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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 issues rules for processing duty drawback claims

    FBR issues rules for processing duty drawback claims

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for processing duty drawback claims in order to speedy repayment of exporters.

    The FBR issued SRO 561(I)/2020 to amend Customs Rules, 2001 for processing and sanctioning of duty drawback claims.

    The FBR said that the claims of duty drawback shall be sanctioned by the Customs if the same are complete in all respect and on first in first out (FIFO) basis.

    However, comprehensive audit of duty drawback would be carried out by the Directorate General of Post Clearance Audit (PCA) of the FBR.

    Any recovery detected by the PCA may be deducted from the next duty drawback claim of the exporter besides initiating recovery proceedings under the recovery rules.

    The duty drawback payment of such claims that are complete in all respects shall be made on FIFO basis taking into account the date of filing of claim.

    A consolidated discrepancy report shall be sent by the collectorate to State Bank of Pakistan (SBP) on monthly basis. The SBP shall also send a scroll of all the duty drawback payments made to the exporters.

    For calculating amount of customs duties paid at the time of import, past six months import data may be used taking the average quantity or value of each class or description of the materials, including packing materials, from which a particular class or description of goods is ordinarily produced or manufactured. Average exchange rates of the same period may be taken into consideration.

    The average amount of customs duties paid on imported materials used in the manufacturing of components, intermediate or semi-finished products which are exported as such or further used for manufacture of goods shall be taken into account for the purpose of calculation of the duty drawback.

    The average amount of customs duties paid at the effective rate on the imported input materials shall be calculated for the last six months import data.

    The average FOB (freight on board) value of each class or description of the goods exported during the last six months may be taken into consideration for the class or description of goods for which export drawback rates are being determined.

    On requisition by the relevant association, director general may furnish trade statistics pertaining to each class or description of imported or exported goods for the past six months on the basis of which export drawback rates need to be determined.

    At the time of submitting an application, the association shall specify the complete calculation in accordance with the method of calculation as the FBR may notify and shall also furnish therewith the worksheets.

    The Director General may initiate exercise for determination of duty drawback rates on its own motion where it is found that: duty drawback rates have not been determined; where already determination rates have changed due to amendments in tariffs.

  • FBR grants Rs45 billion customs duty exemption under free trade agreements

    FBR grants Rs45 billion customs duty exemption under free trade agreements

    In a significant move to bolster trade and economic relationships, the Federal Board of Revenue (FBR) has granted Rs45 billion in customs duty exemptions and concessions on imports under various Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) for the fiscal year 2019/2020.

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  • FBR to get information of all persons entering, leaving Pakistan for broadening of tax base

    FBR to get information of all persons entering, leaving Pakistan for broadening of tax base

    KARACHI: Federal Board of Revenue (FBR) will get access to information of all persons entering or leaving Pakistan from federal investigation agency and bureau of emigration for the purpose of broadening of tax base.

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  • FBR urged to allow time extension making audit notice compliance

    FBR urged to allow time extension making audit notice compliance

    KARACHI: Pakistan Tax Bar Association (PTBA) has urged the tax authorities to allow time extension to taxpayers for making compliance in audit notices of tax year 2014.

    In a letter sent to Ms. Nausheen Javaid Amjad, Chairperson, Federal Board of Revenue (FBR) on Friday, the PTBA urged to grant an extension of time under Section 214A of the Income Tax Ordinance, 2001 to complete the amendment of assessment proceedings for the tax year 2014 in order to provide sufficient time to taxpayers for compliance of such notices issued by the department in the best possible interest of the taxpayers at large.

    The apex tax bar said that it had been brought to the notice that the officers of Inland Revenue had initiated amendment of assessment proceedings by issuing various notices under Section 177/174/176/122 of the Ordinance, ibid in the last month of June 2020 to the taxpayers for the year 2014 as the said tax year is going to be time barred as on June 30, 2020 under Section 122(2) of the Income Tax Ordinance, 2001.

    Furthermore, the said notice have been issued with a short margin of only 2-3 days for compliance (which is not possible) and the officers are also reluctant to allow sufficient time to the taxpayers and their respected authorized representatives to respond against the notices in order to finalize it till June 30, 2020 to achieve budgetary targets by the end of this month.

    The tax bar said: “This, once again, put the credibility of the FBR officials in question as there were six years available to those officers to complete the assessment proceedings after filing of income tax returns for the tax year 2014 but the department has been slept over all this time and now suddenly awake just to show efficiency by issuing such vague notices in order to complete the proceedings before it gets time barred.”

    The PTBA informed the FBR chairperson that it had been held in a number of judgments as well as many directions had been given from time to time by the board to the officials to provide sufficient time/opportunity to the taxpayers to defend their case and provide sufficient explanation before an adverse order is passed against them. “But this has not been adhered to in the prevailing situation as the officers of FBR are busy in achieving their budgetary targets as well as to show their efficiency at the end of the financial year.”

    Hence, such notices issued by the department not only torment the taxpayers but also lacks confidence of the taxpayers / consultants upon the department, it added.

    “Nevertheless, the current pandemic situation of COVID-19 prevailing all over the country where many of the businesses and areas are still in lockdown situation, the taxpayers are unable to reach their as well as FBR offices to respond such notices issued by the department in such a short compliance period.”

  • Customs collectorates to observe extended working hours on June 29-30

    Customs collectorates to observe extended working hours on June 29-30

    KARACHI: Federal Board of Revenue (FBR) on Friday said that the collectorates of Customs will observe extended working hours on June 29 and 30, 2020 to facilitate trade and business in payment of duty and taxes.

    The FBR said that all filed offices of customs will remain open and observe extended working hours till 10:00 PM on June 29, 2020 (Monday) and till 12:00 midnight on June 30, 2020 (Tuesday) for collection of duty and taxes.

    The FBR directed chief collectors of Customs to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of the duty and taxes collected by these branches on June 30, 2020 to the respective branches of State Bank of Pakistan on the same date so as to account for the same towards collection for the month of June 2020.

  • Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020

    Cash withdrawal should be exempted from withholding tax; Senate recommends key changes in Finance Bill 2020

    ISLAMABAD: The Senate of Pakistan has recommended the government to abolish withholding tax on cash transactions from banks. In its key tax recommendations for finalizing budget 2020/2021, the Senate recommended that the government should abolish all kinds of withholding tax chargeable on cash transactions from banks.

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  • CRTO Karachi initiates recovery of reward amount from 42 officials

    CRTO Karachi initiates recovery of reward amount from 42 officials

    KARACHI: The Chief Commissioner Inland Revenue of Corporate Regional Tax Office (CRTO)-Karachi started recovery of reward amount that was sanctioned to the officials beyond authorized approval.

    In an official notices issued by Mushtaque Ali Wagan, Additional Commissioner (HQs) asked 42 officers and officials of the CRTO Karachi to deposit the sanctioned amount in government treasury through State Bank of Pakistan or National Bank of Pakistan within two days from the issuance of the letter i.e. June 24, 2020.

    The recovery has been initiated after detection that the then Chief Commissioner-IR, CRTO Karachi sanctioned stipend, incentives, awards and allied to the following officers of the CRTO without consultation of the Federal Board of Revenue (FBR):

    01. Imran Ali Sheikh, Additional Commissioner-IR, CRTO Karachi

    02. M. Masood Ahmed Gorsi-IR, Additional Commissioner-IR, CRTO, Karachi.

    03. Kashif Hafeez, Additional Commissioner-IR, CRTO, Karachi.

    04. Naseer Ahmed, Additional Commissioner-IR, CRTO, Karachi.

    05. Karim Bukhsh Bughio, Additional Commissioner-IR, CRTO, Karachi.

    06. Ms. Maryam Habib, Additional Commissioner-IR, CRTO, Karachi.

    07. Ms. Uzma Saqib, Additional Commissioner-IR (now CIR), CRTO, Karachi.

    08. Mushtaque Ali, Additional Commissioner-IR, CRTO, Karachi.

    09. Sardar Temur Khan Durrani, Additional Commissioner, IR, CRTO, Karachi.

    10. Mamoon Moazam Khuhwar, Additional Commissioner-IR, CRTO, Karachi.

    11. Muhammad Babar Chohan, Additional Commissioner-IR, CRTO, Karachi.

    12. Tariq Hussain Maitlo, Deputy Commissioner-IR, CRTO, Karachi.

    13. Tarique Aziz, Deputy Commissioner-IR (now ADC), CRTO, Karachi.

    14. Gobind Kumar, Deputy Commissioner-IR, CRTO Karachi.

    15. Mansoor Wisal, Deputy Commissioner-IR, CRTO Karachi.

    16. Ms. Kalpana, Deputy Commissioner-IR, CRTO, Karachi.

    17. Ms. Laila Malik Sher, Deputy Commissioner-IR, CRTO Karachi.

    18. Aminullah Kakar, Deputy Commissioner-IR, CRTO Karachi.

    19. Ms. Rashida Khalil, Deputy Commissioner-IR, CRTO Karachi.

    20. Muhammad Haider, Assistant Commissioner-IR, CRTO Karachi.

    21. Usama Amin, Assistant Commissioner-IR, CRTO Karachi.

    22. Muhammad Naveed, Assistant Commissioner-IR, CRTO Karachi.

    23. Sajid Khan, Assistant Commissioner-IR, CRTO Karachi.

    24. Shahid Nawaz, Assistant Commissioner-IR, CRTO Karachi.

    25. Baqar Ali, Assistant Commissioner-IR, CRTO Karachi.

    26. Masroor Ahmed, Assistant Commissioner-IR, CRTO Karachi.

    27. Darshan Lal, Assistant Commissioner-IR, CRTO Karachi.

    28. Abbas Jan Muhammad, IRO, CRTO Karachi.

    29. Zulfiqar Ali Khokhar, Assistant Director (Audit), CRTO Karachi.

    30. Yousuf Bashir, IRO, CRTO Karachi.

    31. Muhammad Arshad, IRO, CRTO Karachi.

    32. Mukesh Kumar, IRO, CRTO Karachi.

    33. Muhammad Shahid Rehan, Senior Auditor, CRTO Karachi.

    34. Qadeer Ahmed, MIS Officer, CRTO Karachi.

    35. Ahsan Ali Bhutto, APS, CRTO Karachi.

    36. Syed Salman Shah, Inspector-IR, CRTO Karachi.

    37. Muhammad Raza, Inspector-IR, CRTO Karachi.

    38. Ms. Khalida Begum, APS, CRTO Karachi.

    39. Ali Muhammad, Inspector-IR, CRTO Karachi.

    40. Sajid Anwar, Inspector-IR, CRTO Karachi.

    41. Muhammad Daniyal Pervez, Inspector-IR, CRTO Karachi.

    42. Muhammad Amin, Inspector-IR, CRTO Karachi.

    The Chief Commissioner of CRTO through a notice issued June 16, 2020 notified that the then chief commissioner sanctioned reward to following officers of CRTO Karachi exceeding value of six salaries:

    01. M. Masood Ahmed Gorsi, Additional Commissioner, Rs2.57 million

    02. Imran Ali Shaikh, Additional Commissioner, Rs930,120

    03. Tarique Aziz, Deputy Commissioner, Rs2.83 million

    04. Ms. Kalpana, Deputy Commissioner, Rs388,900

    05. Mansoor Wisal, Deputy Commissioner, Rs527,000

    06. Zulfiqar Ali Khokhar, Assistant Director (Audit), Rs521.730

  • Banks to provide information of all recipients of profit on debt

    Banks to provide information of all recipients of profit on debt

    In a decisive move to bolster transparency in financial transactions, the Federal Board of Revenue (FBR) is set to require all banks to provide detailed information on individuals receiving profit on debt, effective from July 1, 2020.

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  • Restoration of multiple years audit to burden taxpayers

    Restoration of multiple years audit to burden taxpayers

    KARACHI: Business community has criticized the government for eliminating condition of conducting audit once in three-year period.

    Overseas Investors Chamber of Commerce and Industry (OICCI) highlighted anomalies in the Finance Bill 2020, sent to the Federal Board of Revenue (FBR) and said that omission of the condition would burden the taxpayers and would give sweeping powers to tax officials.

    The Finance Act 2018 restricted the frequency of conducting audits to once in a three-year period.

    This amendment of 2018 demonstrated the confidence of the Government on the records maintained by registered persons.

    The Bill now seeks to omit the condition of conducting the audit once in a three-year period. If passed, this will unnecessarily burden taxpayers, while handing over sweeping powers to the assessing officers of Inland Revenue to conduct audits covering one or multiple tax years with no reprieve for the taxpayer available under the law, in absence of any prescribed limitation.

    The consequence of this change will likely erode the taxpayer’s confidence in the revenue machinery and the probable unnecessary wastage of time and effort by the revenue authorities.

    The OICCI said that during the FBR/OICCI Web link meeting on May 5th the FBR Member (IR-Operations) informed that new Audit Policy will be announced soon, where there will be only one audit in three years u/s 122, which was welcomed by OICCI members.

    Therefore the removal of condition of one audit in three years in the Finance Bill 2020, is a shock for OICCI members.

    “Hence, we strongly advocate maximum of one for audit within three years, for promoting Ease of Doing Business,” the OICCI said.

  • Inland Revenue offices to observe extended working hours on June 29 – 30

    Inland Revenue offices to observe extended working hours on June 29 – 30

    ISLAMABAD: The offices of Inland Revenue have been directed to observe extended working hours on last two days of current fiscal year in order to facilitate taxpayers in payment of duty and taxes.

    In an office order issued on Monday, the Federal Board of Revenue (FBR) said that all Large Taxpayers Units (LTUs), Corporate Regional Tax Offices (CRTOs) and RTOs would remain open and observe extended working hours till 9:00 PM on Monday June 29, 2020 and till 11:00PM on Tuesday June 30, 2020 to facilitate taxpayers in payment of duty and taxes.

    The FBR directed chief commissioners to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on June 30, 2020 as per SBP’s letter dated June 18, 2020.