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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 to install surveillance cameras at factory premises

    FBR to install surveillance cameras at factory premises

    ISLAMABAD: Federal Board of Revenue (FBR) has amended sales tax rules for installing surveillance cameras at factory premises to monitor production of goods in various sectors to prevent tax evasion.

    The FBR issued SRO 889(I)/2020 on Monday to amend Sales Tax Rules, 2006 and introduced rules namely ‘Video Analytics Rules for Electronic Monitoring of Production of Specified Goods.’

    The FBR said that the provisions of the rules shall apply to video surveillance for electronic monitoring of production on real-time basis.

    The FBR shall monitor, under these rules, the goods specified in Third Schedule appended to the Sales Tax Act, 1990.

    The FBR said that production of specified goods, manufactured in Pakistan, shall be monitored through intelligent video surveillance, and video analytics by installation of equipment including video cameras, sensors, etc. at production lines, as are approved by the FBR, for:

    — real time collection of data that shows production through object detection and object counting;

    — transmission of data to central control room at FBR on real time basis, storage and archiving of data;

    — detection of unexpected stops;

    — quantitative analyses of productions; and

    — data analytics for required legal actions.

    The FBR further said that no person engaged in manufacturing of specified goods shall remove the production from its business premises unless it has undergone the process of intelligent video surveillance.

    The IT team of the FBR shall ensure that each factory premises is connected to the system with adequate IT infrastructure required for real time electronic monitoring of production and generation of periodic reports.

  • FBR issues procedure for condonation of sales tax cases

    FBR issues procedure for condonation of sales tax cases

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued procedure for condonation of time limit in sales tax cases.

    The FBR issued Sales Tax Circular No. 02 of 2020 for the purpose of disposal of requests for condonation of time limit, and directed field formation including LTOs, MTO, CTOs and RTOs to process the taxpayers’ requests for the condonation of time limit under Section 74 of Sales Tax Act, 1990 read with SRO 394(I)/2009 dated May 21, 2009.

    The FBR directed the field formation to follow the procedure:

    01. Whether any application for condotnation submitted by the taxpayer with field formation?

    If ‘yes’, decision taken thereon by the field formation.

    02. Genuineness/authenticity of the reasons narrated for condonation sought by the taxpayer.

    If ‘yes’, elaborate with details along with supporting document.

    03. Whether the reasons for delay in seeking condonation on the part of the taxpayer are cogent?

    If ‘yes’, elaborate with details along with supporting documents.

    04. Revenue impact (in case of registered person as well as other persons involved), if any.

    If ‘yes’, amount to be mentioned.

    05. Whether any system/technical glitch involved in the case?

    If ‘yes’, details of the system glitch along with supporting documents.

    06. Whether the condonation involved transaction of any closed, de-registered or any person whose registration has been blacklisted or suspended?

    If ‘yes’, then specify with reason.

    07. Whether the condonation involved adjustment/refund of amount which has already been claimed by taxpayer?

    Specify in detail.

    08. Whether supplier discharged due sales tax on supply after issuance of invoice and duly verified from Annex-C in the condonation cases of Power Sectors etc?

    If ‘yes’, specify the date and month of return in which the same has been incorporated.

    09. Both buyer and supplier are active on Active Taxpayers List (ATL).

    ‘Yes’/’No’

    10. Whether payment is made to supplier through banking channel as envisaged under Section 73 of the Act (In the case of Power Sector and provincial revenue authorities input)? In case, partial payment is made to supplier, balance payable to supplier with reason.

    ‘Yes’/’No’.

    The FBR said that the procedure for condonation cases shall become applicable with effect from September 21, 2020.

  • KTBA demands time for return filing as per law

    KTBA demands time for return filing as per law

    KARACHI: The Karachi Tax Bar Association (KTBA) on Monday demanded the Federal Board of Revenue (FBR) to allow extension for filing income tax return for tax year 2020 as per time prescribed under the law.

    In a letter send to FBR chairman, Zeeshan Merchant, President, KTBA praised the FBR for issuing return of income for business, salaried individuals, AOPs and companies concurrently via Notification dated September 08, 2020.

    Additionally simplified return of income for retailer/traders has also been notified per Notification dated September 17, 2020.

    Consequently in line with Section 118(2) and (3) of Income Tax Ordinance 2001 the time prescribed/suggested for filing return in case of a company is 180 days and in other cases is 90 days from the date the relevant amendments have been incorporated in the return of income officially.

    Merchant said that the media campaign launched by the FBR pressing people to file their return of income by due date i.e. September 30, 2020.

    “The BAR members have however quested the soundness of FBR’s media campaign which otherwise represents September 30, 2020 as last date for filing return of income in tax year 2020,” the KTBA president said, and asked the FBR chairman to allow taxpayers and tax professionals to file return of income in tandem with law.

  • List of cities contributing tax above Rs1 billion

    List of cities contributing tax above Rs1 billion

    ISLAMABAD: The Federal Board of Revenue (FBR) has published a comprehensive directory detailing the tax contributions of major cities across Pakistan for the tax year 2018 contributing above Rs1 billion. This directory provides valuable insights into the fiscal landscape of the country, highlighting the significant contributions made by urban centers to the national exchequer.

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  • 71pc return filing companies declare income below Rs500,000

    71pc return filing companies declare income below Rs500,000

    The Federal Board of Revenue (FBR) has revealed that a staggering 71 percent of corporate return-filing entities declared annual income of less than Rs500,000 for tax year 2018. This alarming figure points to a serious compliance and revenue generation gap within Pakistan’s corporate sector.

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  • Highest number of returns filed by persons below threshold income

    Highest number of returns filed by persons below threshold income

    ISLAMABAD – The Federal Board of Revenue (FBR) has published its analysis of income tax returns for the tax year 2018, shedding light on the categories of taxpayers and their income brackets. The report reveals that the largest number of tax returns were submitted by individuals whose income fell below the taxable threshold.

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  • Salaried persons share 42 percent in total return filing

    Salaried persons share 42 percent in total return filing

    ISLAMABAD: Salaried persons have shared 42.12 percent of total income tax return filing with the Federal Board of Revenue (FBR), and they are second largest contributors in return filing after non-salaried individuals.

    According to a directory for tax year 2018 issued by the FBR a day earlier showed that the salaried persons filed 1.2 million income tax returns for the tax year ending June 30, 2018.

    The filing of the tax return by the salaried persons is 42.12 percent out of total returns 2.85 million filed for the tax year.

    Non-salaried individuals are the top contributors in return filing for the tax year under review. The non-salaried individuals filed 1.52 million income tax returns, which was 54 percent of total return filing during the tax year under review,

    Association of Persons (AOPs) filed 64,336 returns and companies only filed 44,609 returns, which are 2.26 percent and 1.56 percent, respectively out of total return filing.

    When analyzed the collection of taxes for the year, the companies contributed 55.84 percent in revenue collection. The share of non-salaried individuals in revenue collection was 21 percent. The salaried persons contributed 14.66 percent in revenue collection. The AOPs shared only 8.9 percent to the total revenue collection.

  • Tax Directory: FBR Issues Details of Tax Payment by Members of Upper, Lower Houses

    Tax Directory: FBR Issues Details of Tax Payment by Members of Upper, Lower Houses

    In a move aimed at promoting transparency and accountability, the Federal Board of Revenue (FBR) has officially released the latest Tax Directory of Parliamentarians, detailing the tax payments made by members of both the National Assembly and the Senate.

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  • FBR selects 10,441 income tax audit cases through computer balloting

    FBR selects 10,441 income tax audit cases through computer balloting

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday selected 10,441 cases of income tax for audit of tax year 2018.

    The FBR conducted computerized balloting for selection of cases under Audit Policy 2019, which was recently released.

    As many as 10,441 Income Tax cases were chosen through balloting for audit whereas the board selected 2065 Sales Tax Cases and 27 Federal Excise Duty case for the audit through this process.

    Advisor to Prime Minster on Finance and Revenue, Dr. Abdul Hafeez Shaikh witnessed the balloting ceremony.

    On the occasion the advisor said that promoting transparency through automation and digitalization in tax collection system of FBR was a prime agenda of the government.

    For this purpose, he said, the FBR has made public the tax payers’ information and published the taxpayers’ directory which contains tax record of individuals and parliamentarian and could be accessed by common masses, he said while launching the Taxpayers Directory and Computerized Balloting for Audit 2018 here.

    Chairman FBR Javed Ghani, representatives of business community and other officials of the board were also present on the occasion.

    The Advisor said that only 0.76 percent cases were selected for audit with an aim to involve minimum number of taxpayers.

    He said that last year around 14000 cases were selected but the audit remained inconclusive due to excessive number of cases, hence this year around ten thousand cases were selected only.

    While talking about tax refunds, the advisor said Rs 240 billion refunds were paid to the industrialist in fiscal year 2019-20, more than double as compare to the previous fiscal year.

    He said that out of total out Rs 40 billon income tax refunds, around 28 billion were paid while the remaining Rs12 billion would be paid this year.

    The advisor said that the government wanted coordination with the business community for resolving their issues. “We want to facilitate the industrial sector and provide it all facilities to reduce its cost of doing business to increase the country’s exports.”

    He added that the lowering the cost of doing business was a priority of the government to provide competitiveness to the local industrial sector in international market for increasing country’s exports.

    He said that industrial growth leads to enhanced exports and thereby create employment opportunities in the country.

    The advisor said that export sector performed good in July even when the country has been passing through in challenging times amid COVID- 19 pandemic.

    Hafeez Shaikh highlighted the importance of promoting tax culture, saying that the taxes enable the government to carry forward development agenda and initiate development projects of infrastructure, health and education.

    Speaking on the occasion, Chairman FBR Javed Ghani said the board launched the tax payer directory of parliamentarian and other individual to public the date of taxpayers for maintaining the transparency.

    He said that transparency and automation was the top priority of the FBR for broadening the tax net to growth in the country’s economy.

  • FBR issues rules for duty free import of minimum value goods

    FBR issues rules for duty free import of minimum value goods

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued rules for duty free minimum value of goods imported through courier and postal service.

    The FBR issued SRO 886(I)/2020 to notify draft amendment to Customs Rules, 2001.

    Through the draft amendment the FBR issued ‘Deminimis rules for imported goods’, which shall apply to the goods imported through post service and air courier only.

    “De minimis value’ means the value of goods up to five thousand rupees in terms of the provisions of Section 19C of the Customs Act, 1969.

    The FBR said that for the purpose of application of the provisions of Section 19C of the Customs Act, 1969, the value mentioned on label of the postal good or the courier receipt shall be considered as the declared value.

    Further, for conversion of invoice value into Pak Rupee, the postal or courier authorities shall take the official exchange rate of the previous day.

    The postal or courier authorities shall submit a separate list of goods along with invoices and other documents, if any, wherein the declared value is up to five thousand rupees.

    The customs authorities shall scrutinize the list and shall have the right to examine or detain any goods to verify the declared value or compliance to the requirement of any other law applicable thereon.

    The postal or courier authorities shall submit a consolidated monthly e-statement of all such clearance along with copies of invoice of the imported goods cleared under the rules to the concerned customs authorities for re-conciliation of the record.