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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 urged to extend date for tax amnesty payment

    FBR urged to extend date for tax amnesty payment

    KARACHI: Karachi Tax Bar Association (KTBA) has urged Federal Board of Revenue (FBR) to extend the date for making payment for amnesty scheme declarants.

    The KTBA in a letter to FBR chairperson on Thursday pointed out that the due date of payment of tax under section 6 of the Assets Declaration Ordinance, 2019 (“ADO, 2019”), which in terms of section 6 of the ADO was June 30, 2019.

    A declarant was also provided with an option to pay the tax on deferred payment basis in installment till the date of June 2020.

    This late payment, however, had to be made along with default surcharge at the rates given in Clause (2) of the Schedule to the ADO, 2019.

    The KTBA said that the maximum rate of default surcharge is 40 percent which would apply if the tax payment is made by 30 June 2020.

    The ongoing circumstances in the wake of current pandemic of COVID-19 which, undisputedly, has affected the life and business of every individual, adversely and taxpayers are no exception.

    The fall out of the cessation of business activities in the last three (03) months due to intermittent lockdown orders has effected every ones’ taxpaying capacity as well.

    “It has become quite difficult for the taxpayers to make the payment of tax as per the proviso discussed above, by 30 June 2020,” the KTBA said.

    In this connection, on behalf of our members, we would suggest that the following may be considered:

    1. the due date of payment of tax may be extended up to 31 December 2020 without increasing the rate of default surcharge further

    AND

    2. allow adjustment from tax refund, if any, available to the taxpayer, against the aforesaid payment.

    The measures will not only repose confidence to the taxpayers but will also show the resolve of the FBR to address a genuine issue.

  • FBR notifies promotion of 49 IRS officers to BS-19

    FBR notifies promotion of 49 IRS officers to BS-19

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified promotion of 49 officers of Inland Revenue Service (IRS) to BS-19 with immediate effect.

    The FBR notified promotion of 41 officers from BS-18 to BS-19 on regular basis and other eight officers have been promoted from BS-18 to BS-19 on acting charge basis.

    The following BS-18 officers of Inland Revenue Service are promoted to BS-19 on regular basis with immediate effect :

    1. Muhammad Asfandyar Janjua

    2. Naveed Khan

    3. Syed Salahuddin Gillani

    4. Azhar Jehangir

    5. Muhammad Aamir Ilyas

    6. Qadir Nawaz

    7. Ms. Sadia Akmal

    8. Ms. Sadia Ali Akram

    9. Muhammad Ali Khan

    10. Ms. Amra Sarwar

    11. Ms. Arooj Mehwish Rizvi

    12. Asad Aziz

    13. Ms. Saba Rehmat

    14. Ms. Neelam Ifzal

    15. Karim Baksh Bughio

    16. Mrs. Saima Kenan Khan

    17. Husnain Ahmad Hali

    18. Kashif Hafeez

    19. Inayat Malik

    20. Akhtar Abbas

    21. Jamil Ahmad

    22. Muhammad Masood Ahmed Gorsi

    23. Kamran Ullah

    24. Laiq Zaman

    25. Naseebullah

    26. Naseer Ahmed

    27. Mrs. Safia Naseer

    28. Muhammad Sajid Ahmad

    29. Zubair Khan

    30. Ms. Sadia Iftikhar

    31. Tarique Aziz

    32. Rashid Javaid Rana

    33. Nasir Khan

    34. Muhammad Farooq Anwar

    35. Khawar Siddique

    36. Syed Zubair Shah

    37. Abdul Rauf

    38. Tariq Javed

    39. Tauqeer Ahmed Sujra

    40. Ms. Amina Batool

    41. Ms. Kiran Maqsood

    The FBR said that the officers at Sr. Nos. 07, 14, 24 and 32 will actualize their promotion from the date of their return from deputation and joining FBR (Hq), Islamabad.

    The officer at Sr. No. 08 is promoted subject to completion of satisfactory PERs, without any adverse entry/remarks, for the period 01.07.2018 to 30.06.2019. The officer at Sr. No. 19 is promoted subject to completion of satisfactory PERs, without any adverse entry/remarks, for the period 01.07.2018 to 31.03.2019.

    The officer at Sr. No. 25 is promoted subject to completion of satisfactory PERs, without any adverse entry/remarks, for the period 28.03.2019 to 30.06.2019 and will actualize his promotion from the date of his return from deputation and joining FBR (Hq), Islamabad.

    The officers already working in BS-19 on acting charge basis or on OPS basis as Additional Commissioner / Additional Director / Secretary FBR (HQ), Islamabad shall actualize promotion at their present place of posting. For actualization of promotion in BS-19 on regular basis of the remaining officers, transfer / posting order shall be notified separately and they shall actualize accordingly.

    Following BS-18 officers of Inland Revenue Service are appointed in BS-19 on acting charge basis with immediate effect:-

    1. Mrs. Sabah Fahad

    2. Zeeshan Asif

    3. Ms. Saba Ijaz

    4. Syed Mashkoor Ali

    5. Shahzad Ali Khan

    6. Muhammad Imran

    7. Soban Ahmad

    8. Ms. Hira Nazir

  • FBR promotes 14 customs officers to BS-19

    FBR promotes 14 customs officers to BS-19

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday announced promotion of 14 officers of Pakistan Customs Service (PCS) from BS-18 to the post of Additional Collectors BS-19 on regular basis with immediate effect.

    Following officers have been promoted to BS-19:

    1. Ali Raza Turabi

    2. Dr. Imran Rasool Khan

    3. Muhammad Hassan Farid

    4. Ghulam Hyder Mahesar

    5. Muhammad Nauman Tashfeen

    6. Moeen Afzal Ali

    7. Junaid Usman Akram

    8. Rana Irfan Shaukat

    9. Saad Ata Rabbani

    10. Wajid Zaman

    11. Zakir Muhammad

    12. Ihsanullah Shah

    13. Ammara Durrani

    14. Muhammad Qasim Khokhar

    The FBR said that the officers who are already working in BS-19 on OPS basis will actualize their promotion against these posts.

    Posting / Transfer of the remaining officers will be notified separately, and they shall actualize accordingly.

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

  • Key points of amnesty scheme for real estate sector

    Key points of amnesty scheme for real estate sector

    KARACHI: The federal government has made amnesty granted to real estate sector to the part of Finance Bill, 2020 in order to get approval from the Parliament.

    Deloitte Yousuf Adil Chartered Accountants in their budget explanations said that to stimulate investment in real estate and construction sector, a no-questions-asked amnesty has been introduced.

    Under this amnesty the Federal Board of Revenue (FBR) has been restrained from asking question related to source of investment made into the real estate / construction business.

    Both previous and current federal governments have launched tax amnesty schemes in 2018 and 2019, albeit the scope of this scheme is limited to investment made in construction sector only.

    The proponent of this particular amnesty scheme argues that this would act as a catalyst to increase economic activity in the country thereby improving employment opportunities as number of sub-sectors and small and medium size industries are associated with construction industry.

    The newly introduced scheme provides immunity from the provisions of section 111 of the Ordinance , and no questions will be asked regarding source of funds from investors making capital investment in new construction projects in the form of money or land, either as an individual, as an association of persons or a company, subject to conditions as explained below.

    For individuals:

    Monetary: Investor shall open a new bank account and deposit such amount in it on or before the 31st day of December, 2020

    Land: Investor shall have the ownership title of the land at the time of commencement of the Tax Laws (Amendment) Ordinance, 2020

    Corporate shareholder / Partner:

    Monetary: Such amount shall be invested through a crossed banking instrument deposited in the bank account of such association of persons or company, as the case may be, on or before the 31st day of December, 2020

    Land: Such land shall be transferred to such association of persons or company, as the case may be, on or before the 31st day of December, 2020. Provided that the person shall have the ownership title of the land at the time of commencement of the Tax Laws (Amendment) Ordinance, 2020

    Registration: The Company or AOP shall be a single object company duly registered under the Companies Act, 2017 or Partnership Act, 1932 as the case may be.

    Additional conditions to be met:

    • Prescribed IRIS form shall be submitted by the person making investment.

    • The investments made shall be wholly utilized in a project.

    • Grey structure in case of builders and landscaping in case of developers have been completed on or before September 30, 2022, and duly certified by NESPAK or respective map approving authority.

    • Further, for land developer, the following additional conditions should be met;

    • 50 percent of plots have been booked for sale and 40 percent of sale proceeds thereof have been received by September 30, 2022 as duly certified by specified chartered accountancy firm.
    • 50 percent of the project roads have been laid up to sub-grade level as duly certified by NESPAK.

    • The value or price of the land or building shall be higher of

    a) 130 percent of FBR assessed fair market value; or

    b) At the option of person making investment, lower of the value determined by at least two independent SBP approved valuers.

    Exclusion

    The following incomes or persons are excluded from the relief provided under the amnesty scheme:

    Holder of public office, benamidar or his spouse or dependents; or

    Public Listed Company, real estate investment trust or any company whose income is exempt under the Ordinance.

    Proceeds of crime including money laundering, terror financing excluding tax evasion.

    Restriction of Ownership Changes

    • Under the new amnesty, no change in ownership shall be allowed for incomplete projects except where 50 percent cumulative cost on the project has been incurred as certified by prescribed Chartered Accountants firm, with the exception of legal transmission to heirs.

    • Inclusion of partners or shareholders after December 31, 2020 is permissible; however, such investors shall not be eligible to avail tax amnesty.

    Amnesty to the purchaser

    Provisions of section 111 shall also not apply to:
    the first purchaser of a building or a unit in the building in respect of the purchase price both in case of new project or existing incomplete project where payment is routed through crossed banking instrument between the date of registration of project with the FBR and September 30, 2022.

    The purchaser of plot for building construction where the purchase, the payment thereof and commencement of construction has been made on or before December 31, 2020 subject to construction completion by September 30, 2022 and subject to registration of such purchaser with FBR on IRIS portal.

    Thus no questions would be asked from the purchaser of building or plot regarding source of funds who complies with the above mentioned conditions.

  • FBR to take action against amnesty declarants on failure to make payment

    FBR to take action against amnesty declarants on failure to make payment

    The Federal Board of Revenue (FBR) in Pakistan issued a stern warning on Tuesday, stating that it would invoke provisions related to concealed assets if declarants under the amnesty scheme failed to pay their outstanding dues by June 30, 2020.

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  • FBR constitutes committees to remove anomalies in Finance Bill 2020

    FBR constitutes committees to remove anomalies in Finance Bill 2020

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday constituted two committees for identifying and removing anomalies in the Finance Bill, 2020.

    The FBR issued two separate notifications for constituting the committees, which comprise FBR officials and representatives of business community.

    Chairman of the first anomaly committee is Saqib Shirazi of Atlas Group.

    The co-chairmen of the committee are Muhammad Javed Ghani, Member (Customs-Policy) and Dr. Hamid Ateeq Sarwar, Member (IR-Policy).

    The other members of the committee are:

    01. Ehsan Malik, Pakistan Business Council

    02. Agha Shahab Khan, President, Karachi Chamber of Commerce and Industry (KCCI)

    03. President, Khyber Pakhtunkhwa Chamebr

    04. Abdul Samad, former president, Quetta Chamber of Commerce and Industry

    05. Anjum Nisar, President, Federation of Pakistan Chamber of Commerce and Industry (FPCCI).

    06. Zahid Shinwari, former president, Sarhad Chamber

    07. Irfan Iqbal Sheikh, President, Lahore Chamber of Commerce and Industry (LCCI)

    08. Amir Fayyaz, Former Chairman, All Pakistan Textile Mills Association (APTMA).

    The FBR constituted the other technical anomaly committee. Ashfaq Tola, FCA, FCMA has been appointed as chairman of the committee.

    The co-chairmen of the committee will be the same FBR officials of the first committee.

    Other members of the committee are included:

    01. Ali Jameel, FCA

    02. Asif Haroon, FCA

    03. Abdul Qadir Memon, President, Pakistan Tax Bar Association

    04. Syed Yawar Ali, CEO, Pakistan Business Council

    05. Mrs. Robina Ather, Chairperson, National Tariff Commission (NTC)

    06. Muhammad Shahzad, ex-partner, A. F. Ferguson & Co.

    07. Rashid Ibrahim, A. F. Ferguson & Co.

    08. Khurram Mukhtar, Patron in Chief, PTEA.

    The term of reference (TOR) for the committees is: to review the anomalies identified and submitted; and to advise FBR on removal of anomalies.

    The FBR advised both the committees to submit the anomalies by June 19, 2020.

  • FBR allows Rs9.4 billion regulatory duty exemption on vehicle import

    FBR allows Rs9.4 billion regulatory duty exemption on vehicle import

    ISLAMABAD: Federal Board of Revenue (FBR) has allowed exemption from regulatory duty to the tune of Rs9.4 billion on import of vehicles during outgoing fiscal year.

    According to official documents, the revenue body granted exemption from regulatory duty under SRO 640(I)/2018 and SRO 1265(I)/2018 on import of vehicles by new entrants.

    The FBR allowed regulatory duty exemption of Rs6.46 billion under SRO 1265(I)/2018. The FBR issued details of the exemption of regulatory duty under this SRO granted under Para 2 of SRO for import under SRO678-2004, Fifth Schedule, Chapter 99, SRO 492-2009, 565-2006, import of vehicles by new entrants.

    Another amount of Rs2.93 billion granted as exemption from regulatory duty under SRO 640(I)/2018. Giving description, the FBR said that exemption of RD was given under Para 2 of the SRO for imports under SRO 678-2004, Fifth Schedule, Chapter-99, SRO 492-2009, 565-2006, import of Vehicles by new entrants, etc.  

  • FBR empowered third party real-time access to information, database

    FBR empowered third party real-time access to information, database

    The Federal Board of Revenue (FBR) in Pakistan has been granted enhanced authority to access third party information and databases in real-time as part of a comprehensive strategy to identify new taxpayers and curb tax evasion.

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  • FBR assigned 27 percent higher revenue collection target in 2020/2021

    FBR assigned 27 percent higher revenue collection target in 2020/2021

    ISLAMABAD: Federal Board of Revenue (FBR) has been assigned 27 percent higher revenue collection target for fiscal year 2020 despite challenging economic conditions due to COVID-19.

    According to official documents of Budget 2020/2020, the FBR has been assigned revenue collection target of Rs4,963 billion during upcoming fiscal year as compared with expected current revenue collection of Rs3,908 billion during the outgoing fiscal year, which is Rs1,055 billion higher.

    The collection target under direct tax has been estimated at Rs2,043 billion during fiscal year 2020/2021 as compared with expected collection of Rs1,623 billion in the current fiscal year, which is Rs420 billion higher.

    Under direct tax collection, target for income tax has been estimated at Rs2,037 billion, workers welfare fund at Rs3.2 billion and capital value tax at Rs3 billion.

    The collection of indirect taxes has been estimated at Rs2,920 billion during next fiscal year as compared with existing estimated collection of Rs2,285 billion during the current fiscal year, which is Rs635 billion higher.

    Under indirect taxes, the collection target of customs duty has been set at Rs640 billion, sales tax at Rs1,919 billion and federal excise duty at Rs361 billion.

    Targets for collection of other taxes are included: ICT Rs20.47 billion; Mobile handset levey Rs5.8 billion; airport tax Rs25 million, Gas Infrastructure Development Cess (GIDC) Rs15 billion; National Gas Development Surcharge Rs10 billion etc.

    The collection of petroleum levy has been estimated at Rs450 billion for next fiscal year as compared with existing collection of Rs260 billion, which is 73 percent higher.

    The target for total tax revenue has been set at Rs5,464 billion during fiscal year 2020/2021 as compared with Rs4,208 billion expected to be collected during current fiscal year.

  • Three FBR officers promoted to BS-22

    Three FBR officers promoted to BS-22

    KARACHI: The establishment division on Friday notified promotion of three senior officials of Federal Board of Revenue (FBR) to BS-22 with immediate effect.

    According to notification issued by the FBR, two officers of Inland Revenue Service (IRS) and one officer of Pakistan Customs Service (PCS) have been promoted to BS-22 from BS-21.

    The government has promoted IRS officers included: Khawaja Adnan Zahir and Ms. Fareena Mazhar.

    Fareena Mazhar has been promoted with effect from July 20, 2020.

    In PCS, Muhammad Zahid has been promoted to BS-22. He is presently serving as Director General (BS-21), Directorate General of Transit Trade, Karachi, which is now upgraded as Director General (BS-22), Directorate General of Transit Trade, Karachi.