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.

IR officers posted to initiate proceedings in Benami cases

ISLAMABAD: Federal Board of Revenue (FBR) has notified the names of members for adjudicating authorities under Benami law and posted officers of Inland Revenue to initiated proceedings in Benami cases.

The following officers have been notified for the adjudicating authority under Benami Transactions (Prohibition) Act, 2017.

1. Jamil Ahmad (Retired PAS/BS-22), Chairperson

2. Muhammad Tanvir Akhtar (Retired IRS/BS-21), Member

3. Khaqan Murtaza (PAS/BS-21), Member

The FBR also transferred and posted following officer of Inland Revenue Service (IRS) to Benami Zones (I, II & III) established under Benami Transactions (Prohibition Act) 2017 are made with immediate effect and until further orders:

1. Hassan Zulfiqar (IRS/BS-20) has been transferred from the post of Commissioner-IR (Appeals-I), Islamabad and posted as Commissioner-IR/ Approving Authority (Benami Zone-I)

2. Muhammad Fiaz Hussain (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR, RTO, Islamabad and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-I)

3. Hasham Khalid Malik (IRS/BS-17) has been transferred from the post of Assistant Commissioner-IR RTO, Islamabad and posted as Assistant Commissioner-IR/ Administrator (Benami Zone-I)

4. Khalid Khan (IRS/BS-20) has been transferred from the post of Commissioner-IR (Zone-I), Corporate RTO, Lahore and posted as Commissioner-IR/ Approving Authority (Benami Zone-II)

5. Salman Naveed (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Lahore and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-II)

6. Asim Raza (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Lahore and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-II)

7. Rudar Amjad (IRS/BS-17) has been transferred from the post of Assistant Commissioner-IR, Corporate RTO, Lahore and posted as Assistant Commissioner-IR/ Administrator (Benami Zone-II)

8. Syed Shakil Ahmad (IRS/BS-20) has been transferred from the post of Commissioner-IR (Zone-II), LTU-II, Karachi and posted as Commissioner-IR/ Approving Authority (Benami Zone-III)

9. Syed Bilal Mahmood Jafri (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Karachi and posted as Deputy Commissioner-IR/ Initiating Officer (Benami Zone-III)

10. Syed Mashkoor Ali (IRS/BS-18) has been transferred from the post of Deputy Commissioner-IR (BTB Zone), RTO-II, Karachi and posted as Deputy Commissioner-IR/
Initiating Officer (Benami Zone-III)

11. Razi Ul Haq Qureshi (IRS/BS-17) has been transferred from the post of Assistant Commissioner-IR, RTO-III, Karachi and posted as Assistant Commissioner-IR/Administrator (Benami Zone-III)

The FBR said that the officers, who are drawing performance allowance prior to the issuance of this notification, shall continue to draw the said allowance on their upgraded posts.

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FBR notifies adjudicating authorities for Benami cases

June 30, 2019
FBR issues uniform 17pc sales tax rates for petroleum products

ISLAMABAD: Federal Board of Revenue (FBR) on Sunday issued uniformed sales tax rates for petroleum products effective from July 01, 2019.

To implement the sales tax rates for petroleum products from July 01, 2019 the FBR issued SRO 700(I)/2019 on Sunday.

In the earlier SRO 602(I)/2019 dated May 31, 2019, the FBR fixed the sales tax rate included: petrol 13 percent; high speed diesel oil, 13 percent; kerosene oil 17 percent; and light diesel oil at 17 percent.

The FBR sources said that the sales tax rates have been increased on the two major products including petrol and high speed diesel oil, which are main revenue spinner.

The FBR has been given Rs5,550 billion target for fiscal year 2019/2020, which is apparently an impossible target on the back of weak economic conditions and lower manufacturing output.

June 30, 2019
FBR notifies adjudicating authorities for Benami cases

ISLAMABAD: Federal Board of Revenue (FBR) has notified adjudication authorities for Benami cases with immediate effect. The adjudication authorities have been set up at Karachi, Lahore and Islamabad.

The FBR issued a notification on Saturday stating that consequent upon approval of the federal government and in pursuance of Section 6 of Benami Transactions (Prohibition Act) 2017, adjudication authorities are hereby established and notified at Karachi, Lahore and Islamabad with immediate effect.

Section 6 of the Benami Transactions (Prohibition Act) 2017 explained the adjudicating authority as:

01. The federal government shall, by notification, in the official gazette, appoint one or more adjudicating authorities to exercise jurisdiction, powers and authority conferred by or under this Act.

02. Adjudicating authority shall consist of a chairperson and at least two other members.

03. A person shall not be qualified for appointment as the chairperson or a member of the adjudicating authority, unless that person:

a. is or has been a member of the Inland Revenue Service and has held the post of Chief Commissioner Inland Revenue or equivalent post in that service; or

b. is or has been a member of any federal service and has held the post of additional secretary or equivalent post in that service.

The chairperson and the other members of the adjudicating authority shall be appointed by the federal government in such a manner as may be prescribed.

The federal government shall appoint the senior most member to be the chairperson of the adjudicating authority.

June 30, 2019
New values of steel products fixed for sales tax payment

ISLAMABAD: Federal Board of Revenue (FBR) has notified new valuations for steel products for the purpose of collecting sales tax from July 01, 2019.

The FBR on Saturday issued SRO 697(l)/2019 to fix the following values of locally produced goods specified in the Table below, for the purpose of payment of sales tax on ad valorem basis, at the rate as applicable to specified in sub-section (1) of section 3 of the Sales Tax Act, 1990.

1. Steel bars: Rs83,000 per metric ton

2. Steel Billets: Rs74,000 per metric ton

3. Steel Ingots/bala: Rs72,000 per metric ton

4. Ship plates: Rs72,000 per metric ton

5. Other re-rollable iron & steel scrap: Rs47,000 per metric tons

In case the value of supply of the goods specified in this notification is higher than the values fixed herein, the value of goods shall be the value at which the supply is made.

The FBR said that the SRO would take effect on and from the 1st day of July, 2019.

June 30, 2019
FBR increases up to 28.34 percent retail value of CNG for sales tax collection

ISLAMABAD: Federal Board of Revenue (FBR) has enhanced the consumer value of CNG by 28.34 percent for collection of sales tax from July 01, 2019.

The FBR issued SRO 690(I)/2019 to notify the consumer value of CNG for the purpose of charging of sales tax from CNG stations by gas transmission and distribution companies.

The FBR increased the consumer value of CNG to Rs69.57 per kilogram for Region-I, which included Khyber Pakhtunkhwa, Baluchsitan and Potohar Region (Rawalpindi, Islamabad, and Gujar Khan. The increase in consumer value is around 7.36 percent for this region as compared with the previous rate of Rs64.80 per kilogram.

However, the FBR increased the consumer value of CNG by 28.34 percent for Region – II to Rs74.04 per kilogram from Rs57.69 per kilogram.

The Region – II is included: Sindh and Punjab excluding Potohar Region.

Large Taxpayers Unit (LTU) Karachi two years back presented a draft amendment, which stated:

“Notification in exercise of powers under subsection (8) of section 3 for value of supply of CNG to CNG consumers as per prevailing market price in the same way as it is being issued in case of sale of petroleum product every month.

“Board [FBR] may kindly issue the notification in exercise of powers under subsection (8) of section 3 for value of supply of CNG to CNG consumers as per prevailing market price in the same way as it is being issued in case of sale of petroleum products to avoid huge loss of monthly sales tax revenue.”

The LTU Karachi said that the Gas Transmission and Distribution Company charges sales tax from CNG stations @ 17 percent of the value of supply to the CNG consumers as notified by the Board from time to time in terms of section 3(8) of the Sales Tax Act, 1990.

Board accordingly vide its SRO No. 236(I)/2014 dated 31-03-2014, had notified the value of supply to the CNG consumers as the total value added cost of CNG as notified by the OGRA.

The latest notification issued by OGRA is dated 31.08.2015 which fixed the maximum CNG price as follows:

Region Value Added Cost GST

@ 17%
Maximum

CNG Sale Price

I 64.80 11.02 Rs. 75.82
II 57.69 9.81 Rs. 67.50

On 21-12-2016, OGRA deregulated the CNG sector in Pakistan, and directed the CNG station operators/associations to fix the rates themselves, as per market demand.

This caused in an instant increase in the rates of CNG which jumped from Rs. 67.50 per kg in the Southern Region to Rs.79 overnight.

However, the Gas distribution companies are charging sales tax on the previously issued notification of OGRA dated 31-08-2015.

As a result, the CNG stations are collecting sales tax on maximum CNG sales price at Rs79 per kg from the end consumers where as the Government is getting sales tax from the Gas distribution companies on maximum retail price at Rs67.50, incurring a loss of sales tax revenue of Rs1.67 per kg.

This loss of sales tax revenue of Rs.1.67 per kg is being collected from end consumers and pocketed by CNG stations.

CNG retail price per kg on which SSGC is collecting GST (Rs.) GST @ 17%(Rs) CNG prevailing market retail price (Rs) GST @ 17% (Rs) Loss in sales tax revenue per kg(Rs)
67.50 9.81 79.00 11.48 1.67

The per month loss to the government revenue comes to be Rs75 million only in the case of SSGCL as the average monthly sale of Gas to the CNG stations by SSGCL is 50 million kgs of gas.

Similarly the loss in case of SNGPL which caters more than three times of CNG stations is fairly high.

June 29, 2019
FBR restricts sale of duty free imported motor vehicles, machinery for Thar Coal Field

ISLAMABAD: Federal Board of Revenue (FBR) has imposed restriction on selling the duty free imported goods for machinery and motor vehicles for Thar coal field.

In order to impose restrictions the FBR on Saturday issued SRO 673(I)/2019 to amend SRO 268(I)/2015 dated April 02, 2015.

The FBR allowed exemption from whole of customs duty on import of coal mining equipment and machinery including vehicles for site use, if not manufactured locally, imported for Thar Coal Field.

Through the latest SRO, the FBR said that the goods shall not be sold or otherwise disposed of without prior approval of the FBR.

“In case such goods are sold or otherwise disposed of after ten years of importation thereof, the same shall be subject to payment of duties and taxes as prescribed by the FBR.”

In case these goods are sold or otherwise disposed of without prior approval of the FBR or before the period of ten years from the date of importation thereof, the same shall be subject to payment of statutory rates of duties and taxes as were applicable at the time of import.

“These goods shall, however, be allowed to be transferred to the other entitled projects of the sector, with prior approval of the FBR, subject to payment of duties and taxes, if applicable.”

The re-export of these goods may also be allowed subject to prior approval of the Chief Collector of Customs.

June 29, 2019
FBR imposes up to 7 percent additional customs duty

ISLAMABAD: Federal Board of Revenue (FBR) has imposed up to seven percent additional customs duty on items falling under tariff slab of 20 percent and higher slabs.

The FBR issued SRO 670(1)/2019 on Saturday stated that in supersession of its Notification No. SRO 630(1)/2018, dated the May 24, 2018, the federal government approved to levy additional customs duty on import of goods specified in the First Schedule to the said Act, at the rate of-

(i) two per cent on goods falling under tariff slabs of 0 percent, 3 percent and 11 percent;

(ii) four per cent on goods falling under tariff slab of 16 percent; and

(iii) Seven per cent on goods falling under tariff slab of 20 percent and higher slabs including slabs of specific rates.

The FBR said that the value of goods for purpose of this levy shall be the value as determined under section 25 or section 25A of the said Act.

The additional customs duty shall not be levied on the following, namely: –

(i) import of seeds and spores for sowing (PCT 0904.2120, 1006.1010,
1209.0000);

(ii) import under Chapter 31 of First Schedule of the Customs Act,1969
(IV of 1969);

(iii) import of goods classifiable under PCT codes, 52.01, 52.03, 9501.3000, 5503.1100, 5503.1900, 5503.3000, 5503.4000, 5503.9000, 5504.1000, 5504.9000, 5506.1000, 5506.3000, 5506.4000, 5506.9000 and 5507.0000;

(iv) import of goods classifiable under PCT codes 2902.3000, 2914.1200, 2915.1290, 2933.9990, 3202.1000, 3202.9010, 3202.9090, 3204.1100, 3204.1300, 3207.1090, 3208.1090, 3208.9090, 3403.9910, 3506.9110, 3506.9190, 3812.3900, 3906.9020, 4005.1090, 4005.9900, 8453.2000, 9606.2920 and 9606.2990;

(v) plant and machinery used in manufacturing or production of goods as is classifiable under Chapter 84 and 85 of the First Schedule to the Customs Act, 1969 (IV of 1969);

(vi) import under PCTs 8517.1211 and 8517.1219

(vii) import under Chapter 99 of First Schedule of the Customs Act, 1969

(IV of 1969);

(viii) import under Fifth Schedule to the Customs Act, 1969 (IV of 1969)
excluding;

(a) serial numbers 30, 32, 33 and 35 of table of Part-l,

(b) serial numbers 20 to 28, 30, 60, 96, 102, 108 to 118 of Table of Part Ill; and

(c) Serial numbers 29 to 51, 66 to 85, 109 to 115, 117 to 126, 128 to 155 and 157 to 169 of Table-A, Sr. No. 4 to 9, 11 to 14, 19 to 21 of Table-B and Sr. No.1 to 47 of Table-C of Part VII

(ix) import under the Baggage Rules, 2006;

(x) import under sub-chapters 3 and 7 of chapter XII and chapter XV of Customs Rules, 2001;

(xi) import under Notification No.SRO.577(I)/2005 dated 6th June, 2005;

(xii) import under Notification No.SRO.565(1)/2006 dated 5th June, 2006;

(xiii) import under Notification No.SRO.693(I)/2006 dated 1st July, 2006;

(xiv) import under Small and Medium Enterprises and Export Oriented Units Rules, 2008;

(xv) import under temporary importation scheme vide S.R.O. 492(1)/2009, dated the 13th June, 2009; and

(xvi) imports under condition (vii) of SRO 678(1)/2004, dated the 7th August, 2004, by the Exploration and Production Companies, their contractors and service companies for offshore projects only.

The FBR said that this notification shall take effect from July 1, 2019.

June 29, 2019
Income from Dubai-based properties declarable, not taxable in Pakistan: FBR

KARACHI: Federal Board of Revenue (FBR) has said that income generated from Dubai-based properties is declarable but not chargeable to tax in Pakistan.

Replying to query raised by business community at a seminar organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Asset Declaration Ordinance, 2019, said a statement on Friday.

In a query about rental income originated from Dubai-based properties IR CRTO team replied that double taxation treaty overwrote the domestic law and the UAE clearly stated that tax on rental income is charged by the country where income is originated hence rental income from Dubai-based properties are declarable but not chargeable in Pakistan.

During the awareness session, the IRS CRTO team led by its Chief Commissioner Shafqat Ali Kehar and consisting of Maqsood Jehangir, Commissioner IR Zone-IV, CRTO and Kashif Hafeez, Additional Commissioner IR Zone IV CRTO Karachi, made a multimedia presentation and elaborated salient features of the Assets Declaration Ordinance, 2019 and gave replies to various queries, ambiguities etc., as raised by the participants.

Regarding a query on Power of Attorney, it was replied that all immovable properties, which were transferred on power of attorney, would be declared as Benami property under the ADO, 2019 as the objective of the Scheme was to allow inclusion of non-documented economy in taxation system and to promote economic revival and growth by encouraging tax compliance.

The IR Team informed, “ADO, 2019 has been announced with the aim not to generate revenue but to document the economy in the background of Financial Action Task Force (FATF); revival and growth of economy through tax compliance.

The Team added, “ADO, 2019 is also applicable in undisclosed Assets and expenditures and sales and provides immunity from proceeding Under Section 111 of ITO 2011; the deadline will not be extended beyond 30-06-2019 ; tax can be paid in installment subject to default surcharge; Gold Jewelry, bearer prize bonds, securities, etc., are not required to declare, open plots, local immovable property etc., can be declared at higher cost of acquisition or 150 percent of FBR value or 150 percent of DC Value ; availability of carry forward facility of stock on 30-06-2018 to 2018-19 etc.

Engr. Daroo Khan Achakzai, President (FPCCI) hailed the Asset Declaration Ordinance (ADO), 2019 and termed it as a right step in the right direction with the objective to bring the tax evaders under the tax net; enhancing the country’s revenue base; documentation of economy; arresting the size of ever increasing black economy; mobilize resources and to bring dead assets in the mainstream of economy and make them functional.

He recalled that during the past six years, tax-to-GDP ratio has hovered between 9 percent in 2013-14 and 11.4 percent in 2017-18 to 10.8 percent in the current year 2018-19

The FPCCI Chief hoped that the government efforts to raise tax-to-GDO ratio to 12.6 percent in the next year (2019-20); documentation of economy and broadening of tax base would yield fruitful results as no economy can function without sufficient revenue collection and its thin tax base consisting of about two million assessees or 1 percent of total population has resulted in higher tax rates which provides sufficient incentive for tax evasion and corruption.

The FPCCI President informed that the ADO, 2019 had granted special treatment to the real estate sector and appealed to take advantage of tax amnesty scheme and document benami/ undeclared/ under-declared property and concede assets against concessionary tax payments.

The participants expressed their problem in filing of asset declarations due to non / partial functioning of FBR’s portal (IRIS).

They proposed for allowing Provisional Declaration of Assets by 30th June, 2019 and elaborated that the Scheme was announced only 45 days ago and as such the declarants who are not in a position to deposit cash due to liquidity crunch and filed declaration before 30-06-2019 may be treated as provisional and the assessees may be allowed to deposit the cash in bank accounts within 90 days.

They also proposed that at least 15 days may be allowed to incorporate or feed the declaration data in relevant Income Tax and Sales Tax Returns / profiles particularly when IRIS is not fully operationals and as such it will not affect at all the last date of declaration of assets.

June 29, 2019
FBR proposes phenomenal increase in valuation of Karachi immovable properties

ISLAMABAD: Federal Board of Revenue (FBR) has proposed to phenomenal increase in valuation for commercial and residential immovable properties in Karachi for the purpose of collection of income tax.
(more…)

June 28, 2019
FBR constitutes ADRCs for eight cities

ISLAMABAD: Federal Board of Revenue (FBR) on Thursday constituted Alternative Dispute Resolution Committees (ADRCs) for speedy disposal of cases in Inland Revenue in eight cities of the country.

The FBR issued SRO 657(I)/2019 to notify the panel of the following persons for constitution of committees for alternative dispute resolution, namely :-

SIALKOT

1. Z.A. Nasir, C.A, Sialkot.

2. Ch. Ahmad Zulfiqar Hayat, Businessman, Sialkot.

3. Aftab Hussain Nagra, Advocate, Sialkot.

4. Muhammad Arshad Nawaz Maan, Tax Practitioner, Sialkot.

5. Mahar Ghulam Mujtaba, Representative Trade Bodies, Sialkot.

6. Khalid Pervaiz Javaid Butt, Representative Trade Bodies, Sialkot.

FAISALABAD

1. Hamid Masood, C.A, Faisalabad.

2. Zahid Suleman, C.A, Faisalabad.

3. Muhammad Anwar Abid, Advocate High Court, Faisalabad.

4. Syed Zia Alumdar Hussain, Trade Bodies Representative, Faisalabad.

5. Mian Tanveer Ahmad, Trade Bodies Representative, Faisalabad.

6. Engineer Hafiz Ihtasham Javed, Trade Bodies Representative, Faisalabad.

7. Khalid Pervez, Advocate High Court, Faisalabad.

8. Muhammad Amjad Khawaja, Trade Bodies Representative, Faisalabad.

9. Ch. Habib Ahmad Gujjar, Trade Bodies Representative, Faisalabad.

10. Jawad Asghar, Trade Bodies Representative, Faisalabad.

11. Mr, Muhammad Ashraf Ghandi, Businessman, Faisalabad.

12. Rana Muhammad Younis, Businessman, Faisalabad.

13. Ch. Khalid Mahmood, District and Session Judge, Faisalabad.

SAHIWAL

1. Muhammad Abid, Commissioner IR, Sahiwal.

2. Rashid Hameed, President Sahiwal Chamber of Commerce & Ind, Sahiwal.

3. Rana Waseem Akhtar, Vice Chairman, Pakistan Soup Manufacturing Association, Sahiwal.

4. Mian Muhammad Latif, President Anjuman Tajraan, Sahiwal.

5. Muhammad Imran Khan, Vice President Sahiwal Tax Bar .

6. Shaikh Muhammad Sajjad, Ex President, Sahiwal Tax Bar.

ISLAMABAD

1. Syed Tanseer Bukhari, Advocate, Islamabad.

2. Syed Tauqeer Bukhari, Advocate, Islamabad.

3. Hafiz Muhammad Idrees, Advocate, Islamabad.

4. Shahzad Qazi, C.A Islamabad.

5. Muhammad Mudasser, C.A, Islamabad.

6. Khalid Iqbal Malik, Representative of Trade Body, Islamabad.

7. Tariq Sadiq, Representative of Trade Body, Islamabad.

8. Naeem Siddiqui, Representative of Trade Body, Islamabad.

9. Mian Muhammad Ramzan, Representative of Trade Body, Islamabad.

SUKKUR

1. Asif Iqbal Shekhani, Advocate, Sukkur.

2. Rewachand Rajpal, Advocate, Sukkur.

3. Khair Muhammad Shaikh , Representative of Trade Body, Sukkur.

4. Aamir Ali Khan, Ghouri, Reputable Taxpayer, Sukkur.

5. Tarique Hussain Soomro, Advocate, Sukkur.

MULTAN

1. M. Rashid Qamar, Rtd, District & Session Judge, Multan.

2. Waqas Khalid. Tax Practitioner. Multan.

3. Mueed Khawaja. Tax Practitioner. Multan.

4. Haji Saeed Ahmad, Businessman, Multan.

5. Kh. Muhammad Usman, Businessman, Multan.

6. Agha M. Akmal Khan Quzailbash, Advocate, Multan.

7. Anis Ahmad Sh. Businessman, Multan.

8. Malik Asrar Ahmad Awan, Businessman, Multan.

9. Mirza Muhammad Waheed Baig, Advocate, Multan.

10. Muhammad Younas Ghazi, Tax Practitioner, Multan.

11. Talat Javed, Tax Practitioner, Multan.

GUJRANWALA

1. Abid Hafeez Abid, Advocate High Court, Gujranwala.

2. Muhammad Asim Anees , Businessman, Gujranwala.

BAHAWALPUR

1. Shahid Nadeem Kahloon, Judge, Bahawalpur.

2. Iqbal Haider, CMA, Bahawalpur.

3. Ch. Javed Iqbal, Advocate, Bahawalpur.

4. Saifal Tanveer, Tax Practitioner, Bahawalpur.

5. Ejaz Nazim, Representative of Bahawalpur Chamber.

6. Ch. Mehmood Majeed, Reputable Businessman, Bahawalpur.

June 28, 2019

CNG retail price per kg on which SSGC is collecting GST (Rs.)	GST @ 17%(Rs)	CNG prevailing market retail price (Rs)	GST @ 17% (Rs)	Loss in sales tax revenue per kg(Rs)
67.50	9.81	79.00	11.48	1.67