C

    2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    181B and 216(5)

    3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Section 36 in respect of his order

    Member (HRM)

    1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Act, 1990;

    30A(2)(a)

    2. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Section 29(2) to the extent of job description and 36 in respect of his order

    Member (Taxpayers Audit)

    1. Exercise powers and perform functions of the Board under the following provisions of Sales Tax, 1990;

    Section 32A and 72B to the extent of actual selection on the basis of criteria approved by Board-In Council

    2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001.

    Sections 177(8), 177(11) and 214C to the extent of actual selection on the basis of criteria approved by Board-in-Council.

    3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise, 2005.

    Sections 36 in respect of his orders, 42B(1A), 43B(1) to the extent of actual selection on the basis of criteria approved by Board-in-Council and 46(4)

    Member (Information Technology)

    1. Exercise powers and perform Junctions of the Board under the following provisions of Sales Tax Act, 1990;

    Sections 2(5AAA) in consultation with Member (IR-Operations), 3(9A) to the extent of integration of retail outlet with Board computerize system, 21A to the extent of maintenance of active taxpayer list, 22(2A) in consultation with Member (IR-Operations), 22(3) in consultation with Member (IR- Operations), 26(1) 3rd Proviso in – consultation with Member (IR-Operations), 50A in consultation with Member (IR-Operations), 50B(1), 50B(3), 52A in consultation with (IR-Operation) and 72B(1A) to the extent of implementation of computer system.

    2. Exercise powers and perform functions of the Board under the following provisions of Income Tax Ordinance, 2001;

    Section 216(6A), 216(6C) and 237A in consultation with Member (IR-Operations).

    3. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Act, 2005;

    Sections 4(6) in consultation with Member (IR-Operations) and 17(2)(b) in consultation with Member (IR-Operations) and section 36 in respect of his orders.

    4. Exercise powers and perform, functions of the Board under the following provisions of Income Tax Rules, 2002;

    Rules 73(2), 73(6) and 229.

    5. Exercise powers and perform functions of the Board under the following provisions of Federal Excise Rules, 2005;

    The electronic Filing of Federal Excise Rules, 2005.

    6. Exercise powers and perform functions of the Board under the following provisions of Sales Tax Rules, 2006,

    Rules 150B, 150D, 1501, 150J, 150K, 150L and 150 0

    The FBR said that without prejudice to the above delegation of powers to the respective Members, if any Member of the Board or the Board itself considers that any matter relating to exercise of statutory power is of material significance, the Board or the Member may refer such matter to the Board-in-Council for a collective decision by the Board in Council.

  • FBR transfers BS-19 IRS officers

    FBR transfers BS-19 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified transfers and postings of BS-19 officers of Inland Revenue Service (IRS) with immediate effect and until further orders.

    Following are the list of officers who are transferred:

    01.  Fazal-e-Subhan (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue (OPS) (Zone-II) Regional Tax Office, Abbottabad from the post of Additional Commissioner, Regional Tax Office II, Karachi.

    02. Naib Ali Pathan (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue(OPS) (Audit-II) Large Taxpayers Office, Multan from the post of Additional Commissioner, Large Taxpayers Office, Karachi

    03. Rana Waqar Ali (Inland Revenue Service/BS-19) has been transferred and posted as Commissioner Inland Revenue(OPS) (Legal) Large Taxpayers Office, Multan from the post of Additional Commissioner, Medium Taxpayers office, Karachi.

    04. Ms. Rizwana Qazi (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner InlandRevenue Corporate Tax Office,Islamabad from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    05. Anwar Zeb (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner InlandRevenue Corporate Tax Office,Islamabad from the post of Additional Commissioner, Regional Tax Office, Rawalpindi.

    06. Muhammad Waqas Hanif (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Corporate Tax Office, Islamabad from the post of Secretary, (FATF Cell) Federal Board of Revenue (Hq), Islamabad.

    07. Mohammad Iqbal Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Corporate Tax Office, Islamabad from the post of Secretary, Federal Board of Revenue (Hq), Islamabad.

    08. Bilal Ahmed (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Multan from the post of Additional Director, Addl. Directorate of Internal Audit (Inland Revenue), Faisalabad.

    The FBR said that tThe Officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • People urged to use CNICs for heavy amount transactions

    People urged to use CNICs for heavy amount transactions

    ISLAMABAD: Special Assistant to Prime Minister on Revenue Dr. Waqar Masood on Wednesday urged people to use their Computerized National Identity Cards (CNICs) at the time of making heavy amount transactions.

    (more…)
  • 43 IR officers promoted to BS-18

    43 IR officers promoted to BS-18

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday promoted 43 officers of Inland Revenue Service (IRS) from BS-17 to BS-18 on regular basis.

    The notified promotion will take with immediate effect. Following are the officers who are promoted to BS-18:

    1. Azzam-ul-Asad Mazhar

    2. Hayat Omer Malik

    3. Ms. Tooba Ahmed Khan

    4. Ms. Saman Zahra

    5. Ahmad Faiz

    6. Ms. Mehak Fatima

    7. Ms. Fatima Anjum

    8. Ray Muhammad Najam Nawaz Saqib

    9. Ms. Shahida Nazeer

    10. Muhammad Naeem Orakzai

    11. Ms. Rafia Nawaz Ranjha

    12. Usama Amin

    13. Ms. Haneen Saif

    14. Ms. Maheen Ali

    15. Ms. Rabia Haider Bokhari

    16. Kamran Hussain

    17. Sohail Anjum

    18. Syed Shah Faisal

    19. Ms. Farah Khan

    20. Najam-ul-Hassan

    21. Ms. Sania Makhdoom

    22. Umair Malik

    23. Khan Muhammad

    24. Muhammad Yousaf

    25. Ms. Samayya Qayyum

    26. Ms. Amna Sharif

    27. Arsalan Ali

    28. Abdullah Zulfiqar

    29. Muhammad Junaid

    30. Malik Khan

    31. Ms. Sanam Rasool

    32. Usman Asif

    33. Rizwan Manzoor

    34. Abdur Rehman

    35. Ms. Aqsa Ali

    36. Ms. Anoshe Fakhruddin

    37. Razi Ul Haq Qureshi

    38. Ms. Aqsa Gharshin

    39. Muhammad Anique uz Zaman Khan

    40. Arshad Ali Nadeem

    41. Malik Ghulam Abbas

    42. Muhammad Usman Rashid

    43. Ghulam Nabi Shaikh

    The FBR said that the promoted officers would actualize their regular promotion to BS-18 at their present places of posting.

    The officers at Sr. Nos. 19, 26 & 33 will actualize their promotion to BS-18 from the date they will return from study leave / deputation and join FBR (Hq), Islamabad.

    The officers who are drawing performance allowance will continue to draw the same after promotion.

  • FBR notifies transfers of BS-20 IRS officers

    FBR notifies transfers of BS-20 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday notified transfers and postings of senior officers of Inland Revenue Service (IRS) in BS-20 with immediate effect and until further orders.

    The FBR notified transfers and postings of following IRS officers:

    01. Ms. Shazia Memon (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Admin Pool) Federal Board of Revenue (Hq), Islamabad (stationed at Karachi) from the post of  Commissioner, (Zone-V /Withholding Tax) Regional Tax Office I, Karachi.

    02. Kazi Afzal (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-III) Regional Tax Office I, Karachi from the post of Commissioner, (Legal) Medium Taxpayers office, Karachi.

    03. Muhammad Ejaz Khan (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Legal) Medium Taxpayers office, Karachi from the post of Director, Directorate of Law, Karachi.

    04. Muhammad Asghar Khan Niazi (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Admin Pool) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner, (Bahawalpur Zone) Regional Tax Office, Bahawalpur.

    05. Abdul Hameed Anjum Arayn (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-V / Withholding Tax) Regional Tax Office I, Karachi from the post of Commissioner, (Zone-III) Regional Tax Office I, Karachi.

    06. Ms. Uzma Saqib (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-I) Regional Tax Office II, Karachi from the post of Commissioner, (Enforcement-I) Corporate Tax Office, Karachi.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • 4×4 electric motor vehicles allowed duty, tax concessions

    4×4 electric motor vehicles allowed duty, tax concessions

    ISLAMABAD: The recently promulgated Tax Laws (Amendment) Ordinance, 2021 has granted concessions to 4×4 electric motor vehicles on import of units in both Completely Built Up (CBU) and Completely Knocked Down (CKD) conditions.

    The federal cabinet recently allowed duty and tax concessions to 4×4 electric vehicles. Earlier the concession was available to two-wheelers and three-wheelers electric vehicles.

    The concessions have been allowed to import of 4×4 electric motor vehicles from customs duty, sales tax and income tax.

    (a) Following are the categories of 4 wheelers electric vehicles imported in CBUs for which concessional rates have been allowed.

    — 25 percent customs duty allowed on imports under Pakistan Customs Tariff (PCT) 8703.8090. The concession is allowed till June 30, 2026.

    — Import of 4×4 electric motor vehicles imported under PCT 8703.8090 with condition that the concession shall be admissible till June 30, 2026 on import of electric vehicles 4 wheelers (CBU) per company of the same variant to be assembled or manufactured to the extent of 100 units per company, duly approved / certified by Engineering Development Board (EDB).

    The EBD shall monitor compliance with EV Policy 2020 and intimate FBR immediately in case of violation by any manufacturer to stop further clearance at concessional rates.

    Following are the categories of 4 wheelers electric vehicles imported in CKDs and specific parts for which concessional rates have been allowed:

    Description of Vehicle & PCTDescription of Imported goodsRate of Customs DutyConditions
    Electric Vehicles 4 wheelers (PCT Code 703.8090)(i) EV Specific components for assembly / manufacturer in any kit-form (CKD)1% (notwithstanding the rate of customs duty on these items as specified in the First Schedule to the Customs Act, 1969).The concession shall be admissible to manufacturers of electric vehicles 4-wheelers till 30th June 2026, subject to certification and quota determination by the EDB.
     (ii) Components for assembly / manufacture in any kit-form Non-Localized parts.10%The concession shall be admissible till 30th June 2026 subject to the conditions mentioned in para 2 of the SRO.656(I)/2006 dated June 22, 2006.
     (iii) Components for assembly / manufacture in any kit-form Localized parts.25%The concession shall be admissible till 30th June 2026 subject to the conditions mentioned in para 2 of the SRO.656(I)/2006 dated June 22, 2006.

    In addition to the above, concession on import of CBU chargers with CKD kits for electric vehicles have been extended to 4 wheelers which was previously available for 2 and 3 wheelers.

    In sales tax, (a) Local manufacturers / assemblers importing and supplying the electric vehicle of prescribed categories have been allowed exemptions and reduce rates of sales tax which have been tabulated below:

    Import of CKD kits for the following electric vehicles (4 wheelers) by local manufacturers till June 30, 2026:

    (a) Small cars and SUVs with 50 kwh battery or below; and

    (b) Light Commercial Vehicles (LCVs) with 150 kwh battery or below

    Following locally manufactured or assembled electric vehicles

    (4 wheelers) are subject to one percent of sales tax till June 30, 2026:

    (a) Small cars and SUVs with 50 kwh battery or below; and

    (b) Light Commercial Vehicles (LCVs) with 150 kwh battery or below

    Import of CKD, SUVs and LCVs have also been incentivized by excluding from the ambit of Minimum Value Addition (MVAT) at the time of import.

    For that purpose, following classes of vehicles have been added in the exclusion section of

    12th Schedule to the Sales Tax Act, 1990:

    – Electric vehicles (4 wheelers) CKD kits for small cars or SUVs, with 50 kwh battery or below and Light Commercial Vehicles (LCVs) with 150 kwh battery or below till the 30th day of June 2026.

    – Electric vehicles (4 wheelers) small cars or SUVs, with 50 kwh battery or below and Light Commercial Vehicles (LCVs) with 150 kwh battery or below in CBU condition till 30th day of June 2026.

    – Electric vehicles (2-3 wheelers and heavy commercial vehicles) in CBU condition till the 30th say of June 2025.

    FED is levied on locally manufactured / assembled and imported motor cars, SUVs at the rate of 2.5 percent ad Val. However, there were certain exemptions for rikshaws designed for transportation of persons.

    Through the Amendment Ordinance, exemption has also been allowed to 4 wheelers electric vehicles (falling under tariff headings 87.03) up to June 30, 2026.

    The reduced rate of 1 percent would now be applicable on import of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs with 150 kwh battery or below.

  • Sportsmen allowed tax holiday on temporary import

    Sportsmen allowed tax holiday on temporary import

    ISLAMABAD: Sportsmen – participating in an international event – have been allowed tax holiday o import of professional and technical apparatus with condition of re-export of those things within stipulated time period.

    Sources in Federal Board of Revenue (FBR) on Tuesday said that the exemption from income tax, sales tax and customs duty has been allowed through Tax Laws (Amendment) Ordinance, 2021, which was recently promulgated through presidential order.

    Customs duty has been reduced to zero percent on temporary import of professional and technical apparatus or equipment or instruments imported by foreign nationals, experts and athlete etc. participating in an international event (including but not limited to sports events) or under any international arrangement for use solely during such event or arrangement provided:

    (a) it is endorsed on the passports of importer.

    (b) The goods allowed for temporary admission shall be identified at the time of import and subsequent re-export

    The condition of furnishing undertaking or bond by such foreign nationals has been made inapplicable.

    Goods temporarily imported into Pakistan by international athletes or sportsmen, which would be subsequently taken back by them within 120 days have been allowed exemption from sales tax as well as income tax at import stage.

  • Tax exemption granted to transmission line projects set up till June 2022

    Tax exemption granted to transmission line projects set up till June 2022

    ISLAMABAD: A time period for setting up transmission line projects has been extended for four years up to June 30, 2022 in order to allow 10-year tax exemption on profit and gains derived by a taxpayer from such projects.

    The amendment has been made to clause 126M of Second Schedule to Income Tax Ordinance, 2001 through Tax Laws (Amendment) Ordinance, 2021.

    Earlier, income tax exemption was granted to those projects which were set up on or after June 30, 2018. However, with the amendment the time for setting up projects has been extended up to June 30, 2022.

    The text of the clause is:

    “(126M) Profits and gains derived by a taxpayer from a transmission line project set up in Pakistan on or after the1st day of July, 2015 for a period of ten years. The exemption under this clause shall apply to such project which is—

    (a) owned and managed by a company formed for operating the said project and registered under the Companies Ordinance, 1984 (XLVII of1984), and having its registered office in Pakistan;

    (b) not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business; and

    (c) owned by a company fifty per cent of whose shares are not held by the Federal Government or Provincial Government or a Local Government or which is not controlled by the Federal Government or a Provincial Government or a Local Government.

  • Tax collected on immovable properties made final liability on payment through RDAs

    Tax collected on immovable properties made final liability on payment through RDAs

    ISLAMABAD: The collection of withholding tax on immovable properties has been made final liabilities in case payment made through Roshan Digital Accounts (RDAs).

    The changes have been brought through Tax Laws (Amendment) Ordinance, 2021. The Federal Board of Revenue (FBR) posted the ordinance on its website on Monday.

    An amendment has been made to Section 236C of the Income Tax Ordinance, 2001, which is related to deduction of withholding tax on sale of immovable properties.

    According to the amendment that if the seller or transferor is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who had acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with authorized banks in Pakistan under the foreign exchange regulations issued by the State Bank of Pakistan (SBP), the tax collected under the section from such persons shall be final discharge of tax liability in lieu of capital gain taxable under Section 37 earned by the seller or transferor from the property so disposed of.

    Similar change has been made in Section 236K of the Income Tax Ordinance, 2001. This section is related to deduction of withholding tax on purchase of immovable property.

    According to the amendment that if the buyer or transferee is a non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) or Computerized National ID Card (CNIC) who has acquired the said immovable property through a Foreign Currency Value Account (FCVA) or NRP Rupee Value Account (NRVA) maintained with the authorized banks in Pakistan under the foreign exchange regulations issued by the SBP, the tax collected under this section from such persons shall be final discharge of tax liability for such buyer or transferee.

    According to the SBP, there are two types of accounts offered under Roshan Digital Accounts.

    These are:

    Foreign Currency Value Account (FCVA)

    NRP Rupee Value Account (NRV)

  • Super tax made permanent for banks

    Super tax made permanent for banks

    ISLAMABAD: The levy of super tax has been made permanent for banking companies beyond Tax Year 2021, sources in Federal Board of Revenue (FBR) said on Monday.

    Tax Laws (Amendment) Ordinance, 2021 has been promulgated on February 12, 2021 after approval by the President of Pakistan.

    As per the ordinance the levy of super tax on banks shall continue beyond Tax Year 2021. Through the ordinance the levy shall apply in tax year 2021 and onwards.

    With this amendment the banks shall pay the super tax at four percent in subsequent tax years. For the banking companies the tax year 2022 has commenced from January 01, 2021.

    The one-time super tax was imposed by inserting Section 4B of Income Tax Ordinance, 2001 through Finance Act, 2015.

    The Income Tax Ordinance, 2001 explained the super tax as:

    “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.”

    In tax year 2018 the rate of super tax was four percent for banking companies on percentage of income and three percent on person other than a banking company, having income equal to or exceeding Rs500 million.

    In tax year 2020 the tax rate at 4 percent was maintained for banking companies. However, in other cases it was abolished.

    With the new amendment, the banking companies shall continue to pay the super tax with not time frame.