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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.

  • Customs duty to apply on re-importation of goods manufactured in Pakistan

    Customs duty to apply on re-importation of goods manufactured in Pakistan

    KARACHI: Federal Board of Revenue (FBR) has said that customs duty shall be applied on re-importation of goods that are manufactured and exported from Pakistan.

    The FBR issued Customs Act, 1969 updated June 30, 2019 and explained re-importation of goods produced or manufactured in Pakistan under section 22 of the Act.

    Section 22: Re-importation of goods produced or manufactured in Pakistan

    If goods produced or manufactured in and exported from Pakistan are subsequently imported into Pakistan, such goods shall be liable to customs-duties and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value not so produced or manufactured are liable on the importation thereof:

    Provided if such goods have been imported within one year of their exportation and have been consigned to the person in whose account they were exported and have not undergone any processing since their exportation, the appropriate officer not below the rank of Assistant Collector of Customs may admit the goods-

    (a) Where at the time of exportation of such goods, rebate, refund or drawback of any customs or Federal Excise duty or any other tax levied by the Federal Government or any tax, cess or duty levied by the Provincial Government was allowed on payment of customs duty equal to the amount of such rebate, refund or drawback as the case may be;

    (b) where such goods were exported in bond, without payment of –

    (i) the customs-duty chargeable on the imported materials, if any, used in the manufacture of the goods; or

    (ii ) the Federal Excise duty chargeable on the indigenous materials, if any, used in the manufacture of such goods; or

    (iii) the Federal Excise duty, if any, chargeable on such goods; or

    (iv) any other tax chargeable on the material used in the manufacture of such goods; or

    (v) any other tax chargeable on such goods, on payment of customs-duty equal to the aggregate amount of all such duties and taxes calculated at the rates prevailing at the time and place of importation of goods; or

    (c) in any other case, without payment of duty.

    Section 22A: Temporary export of imported plant and machinery

    Imported plant and machinery, temporarily exported that have not undergone any alteration, renovation, addition or refurbishment, may be re-imported duty free subject to the specific or general terms and conditions the Board may by the rules prescribe.

  • FBR to collect FED on steel products, rescinds sales tax notification

    FBR to collect FED on steel products, rescinds sales tax notification

    KARACHI: The government has decided to collect federal excise duty from steel products instead of sales tax. In this regard the Federal Board of Revenue (FBR) has issued 992(I)/2019 dated September 04, 2019 to implement the decision.

    The FBR issued minimum values of locally produced goods for the purpose of payment of federal excise duty in sales tax mode on ad valorem basis, at the rate defined below under the First Schedule to the Federal Excise Act, 2005:

    01. Steel bars and other long profiles at the value of Rs83,000 per metric ton.

    02. Steel Billets at the value of Rs74,000 per metric ton.

    03. Steel Ingots/bala at the value of Rs72,000 per metric ton.

    04. Ship plates at the value of Rs72,000 per metric ton.

    05. Other re-rollable iron and steel scrap at the value of Rs71,000 per metric ton.

    The FBR further explained that in ccase the value of the goods specified in the Table above, as determined under sub-section (I) of Section 12 of the Federal Excise Act, 2005, is higher than the value fixed herein, the value of goods shall be such higher value.

    The FBR also rescinded the SRO 697(I)/2019 dated June 29, 2019 through SRO 993(I)/2019.

    Through SRO 697(I)/2019 the fbr issued the fixed value of locally produced goods for the purpose of sales tax on ad valorem basis under the Sales Tax Act, 1990.

    01. Steel bars and other long profiles at the value of Rs83,000 per metric ton.

    02. Steel Billets at the value of Rs74,000 per metric ton.

    03. Steel Ingots/bala at the value of Rs72,000 per metric ton.

    04. Ship plates at the value of Rs72,000 per metric ton.

    05. Other re-rollable iron and steel scrap at the value of Rs47,000 per metric ton.

    The SRO 697(I)/2019 was imposed from July 01, 2019.

  • Salary tax slabs for filing returns tax year 2019

    Salary tax slabs for filing returns tax year 2019

    KARACHI: The salaried person shall follow the following slabs for filing income tax returns for tax year 2019 which is due on September 2019.

    01. Where the taxable income does not exceed Rs400,000 the tax shall be zero.

    02. Where the taxable income exceeds Rs400,000 but does not exceed Rs800,000 the tax amount shall be Rs1,000.

    03. Where the taxable income exceeds Rs800,000 but does not exceed Rs1,200,000 the tax amount shall be Rs2,000.

    04. Where the taxable income exceeds Rs1,200,000 but does not exceed Rs2,500,000 the tax shall be 5 percent of the amount exceeding Rs. 1,200,000.

    05. Where the taxable income exceeds Rs2,500,000 but does not exceed Rs4,000,000 the tax shall be Rs65,000 + 15 percent of the amount exceeding Rs2,500,000.

    06. Where the taxable income exceeds Rs4,000,000 but does not exceed Rs8,000,000 the tax shall be Rs290,000 + 20 percent of the amount exceeding Rs4,000,000.

    07. Where the taxable income exceeds Rs8,000,000 the tax shall be 1,090,000 + 25 percent of the amount exceeding Rs8,000,000.

    Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.

    The Federal Board of Revenue (FBR) has issued the final income tax return forms for all categories of taxpayers in order to ensure to complete return filing by September 30, 2019.

  • FBR issues finalized return forms for companies

    FBR issues finalized return forms for companies

    The Federal Board of Revenue (FBR) has officially released the finalized return forms for companies, marking a crucial step in the taxation process for the tax year 2019.

    (more…)
  • FBR decides to update units of measurement for trade facilitation

    FBR decides to update units of measurement for trade facilitation

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to update the units of measurements in order to facilitate trade. FBR chairman Syed Shabbar Zaidi has issued instructions to customs authorities, said a statement on Friday.

    It said that this exercise is likely to be completed in week’s time and new units of measurement shall be notified and difficulties faced by the importers/exporters regarding unit of measurements will get addressed.

    It will also result in ease of doing business.
    In order to bring the national trade data in conformity with international standards, the units of measurement (UoM) are made uniform in accordance with the guidelines of World Customs Organization (WCO).

    This uniformity not only helps in collection, comparison and analysis of trade statistics but also simplify the process of assessment resulting in speedy clearance of goods.

    The standard units of measurements were previously notified by the Federal Board of Revenue in the year 2012.

    Despite the fact that these need to be revisited and updated on regular basis, no exercise to this effect was carried out in the last seven (7) years.

    After the issuance of new CGO all field formations of Customs will be directed to adopt standard units of quantity/measurement (UoM) expressed therein and accordingly, the importers/clearing agents/shipping agents will be required to fill invoices/documents in line with new UoM.

  • Tax payment made must for return filing date extension

    Tax payment made must for return filing date extension

    ISLAMABAD: In order to achieve first quarter target the Federal Board of Revenue (FBR) has directed all the chief commissioners of Inland Revenue to ensure payment of taxes before allowing extension in date for return filing beyond September 30, 2019.

    The FBR has required huge amount to achieve quarterly (July – September 2019) revenue collection target of Rs1078 billion and it had managed to collect Rs 562 billion in first two months of current fiscal year.

    A circular issued by the FBR on Friday, stated that payment of due taxes should be ensured before allowing extension of income tax returns/statements for the tax year 2019.

    All chief commissioners Inland Revenue should ensure that before granting extension in the date of filing Income Tax Return for the tax year 2019 in the cases where last date of filing of Income Tax Returns is September 30, the admitted tax liability is discharged before September 30, 2019.

  • FBR simplifies tax rules to facilitate SMEs

    FBR simplifies tax rules to facilitate SMEs

    ISLAMABAD: Federal Board of Revenue (FBR) on Friday issued simplified tax rules for facilitation of small and medium enterprises (SMEs).

    FBR has changed the rules to facilitate Small and Medium Enterprises to enhance exports through Notification No. 1002(I)/2019 dated 06.09.2019 which has introduced amendments in original Notification 327(I)/2008 dated 28.03.2008.

    This is in line with the directives of the Prime Minister of Pakistan to simplify the tax laws and to automate the business processes to bring transparency in the system.

    In order to implement this vision, FBR under the leadership of Shabbar Zaidi, Chairman, has simplify this export scheme and provided new incentives for the business community.

    The Small and Medium Enterprise Units working under this scheme is the largest export promotion scheme presently being used by the export sector.

    Besides introducing amendments in the Export Oriented Units Scheme, the Federal Board of Revenue has also automated these processes in the computerized clearance system WeBOC. This will further reduce human interaction and create business friendly environment.

    According to the details, the retention period of plant, machinery and capital goods is reduced from 10 years to 5 years.

    This will help export industry to keep abreast of latest developments and trendsin the technology.

    If plant, machinery and capital goods are sold or otherwise disposed of before the expiration of five, then different slabs of duty and taxes are introduced whereas after five years disposal of such plant and machinery is allowed without payment of duty and taxes.

    Similarly, disposal mechanism of spares and replacement parts have been provided and now these parts are allowed to be disposed offafter three years.

    To address delays in processing, tiers of administration have been reduced. Now Regulatory Authority is created and the powers have been devolved to Additional Collectorfor grant, revalidate or amend EOU licenses.

    In the new scheme, if there are any problems, the businessman can approach Chief Collector of Customs for redressal of their grievances.

    In order to alleviate the burden of getting the analysis card issued from Input Output Coefficient Organization (IOCO) or Engineering Development Board (EDB) against each license, now if ratio in the analysis certificate is similar to the ratio determined in the previous year, then the Regulatory Authority will issue the license without seeking recommendations from IOCO/EDB.

    Moreover, the provision for issuance of the provisional analysis certificate has also been provided in the Export Oriented Unit Rules in case of delay caused by IOCO/EDB so that the processes of the Export Oriented Units may not get hurt.

  • Prime minister directs FBR to monitor officials during market visits

    Prime minister directs FBR to monitor officials during market visits

    ISLAMABAD: Prime Minister Imran Khan on Thursday directed Federal Board of Revenue (FBR) to monitor its officials during their visit to different markets.

    Chairing a briefing on the performance and reforms in the FBR, the prime minister directed the revenue body to ensure the on-spot-recording of all of their officials interactions during visits to different markets.

    The prime minister said the elimination of corruption from the FBR and its reformation was the government’s priority.

    The revival of public trust in the FBR would also help broaden the tax net, he believed, said a PM Office statement.

    Briefing the prime minister about the performance of the FBR during the previous fiscal year, Chairman FBR Shabbar Zaidi said the board had collected Rs 579 billion revenue till August of the current fiscal, witnessing an increase by 14.65 percent.

    It was informed that this year, the number of filers had also increased by more than 783,000 taking the total number of the filers from 1,514,817 in 2017 to 2,561,099 this year.

  • Pakistan, Saudi Customs to exchange intelligence based information

    Pakistan, Saudi Customs to exchange intelligence based information

    ISLAMABAD: The customs authorities of Pakistan and Saudi Arabia have agreed to further explore intelligence based information to strengthen mutual cooperation.

    A five-member delegation of Saudi Customs Authority visited Federal Board of Revenue (FBR), to discuss various matters of mutual interest and assistance, a statement said on Tuesday.

    The Saudi Customs delegation was headed by Muhammad AlNuaim, Deputy Governor of Security Affairs. Pakistani side was headed by Shabbar Raza Zaidi, Chairman, FBR.

    Muhammad Javed Ghani, Member (Customs-Policy), Jawwad Uwais Agha (Member-Operations) and other senior officers of Pakistan customs also participated in the meeting.

    Both sides shared their experiences in law enforcement domain and further explored avenues of future cooperation in following areas of mutual interest:

    1. Exchange of Information, on real time basis, between both countries regarding values of goods originating from both countries;

    2. Exchange of intelligence based information to effectively control illicit flow of currency;

    3. Development of authorized economic cooperation program between both countries;

    4. Profiling of advance passenger information;

    5. Cooperation between Saudi Customs and Pakistani Customs in order to arrest the senders and recipients of drugs;

    6. Exchange of post seizure and arrest investigations;

    7. Designation of contact officers for mutual cooperation;

    8. Capacity building for automation/harmonization of customs procedures.

    It was underscored that the menace of narcotics, smuggling and under invoicing/over invoicing are the primary sources of illicit financial flows (IFFs) which is inherently a global phenomenon.

    It was mutually agreed that no country can cope with these cross border challenges without ensuring international cooperation.

    Therefore, there is a dire need for both brotherly countries to support each other by all possible means of cooperation through international forums as well as Customs to Customs Cooperation under Mutual Assistance Agreements.

    AlNuaim expressed that the Saudi government give great value to its brotherly relations with the government of Pakistan.

    He informed that the Saudi government has recently introduced new monetary limits on currency which so far are not well known to the visitors from Pakistan.

    He requested to share this information by launching a public awareness campaign in this regard.

    Javed Ghani, Member (Customs-Policy) ensured cooperation and informed that the control of currency smuggling is one of the prime priorities of present regime.

    Therefore, declaration of currency has now been made mandatory and FBR has taken various legal and administrative actions to improve interdictory regime against currency smuggling.

    Jawwad Uwais Agha gave brief details of the National Single Window (NSW) and told the delegates that this initiative provides a complete framework for intra agency cooperation in Pakistan.

    The delegation was apprised that at national level, Risk Based Mitigation Secretary (RBMS) has been evolved after taking due input from all stake holder agencies including Federal Investigation Agency (FIA), Anti Narcotics Force, Airport Security Force and Pakistan Customs.

    Under RBMS, a totally new institutional apparatus has been setup with a dedicated Directorate, namely, Cross Border Currency Movement (CBMC) within the Directorate General of Customs Intelligence & Investigation to address the risks of cash smuggling.

    This measure has turned out very successful as in FY 2018-2019 total 487 million rupees were seized under its intelligence sharing against 157 million rupees in the FY 2017-2018.

    The Saudi delegation appreciated these efforts and showed keen interest in the project of National Single Window, National Targeting Centre and Advance Passenger Information Systems (APIS).

    Both sides unanimously agreed that there exists huge scope for enhanced cooperation between both the countries which will help them to address a wide range of problems originating from currency smuggling, narcotics and mis-declarations.

  • User manual in Urdu language for income tax registration

    User manual in Urdu language for income tax registration

    KARACHI: Federal Board of Revenue (FBR) has issued user manual in Urdu language for income tax registration.

    The FBR anticipates large number of new taxpayers will file tax returns for tax year 2019.

    The user guideline will help new return filers to get registration in steps.

    Following is the registration procedure for new taxpayer:

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