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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.

  • Tax Amendment Ordinance: 14-year jail, penalty of ten time of value for currency smuggling

    Tax Amendment Ordinance: 14-year jail, penalty of ten time of value for currency smuggling

    ISLAMABAD: The government has introduced very harsh penalties for offence of currency smuggling. The government enhanced the jail term to 14 years for currency smuggling above $200,000 besides ten time of value of the currency would be recovered as penalty.

    Federal Board of Revenue (FBR) on Wednesday issued ‘Tax Laws (Second Amendment) Ordinance, 2019’ have been promulgated through the presidential order.

    The following are the penal action for offences/smuggling introduced through the ordinance by amending Customs Act, 1969:

    (a) If the amount of the currency over and above the permissible limit is up to $10,000 or equivalent in value (currency of other denomination) etc.

    Such currency shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding the value of the excess amount of the currency.

    (b) If the amount of the currency over and above the permissible limit is up to $10,001 to $20,000 or equivalent in value (currency of other denomination) etc.

    Such currency shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding two times the value of the excess amount of the currency.

    (c) If the amount of the currency over and above the permissible limit is $20,001 to $50,000 or equivalent in value (currency of other denomination) etc.

    Such currency shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding three times the value of the currency; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding two years.

    (d) If the amount of the currency over and above the permissible limit is $50,001 to $100,000 or equivalent in value (currency of other denomination) etc.

    Such currency shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding four times the value of the currency; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding seven years.

    (e) If the amount of the currency over and above the permissible limit is $100,001 to $200,000 or equivalent in value (currency of other denomination) etc.

    Such currency shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding five times the value of the currency; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding ten years. Provided further that the sentence of the imprisonment shall not be less than three years.

    (f) If the amount of the currency over and above the permissible limit exceeds $200,000 or equivalent in value (currency of other denomination) etc.

    Such currency shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding ten times the value of the currency; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding fourteen years. Provided further that the sentence of the imprisonment shall not be less than five years.

  • FBR drafts rules for risk based customs clearance

    FBR drafts rules for risk based customs clearance

    ISLAMABAD: Federal Board of Revenue (FBR) has drafted Risk Management System Rules for customs clearance of cargo to comply with Trade Facilitation Agreement (TFA) of World Trade Organization (WTO).

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  • FBR extends return filing date up to January 31

    FBR extends return filing date up to January 31

    ISLAMABAD: Federal Board of Revenue (FBR) granted fifth extension for filing income tax return for tax year 2019 up to January 31, 2020.

    The FBR issued Income Tax Circular No. 18 of 2019 for extension in date of filing income tax returns/statements for tax year 2019.

    The FBR said that the date of filing of return of total income / statements of final taxation for individuals and associations of persons for the tax year 2019 which was due on September 30, 2019 and extended up to December 31, 2019 has been extended up to January 31, 2020.

    The FBR further said that the date of filing of return of total income/statements of final taxation for companies for the tax year 2019, which was due on September 30, 2019 and extended up to December 31, 2019, in respect of those companies who have paid 90 percent of the admitted tax liability on or before September 30, 2019, has been allowed further extension up to January 31, 2020.

    The date of filing of return of total income/statements of final taxation for companies for tax year 2019, which was due on December 31, 2019 has also been extended up to January 31, 2020.

  • FBR collects Rs2,080 billion in first half at 16% growth

    FBR collects Rs2,080 billion in first half at 16% growth

    ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs2,080 billion during first half (July – December) 2019/2020 as compared with Rs1,795 billion in the corresponding half of the last fiscal year, showing a growth of 16 percent.

    FBR chairman Syed Shabbar Zaidi in a tweet message said that the revenue body collected Rs2,080 billion up to December 31, 2019 posting 16 percent growth.

    On the basis of above data, the FBR collected Rs463 billion during December 2019 as compared with Rs411 billion in the same month of the last year, posting 12.65 percent growth.

    The FBR was required to collect Rs2,198 billion during first half of the current fiscal year as per revised performance criteria of International Monetary Fund (IMF).

    Considering the performance criteria the FBR’s revenue shortfall was at Rs118 billion during first half of the current fiscal year.

    According to Country Report Pakistan released by IMF on Monday the actual performance criteria for revenue collection was Rs2,367 billion during first half (July – December) of current fiscal year, which has been revised downward by Rs169 billion to Rs2,198 billion.

    As per IMF documents the FBR failed to achieve the first quarter (July – September) 2019/2020 target of Rs1,071 billion and its collection was at Rs964 billion.

    The actual revenue collection target for current fiscal year was Rs5,550 billion. However, the indicative target as per IMF documents has also been revised downward to Rs5,238 billion.

    The FBR has to raise revenue collection to Rs3,520 billion by March 2020 in order to ensure the desired target for current fiscal year.

    As per IMF documents: “Tax revenue is now expected to be 0.5 percent of GDP lower than originally expected: while domestic collection is envisaged to remain strong, growing by over 25 percent y-o-y over FY 2020, growth in trade-related tax revenues is expected to remain subdued as declining imports continue to weigh on collections—more than 40 percent of total tax revenue in Pakistan is collected at the import stage.”

    The FBR has been given revised Indicative Targets for end December 2019 including net tax collection to recognize the faster than expected external adjustment negatively impacting customs revenue, besides net accumulation of tax refund arrears to capture the authorities plan to reflect the end-June stock of tax refund arrears.

  • Will FBR further extend return filing date to match record?

    Will FBR further extend return filing date to match record?

    KARACHI: Today i.e. December 31, 2019 is the last date for filing income tax returns for tax year 2019 and Federal Board of Revenue (FBR) may not able to reach 2.74 million returns of tax year 2018.

    The income tax return filing for tax year 2018 has increase to a new record level of 2.74 million by December 29, 2019, as shown in the Active Taxpayers List (ATL) issued on December 30, 2019.

    The FBR received 1.8 million tax returns for tax year 2019 by December 12, 2019 and it is apparently difficult for the revenue authorities to reach the record level in 18 days.

    Tax experts said that the FBR had set a target of 3.5 million returns for tax year 2019. To achieve this number the FBR has to extend the return filing date.

    The last date for filing of income tax return other than companies was September 30, 2019 since then the FBR granted four extensions to facilitate taxpayers.

    All the taxpayers including companies to file their returns by mid-night December 31, 2019.

    It is interesting to note that no tax body or business associations have asked the FBR to further extend the date beyond December 31, 2019.

    The income tax return filing reached to a new record high of 2.74 million as people making compliance to avoid 100 percent additional tax on persons not appearing on Active Taxpayers List (ATL).

    Sources in Federal Board of Revenue (FBR) attributed the record increase in return filing to the amendment to Income Tax Ordinance, 2001 through Finance Act, 2019.

    In the last budget 2019/2020 a new Tenth Schedule was inserted to Income Tax Ordinance, 2001 under which persons not appearing on ATL would liable to pay 100 percent more withholding tax on certain transactions.

    The ATL for tax year 2018 issued on March 01, 2019 in which 1.59 million names were appeared of those taxpayer, who filed their returns by due date.

    However, later the FBR granted extension in date for filing returns due to introduction of a tax amnesty scheme.

    The extension for filing income tax returns for tax year 2018 was granted up to August 09, 2019.

    The return filing up to August 09, 2019 for tax year 2018 jumped up to 2.5 million from 1.59 million returns, which were part of the first ATL issued March 01, 2019.

    The insertion of Tenth Schedule to Income Tax Ordinance, 2001 speed up the return filing by taxpayers in order to avoid higher tax rate on certain transactions.

    Previously, people filing their annual income tax returns after due date were not allowed to appear on the ATL. However, another provision was added to the main statute under which persons by paying penalty can include their name to ATL.

  • FBR suspends two officers of preventive Lahore

    FBR suspends two officers of preventive Lahore

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday suspended two customs officers of Model Customs Collectorate (MCC) Preventive, Lahore with immediate effect.

    The FBR suspended the BS-16 officers including Muzaffar Hussain and Khalid Pervaiz Bhutta for a period of three months.

    The revenue body suspended the officers using powers under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973.

  • FBR’s field offices directed to update employees’ database

    FBR’s field offices directed to update employees’ database

    KARACHI – The Federal Board of Revenue (FBR) has issued a directive to all field offices of Pakistan Customs and Inland Revenue, emphasizing the urgent need to update employee data.

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  • Meeting discusses tax rates on immovable properties

    Meeting discusses tax rates on immovable properties

    ISLAMABAD: A meeting chaired by Dr. Abdul Hafeez Shaikh, adviser to the Prime Minister on Finance and Revenue, discussed proposals related to tax rates on properties, and realization of property valuation tables.

    The adviser met a delegation of Association of Builders and Developers of Pakistan (ABAD) in this regard.

    The delegation was represented by Hassan Bakhshi, various proposals were presented that could enhance and boost the property business in the country and improve tax collection for the government.

    The proposals were regarding taxation rates on property, building height restrictions in Karachi and rationalization of Property valuation tables and some other policy related exemptions that could help in smooth functioning of the property business and further accelerate the economic activity in the country.

    The adviser to the Prime Minister discussed the proposals in detail with the delegation and after taking the views of the Chairman FBR, assured the members of the delegation that all possible help will be provided to the sector keeping in view the principles of equity, transparency and fair play.

    The adviser said that he realizes the importance of the business and wants to engage more with the sector for better facilitation and understanding.

    He directed the delegation to further refine their proposals for a positive outcome and meet again in the second week of January so that the matters could progress ahead.

  • IR offices observe extended working hours for collection

    IR offices observe extended working hours for collection

    ISLAMABAD: The offices of Inland Revenue will observe extended working hours on December 30 and 31, 2019 to facilitate collection of duty and taxes.

    Federal Board of Revenue (FBR) issued instructions on Monday directing all Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) to observe extended working hours on December 30 and 31, 2019 to facilitate taxpayers in payment of duty and taxes.

    Therefore, the IR offices will remain open till 8:00 pm on Monday December 30, 2019 and till 10:00pm on Tuesday December 31, 2019 to facilitate taxpayers.

    The tax offices will also help taxpayers in filing their annual income tax returns and statements of assets.

  • Commissioner empowered to make assessment of concealed income

    Commissioner empowered to make assessment of concealed income

    KARACHI: A commissioner of Inland Revenue has been empowered to make assessment of income detected as concealed income by Federal Board of Revenue (FBR) or any other agency.

    FBR officials said that under Section 123 of the Income Tax Ordinance, 2001, the commissioner has been authorized to make assessment of income on amount / assets identified as concealed or undeclared.

    The Section 123 of the Ordinance stated as follow:

    123.Provisional assessment in certain cases.—(1) Where a concealed asset of any person is impounded by any department or agency of the Federal Government or a Provincial Government, the Commissioner may, at any time before issuing any assessment order under section 121 or any amended assessment order under section 122, issue to the person a provisional assessment order or provisional amended assessment order, as the case may be, for the last completed tax year of the person taking into account the concealed asset.

    (1A) Where an offshore asset of any person, not declared earlier, is discovered by the Commissioner or any department or agency of the Federal Government or a Provincial Government, the Commissioner may at any time before issuing any assessment order under section 121 or amended assessment order under section 122, issue to the person a provisional assessment order or provisional amended assessment order, as the case may be, for the last completed tax year of the person taking into account the offshore asset discovered.

    (2)The Commissioner shall finalise a provisional assessment order or a provisional amended assessment order as soon as practicable.

    (3) In this section, “concealed asset” means any property or asset which, in the opinion of the Commissioner, was acquired from any income subject to tax under this Ordinance.