Pkrevenue.com

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.

  • Stock brokers seek tax adjustment against capital losses

    Stock brokers seek tax adjustment against capital losses

    KARACHI: Brokers at Pakistan Stock Exchange (PSX) have approached the Federal Board of Revenue (FBR) to allow tax adjustment against brought forward capital losses.

    National Clearing Company of Pakistan (NCCPL) on Friday issued a notification regarding deferment of collection of capital gain tax from clearing members and Pakistan Mercantile Exchange.

    The NCCPL said that this is in continuation to our Circular No. NCCPL/CM/OCTOBER-20/01 Dated October 02, 2020 on the subject.

    “In this respect, the Market Participants are being informed that NCCPL has taken up the matter related to manner of adjustment of brought forward Capital Losses with the Federal Board of Revenue (FBR) and it is expected that FBR will shortly issue a clarification on the matter.”

    Accordingly, NCCPL will inform timelines for collection of CGT to Market Participants once FBR advises NCCPL in this respect.

  • Customs official awarded ‘dismissal from service’ for misconduct

    Customs official awarded ‘dismissal from service’ for misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday awarded major penalty of ‘dismissal from service’ upon a customs official on the charges of misconduct.

    An office order issued by the FBR stated that disciplinary proceedings under Government Servants

    (Efficiency & Discipline) Rules, 1973 were initiated against Riaz-ul-Haq, Inspector (BS-16), Model Customs Collectorate (Enforcement & Compliance), Lahore on October 28, 2014 on account of his unauthorized absence from duty since April 02, 2014.

    Ms. Ammara Durrani, the then Deputy Collector (PCS/BS-18), MCC (Appraisement), Lahore was appointed as Inquiry Officer to conduct inquiry on various acts of gross “Misconduct” as prescribed in Rule 3(b) of the Government Service (E&D) Rules, 1973.

    The Inquiry Officer submitted her inquiry report April 15, 2015, according to which the charge leveled against the accused officer has been established.

    A show cause notice was issued on August 01, 2016 to the accused officer and he was also called for personal hearing by the Authorized Officer on September 10, 2020.

    After considering the charge framed in the charge sheet, inquiry report and other documentary evidences, the Authorized Officer is of the considered opinion that the accused officer has been found guilty of “Misconduct” under rules 3(b) of the Government Servants (Efficiency and Discipline) Rules, 1973 and recommended to the Member (Admn)/ Authority to impose upon the accused officer the major penalty of “Dismissal from Service” under Rule 4(1)(b)(iv) of the Government Servants (Efficiency and Discipline) Rules, 1973.

    The Member (Admn) FBR being Authority in this case, after having considered all aspects of the case and the recommendations of the Authorized Officer has therefore, imposed the major penalty of “Dismissal from Service” upon Riaz-ul-Haq, Inspector 3 with immediate effect.

    The period of his unauthorized absence from duty from 02.04.2014 onwards is treated as Extra Ordinary Leave (EOL) without pay as admissible under the rules.

    He shall have the right of Appeal as admissible in the Civil Servants (Appeal) Rules, 1977.

  • TAX YEAR 2021: tax rate on profit on bank deposits

    TAX YEAR 2021: tax rate on profit on bank deposits

    KARACHI: Federal Board of Revenue (FBR) has updated rate of tax on profit on debt applicable during tax year 2021 (July 01, 2020 to June 30, 2021).

    The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) after incorporating amendments introduced through Finance Act, 2020. The FBR updated the rate of tax to be deducted under section 151 shall be 15 percent of the yield or profit:

    Provided that the rate shall be 10 percent in cases where the taxpayer furnishes a certificate to the payer of profit that during the tax year yield or profit paid is rupees five hundred thousand rupees or less.

    According to the Section 151 of the Ordinance, 2001, the Profit on debt. — (1) Where –

    (a) a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account;

    (b) a banking company or financial institution pays any profit on a debt, being an account or deposit maintained with the company or institution;

    (c) the Federal Government, a Provincial Government or a Local Government pays to any person profit on any security other than that referred to in clause (a) issued by such Government or authority; or

    (d) a banking company, a financial institution, a company referred to in sub-clauses (i) and (ii) of clause (b) of sub-section (2) of section 80, or a finance society pays any profit on any bond, certificate, debenture, security or instrument of any kind (other than a loan agreement between a borrower and a banking company or a development finance institution) to any person other than financial institution.

    the payer of the profit shall deduct tax at the rate specified in Division IA of Part III of the First Schedule from the gross amount of the yield or profit paid as reduced by the amount of Zakat, if any, paid by the recipient under the Zakat and Ushr Ordinance, 1980 (XVII of 1980), at the time the profit is paid to the recipient.

    (2) This section shall not apply to any profit on debt that is subject to sub-section (2) of section 152.

    “(3) Tax deductible under this section shall be a minimum tax on the profit on debt arising to a taxpayer, except where —

    (a) taxpayer is a company; or

    (b) profit on debt is taxable under section 7B.

  • TAX YEAR 2021: rate of advance tax on dividends

    TAX YEAR 2021: rate of advance tax on dividends

    ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance tax on dividends for tax year 2021 (July 01, 2020 to June 30, 2021).

    The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) after incorporating amendment brought through Finance Act, 2020.

    The FBR updated the rate of tax to be deducted under section 150 and 236S:

    (a) 7.5 percent in case of dividend paid by Independent Power Producers where such dividend is a pass through item under an Implementation Agreement or Power Purchase Agreement or Energy Purchase Agreement and is required to be reimbursed by Central Power Purchasing Agency (CPPA-G) or its predecessor or successor entity.

    (b) 15 percent in mutual funds and cases other than those mentioned in clauses (a) and (ba); and

    (ba) 25 percent in case of a person receiving dividend from a company where no tax is payable by such company, due to exemption of income or carry forward of business losses under Part VIII Chapter III or claim of tax credits under Part X of Chapter III.

    According to Section 150: Dividends — Every person paying a dividend shall deduct tax from the gross amount of the dividend paid at the rate specified in Division I of Part III of the First Schedule.

    According to 236S: Dividend in specie — Every person making payment of dividend-in-specie shall collect tax from the gross amount of the dividend in specie paid at the rate specified in Division I of Part III of the First Schedule.

  • FBR registers 127 projects under construction industry incentive scheme

    FBR registers 127 projects under construction industry incentive scheme

    ISLAMABAD: Federal Board of Revenue (FBR) has registered around 127 projects worth Rs63 billion under Prime Minister’s construction industry incentive scheme, a spokesman said on Tuesday.

    The Prime Minister’s incentive scheme for builders and developers is now picking-up showing definite signs of success and great amount of interest by the construction industry.

    Till October 19, 2020, a total of 127 projects have been registered with a total projected cost of Rs63 billion.

    In addition, a total of 108 persons are also in the process of registering 114 projects at a projected cost of Rs109 billion.

    The registered projects from major cities include 61 projects from Karachi, Lahore 44, Islamabad 30, Rawalpindi 19, Faisalabad 10 and rest from other cities.

    The last date for registering projects under the scheme is December 31, 2020.

  • CNIC condition reduces transactions and revenue: FBR

    CNIC condition reduces transactions and revenue: FBR

    KARACHI: Federal Board of Revenue (FBR) has admitted that the condition of Computerized National Identity Card (CNIC) reduced number transactions as well as shortfall in revenue.

    “This [CNIC] condition has further reduced transaction and our revenue,” Dr, Muhammad Ashfaq Ahmed, Member, Inland Revenue, Federal Board of Revenue (FBR) quoted as saying in a statement issued by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) issued on Tuesday.

    The statement further quoted the Member that the FBR so far has resolved CNIC issues with the retailers and conditions will remain applicable at some stages.

    While responding to the issues raised by President FPCCI, the Member said that taxation is a by-product of business which is missing in our strategy, refunds are considered as oxygen for trade and industry while in practice to show revenue we ignored to payback refunds.

    The FBR is now following open door policy to facilitate industry and transparency is first in our strategy.

    He further said that FBR is changing its approach to deal with commercial exporters. He further agreed to extend the days of filing form H from 120 to 180 days.

    However, with the automation of FBR the trade and industry have to gear-up and be compatible with the latest technology.

    Earlier, FPCCI President Mian Anjum Nisar appreciated the efforts of Federal Board of Revenue on achieving revenue targets despite difficult circumstances under COVID-19 pandemic.

    While welcoming the Member Inland Revenue (Operation) Dr. Muhammad Ashfaq Ahmed, the President FPCCI said that the release of refunds has slightly improved but industry paid taxes and salaries during the period when labour was idle and industries were stalled.

    He mentioned that irrespective of gain or loss businesses have to pay 1.5 percent tax despite the issue has been discussed with Advisor to PM and Chairperson FBR but matter still not resolved.

    It was also informed that FASTER will release refunds within 72 hours but practically refunds are being released within 72 hours.

    Further President FPCCI strongly suggested extending the filing of Form “H” period from 120 days to 180 days, and demanded a focal person to deal with affairs relevant to FASTER.

    He also raised a question on shifting of final tax regime to minimum tax and proposed to reversed if there is no conditionality and payback refunds or ask for amount if due and vice versa, he also proposed to NTC deal issue of raw material that were previously falls under 12th schedule and demanded restoration of SRO 1125.

    Mian Anjum Nisar President FPCCI also raised the issue of Audit at different tiers and proposed that stages/tiers level of audit should be minimized.

    CNIC still has not resolved despite available agreement between businesses and government. President FPCCI also raised issues of different sectors such inclusion of Edible Offal in the definition of Agriculture, inability of FATER system for processing of Multi-tax period carry-forward based sales tax refunds. Uniform rate of tax on Iron and Steel flat products and issue of Audit being faced by trade and industry.

    Meeting was attended by representative of various chambers and association, Kurram Ijaz, Vice President, Zakaria Usma, Shaukat Ahmed, Ghani Usman, Saqib Fayyas, Shabir Mensha, Khursheed, member FPCCI Advisory Committee, Khuram Saeed, former Vice President FPCCI, EC and General Body members.

  • FBR invites applications for 322 vacant posts in Pakistan Customs

    FBR invites applications for 322 vacant posts in Pakistan Customs

    ISLAMABAD: Federal Board of Revenue (FBR) has invited job applications for vacant posts (BPS-01 to BPS-14) at various collectorates/directorates of Pakistan Customs. The last date for submission of applications is October 27, 2020.

    (more…)
  • TAX YEAR 2021: Rates of advance tax on imports

    TAX YEAR 2021: Rates of advance tax on imports

    ISLAMABAD: Federal Board of Revenue (FBR) has updated rate of advance tax on imports for tax year 2021 (July 01, 2020 to June 30, 2021).

    The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) after incorporating amendments brought through Finance Act, 2020. The FBR updated following rate of advance tax on import of goods:

    S.NoPersonsRate
    (1)(2)(3)
    1.Persons importing goods classified in Part I of the Twelfth Schedule1% of the import value as increased by customs-duty, sales tax and federal excise duty
    2.Persons importing goods classified in Part II of the Twelfth Schedule2% of the import value as increased by customs-duty, sales tax and federal excise duty
    3.Persons importing goods classified in Part III of the Twelfth Schedule5.5% of the import value as increased by customs-duty, sales tax and federal excise duty’;

    Provided that the rate specified in column (3),—

    (a) in the case of manufacturers covered under rescinded Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 as it stood on the 28th June, 2019 on import of items covered under the aforementioned S.R.O shall be 1%;

    (b) in case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan shall be 4%:

    Provided further that the rate of tax on value of import of mobile phone by any person shall be as set out in the following table, namely:-

    S.No.C & F Value of mobile phone (in US Dollar) In CBU condition PCT Heading 8517.1219 Tax (in Rs.)  IN CKD/SKD condition under PCT Heading 8517.1211 Tax (in Rs.)
    (1)(2)(3)(4)
    1Up to 30 except smart phones700
    2Exceeding 30 and up to 100 and smart phones up to 1001000
    3Exceeding 100 and up to 2009300
    4Exceeding 200 and up to 3509700
    5Exceeding 350 and up to 5003,0005,000
    6Exceeding 5005,20011,500

  • Reduced rates of electricity, gas: ECC approves procedure for registration

    Reduced rates of electricity, gas: ECC approves procedure for registration

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved the procedure of registration for availing reduced rate of electricity, RLNG and gas by manufacturers and industries.

    Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the meeting of ECC at the Cabinet Division.

    The ECC approved in principle, the procedure for registration under the concessionary regime of electricity, RLNG and gas under the export oriented sectors (erstwhile zero-rated sectors) with instructions to ensure better targeting of the recipients of this subsidy.

    The ECC decided that the previous list of manufacturers or exporters declared zero-rated by FBR (under condition (xii) of the SRO 1125) may be adopted in export oriented sectors. FBR may register new manufacturers or exporters of five export oriented sectors (erstwhile five zero rated sectors), in accordance with past precedents of STGO-117, under Commerce Division’s O.M No.1 (18)/2019 in manner specified by the FBR.

    The FBR, Petroleum Division and Power Division may formulate periodic rechecking/monitoring/withdrawal strategy for previous and newly registered units along with procedure to penalize in case of misrepresentation and misuse.

    The ECC discussed in detail on the Minimum Support Price (MSP) of Wheat in today’s session. The Ministry of National Food Security and Research briefed the ECC on different estimates gathered from Punjab, KP, Balcohistan and the Federal Capital.

    During the discussion, it also came to the fore that there was a need to increase the MSP to support the farmer and to grow enough quantities in the next sowing season.

    The forum also discussed the need to rationalize the prices of inputs for making them more affordable to the farmers, to support the rural economy through various measures and to increase the supply of wheat in the market so that the flour prices are brought down. It was also discussed to have a better system for gathering data regarding the agriculture sector.

    ECC decided to form a committee with Syed Fakhar Imam, Dr. Hafeez Shaikh, Dr. Ishrat Hussain.Dr. Waqar Masood, Nadeem Baber, Abdul Razzaq Dawood, Asad Umar and Khusroo Bakhtiar as members, to thoroughly evaluate the proposal for the increase in the Minimum Support Price of wheat for the 20-21 crops.

    The committee shall also prepare a proposal on subsidy on fertilizers mainly DAP which may be offered as a part of the package for the farmers so that their input cost is reasonable/ reduced.

    It was also decided that the provinces should increase the wheat releases to stabilize/reduce the price of flour in the market. It was decided that the local governments will also be directed to specially monitor the prices of wheat and flour in the markets so that its prices may not be allowed to escalate for the common man. The committee shall present its proposal in the next meeting of ECC.

  • Import of mobile phones allowed Rs23.15 billion as tax concession

    Import of mobile phones allowed Rs23.15 billion as tax concession

    ISLAMABAD: Federal Board of Revenue (FBR) issued details of sales tax concessions to the tune of Rs23.15 billion granted on import mobile phones.

    The FBR issued the cost of allowing reduced rate of sales tax on the import of cellular phones during fiscal year 2020.

    FBR sources said that the beneficiaries of sales tax concessions were importer and general public.

    Following table explains head wise cost of sales tax concession on import different type of mobile phones;

    S. No.Value of mobile phonesSales tax concession
    1Cellular mobile phones (not exceeding US$ 30)Rs2,424 million
    2Cellular mobile phones (exceeding US$ 30 but not exceeding US$ 100)Rs 10,032 million
    3Cellular mobile phones (exceeding US$ 100 but not exceeding US$ 200)Rs5,764 million
    4Cellular mobile phones (exceeding US$ 200 but not exceeding US$ 350)Rs 1,239 million
    5Cellular mobile phones (exceeding US$ 350 but not exceeding US$ 500)Rs 56 million
    6Cellular mobile phones (Exceeding US$ 500)Rs 731 million
    7Cellular mobile phones (PTA – DIRBS)Rs2,908 million