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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 reward for identifying fake, flying invoices

    FBR to reward for identifying fake, flying invoices

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday announced to give reward money to those people who identify culprits involved tax evasion through fake and flying invoices.

    A statement issued by the revenue body said that it had encouraged the people to come forward and reveal the identity of the people who are involved in causing tax evasion by using fake and flying invoices.

    “FBR will grant reward to such whistle blowers under its Reward Rules,” it said.

    The name of the whistle blowers will be kept secret.

    The information can be given to the Director Intelligence and Investigation Inland Revenue on office number 0519260167 and fax number 0519260156.

    The FBR announced in the wake of strict action launched against tax evaders involving in fake and flying business.

    In this regard FBR chairman issued directions to all the FBR field offices to expedite operation against tax evasion and play active role to stop the menace of fake and flying invoices.

    Meanwhile, implementing the directions, the Karachi Field Office of FBR has taken action against a fake business unit which was involved in evading duties and taxes at import stage under SRO 1125.

    The said unit was also issuing fake and flying invoices in the market due to which the buyers were claiming input adjustment and refunds.

    The said unit has committed tax fraud and caused heavy loss of Rs. 210 million to the pubic exchequer. The principal accused Mubarak Khan has been arrested.

    Similarly, another case of tax evasion of Rs. 105 million has been unearthed. The tax evasion was taking place by issuance of fake and flying invoices.

    FBR Multan office has confiscated the counterfeit and non-duty paid cigarettes. In another case, FBR Karachi office has received a complaint of Rs. 1 billion money laundering. The investigations are underway.

  • FBR issues draft return forms for tax year 2020

    FBR issues draft return forms for tax year 2020

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday issued draft forms for filing income tax returns tax year 2020.

    The FBR issued SRO 745(I)/2020 and invited comments from stakeholders on the draft return forms within seven days from the date of issuance of the draft forms.

    The FBR issued the draft forms filing annual income tax returns electronically by salaried persons, business individuals, association of persons (AOPs) and companies.

    The FBR said that the return form shall be applicable for tax year 2020.

    The draft return forms tax year 2020 can be downloaded here.

  • FBR urges taxpayers to lodge complaints against officials demanding bribe for clearing refunds

    FBR urges taxpayers to lodge complaints against officials demanding bribe for clearing refunds

    KARACHI: Federal Board of Revenue (FBR) has advised taxpayers to lodge complaints against tax officials, who are demanding bribe for clearing stuck up refunds.

    “Immediate action will be taken against the delinquent functionaries,” said Dr. Muhammad Ashfaq Ahmed, Member Inland Revenue Operations, Federal Board of Revenue (FBR) in a meeting with the office bearers of All Pakistan Textile Mills Association (APTMA).

    According to a statement released by the APTMA on Wednesday, the Member also urged the taxpayers to lodge complaints against the harassment by the tax collectors.

    The meeting discussed in detail the issues pertaining to the release of Sales Tax refunds in seventy-two hours, removing irritants of the Annexure-H, issuance of Income Tax exemption on electricity bills, delay in Income Tax refunds and other irritants faced by export oriented industries.

    APTMA delegation comprised of Raza Baqir and Shahid Sattar while the Member Inland Revenue Operations was assisted by concerned chiefs and secretaries of the Board.

    Dr. Ashfaq reiterated the resolve and commitment of the government for expeditious payment of tax refunds and removal of all irritants in doing the business.

    He told APTMA delegation that release of refund claims has been expedited by the Board and it would be ensured that all sales tax refunds are paid within 72 hours.

    He said all the systematic issues relating to Annexure H would be removed within a week which will facilitate exporters in filing of refund claims. He added that Annexure-H would be simplified to facilitate the taxpayers. According to him, the trial test of the changes made in software of Annexure-H is underway and it would be implemented shortly.

    He said the Board was also releasing the outstanding and deferred refund claims of the exporters on war-footing basis.

    Furthermore, he urged the APTMA delegation to convey all member mills to file their Income Tax refunds at the earliest for speedy clearance.

    APTMA delegation appreciated the efforts made by the Board for early disposal of refund claims of the export-oriented industry, saying that the member mills were satisfied with the performance of the tax machinery.

    The delegation further expressed the hope that the Board would start clearing refund claims within 72 hours of their filing by the exporters.

    The delegation further expressed the hope the FBR would soon overcome the inherent loopholes, infirmities and snags in the system and adopt measures to remove all odds which hamper and retard the system.

  • Rescinded SRO 1125: Manufacturers to pay 1pc advance tax on raw material import

    Rescinded SRO 1125: Manufacturers to pay 1pc advance tax on raw material import

    ISLAMABAD: Federal Board of Revenue (FBR) has said that manufacturers, who were covered under rescinded SRO 1125, shall pay one percent advance income tax on imported goods.

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  • FBR decides action against retailers for avoiding mandatory integration

    FBR decides action against retailers for avoiding mandatory integration

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take action against retailers having huge turnovers for not complying with mandatory integration with the online system of the tax authority.

    In this regard the FBR on Tuesday directed the retailers, who are required to integrate their sales and purchases under Sales Tax Act, 1990, to link their invoicing system by August 31, 2020.

    The FBR has explained that all retailers who have the network of chain stores throughout Pakistan, located in air-conditioned big shopping malls or plazas and their cumulative electricity bill during the immediately preceding twelve consecutive months exceeds twelve hundred thousand rupees and they are engaged in bulk import and supply of consumer good on wholesale basis to the retailers as well as on retail basis in to the consumer and their shop’s size measures one thousand square feet in area or more must integrate their retail outlets with the FBR’s computerized system for real time reporting of sales.

    FBR has warned that the last date for such integration is August 31, 2020 and afterwards those who failed to integrate would be imposed a penalty up to rupees one million and if the offence continued, the business premises of such retailer shall be sealed.

  • FBR updates withholding tax rates on sale, purchase of immovable properties

    FBR updates withholding tax rates on sale, purchase of immovable properties

    ISLAMABAD: Federal Board of Revenue (FBR) has updated the withholding tax rates on sale and purchase of immovable properties for tax year 2021.

    The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment to Income Tax Ordinance, 2001 through Finance Act, 2020.

    Under Section 236C of Income Tax Ordinance, 2001 the withholding tax is to be collected on seller of immovable property.

    Every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society co-operative society and registrar or properties shall collect withholding tax from seller of immoveable property at the time of registering, recording or attesting the transfer.

    The tax rate shall be one percent of the gross amount of the consideration received. In case of person not appearing on the Active Taxpayers list (ATL) the tax rate shall be two percent of the gross amount of the consideration received.

    The withholding tax shall be minimum tax if property is acquired and disposed off within the same tax year; otherwise the tax shall be adjustable.

    Advance tax, under this section, is not be collected if the immovable property is held for a period exceeding four years.

    Under Section 236K of Income Tax Ordinance, 2001 the withholding tax shall be collected from purchaser of immovable property.

    Under Section 236K (1) every person registering, recording or attesting or transfer including local authorities, housing authorities, housing society, co-operative society and registrar or properties shall deduct/collect withholding tax from the purchaser of immovable property at the time of registering, recording or attesting the transfer.

    The withholding tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax rate shall be two percent of the fair market value.

    The withheld tax shall be adjustable against total payable tax liability.

    Section 236K (3) of the Ordinance deals with advance tax on payment of installment in respect of purchase of allotment of immovable property where transfer is to be effected after making payment of all installments.

    Any person responsible for collection of payment in installment shall deduct/collect from the purchaser or allottee of the immovable property at the time of payment of installment.

    The tax rate shall be one percent of the fair market value. In case the person is not on the ATL the tax shall be two percent of the fair market value.

    The tax shall be adjustable against total tax liability.

  • FBR apologizes diplomat over show cause notice

    FBR apologizes diplomat over show cause notice

    ISLAMABAD: Federal Board of Revenue (FBR) has apologized over sending show cause notice to a foreign diplomat by an adjudication collection.

    In a tweet message, FBR spokesman said that it had been noticed that Customs Collectorate (Adjudication) Islamabad had sent a notice to the foreign diplomat.

    “Sending a notice to a foreign diplomat is against Vienna Convention which provides immunity to the foreign government officials and representatives of an embassy,” the spokesman said.

    On the directives of the FBR the Customs office amending the show cause notice and seizure report.

    The spokesman said that in the due course the FBR apologized the foreign diplomat over the act of the collectorate.

  • FBR chairman to hold e-Katcheri for taxpayers

    FBR chairman to hold e-Katcheri for taxpayers

    ISLAMABAD: Javaid Ghani, Chairman, Federal Board of Revenue (FBR) will listen to problems faced by taxpayers through e-Katcheri on Friday August 21, 2020.

    The chairman will be available for taxpayers through telephone number # 051-111772772 between 10:00AM to 11:00AM on Friday August 21, 2020..

    The program has been launched in compliance with the directive of the prime minister to conduct e-Khuli Katcheri to stay in contact with the public by all available means and provide them accessible platform to raise their issues for timely resolution.

    The taxpayers facilitation wing of the FBR recently circulated about the program directing that e-Katcheri would be conducted by every tier of FBR in the second week of every month on regular basis.

    The FBR directed all the tax offices to ensure that all proceedings of the e-Katcheri are property recorded and tasks should be assigned to concerned officers accordingly.

    The tax offices have also been directed to submit performance report on the outcome of the meeting with public.

    In the wake of COVID-19, the tax authorities shall conduct one e-Katcheri at all tiers of FBR in the second week of every month. In the backdrop of COVID-19, only e-Katcheris shall be conducted for the time being until normalcy of the situation.

  • Withholding tax rates updated for telephone subscribers

    Withholding tax rates updated for telephone subscribers

    ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax rates for tax year 2021 to be paid by telephone subscribers for using phone services.

    The FBR issued withholding tax card 2020-2021 (updated up to June 30, 2020) incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.

    Under Section 236 of Income Tax Ordinance, 2001 person preparing telephone / Internet bill or issuing / selling prepared card for mobile phones / Internet shall deduct/collect withholding tax from telephone subscribers, Internet subscriber, purchaser of Internet Prepaid Cards, telephone subscriber and purchaser of prepaid telephone cards along with payment of telephone bill or at the time of issuance of or sales of prepared cards.

    The withholding tax rates shall be:

    (a) Telephone subscribers and internet

    Monthly bill up to Rs, 1000: Nil

    Bill exceeding 1,000: 10 percent

    (b) in the case of subscriber of internet, mobile telephone and pre-paid internet or telephone card the withholding tax rate shall be 12.5 percent of the amount of bill or sales price of internet pre-paid card or prepaid telephone card or sale of units through any electronic medium or whatever form.

    The collected/deducted withholding tax shall be adjustable against total payable tax liability.

  • Tax to GDP ratio slips to 11.4 percent in FY20

    Tax to GDP ratio slips to 11.4 percent in FY20

    ISLAMABAD: Tax to GDP ratio has slipped to 11.4 percent in fiscal year FY20 (2019/2020) when compared with 11.6 percent in the preceding fiscal year, according to statistics released by the finance ministry.

    The size of Gross Domestic Product (GDP) has been measured at Rs41,727 billion in fiscal year 2019/2020 as compared with Rs38,559 billion in the preceding fiscal year.

    The total tax collection was recorded at Rs4,747 billion during the fiscal year under review as compared with Rs4,473 billion in the preceding fiscal year.

    The tax contribution of the federal government was recorded at Rs4,334 billion and contribution of the provincial government was Rs413 billion during fiscal year 2019/2020.

    Whereas, the tax contribution of the federal government was at Rs4,061.62 billion and the contribution of the provincial governments was Rs402 billion in the fiscal year 2018/2019.

    The collection of the Federal Board of Revenue (FBR) was at Rs3,998 billion in the fiscal year 2019/2020 as against Rs3,829 billion in the preceding fiscal year.

    However, the FBR’s revenue collection to the GDP fell to Rs9.58 percent in fiscal year 2019/2020 as against 9.93 percent in the preceding fiscal year.

    The collection of direct taxes was recorded at Rs1,524 billion in fiscal year 2019/2020 as compared with Rs1,445.6 billion in the preceding fiscal year.

    Out of the total direct taxes, the collection of property tax was at Rs9.65 billion as compared with Rs7.02 billion.

    The collection of tax on goods and services increased to Rs1,855 billion in fiscal year 2019/2020 as compared with Rs1707 billion in the preceding fiscal year.

    The collection of other taxes recorded increase to Rs732.58 billion in fiscal year 2019/2020 as compared with Rs627.65 billion in the preceding fiscal year.

    The duty/tax collection on the international trade recorded decline to Rs626.38 billion in fiscal year 2019/2020 as compared with Rs685 billion in the preceding fiscal year.