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 directs completing inquiries against officials on urgent basis

    FBR directs completing inquiries against officials on urgent basis

    ISLAMABAD: Federal Board of Revenue (FBR) has directed inquiry officers to complete their reports on an urgent basis against officials allegedly involved in misconduct.

    In a notification issued on Wednesday stated that inquiry officers were not complying to instructions in completing their reports after lapse of time and with inordinate delay.

    The FBR said: “Whereas it is understood that Government Servants Efficiency & Disciplinary (E&D) Rules, 1973, themselves do not unequivocally provide a time frame within which an inquiry has to be completed, however, the urgency in completing the inquiries is implicit in procedure provided under Rule 6 of the E&D Rules, whereby it has been instructed that an ‘inquiry officer or committee, as the case may be, shall hear the case from day to day basis and no adjournment shall be given except for reasons to be recorded in writing.”

    The FBR further said that the Prime Minister’s Officer, through the Cabinet Division, had directed that all enquiries initiated under the E&D Rules, pending in any level beyond three months, shall be finalized on merit, and submitted to the concerned quarters within 90 working days.

    Furthermore, appointment as an inquiry officer under the relevant rules is a sacred trust, bearing both responsibilities, to the State, the nation and the department, and obligations – to be fair, impartial and just, the FBR said.

    “It is again noted with concern that inquiry reports being received by the board and being submitted to authorized officers in the field formations do not qualify against the basic benchmark,” the FBR said, adding that in so many cases, inquiry officers have not established the charges leveled, citing inability or failure on part of the DR to provide a certain document or prove the charge.

    “It should be noted that an inquiry officer is not a judge presiding over an adversarial judicial system where two different parties have to prove or disprove their case.”

    As the title itself implies, an inquiry officer has to inquire into the subject matter and, under Rule 7 of the E&D Rules, 1973, can exercise the powers to ‘summon any person, required production of documents, and receive evidence, the FBR said.

    The FBR said that it expects the inquiry officers shall actively inquire into and apply an independent mind to arrive at a conclusion and not rely only on the ability of the DR to prove or disprove the charges leveled.

  • Reduced rate of withholding sales tax withdrawn for registered persons

    Reduced rate of withholding sales tax withdrawn for registered persons

    ISLAMABAD: A registered person, who is not an active taxpayer, may not avail benefit of reduced rate of withholding sales tax after amendment made through Finance Act, 2020.

    Sources in Federal Board of Revenue (FBR) said that amendments have been made to Eleventh Schedule of Sales Tax Act, 1990 through Finance Act, 2020 under which the active taxpayers would be eligible to avail reduced rate of withholding sales tax at the time of supplies.

    Prior to this amendment registered persons were enjoying the reduced rate at the time of supply but now the registered persons, if not active taxpayers, shall pay full amount of sales tax.

    According to the amendment the withholding agents including federal and provincial government departments; autonomous bodies; and public sector organizations; companies as defined in the Income Tax Ordinance, 2001 shall collect/deduct 1/5th of sales tax as shown on invoice from those persons, who are active taxpayers.

    Similarly, person registered, but no active taxpayer, as a wholesaler, dealer or distributor are required to pay full amount of sales tax instead of reduced rate.

    Prior to the amendment, the withholding agents including federal and provincial government departments; autonomous bodies; and public sector organizations; companies as defined in the Income Tax Ordinance, 2001 were required to collect/deduct 1/10th of sales tax as shown on invoice from person registered as a wholesaler, dealer or distributor.

    In serial No. 03 of the Schedule, the Federal and provincial government departments; autonomous bodies; and public sector organizations are required to collect/deduct whole of the tax involved or as applicable to supplies on the basis of gross value of supplies form person other than active taxpayer.

    Similarly in Serial No. 04, the companies as defined in the Income Tax Ordinance, 2001 are required to collect/deduct five percent of gross value of supplies from persons other than active taxpayers.

    In serial number 06 the registered persons purchasing cane molasses are required to collect/deduct whole of sales tax applicable from persons other than active taxpayers.

    Active Taxpayer has been defined under Sales Tax Act, 1990 as a registered person who does not fall in any of the following categories, namely:-

    (a) who is blacklisted or whose registration is suspended in terms of section 21;

    (b) fails to file the return under section 26 by the due date for two consecutive tax periods;

    (c) who fails to file an Income Tax return under section 114 or statement under section 115, of the Income Tax Ordinance, 2001(XLIX of 2001), by the due date; and

    (d) who fails to file quarterly or an annual withholding tax statement under section 165 of the Income Tax Ordinance, 2001.

  • FBR starts scrutiny of officials under new directory retirement rules

    FBR starts scrutiny of officials under new directory retirement rules

    ISLAMABAD: Federal Board of Revenue (FBR) has started scrutiny of its officials from BS-1 to BS-16 under recently introduced the Civil Servants (Director Retirement from Services) Rules, 2020.

    In this regard the FBR on Tuesday issued directives to Chief Commissioners of Large Taxpayers Units (LTUs)/Regional Tax Offices (RTOs), Chief Collectors and Collectors of Customs and all director generals of Inland Revenue and Customs to submit details of officials in BS-16 and below whose cases qualify for consideration under the Civil Servants (Directory Retirement from Service) Rules, 2020.

    Necessary supporting documentary evidence may also be furnished alongwith these lists to the FBR by August 13, 2020 to enable the board to convene the meeting of the retirement committee.

    The heads of IR and Customs have been asked to provide details of officials from BS-1 to BS-16, including:

    01. Name of the officer with BPS

    02. Date of Entry into Civil Service

    03. Total length of Service

    04. No of Average Performance Evaluation Reports (PERs) (alongwith period of PER) and name of the officer RO/CO writing such PER

    05. Number of adverse PERs (alongwith period of PER) RO/CO and name of the officer writing such remarks

    06. Placed in Category ‘C’ by CSB/DSB/DPC

    07. Supresessions in CSB/DSB/DPC concerned

    08. Not recommended for promotion in case of HPSB (number of such considerations) and years of HPSB

    09. Was found guilty of corruption by NAB/other investigation agency

    10. Entered into plea bargain or voluntary return with NAB/other investigating agency

    11. Has conduct unbecoming

    12. Any other information to be brought before the board.

    Related News

    Board starts scrutiny of civil servants under directory retirement rules

  • Three FBR officials awarded ‘dismissal from service’ for misconduct

    Three FBR officials awarded ‘dismissal from service’ for misconduct

    ISLAMABAD: Federal Board of Revenue (FBR) has awarded ‘dismissal from service’ to three officials for Regional Tax Office (RTO) Faisalabad, a statement said on Monday.

    The FBR sacked the officials following their admission of wrong doing after thorough inquiry.

    The revenue body said that all the three officials were found guilty of misconduct. Besides, FIRs were also lodged against them.

    The officials who were granted dismissal from service, included: Abid Iqbal, UDC Jhang Zone, Javed Masih, Notice Server and Manzoor Qadir, Watchman. While another official Aslam Pervez, watchman was suspended for three months.

    Through another notification, the FBR suspended Syed Muhamamd Salman Bukhari, Appraising Officer, MCC Gwadar and Maqbool Ahmed, IRO, RTO Faisalabad for three months.

  • FBR to notify withholding tax exemption for wheat import

    FBR to notify withholding tax exemption for wheat import

    ISLAMABAD: Federal Board of Revenue (FBR) soon to issue exemption from withholding tax on import of wheat in order to ensure availability of the commodity in the country.

    Omar Hamid, Secretary Ministry of National Food Security and Research (NFS&R), said while chairing a meeting on wheat import on Monday.

    He said that taxes and duties have already been abolished by the federal government including, regulatory duty 60 percent, custom duty 11 percent, sales tax 17 percent and withholding tax 06 percent.

    “The waiver of withholding tax will be notified in matter of days,” he added.

    He said that private wheat importers would be given priority.

    Secretary NFS&R was of the point of view that legitimate concerns of importers will be solved at the earliest.

    He mentioned that NFS&R is working in PM Imran Khan Direction of to ensure uninterrupted supply countrywide. NFS&R will help wheat importers at all levels.

    So that ultimately public can get wheat at affordable price. NFS&R is facilitating wheat importers by helping them in priority berthing, storage,multiple ports and clearances on the landing of shipment.

    He said that imported wheat is exempted from the Anti- Hoarding Act imposed by the provincial governments on producing verified import record by the importers.

    The meeting was attended by wheat importers, representatives from NFS&R, Ministry of Maritime Affairs, FBR and Finance Division.

  • FBR, provincial authorities discuss single return filing portal

    FBR, provincial authorities discuss single return filing portal

    ISLAMABAD: Federal Board of Revenue (FBR) has discussed with the provinces about common portal for single return filing, a statement said on Monday.

    At the meeting the tax authorities deliberated on ways to facilitate taxpayers under jurisdictions of the federal and the provincial authorities.

    Member IR Operations D. Muhammad Ashfaq Ahmed presided over the meeting. On the occasion, Director Intelligence and Investigation, Lahore, Ahmed Kamal briefed the participants about challenges for launching the single portal. He also presented the suggestions to remove irritants.

    The meeting decided that the provincial tax authorities would sent their recommendations within 15 days to the FBR.

    The participants praised the efforts of the FBR and suggested that all the tax issues should be resolved amicably.

    Member (IR-Operations) FBR appreciated the positive gestures of all the provincial authorities and urged that resolving issues at technical level will pave the way for resolution of common interest at provincial and federal political level.

  • FBR empowered to send electronic notice, decisions to all sales tax registered persons

    FBR empowered to send electronic notice, decisions to all sales tax registered persons

    KARACHI: Federal Board of Revenue (FBR) has been authorized to serve electronic notice and decision as legal document to sales tax registered persons.

    In this regard an amendment has been made to Section 56 of Sales Tax Act, 1990 through Finance Act, 2020.

    Prior to amendment the FBR was empowered to send electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal Excise returns by the limited companies, both public and private.

    However, through the amendment the FBR has been empowered to send electronic notice or decision to all registered persons.

    The serving of electronic notices by the FBR was legalized through Finance Act, 2017.

    The section 56 after the amendment shall be:

    “Section 56: Service of orders; decisions etc. – (1) subject to this Act , any notice, order or requisition required to be served on a resident individual, other than in a representative capacity for the purposes of this Act shall be treated as properly served on the individual if –

    (a) personally served on the individual or, in the case of an individual under a legal disability or a non-residents individual the representative of the individual;

    (b) sent by register post or courier service specified in clause (b) of sub-section (2) or to the individual’s usual or last known address in Pakistan;

    (c) served on the individual in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908); or

    (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by registered person.

    (2) Subject to this Act, any notice order or requisition required to be served on any person, other than a resident individual to whom sub-section (1)applies, for the purposes of this Act, shall be treated as properly served on person if –

    (a) personally served on the representative of the person;

    (b) sent by registered post or courier service to the person’s registered office or address for service of notices under this Act, in Pakistan or where the person does not have such office or address, the notice is sent by registered [Post to any office or place of business of the person in Pakistan;

    (c) served on the Person in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908); or

    (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by registered person.

    (3) Where an association of persons is dissolved, any notice, order or requisition required to be served under this Act, on the association or a member of the association may be served on any person who was the principal officer or a member of the association immediately before such dissolution.

    (4) Where, business stands discontinued, any notice, order or requisition required to be served under this Act, on the person discontinuing the business may be served on the person personally or on any individual who was the person’s representative at the time of discontinuance.

    (5) The validity of service of a notice under this Act shall not be called into question after the notice has been complied with in any manner.

  • FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    ISLAMABAD: Federal Board of Revenue (FBR) will get CNIC details of unregistered persons making purchases above Rs100,000 through monthly sales tax return for July 2020 to be filed by registered persons in August 2020.

    The registered persons are required to provide details of all those unregistered persons who made purchases above Rs100,000. The information of CNIC of unregistered persons should be provided through sales tax return for the month of July 2020 in August 2020.

    Through Finance Act, 2019 the government made it mandatory for sales tax registered persons to provide information of unregistered persons including their CNICs, names and addresses on making supplies above Rs50,000.

    However, due to difficulties in implementation the condition was applied from August 2019. But due to dispute between FBR and retailers the implementation of this condition was remained inapplicable.

    Through Finance Act, 2020 the limit of purchases by unregistered persons has been enhanced to Rs100,000 effective from July 01, 2020.

    Section 23 of Sales Tax Act, 1990 requires the registered persons to provide the details of unregistered persons while issuing tax invoice.

    “Section 23. Tax Invoices.– (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

    Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

    (c) date of issue of invoice;

    (d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

    (e) value exclusive of tax;

    (f) amount of sales tax; and

    (ff)

    (g) value inclusive of tax:

    Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

    Provided further that not more than one tax invoice shall be issued for a taxable supply:

    Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

    (2) No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

    (3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

    (4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.”

  • FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    ISLAMABAD: The Federal Board of Revenue (FBR) has provided significant tax exemptions amounting to Rs2.42 billion on the income of teachers and researchers during the tax year 2019–2020.

    (more…)
  • FBR stops public auction of confiscated foreign origin cigarettes

    FBR stops public auction of confiscated foreign origin cigarettes

    ISLAMABAD: Federal Board of Revenue (FBR) has stopped public auction of foreign origin smuggled cigarettes as those goods do not comply with the national health regulations.

    In a statement issued on Saturday, the FBR clarified that the auction of confiscated smuggled cigarettes of foreign origin have been stopped which were earlier decided to hold by field formations.

    The decision to stop the auction of confiscated cigarettes of foreign origin has been taken as the packing of the aforementioned cigarettes do not comply with the national health regulations, FBR added.

    As per conditions imposed by the Ministry of National Health Services, Regulations and Coordination, warning of serious health hazards must be printed both graphically as well as textually in Urdu language for bewaring the general public as laid down in SROs 127(KE)/2017 & 128(KE)/2017 both dated 19-12-2017 and SRO DE/2019 dated 22-1-2019.

    In order to avoid carrying out any inadvertent act or procedure that is inconsistent with the national health laws and regulations, confiscated cigarettes of foreign origin have been excluded from the public auction through an amendment issued vide notification N. SRO 638(I)/2020 dated 23-7-2020 in the relevant provisions of the Customs Rules, 2001 (Rule 58(3) in Chapter V).

    FBR further added that the confiscated cigarettes shall not be put to auction and shall be destroyed in the manner as prescribed by Board.