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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 notify withholding tax exemption for wheat import

    FBR to notify withholding tax exemption for wheat import

    ISLAMABAD: Federal Board of Revenue (FBR) soon to issue exemption from withholding tax on import of wheat in order to ensure availability of the commodity in the country.

    Omar Hamid, Secretary Ministry of National Food Security and Research (NFS&R), said while chairing a meeting on wheat import on Monday.

    He said that taxes and duties have already been abolished by the federal government including, regulatory duty 60 percent, custom duty 11 percent, sales tax 17 percent and withholding tax 06 percent.

    “The waiver of withholding tax will be notified in matter of days,” he added.

    He said that private wheat importers would be given priority.

    Secretary NFS&R was of the point of view that legitimate concerns of importers will be solved at the earliest.

    He mentioned that NFS&R is working in PM Imran Khan Direction of to ensure uninterrupted supply countrywide. NFS&R will help wheat importers at all levels.

    So that ultimately public can get wheat at affordable price. NFS&R is facilitating wheat importers by helping them in priority berthing, storage,multiple ports and clearances on the landing of shipment.

    He said that imported wheat is exempted from the Anti- Hoarding Act imposed by the provincial governments on producing verified import record by the importers.

    The meeting was attended by wheat importers, representatives from NFS&R, Ministry of Maritime Affairs, FBR and Finance Division.

  • FBR, provincial authorities discuss single return filing portal

    FBR, provincial authorities discuss single return filing portal

    ISLAMABAD: Federal Board of Revenue (FBR) has discussed with the provinces about common portal for single return filing, a statement said on Monday.

    At the meeting the tax authorities deliberated on ways to facilitate taxpayers under jurisdictions of the federal and the provincial authorities.

    Member IR Operations D. Muhammad Ashfaq Ahmed presided over the meeting. On the occasion, Director Intelligence and Investigation, Lahore, Ahmed Kamal briefed the participants about challenges for launching the single portal. He also presented the suggestions to remove irritants.

    The meeting decided that the provincial tax authorities would sent their recommendations within 15 days to the FBR.

    The participants praised the efforts of the FBR and suggested that all the tax issues should be resolved amicably.

    Member (IR-Operations) FBR appreciated the positive gestures of all the provincial authorities and urged that resolving issues at technical level will pave the way for resolution of common interest at provincial and federal political level.

  • FBR empowered to send electronic notice, decisions to all sales tax registered persons

    FBR empowered to send electronic notice, decisions to all sales tax registered persons

    KARACHI: Federal Board of Revenue (FBR) has been authorized to serve electronic notice and decision as legal document to sales tax registered persons.

    In this regard an amendment has been made to Section 56 of Sales Tax Act, 1990 through Finance Act, 2020.

    Prior to amendment the FBR was empowered to send electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal Excise returns by the limited companies, both public and private.

    However, through the amendment the FBR has been empowered to send electronic notice or decision to all registered persons.

    The serving of electronic notices by the FBR was legalized through Finance Act, 2017.

    The section 56 after the amendment shall be:

    “Section 56: Service of orders; decisions etc. – (1) subject to this Act , any notice, order or requisition required to be served on a resident individual, other than in a representative capacity for the purposes of this Act shall be treated as properly served on the individual if –

    (a) personally served on the individual or, in the case of an individual under a legal disability or a non-residents individual the representative of the individual;

    (b) sent by register post or courier service specified in clause (b) of sub-section (2) or to the individual’s usual or last known address in Pakistan;

    (c) served on the individual in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908); or

    (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by registered person.

    (2) Subject to this Act, any notice order or requisition required to be served on any person, other than a resident individual to whom sub-section (1)applies, for the purposes of this Act, shall be treated as properly served on person if –

    (a) personally served on the representative of the person;

    (b) sent by registered post or courier service to the person’s registered office or address for service of notices under this Act, in Pakistan or where the person does not have such office or address, the notice is sent by registered [Post to any office or place of business of the person in Pakistan;

    (c) served on the Person in the manner prescribed for service of a summons under the code of civil procedure, 1908(Act V of 1908); or

    (d) sent electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal excise returns by registered person.

    (3) Where an association of persons is dissolved, any notice, order or requisition required to be served under this Act, on the association or a member of the association may be served on any person who was the principal officer or a member of the association immediately before such dissolution.

    (4) Where, business stands discontinued, any notice, order or requisition required to be served under this Act, on the person discontinuing the business may be served on the person personally or on any individual who was the person’s representative at the time of discontinuance.

    (5) The validity of service of a notice under this Act shall not be called into question after the notice has been complied with in any manner.“

  • FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    FBR to get CNIC details of unregistered persons making purchases above Rs100,000

    ISLAMABAD: Federal Board of Revenue (FBR) will get CNIC details of unregistered persons making purchases above Rs100,000 through monthly sales tax return for July 2020 to be filed by registered persons in August 2020.

    The registered persons are required to provide details of all those unregistered persons who made purchases above Rs100,000. The information of CNIC of unregistered persons should be provided through sales tax return for the month of July 2020 in August 2020.

    Through Finance Act, 2019 the government made it mandatory for sales tax registered persons to provide information of unregistered persons including their CNICs, names and addresses on making supplies above Rs50,000.

    However, due to difficulties in implementation the condition was applied from August 2019. But due to dispute between FBR and retailers the implementation of this condition was remained inapplicable.

    Through Finance Act, 2020 the limit of purchases by unregistered persons has been enhanced to Rs100,000 effective from July 01, 2020.

    Section 23 of Sales Tax Act, 1990 requires the registered persons to provide the details of unregistered persons while issuing tax invoice.

    “Section 23. Tax Invoices.– (1) A registered person making a taxable supply shall issue a serially numbered tax invoice at the time of supply of goods containing the following particulars, in Urdu or English language, namely: –

    (a) name, address and registration number of the supplier;

    (b) name, address and registration, number of the recipient and NIC or NTN of the unregistered person, as the case may be, excluding supplies made by a retailer where the transaction value inclusive of sales tax amount does not exceed rupees fifty thousand, if sale is being made to an ordinary consumer.

    Explanation. – For the purpose of this clause, ordinary consumer means a person who is buying the goods for his own consumption and not for the purpose of re-sale or processing:

    Provided that the condition of NIC or NTN shall be effective from 1st August, 2019;

    (c) date of issue of invoice;

    (d) description including count, denier and construction in case of textile yarn and fabric, and quantity of goods;

    (e) value exclusive of tax;

    (f) amount of sales tax; and

    (ff)

    (g) value inclusive of tax:

    Provided that the Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons;

    Provided further that not more than one tax invoice shall be issued for a taxable supply:

    Provided also that if it is subsequently proved that CNIC provided by the purchaser was not correct, liability of tax or penalty shall not arise against the seller, in case of sale made in good faith.

    (2) No person other than a registered person or a person paying retail tax shall issue an invoice under this section.

    (3) A registered person making a taxable supply may, subject to such conditions, restrictions and limitations as the Board may, by notification in the official Gazette, specify, issue invoices to another registered person electronically and to the Board as well as to the Commissioner, as may be specified.

    (4) The Board may, by notification in the Official Gazette, prescribe the manner and procedure for regulating the issuance and authentication of tax invoices.”

  • FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    FBR grants Rs2.42 billion as income tax concession to teachers, researchers

    ISLAMABAD: The Federal Board of Revenue (FBR) has provided significant tax exemptions amounting to Rs2.42 billion on the income of teachers and researchers during the tax year 2019–2020.

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  • FBR stops public auction of confiscated foreign origin cigarettes

    FBR stops public auction of confiscated foreign origin cigarettes

    ISLAMABAD: Federal Board of Revenue (FBR) has stopped public auction of foreign origin smuggled cigarettes as those goods do not comply with the national health regulations.

    In a statement issued on Saturday, the FBR clarified that the auction of confiscated smuggled cigarettes of foreign origin have been stopped which were earlier decided to hold by field formations.

    The decision to stop the auction of confiscated cigarettes of foreign origin has been taken as the packing of the aforementioned cigarettes do not comply with the national health regulations, FBR added.

    As per conditions imposed by the Ministry of National Health Services, Regulations and Coordination, warning of serious health hazards must be printed both graphically as well as textually in Urdu language for bewaring the general public as laid down in SROs 127(KE)/2017 & 128(KE)/2017 both dated 19-12-2017 and SRO DE/2019 dated 22-1-2019.

    In order to avoid carrying out any inadvertent act or procedure that is inconsistent with the national health laws and regulations, confiscated cigarettes of foreign origin have been excluded from the public auction through an amendment issued vide notification N. SRO 638(I)/2020 dated 23-7-2020 in the relevant provisions of the Customs Rules, 2001 (Rule 58(3) in Chapter V).

    FBR further added that the confiscated cigarettes shall not be put to auction and shall be destroyed in the manner as prescribed by Board.

  • PSX to collect 3pc income tax on payments to non-residents

    PSX to collect 3pc income tax on payments to non-residents

    The Pakistan Stock Exchange (PSX) has been mandated to apply a reduced rate of three percent income tax on payments to non-residents, according to officials from the Federal Board of Revenue (FBR).

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  • Rate of capital gains tax on disposal of securities

    Rate of capital gains tax on disposal of securities

    KARACHI: Following is the rate of capital gains tax on disposal of securities after the amendment made through Finance Act, 2020.

    Officials at the Federal Board of Revenue (FBR) said that the rate of capital gains tax had been kept unchanged for tax year 2021 and subsequent years.

    cgt on disposal of securities.jpg

    Provided that the rate of tax on cash settled derivatives traded on the stock exchange shall be 5 percent for the tax years 2018 to 2020.

    Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities;

    Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:—

    CategoryRate
    Individual and association of persons10 percent for stock funds 10 percent for other funds
    Company10 percent for stock funds 25 percent for other funds

    Provided further that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 12.5 percent:

    Provided further that no capital gains tax shall be deducted, if the holding period of the security is more than four years.”

    Explanation.- For removal of doubt, it is clarified that, the provisions of this proviso shall be applicable only in case of a mutual fund or collective investment scheme or a REIT scheme.

  • Persons not on ATL to pay advance tax on educational fee

    Persons not on ATL to pay advance tax on educational fee

    ISLAMABAD: Persons not appearing on Active Taxpayers List (ATL) are liable to pay advance income tax at the time of paying educational fee.

    Officials at Federal Board of Revenue (FBR) said that through Finance Act, 2020 the condition of paying advance tax under Section 236I of Income Tax Ordinance, 2001 on educational fee had been abolished for persons appearing on ATL.

    However, those persons not appearing on ATL shall remain required to pay advance income tax on payment of educational fee.

    Similarly, the educational institutions are required to provide details of those persons who are not ATL and making fee above Rs200,000 per annum.

    The rate of collection of tax under section 236I shall be 5 percent of the amount of fee for persons not appearing on ATL.

    The collection of advance income tax on payment of educational fee was introduced through Finance Act, 2013. The purpose of introducing the advance tax on such transaction was to bring those people into tax net who have taxable income but not paying their tax liability.

    The FBR officials said that after changes brought through Finance Act 2020, only those persons who are not on the ATL shall pay advance income tax.

    However, this tax shall be adjustable against income tax liability in case that person files his income tax return and ensure his name on the ATL.

  • LTU Karachi to hold e-Katcheri on July 24

    LTU Karachi to hold e-Katcheri on July 24

    KARACHI: Large Taxpayers Unit (LTU) Karachi will hold e-Katcheri on July 24, 2020 for efficient service delivery and ensure public trust.

    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.

    In this regard Badaruddin Ahmed Qureshi, Chief Commissioner Inland Revenue, LTUK Karachi will conduct e-Khuli Katcheri on Friday from 11:30 AM to 12:30 noon through Zoom video link.

    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.