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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 allows raids against unregistered manufacturers, suppliers

    FBR allows raids against unregistered manufacturers, suppliers

    ISLAMABAD: Federal Board of Revenue (FBR) has given go ahead to directorate of intelligence and investigation for conducting raids against manufacturers and suppliers not registered under sales tax laws.

    In this regard the Directorate of Intelligence and Investigation, Inland Revenue carried out raids against three unregistered units in Gujranwala, said a statement issued by Federal Board of Revenue (FBR) on Thursday.

    The statement said that in continuation of a drive against un-registered persons involved in making taxable supplies who are liable to be registered under the Sales Tax Act, 1990, the Directorate of Intelligence and Investigation-Inland Revenue, Lahore has carried out action under Section 38 and 40 of the Sales Tax Act, 1990 after obtaining search warrants from the Area magistrate against the manufacturing/business premises of three un-registered units in Gujranwala on November 05, 2019.

    The three unregistered units were involved in manufacture and supply of taxable goods i.e. sanitary ware, detergents and household gas appliances.

    During the search carried out available record was resumed which is under scrutiny and further investigation in this regard is underway.

    “The Directorate General Intelligence and Investigation-Inland Revenue shall continue such operations in order to unearth unregistered units/businesses which are making taxable supplies without payment of due amount of sales tax and causing huge loss to the national exchequer,” the FBR said.

  • FBR officials, taxpayers interaction restricted to Bar Code based communication

    FBR officials, taxpayers interaction restricted to Bar Code based communication

    ISLAMABAD: Tax officials have been restricted taxpayers interaction to barcode-based communication only, officials said on Tuesday.

    The Federal Board of Revenue (FBR) has imposed a bar on officials of Inland Revenue and Pakistan Customs for direct communication with taxpayers effective from November 01, 2019.

    However, the FBR authorized the officials to communicate taxpayers in legal notice or official communication with QR code/Bar code or any other code/manner prescribed under the law.

    The FBR issued an official memorandum on October 28, 2019 prohibiting officials for personal interaction with taxpayers/business.

    The FBR said that in view of prevailing perception of the FBR and also in order to do away with fake communication from some quarters and order to build confidence level of taxpayers, it has been decided that no officer/official of the FBR Headquarters or its field formation will contact with any taxpayer or businessman in any form i.e. physical visit, telephonic / mobile calls, SMS or email etc. except when legally authorized to do so, which in every case is to be a legal notice or official communication with QR code/Bar code or any other code/manner as may be prescribed under the law.

    “This policy shall come into force from November 01, 2019 and any officer/official found indulged in such activity shall be proceeded against strictly under the Government Servants (Conduct) Rules, 1964 read with Government Servants (E&D) Rules, 1973.”

    These directions shall apply to all formations of FBR being Inland Revenue (Income Tax, Sales Tax and Federal Excise Duty) and Customs.

    Taxpayers, business community and trade bodies have been asked to assist in implementing the policy by reporting to FBR any contravention of these directions.

    The FBR circulated this memorandum to heads of departments, included: Members (FBR); Chief Commissioner (Inland Revenue); Chief Collectors (Customs); Director General (Inland Revenue); and Director General (Customs).

  • Income tax return filing increases to record 2.667 million

    Income tax return filing increases to record 2.667 million

    ISLAMABAD: The income tax return filing has increased to record level of 2.667 million, according to Active Taxpayers List (ATL) for tax year 2018 released on Monday.

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  • FBR notifies transfers, postings of Customs officers in BS-17-19

    FBR notifies transfers, postings of Customs officers in BS-17-19

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday notified transfers and postings of customs officers of BS-17-19 with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Ghulam Nabi Kamboh (Pakistan Customs Service/BS-19) on joining FBR (HQ), Islamabad has been posted as Additional Collector, Model Customs Collectorate of Preventive, Multan.

    02. Jamshed Ali Talpur (Pakistan Customs Service/BS-18) on return from MCMC has been posted as Secretary (OPS), FATF Cell, Federal Board of Revenue (HQ), Islamabad.

    03. Muhammad Akbar Jan Gandapur (Pakistan Customs Service/BS-18) has been transferred and posted as Deputy Collector, Model Customs Collectorate of Preventive, Quetta from the post of Deputy Collector, Model Customs Collectorate of Preventive, Karachi.

    04. Hameer Khan (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector, Model Customs Collectorate of Preventive, Quetta from the post of Assistant Collector, Model Customs Collectorate of Preventive, Karachi.

    05. Syeda Sidra Munawar Kazmi (Pakistan Customs Service/BS-17) has been transferred and posted as Assistant Collector (Prob), Model Customs Collectorate (AIIA), Lahore from the post of Assistant Collector (Prob), Model Customs Collectorate of Preventive, Lahore.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR proposed imposing additional sales tax on failure to implement CNIC condition

    FBR proposed imposing additional sales tax on failure to implement CNIC condition

    KARACHI: SITE Association of Industry on Monday proposed the Federal Board of Revenue (FBR) to imposed additional sales tax as the government failed to implement condition of Computerized National Identity Card (CNIC).

    Instead of disallowing proportionate input tax for sales made without CNICs, alternate is recommended for sales made without submission of CNIC to increase the further tax at 5 percent of sales till December 31, 2019, 7.5 percent of further sales till March 31, 2020 and further tax at 10 percent of sales till June 30, 2020.

    The SITE Association of Industry proposed new formula to end the deadlock between Government and traders on the condition of production of CNIC on sales and purchase of goods by the Federal Board of Revenue.

    Chairman of Taxation Committee of the Association Saud Mehmood has suggested that input tax inadmissibility against sales made without CNIC should be replaced with progressive increase in rate of further sales tax.

    He said that the FBR has not been able to successfully implement the CNIC condition due to the complex nature of disallowing input against sales made without CNIC which is difficult for sellers as well.

    Because of the complex nature of this condition, sales tax registered sellers have made CNIC submission the only option whereas legislation allows for sales without CNIC as well.

    Saud further said that in order to make implementation of CNIC submission smooth, SITE Association of Industry strongly recommends that input tax inadmissibility be replaced with progressive increase in further tax. “Progressive increase in further tax will make the transition smooth. Moreover, it will be in line with the existing system of charging further tax of 3 percent of sales made to non-filers,” he added.

    SITE Association of Industry believes in the documentation of the economy. When submission of CNIC is mandatory for availing a mobile connection then there is no reason to shy away from submitting CNIC for purchases above PKR 50,000/-.

    “We feel that more than the requirement of CNIC, the sudden imposition is one of the causes of the stiff resistance being faced by FBR. A gradual and progressive implementation of further sales tax on sales without CNIC will make the whole process more palatable.”

    Related Posts

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  • Immovable property registrar requires to provide buyers, sellers information

    Immovable property registrar requires to provide buyers, sellers information

    KARACHI: A registrar is required to provide information of buyers and sellers of immovable property in withholding tax statement to the Federal Board of Revenue (FBR).

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  • FBR to get real-time data of financial transactions

    FBR to get real-time data of financial transactions

    ISLAMABAD: Federal Board of Revenue (FBR) will get real-time data of financial transactions of the banking system by end of this year.

    According to the minutes of the meeting chaired by the prime minister last month, it is decided that Ministry of Law and Justice in consultation with State Bank of Pakistan (SBP) to propose necessary amendments in banking laws/ regulations for ensuring real-time data sharing of financial transactions with the Federal Board of Revenue (FBR).

    The law division and SBP have been tasked to finalize the proposal by December 31, 2019.

    The meeting considered the adoption of Computerized National Identity Card (CNIC) as common identifier.

    The meeting discussed that data consolidation and documentation of economy is a key responsibility of all public and private sector organizations such as financial institutions, utility companies etc.

    CNIC, as common identifier needs to be adopted by all public and private sector entities for documentation of economy and real time sharing of transactions data with the FBR.

    In the same context commercial utility connections have still not been brought into the tax net with rampant tax evasion in vogue.

    The meeting decided that CNIC would be adopted as common identifier by June 30, 2020 akin to social security number in western countries for all business transactions.

    It is also decided that the Ministry of Law and Justice in consultation with SBP to propose necessary amendments in Banking Laws / Regulations for ensuring real-time data sharing of financial transactions with the FBR.

    The meeting decided that by November 30, 2019 the commercial electricity and gas connections must be brought into the tax net immediately.

    The FBR has been given task to bring all commercial electricity and gas connections into the tax net.

    Related Posts

    FBR to initiate criminal proceedings in tax evasion above Rs10 million

    FBR to conduct nation-wide survey of immovable properties to assess wealth parked in real estate sector

    Implementing full-fledged VAT regime in next two to four years decided

  • FBR to initiate criminal proceedings in tax evasion above Rs10 million

    FBR to initiate criminal proceedings in tax evasion above Rs10 million

    ISLAMABAD: Federal Board of Revenue (FBR) will initiate criminal proceedings in those cases where tax evasion above Rs10 million is detected.

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  • Implementing full-fledged VAT regime in next two to four years decided

    Implementing full-fledged VAT regime in next two to four years decided

    ISLAMABAD: The government has decided to implement full-fledged Value Added Tax (VAT) by eliminating General Sales Tax (GST) in next two to four years.

    This has been decided at a meeting under the chairmanship of the prime minister held last month.

    According to the minutes of the meeting, it was considered that VAT regime instead of GST needs to be gradually implemented within 2-4 years to enhance revenues, broaden tax base and assist in documentation of economy.

    It is decided that the Federal Board of Revenue (FBR) will fully implement VAT regime for all business segments over next 2-4 years.

    According to the roadmap for VAT implementation, the mechanism would be:

    — Member Inland Revenue (Operations); focal steward for implementation of VAT Regime over next 2-4 years.

    — Director General Input – Output Coefficient Organization (IOCO – IR) should be redesignated as DG IOCO & VAT Compliance – Functional lead for VAT Implementation.

    — Commissioner Broadening of Tax Base (BTB) at each Regional Tax Office (RTO)/ Large Taxpayer Unit (LTU) would be responsible for business level implementation – Assistant Commissioner of respective RTO/LTU for Value Chain Evaluation and VAT Implementation.

    — VAT would be progressively implemented across various segments commencing with 3rd Schedule products and gradually absorbing complex value chain products.

    The meeting considered the implementation of VAT and decided enactment of VAT related legislation, rules and regulation if required.

    For the purpose capacity building of FBR for absorption of VAT Regime would be undertaken.

    It is also decided that time and resources for VAT assessment surveys of particular industrial/business segment. In order to implement the scheme successfully, the revenue potential of particular industrial segments would be assessed.

  • FBR to conduct nation-wide survey of immovable properties to assess wealth parked in real estate sector

    FBR to conduct nation-wide survey of immovable properties to assess wealth parked in real estate sector

    ISLAMABAD: Federal Board of Revenue (FBR) will conduct nation-wide survey of immovable properties to assess and tap colossal wealth parked in the real estate sector.

    The decision has been taken and approved at a meeting under the chairmanship of the prime minister held last month.

    According to minutes of the meeting it has been decided to conduct nation-wide survey of immovable property to assess and tap colossal wealth parked in the real-estate sector.

    The survey would be conducted along with geo-tagging within next two years.

    It has been considered that Chinese proposal for conducting digitized land survey (digital cartography) of entire country is pending for the last two years.

    Proposal for proof of concept of digital survey of Islamabad industrial area (1-9) along with geo-tagging option is already under consideration with FBR.

    Proposal of digital nation-wide survey has been approved in principal. Further the digital survey of Islamabad Industrial Area (1-9) with geo-tagging would be undertaken at priority.

    It is also decided that nation-wide survey would be undertaken and completed over the next two years while taking Chinese proposal in consideration.

    The meeting also considered proposal of nation-wide tax assessment and documentation drive to effectively check tax evasion and ensure documentation of economy.

    The documentation drive needs to be undertaken over the next two to three years. The documentation drive will assist in ascertaining untapped segments including businesses, real-estate and industries.

    Therefore, it is decided that a comprehensive proposal for nation-wide tax assessment and documentation drive (undertaken over two years) would be formulated.

    It is also decided that tax reforms must not create choking effect for the economy. And correct taxation measures would be taken with prompt implementation instead of entanglement in extended impasses.

    The meeting discussed the actualization of tax advisory board to alleviate trust deficit, preparation of objective tax policies and improve taxpayers’ awareness.

    The tax advisory board (as amended in FBR Act, 2007) needs to be actualized at the ministry of finance (Revenue Division) as formal feedback mechanism for policy level advice on taxation issues.

    This will effectively separate tax policy and tax administration functions whereby FBR to act as revenue collection agency only.

    In this regard, it is decided that tax advisory board should be actualized immediately to discuss threadbare all taxation policies relieving FBR from additional burden of tax policy formulation.