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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 warns stern action against under-invoicing, mis-declaration

    FBR warns stern action against under-invoicing, mis-declaration

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to launch drive against manufacturers and importers indulged in under invoicing and incurring huge revenue losses to national exchequer.

    FBR chairman Syed Shabbar Zaidi, in a statement, warned such manufacturers and importers to abstain from misdeclaration and under-invoicing.

    The statement said that the smuggling was the greatest menace but under-invocing and misdeclaration of imported goods were also depriving the country from actual revenue collection.

    The chairman warned manufacturers and importers that in case misreporting or under-invoicing was detected then stern action would be taken under relevant provisions of laws.

    The statement said that smuggled goods have badly dented the local manufacturing. The prime minister noticed the huge quantum of smuggling and directed the authorities to take all measures to stop the menace.

    In order to comply with the directives of the prime minister, Pakistan Customs enhanced the enforcement against illegal movements of goods.

  • No unnecessary transfers of senior officials: FBR

    No unnecessary transfers of senior officials: FBR

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday asked the senior officers to concentrate on their work as no unnecessary transfers and posting will be notified.

    An office order issued by the FBR stated that there had been a tradition in the revenue body for en-bloc transfers and postings each financial year, especially at senior level at the beginning of each financial year.

    “Henceforth, this tradition would not be made as a norm unless necessitated in the interest of revenue or reforms in the organization.”

    All the senior officers and their staff should concentrate on optimal collection of due taxes, facilitation of taxpayers, expansion of tax base and identifying economic activities and business units in their jurisdiction.

    “We all work as a team and shall continue to do so without affecting our ongoing efforts and efficiency,” it added.

    The FBR recently notified transfers and postings of over 3,000 employees of lower cadre. This large scale transfers and postings created panic like situation in the FBR field formation and the work of duty and tax collection was almost at halt.

    The senior officers were also waiting for notifications for their transfers. The revenue collection in the July 2019 witnessed sharp decline and unconfirmed sources said that the collection in the month was so far in the negative zone when compared with the same month of the last year.

    The government has set a target of Rs5,550 billion as collection by the FBR during current fiscal. It is also a fact that the FBR failed to meet the revenue figures of past year of Rs3,852 billion.

    In these challenge situations the transfer and postings created panic and FBR had decided to be careful in shuffling the senior officers of Inland Revenue Service and Pakistan Customs.

  • Inland Revenue directed to ensure no zero-rate supply of gas, electricity

    Inland Revenue directed to ensure no zero-rate supply of gas, electricity

    ISLAMABAD: Federal Board of Revenue (FBR) has directed offices of Inland Revenue to ensure implementation of normal tax rate on supply of gas and electricity to manufacturing facilities.

    In a communication with the offices of Inland Revenue, the FBR said: “Field formations are requested to ensure implementation accordingly and to ensure that no zero-rated supplies are made by utility companies within their jurisdiction.”

    The FBR said that SRO 1125(I)/2011 dated 31.12.2011, relating to zero-rating of five export-oriented sectors, has been rescinded since 1st July, 2019 vide rescinding SRO 694(I)/2019 dated 29.06.2019.

    From 1st July, 2019, the items listed in the said SRO shall be charged to sales tax at 17 percent at import and local supply.

    Only in case of integrated retail outlets, sales tax on finished textile and leather item shall be charged at 14 percent.

    All Sales Tax General Orders (STGOs) granting zero-rating on supply of electricity, gas, diesel, furnace oil and coal have been rescinded vide STGO 100/2019 dated 29.06.2019.

    In order to resolve the issue of increased sales tax refunds of exporters due to withdrawal of zero-rating on inputs, the scope of Expeditious Refund System is proposed to be extended with automated payment on generated RPOs.

    The changes to rules in this respect shall soon be notified, the FBR said.

    The Sales Tax Special Procedure Rules, 2007, issued vide SRO 480(I)/2007 dated 09.06.2007 have also been rescinded through SRO 694(I)/2019, dated 29.06.2019.

    All special procedures provided therein have been thus discontinued. The desirable provisions from these rules have either been transposed to the Sales Tax Act, 1990, or are being transposed to the Sales Tax Rules, 2006.

    Necessary amendments to the Sales Tax Rules, 2006, shall follow in few days, the FBR said.

    The Sales Tax Special Procedure (Withholding) Rules, 2007, issued vide SRO 660(I)/2007 have also been rescinded. The withholding requirements and rates, and the exclusions therefrom have been transposed to the new Eleventh schedule. Other procedural provisions have been re-enacted in Chapter XIV-D of the Sales Tax Rules, 2006, through SRO 698(I)/2019 dated 29.06.2019.

    SRO 693(1)72019 dated 29.06.2019 amends SRO 509(1)72013 pertaining to 5 percent extra tax on supplies of gas and electricity. The Government, semi-government and statutory regulatory bodies have been excluded from levy of said 5 percent extra tax.

    SRO 692(I)/2019 dated 29.06.2019 amends SRO 648(I)/2013 which prescribes exclusions from chargeability of further tax. Two new serial numbers 12 and 13 have been added which provide exclusion from further tax to supplies to the Government, semi government and statutory regulatory bodies and supplies of white crystalline sugar.

    The further tax under Section 3(1 A) of the Sales Tax Act, 1990, shall not be charged in the aforesaid two cases.

    SRO 190(I)/2002, issued in exercise of powers under clause (iii) of the first proviso to section 4 of the Sales Tax Act, 1990, provides that zero-rating shall not apply to exports of goods specified in SRO as made by air or via land route to Afghanistan and through Afghanistan to Central Asian Republics (CARs).

    The 2002-notification has now been amended vide SRO 691(I)/2019 dated 29.06.2019 to exclude PVC and PMC materials from purview of SRO 190(I)/2002, meaning thereby that zero-rating on export of these items shall be available on exports to Afghanistan or to CARs through Afghanistan.

    This notification has been rescinded vide SRO 694(I)/2019 dated 29.06.2019. However, this rescission is erroneous as the notification no. SRO 769(I)/2009 had already been superseded vide SRO 811(I)/2009 dated 19.09.2009, which after some amendments was finally rescinded vide SRO 611(I)/2015 dated 30.06.2015.

    Therefore, rescission of SRO 769(I)/2009 has no practical effect and this may be ignored.

  • FBR reshuffles BS-16 officials in Customs intelligence and investigation

    FBR reshuffles BS-16 officials in Customs intelligence and investigation

    ISLAMABAD: Federal Board of Revenue (FBR) on July 15, 2019 notified transfers and postings of following BS-16 officials of Customs Department with immediate effect and until further orders.

    01. Fareed-ud-Din Masood, Superintendent from Directorate of Intelligence & Investigation-Customs, Hyderabad to Model Customs Collectorate (MCC) Hyderabad.

    02. Muhammad Akhtar, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Peshawar to MCC, Preventive, Peshawar.

    03. Jawad Sultan, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Peshawar to MCC, Preventive, Peshawar.

    04. Muhammad Yousaf, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Peshawar to MCC, Preventive, Peshawar.

    05. Mir Sahib, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Peshawar to MCC, Appraisement, Peshawar.

    06. Yaqoob Shah, Inspector from Dte. of Intelligence & Investigation-Customs, Peshawar to MCC, Appraisement, Peshawar

    07. Habib Ullah, Inspector Dte. of Intelligence & Investigation-Customs, Peshawar to MCC, Appraisement, Peshawar.

    08. Sohail Khan, Inspector from MCC, Preventive, Peshawar to Dte. of Intelligence & Investigation-Customs, Peshawar.

    09.Syed Nasir Ali Shah, Inspector from MCC, Preventive, Peshawar to Dte. of Intelligence & Investigation-Customs, Peshawar.

    10. Said Zaman, Inspector from MCC, Preventive, Peshawar to Dte. of Intelligence & Investigation-Customs, Peshawar.

    11. Muhammad Chan Zeb, Inspector from MCC, Appraisement, Peshawar to Dte. of Intelligence & Investigation-Customs, Peshawar.

    12. Muhammad Imtiaz Baig, Inspector from MCC, Appraisement, Peshawar to Dte. of Intelligence & Investigation-Customs, Peshawar.

    13. Abdul Waheed, Inspector from MCC, Appraisement, Peshawar to Dte. of Intelligence & Investigation-Customs, Peshawar.

    14. Mujeeb Akber Jalbani, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Hyderabad to MCC, Hyderabad.

    15. Nadeem Hussain Isran, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Hyderabad to MCC, Hyderabad.

    16. Shah Muhammad, Inspector from MCC, Hyderabad to Dte. of Intelligence & Investigation-Customs, Hyderabad.

    17. Iftikhar Ahmad, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    18. Zulfiqar Ali, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    19. Muhammad Ali, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    20. Muhammad Sohail Iqbal, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    21. Abid Iqbal, Inspector from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    22. Agha Nasim Ullah, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    23. Hamid Babar, Inspector from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Appraisement, Lahore.

    24. Nadeem Ahsan, Inspector from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Preventive, Lahore.

    25. Saeed Iqbal, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Preventive, Lahore.

    26. Sohail Murtaza, Inspector from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Preventive, Lahore.

    27. Agha Sultan Haider, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Preventive, Lahore.

    28. Abdul Hameed Bhatti, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Lahore to MCC, Preventive, Lahore.

    29. Bashir Tabassum, Intelligence Officer from Dte. of Intelligence & Investigation-Customs, Quetta to MCC, Preventive, Quetta.

    30. Muhammad Shabbir Khan, Inspector from MCC, Preventive, Quetta to Dte. of Intelligence & Investigation-Customs, Quetta.

    31. Ali Raza Bhatti, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    32. Noman Ashraf, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    33. M. Akmal Shahzad, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    34. Salman Ahmed, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    35. Muhammad Ali, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    36. Fazal Mehmood Jahangir, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    37. Muhammad Naeem, Inspector from MCC, Appraisement, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    38. Syed Tanveer Hussain Shah, Inspector from MCC, Preventive, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    39. Muhammad Yasin, Inspector from MCC, Preventive, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    40. Allah Ditta, Inspector from MCC, Preventive, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    41. Younas Qadri, Inspector from MCC, Preventive, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

    42. Muhammad Aslam Ch, Inspector from MCC, Preventive, Lahore to Dte. of Intelligence & Investigation-Customs, Lahore.

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

  • FBR seeks power companies help for mandatory registration of businesses

    FBR seeks power companies help for mandatory registration of businesses

    ISLAMABAD: Federal Board of Revenue (FBR) has sought help of ministry of power for invoking Section 181AA of Income Tax Ordinance, 2001 whereby it is mandatory for a businessman to get registered and file income tax return while requesting industrial or commercial connection.

    Chairman Federal Board of Revenue Syed Muhammad Shabbar Zaidi in his letter to Ministry of Power has sought its help for the implementation of Section 181AA of Income Tax Ordinance, 2001 which specifically stipulates that any application for commercial or industrial connection of electricity or gas shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under the said Section which pertains to filing of income tax returns.

    Chairman FBR has further added that FBR has extended the date of filing the return of income for the year 2018 to August 2, 2019 to facilitate filing of return by all persons who were required to file the return of income but have not filed so far. Chairman FBR has requested Ministry of Power to issue instructions to Power Distribution Companies to apprise them that it is mandatory to be on ‘Active Taxpayers List (ATL)’ for every commercial and industrial electricity or gas consumer.

    Chairman FBR appreciated the cooperation of Ministry of Power for providing the data of industrial and commercial users of electricity and hoped that Ministry of Power would also help in the implementation of Section 181AA of Income Tax Ordinance through the involvement of respective ‘Distribution Companies’.

    Related Posts

    FBR grants general relaxation to file tax year 2018 income returns up to August 02

  • FBR notifies transfers of BS-17 to BS-20 IRS officers

    FBR notifies transfers of BS-17 to BS-20 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday notified transfers and postings of BS-17 to BS-20 officers of Inland Revenue Service (IRS) with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Abid Mehmood (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Peshawar from the post of Commissioner, (Peshawar Zone) Regional Tax Office, Peshawar, according to notification received to Pakistan Revenue.

    02. Muhammad Tariq Arbab (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Peshawar Zone) Regional Tax Office, Peshawar from the post of Director, Directorate of Intelligence & Investigation (Inland Revenue), Peshawar.

    03. Asem Iftikhar (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Karachi from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

    04. Abdul Rehman Bullo (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Zone-II) Large Taxpayers Unit-II, Karachi from the post of Director, Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    05. Ahmad Kamal (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Lahore from the post of Commissioner, Inland Revenue (Appeals-III), Lahore.

    06. Muhammad Naveed Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue Inland Revenue (Appeals-III), Lahore from the post of Director, Directorate of Intelligence & Investigation (Inland Revenue), Lahore.

    07. Pir Khalid Ahmed Qureshi (Inland Revenue Service/BS-20) has been transferred and posted as Director, Directorate of Intelligence & Investigation (Inland Revenue), Hyderabad from the post of Additional Commissioner, Regional Tax Office, Hyderabad.

    08. Pervez Ahmad Shar (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Hyderabad from the post of Additional Director, Directorate of Intelligence & Investigation (Inland Revenue), Hyderabad.

    09. Ms. Fakhryia Anjum (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Peshawar from the post of Additional Director, Directorate of Intelligence & Investigation (Inland Revenue), Peshawar.

    10. Abdul Rehman Khilji (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office II, Karachi from the post of Additional Director, Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    11. Hameed-ur-Rehman (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Directorate of Intelligence & Investigation (Inland Revenue), Peshawar from the post of Additional Commissioner, Regional Tax Office, Peshawar.

    12. Muhammad Amin Qureshi (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Directorate of Intelligence & Investigation (Inland Revenue), Karachi from the post of Additional Commissioner, Corporate Regional Tax Office, Karachi.

    13. Ajmal Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Regional Tax Office, Peshawar from the post of Additional Director, Directorate of Intelligence & Investigation (Inland Revenue), Peshawar.

    14. Saad Waqas (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Directorate General of Training & Research (Inland Revenue), Lahore from the post of Additional Director, (IR) Directorate of Intelligence & Investigation (Inland Revenue), Lahore.

    15. Qaiser Naeem (AOST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office, Faisalabad from the post of Assistant Director (Audit), Directorate of Intelligence & Investigation (Inland Revenue), Faisalabad.

    16. Sami Ullah Khan (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Peshawar from the post of Deputy Director, (IR) Directorate of Intelligence & Investigation (Inland Revenue), Peshawar.

    17. Imran Zafar (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation (Inland Revenue), Faisalabad from the post of Deputy Commissioner, Regional Tax Office, Faisalabad.

    18. Arshad Ahmed Khan (SAST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office II, Karachi from the post of Assistant Director (Audit), Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    19. Ms. Sarwat Malik Habib (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Deputy Director, Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.

    20. Muhammad Tariq Aziz (Inland Revenue Service/BS-18) has been transferred and posted as Deputy Commissioner Inland Revenue Regional Tax Office, Islamabad from the post of Deputy Director, (IR) Directorate General of Intelligence & Investigation (Inland Revenue), Islamabad.

    21. Masood Alam (SAST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office II, Karachi from the post of Assistant Director (Audit), Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    22. Nadeem Ashraf Baig (SAST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office III, Karachi from the post of Assistant Director (Audit), Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    23. Hafiz Muhammad Azam Nafis (SAST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office III, Karachi from the post of Assistant Director (Audit), Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    24. Muhammad Rashid Chundrigar (SAST/BS-18) has been transferred and posted as Assistant Director (Audit), Regional Tax Office III, Karachi from the post of Assistant Director (Audit), Directorate of Intelligence & Investigation (Inland Revenue), Karachi.

    25. Zahoor Ahmad (Inland Revenue Service/BS-17) has been transferred and posted as Deputy Director, Directorate of Intelligence & Investigation (Inland Revenue), Lahore from the post of Deputy Commissioner, Regional Tax Office II, Lahore.

    Through another notification the following IR officers have been transferred and posted:

    01. Munir Sadiq (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner-IR, (Zone-I) Large Taxpayers Unit, Islamabad.

    02. Ms. Reema Masud (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner-IR, (Corporate Zone) Regional Tax Office, Islamabad.

    03. Said Iqbal (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner-IR, Regional Tax Office II, Karachi.

    04. Ajaz Hussain (Inland Revenue Service/BS-19) has been transferred and posted as Additional Commissioner Inland Revenue Corporate Regional Tax Office, Karachi from the post of Secretary, (Income Tax Budget) Federal Board of Revenue (Hq), Islamabad.

    05. Abdul Wahid Shar (Inland Revenue Service/BS-19) has been transferred and posted as Secretary, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Additional Commissioner-IR, Large Taxpayers Unit-II, Karachi.

    06. Usman Ahmed Khan (Inland Revenue Service/BS-19) has been transferred and posted as Additional Director, Directorate General of Training & Research (Inland Revenue), Lahore from the post of Secretary, (Income Tax Clarification) Federal Board of Revenue (Hq), Islamabad.

    07. Maheen Hassan (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Deputy Commissioner-IR, Regional Tax Office, Quetta.

    08. Muhammad Adil Khan (Inland Revenue Service/BS-18) has been transferred and posted as Second Secretary, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Second Secretary, (Lit-HC) Federal Board of Revenue (Hq), Islamabad.

    09. Muhammad Nauman Anees (Inland Revenue Service/BS-17) has been transferred and posted as Second Secretary, (Inland Revenue Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Deputy Commissioner-IR, Large Taxpayers Unit, 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 allows goods clearance without retail price print till July 31

    FBR allows goods clearance without retail price print till July 31

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday allowed to clear consignments of consumer items without printing of retail prices till July 31, 2019 in order to facilitate clearance of stuck up containers.

    The Board’s vide letter No. 1/2-STB/2019/87779-R, dated 4.7.2019, had directed that imported Third Schedule items be allowed clearance after affixation of stickers printed with retail price till 31st July, 2019.

    The Board has received several representations that the requirement of printing retail price on imported Third Schedule items has been introduced through the Finance Act, 2019 and the importers did not have sufficient notice of the change, therefore, a large number of consignments of such items are arriving without printed retail price, and that that de-stuffing of containers to affix stickers in the aforesaid manner is not practical and the same would cause blockage of imports and congestion at the ports.

    Accordingly, in order to resolve the issue, the Board is pleased to allow clearance of imported Third Schedule items without printing of retail price or affixing stickers for which goods declaration are filed by July 31, 2019 subject to the condition that the importer declares retail price for each of the imported items in terms of section 2(27) of the Sales Tax Act, 1990, and that the goods are assessed for sales tax on such declared retail price.

  • No immunity to concealed income invested in immovable properties

    No immunity to concealed income invested in immovable properties

    ISLAMABAD: People purchasing immovable properties are now required to make true declaration as immunity to such investment has been withdrawn.

    Sources in Federal Board of Revenue (FBR) told PkRevenue.com that an amnesty to undeclared amount was available for making investment in real estate business.

    The amnesty was granted through Income Tax (Fourth Amendment) Act, 2016 dated December 2, 2016 during Nawaz Sharif government and people took huge benefit from this scheme to whiten their money.

    The government has proposed to withdraw this provision through Finance Bill, 2019 as part of budget 2019/2020, presented on Tuesday. The proposal was accepted by the parliament and it has become part of Finance Act, 2019.

    The FBR in its income tax salient features said that 3 percent tax for not explaining the source of investment is being withdrawn.

    Section 236W was introduced to Income Tax Ordinance, 2001 through Income Tax (Fourth Amendment) Act, 2016 dated December 02, 2016.

    This section was granted immunity from declaring source of investment for the purchase of immovable properties.

    The FBR said that in Pakistan the Real Estate sector is one of the biggest sources of money laundering and is used as a parking lot for untaxed as well as ill-gotten money.

    In view of this a wide range of steps have been taken to restructure the taxation of this sector.

    The various steps being taken are as under:-

    (i) At present, the Board has issued valuation tables of immovable properties in 21 major cities wherein such properties are valued at a value higher than the DC rates. The purchasers are also required to pay 3 percent tax on the difference between the DC value and FBR value of property to explain the source of investment to the extent of differential between FBR value and DC value. The rates notified by the Board are still considerably lower than actual market value.

    It is therefore intended that FBR rates of immovable properties would be taken closer to or about 85 percent of actual market value.

    (ii) As the increase in FBR values of immovable property is going to increase the incidence of tax on genuine buyers and sellers, the rate of withholding tax on purchase of immovable property is being reduced from 2 percent to 1 percent.

    (iii) under the immunity, withholding tax on purchase of property was attracted only if the value of property is more than four million rupees. The threshold of four million rupees is being abolished and withholding tax on purchase is to be collected irrespective of the value of property.

    (iv) Under the immunity, there was no withholding tax on sale of property if the property is held for a period of more than three years. Since capital gain is to be taxed under normal tax regime even beyond the period of three years, withholding tax on sale of property would be collected where the holding period is up to five years.

    (v) Previously the law imposed restriction on registration or transfer of property having fair market value exceeding rupees five million in the name of a non-filer. The aforesaid restriction placed on purchase of immovable property has been withdrawn.

  • FBR proposes retaining machinery for five years by EPZ investors for duty, tax free disposal

    FBR proposes retaining machinery for five years by EPZ investors for duty, tax free disposal

    KARACHI: Federal Board of Revenue (FBR) has proposed retaining period of machinery to five years imported by exporters for disposing of without duty and taxes.

    The FBR through SRO 805(I)/2019 proposed amendments to Customs Rules, 2001 and proposed to enhance the retaining period of machinery for manufacturers having facility within Export Processing Zones to five years in order to dispose of without duty and taxes.

    According to proposed amendments, the investors in EPZ shall retain machinery for a period of five years from the date of its import into the zone.

    Further the investors in EPZ shall be allowed to dispose of machinery in the tariff are after filing goods declaration subject to fulfillment of conditions of Import Policy Order upon payment of duty and taxes on the following terms, namely:

    01. If sold or otherwise disposed of before the expiration of three years from the date of import in EPZ, full duty and taxes would be applicable.

    02. If sold or otherwise disposed of after three and before four years from the date of import in EPZ, about 75 percent of duty and taxes would be applicable.

    03. If sold or otherwise disposed of after four and before five years from the date of import in EPZ, about 50 percent of duty and taxes would be applicable.

    04. If sold or otherwise disposed of after five years from the date of import of EPZ the exporter/investor would enjoy free of duty and taxes.

    The FBR also proposed amendment to the rules regarding licensing for operating a warehouse. As per the proposed amendments the documents and condition is as:

    “The site plan of the proposed warehouse indicating the location of the premises and the details of the total area, covered area and the area proposed to be utilized for the manufacturing area of facility and for storing and bonded warehoused input goods and manufactured goods therefrom for exports, and spate other storage areas for duty paid input goods, manufactured goods there from, factory rejects and wastages, for domestic local sales, in case of a manufacturing bond.

    Another amendment in this regard is as:

    “In case of manufacturing bond, the applicant shall apply to the Regulatory Authority designated by the Collector of Customs having jurisdiction in which the unit is registered under the Sales Tax Act, 1990, and in case there are more than one unit of a proprietor, he shall apply to the Regulatory Authority designated by the Collector of Customs where the head office of the applicant is registered under Sales Tax Act, 1990.”

  • FBR directs banks to provide details of depositors receiving Rs500,000 as profit on debt per year

    FBR directs banks to provide details of depositors receiving Rs500,000 as profit on debt per year

    KARACHI: Federal Board of Revenue (FBR) has directed banks to provide details of all those persons receiving interests above Rs500,000 in a year on their deposits.

    The FBR sources said that an amendment has been introduced to Section 165A of Income Tax Ordinance, 2001 through Finance Act, 2019 and tightened laws regarding information providing by banks about their depositors.

    Prior to amendment the clause (d) of the Ordinance, the banks were required to provide a list of persons receiving profit on debt exceeding Rs1 million for filers and Rs500,000 for non-filers and tax deduction thereon during preceding financial year.

    However, after the amendment, now the banks are required to provide list of all those persons receiving profit on debt exceeding Rs500,000 – irrespective of filers and non-filers – and tax deduction thereon during preceding financial year.

    Through the Finance Act, 2019 the term non-filers has been abolished and a new Tenth Schedule has been introduced under which persons appearing on Active Taxpayers List (ATL) would be subject to reduced rate of withholding tax rates.

    Another amendment has been made through the Finance Act, 2019 to clause (a) of Section 165A of the Income Tax Ordinance, 2001, under which the banks are now required to provide a list of persons containing particulars of cash withdrawals exceeding Rs50,00 in a day and tax deducted thereon aggregating to Rs1 million or more during each preceding calendar month.

    The amendment deleted the words ‘for filers and non-filers’ due to elimination of term ‘non-filers’.

    However, banks would remain required to provide the details under clause (b) of Section 165A of the Ordinance, including a list containing particulars of deposits aggregating rupees ten million or more made during the preceding calendar month.

    Meanwhile under clause (c), the banks are required to provide a list to FBR of payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to rupees two hundred thousand or more during the preceding calendar month.