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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.

  • No question on source of investment for construction section: FBR

    No question on source of investment for construction section: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday highlighted tax relief package and said that source of investment for construction sector will not be investigated.

    The government recently tax relief package for construction sector in order to restore economic activities. The package was also aimed to benefit 40 additional construction-linked industries. Besides, it was also aimed to generate more employment.

    Highlighting the salient features, the FBR said that the tax reform package also allowed 90 percent tax reduction on investment in Naya Paksitan Housing Scheme.

    Further, the package allowed fixed tax scheme with facility to pay tax liability in quarterly installments. Further, the incentive package offers easy and simple tax registration.

    The FBR said that the government has granted concession in income tax and capital gain tax for builders and land developers.

    Further, one time exemption of capital gain tax on sale/purchase of personal accommodation (up to 500 square yards house or 4000 square yards apartment).

    The FBR said that the package extended exemption from requirement of withholding tax on building material and services (except steel and cement).

  • FBR advised to allow examination before filing GDs

    FBR advised to allow examination before filing GDs

    KARACHI: Federal Board of Revenue (FBR) has been advised to allow examination/ weighment should be allowed before filing goods declaration (GDs) in order to verify contents of containers.

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for budget 2020/2021 submitted to the FBR said that as per proviso of para 1 Section 79 of Customs Act, 1969, in case of used goods, before filing of goods declaration, the owner can make a request to an officer of customs to permit the owner to examine the goods and thereafter make entry of such goods by filing a goods declaration.

    “As per KYOTO Convention of WCO guidelines Standard 3.9 “Before lodging the goods declaration the declarant shall be allowed, under such conditions as may be laid by the customs (a) to inspect the goods; and (b) to draw samples,” the FPCCI said.

    The apex trade body proposed that examination / weighment may be allowed before filing of goods declaration, in all cases, where the owner is in doubt about the contents of the consignment, especially in cases of machinery, fabrics, article of plastic and food items etc.

    “Keeping in view the above facts, the weighment / examination before filing of goods declaration may be allowed for all class of goods,” the FPCCI advised.

    The FPCCI also highlighted an issue related to time duration related to decision of cases as heavy demurrages were hampering economic activities.

    The FPCCI said that as per sub-section 3 of Section 179 of Customs Act 1969 (IV of 1969) the cases are required to be decided within 90 days of the issuance of show cause notice or within such period extended by the collector for which reason shall be recorded in writing, but such extended period shall in no case exceed sixty days.

    The FPCCI proposed that the period specified to decide the cases under sub-section 3 of section 179 should be fifteen working days instead of existing period i.e. 90 days and further the extended period of 60 days should be reduced to 07 working days as an estimated cost Rs.15000 to 20000 per day is incurred on a 40 ft container.

    Therefore, to reduce the cost of doing business and trade facilitation the cases should be decided within 15 working days.

  • Probe launched into amnesty scheme cases

    Probe launched into amnesty scheme cases

    ISLAMABAD: The Federal Tax Ombudsman (FTO) has launched investigation of over 12,000 pending cases of aggrieved taxpayers who could not avail amnesty scheme or Assets Declaration Scheme 2019 despite payment of due taxes before the deadline.

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  • FBR takes notice of closure of field offices

    FBR takes notice of closure of field offices

    ISLAMABAD: Federal Board of Revenue (FBR) has taken serious notice of without approval closure of field offices for prevention against COVID-19 (coronavirus).

    In an official notice issued on Tuesday, the FBR said that it had been observed with grave concern that field offices, unilaterally decided for closure of offices without approval of the Board while dealing with cases of COVID-19.

    “This action not only causes embarrassment to the board but also leads to interruption in service delivery of the organization,” the FBR said.

    The FBR said that although the tax body places a premium on the safety of its human resource, however, it is important that while taking precautionary steps, simultaneous measures are also taken to ensure uninterrupted provision of services to the taxpayers.

    The FBR directed all the field formations to ensure close liaison with Admin Wing, FBR and in future, while dealing with matters related to COVID-19 pandemic or any decision regarding closure or other admin related matters, the same shall only be taken with prior approval of Member (Admin).

  • FBR extends date for sales tax payment, return filing

    FBR extends date for sales tax payment, return filing

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday extended the last date for federal excise / sales tax payment and filing monthly return for the month of April 2020.

    A notification issued by the FBR stated that the date for federal excise duty / sales tax payment has been extended up to May 29, 2020, which was due on May 15, 2020.

    Whereas the date for filing sales tax return for the month of April has been extended to May 30, 2020, which was due on May 18, 2020.

  • Hafeez Shaikh directs FBR to collect data for effective budget making

    Hafeez Shaikh directs FBR to collect data for effective budget making

    ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh on Monday directed the Federal Board of Revenue (FBR) to collect data for effective budget making for year 2020/2021.

    Dr. Hafeez Shaikh chaired a meeting at the Finance Division through video link with Dr. Ikram-ul-Haq to discuss proposals on improving the tax structure of the country with the help of effective data gathering and reconciliation mechanism.

    He directed FBR to collect data through multiple sources that may be best used for effective budget making exercise.

    Chairman FBR, Secretary Finance and ex-secretary Finance Dr. Waqar Massoud Khan were also present during the meeting.

    The adviser appreciated the work done by Dr. Ikramul- Haq for gathering data across the country from selected markets and from different chambers of commerce and Industry.

    Dr. Ikram shared with the adviser the important inferences from data gathering exercise and suggested certain techniques for data reconciliation that could improve tax collection in a more effective manner.

    The adviser said that the basic purpose of this exercise is to consult experts to seek suggestions and insights so that the fundamental problems of the tax collection system in the country could be effectively addressed.

    He said that as we are preparing the next budget, we should be more vigilant, practical and analyze the opportunities and challenges offered by the current environment.

    The Government is ready to listen to all stakeholders to prepare a budget which is according to the need of the prevailing economic circumstances and innovative in providing solutions to the structural problems of the economy.

    He asked the Expert to firm up his proposals in concise and doable manner and share the draft as early as possible with the ministry so that these proposals could be well incorporated in the upcoming budget.

  • FBR proposed to ensure CPR for deposited withholding tax

    FBR proposed to ensure CPR for deposited withholding tax

    KARACHI: Federal Board of Revenue (FBR) has been advised to ensure Computerized Payment Receipt (CPR) for deposited withholding tax in order to avert chances of revenue leakages.

    Pakistan Business Council (PBC) in its proposals for budget 2020/2021 submitted to the FBR, said that presently the taxpayer has to deposit the withholding tax deducted fortnightly, i.e. within seven days from the end of each week ending on every Sunday.

    In addition, certain WHT agent do not deposit on time and some agents do not deposit at all. This also includes agencies/govt. organizations in respect of withholding tax, where CPR is not provided hence revenue leakages to government in the absence of withholding tax deposit.

    On the other hand, where withholding tax is deducted by agencies/government organization, but do not provide system (IRIS) generated CPR as they do not enter in the system. Therefore assesse cannot get input benefit due to non-availability of CPR from IRIS system on account of withholding tax in spite of reminders.

    The PBC recommended that timeline of 7 to 13 days should be extended to one week after the month.

    Besides, IRIS system should be applicable for all with holding agent including agencies/government organizations and CPR in respect of withholding tax facing authority should be available from IRIS.

    This will help in ease of doing business and facilitate withholding tax agents.

    Furhter, the proposed amendment will help in controling revenue leakages as well as assesse can claim input tax properly.

    Thus neither it is loss to authority nor the assesse. In the absence of non-availability of CPR , this is an extra cost for doing business.

  • FBR advised to amend withholding tax on prize winnings

    FBR advised to amend withholding tax on prize winnings

    KARACHI: Federal Board of Revenue (FBR) has been advised to amend the income tax law related to withholding tax deduction on prize winnings.

    Pakistan Business Council (PBC) in its budget proposals for 2020/2021 submitted to the FBR said that under Section 156 of the Income Tax Ordinance, 2001 requires a company to deduct 20 percent tax on “prize offered by companies for promotion of sale”.

    The PBC suggested amended in the Section 156 that every person paying prize of prize bonds, or winning from a raffle, lottery, prize on winning a quiz, prize offered by companies for promotion of sale to end consumers, or cross-word puzzle shall deduct tax.

    The PBC said that the clear intention of this section is to capture tax through withholding at source from persons who are recipients of these prizes or winnings; the intention is not to tax any person who belongs to the supply chain of the companies who offer prize for promotion of sales.

    The income of the supply chain i.e. dealers, distributors is subjected to withholding tax in the shape of withholding taxes imposed under separate withholding regimes.

    It is therefore suggested that to clear any ambiguity in law regarding application of this section, it may be amended to add the term “end consumers” to oust any person in the supply chain from the ambit of this section.

  • FBR advised to make annexure-J mandatory to prevent under reporting

    FBR advised to make annexure-J mandatory to prevent under reporting

    KARACHI: Federal Board of Revenue (FBR) has been advised to make it mandatory the filing annexure-J along with monthly sales tax returns in order to remove disparity between formal and informal sectors.

    Pakistan Business Council (PBC) in its proposals for budget 2020/2021 submitted to the FBR, said that currently only certain persons as defined under Rule 14 to Sales Tax Rules, 2002 are required to file annexure J.

    Annexure J requires taxpayers to file details of stock in hand in terms of value as well as quantity.

    Other taxpayers are encouraged to file the same but there is no mandatory requirement as per applicable laws to file the same.

    “It is feared that registered taxpayers are under reporting or suppressing their actual sales to escape the sales tax charge as currently there is no mechanism to report the details of stock (Raw material, WIP, and Finished Goods).

    The PBC proposed to make it mandatory for all the taxpayers to file Annexure J along with their monthly sales tax return in order to ensure that sales are not suppressed or made without charging proper sales tax.

    It said that the proposed mandatory requirement would help in removing disparity between formal and informal sectors.

  • FBR allows filing annex-H for July-Dec up to June 30

    FBR allows filing annex-H for July-Dec up to June 30

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday announced extension in date for filing annexure-H (stock position) up to June 30, 2020 for the period July – December 2019.

    Filing Annexure-H is mandatory for taxpayers to claim sales tax refunds.
    In an official memorandum issued, the FBR extended the time limit for filing of Annexure – H for the tax period July – December 2019 up to June 30, 2020.

    Annexure-H is a statement for providing stock position by taxpayers along with monthly sales tax return.

    The FBR from July 01, 2019 introduced expeditious payment of sales tax refunds within 72 hours subject to the true filing of Annexure – H.

    As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.