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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 reinstates nine customs officers into service on court order

    FBR reinstates nine customs officers into service on court order

    ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday reinstated nine customs officials into service following an order of Supreme Court of Pakistan.

    The FBR said that in pursuance of judgment dated November 26, 2018 passed by Federal Service Tribunal, Islamabad duly upheld by the Supreme Court of Pakistan through order dated April 17, 2019, the following officers, who were compulsorily retired from service through FBR notification dated May 08, 2017 are hereby reinstated into service with effect from May 08, 2017 i.e. the date of their compulsory retirement:

    01. Qaiser Khan Loni, ex-principal appraiser, Model Customs Collectorate Quetta.

    02. Muhammad Zaman Mazari, ex-Inspector, MCC Quetta

    03. Haji Zahir Ali, ex-Inspector, MCC Quetta

    04. Shireen Subhan, ex-Inspector, MCC Peshawar

    05. Muhammad Akram, ex-Inspector, MCC Quetta

    06. Faiz Muhammad Khoso, ex-Inspector, MCC Quetta

    07. Musa Kha Awan, ex-Inspector, MCC Quetta

    The FBR said that matter of back benefits for the intervening period from May 08, 2017 till their re-instatement, during which they remained out of service, would depend upon final outcome of denovo proceedings to be initiated against them in due course of time in the light of federal service tribunal judgment and the apex court order.

    The FBR said that in pursuance of judgment dated February 01, 2018 passed by Federal Service Tribunal, Lahore duly upheld by the Supreme Court of Pakistan dated April 04, 2019, the FBR’s notifications dated May 08, 2017 and Dated August 22, 2017 are hereby withdrawn and following officers of customs service are reinstated into service with effect from May 08, 2017 i.e. date of their removal from service:

    01. Waqar Ahmed Cheema, ex-Superintendent, Directorate of Intelligence and Investigation, FBR, Lahore

    02. Aziz-ur-Rehman, ex-Inspector, MCC Islamabad

    The FBR said that matter of back benefits for the intervening period from May 08, 2017 till their re-instatement, during which they remained out of service, would depend upon final outcome of denovo proceedings to be initiated against them in due course of time in the light of federal service tribunal judgment and the apex court order.

  • ABAD welcomes new chairman FBR

    ABAD welcomes new chairman FBR

    KARACHI: Association of Builders and Developers of Pakistan (ABAD), welcoming the appointment of a leading Chartered Accountant and tax expert Shabbar Zaidi as the Chairman of Federal Board of Revenue (FBR), has hoped that Shabbar Zaidi will bring in new strategy to solve problems of business community of the country as well as creating new venues for tax collection rather than taxing already taxed people.

    Chairman ABAD Muhammad Hassan Bakshi, Senior Vice Chairman Anwar Dawood, Vice Chairman Abdul Kareem Adhia and Chairman Southern Region Ibrahim Habib, in a statement, said that the PTI-led federal government has taken right decision by appointing a technocrat from private sector as Chairman FBR. This decision will have good impact on revenue generation and solution of tax-related problem as Shabbar Zaidi is well-known in business circles as well as in bureaucracy of FBR as a tax expert and provincial and federal governments used to take advice from him, they said. Recently, in an interview, Shabbar Zaidi had said that he will try his best to increase tax to GDP ratio from 13 percent to 26 percent.

    ABAD office-bearers said that widening tax net is necessary for more tax collection. They demanded of the federal government to announce and implement much-talked Tax Amnesty Scheme as soon as possible for boosting revenue collection.

  • FBR, traders discuss broadening of tax base

    FBR, traders discuss broadening of tax base

    ISLAMABAD: A Consultative Meeting between the Traders Associations and FBR representatives was held in the Broadening Tax Base Zone (BTB), Islamabad to find ways of broadening the tax base.

    The Consultative Meeting was chaired by Mir Badshah Khan Wazir, DG, BTB and was attended by Commissioner BTB (HQ) and Commissioner BTB Zone Islamabad.

    The BTB Zone Islamabad had invited Traders Association of G-11 Markaz and F-11 Markaz, Islamabad to seek business community’s views on broadening the tax base.

    The Traders Associations were represented by Aftab Gujjar and Mahar Khuda Dad, Presidents of Traders Associations of G-11 and F-11 Markaz respectively along with their office bearers.

    The Director General BTB apprised the participants about the significance of broadening of tax base in enhancing national tax revenue.

    He stated that due to smaller tax base, the burden gets shifted to existing taxpayers. He stressed on the need to have cooperation of trade bodies in the identification and enrollment of potential taxpayers and sought their help to hold facilitation camps in their respective areas.

    The representatives of trade bodies appreciated the initiative of DG BTB for holding the consultative meeting.

    They shared views on the difficulties’ faced by the business community in the enrollment and filing of returns.

    They advocated the idea of fixed tax regime for the small traders. They agreed to extend cooperation in holding awareness and enforcement camps of BTB Zone in their respective areas.

  • Shabbar Zaidi appointed as 26th FBR chairman

    Shabbar Zaidi appointed as 26th FBR chairman

    The federal government has appointed Shabbar Zaidi as the Chairman of the Federal Board of Revenue (FBR). This significant announcement, made by Prime Minister Imran Khan during a media interaction on Monday, marks a departure from tradition as Zaidi becomes the first chairman selected from the private sector.

    (more…)
  • Withholding tax rates on payment for goods and services during Tax Year 2019

    Withholding tax rates on payment for goods and services during Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has updated withholding tax card for tax year 2019 amendment through Finance Supplementary (Second Amendment) Act, 2019.


    Following are the withholding tax rates applicable on payment for goods and services under Section 153 of Income Tax Ordinance, 2001.


    Under this section every withholding agent prescribed under the ordinance shall collect withholding tax from resident person, and permanent establishment in Pakistan of a non-resident at the time the amount is actually paid.


    The withholding tax rates under Section 153(I)(a):


    For sale of rice, cotton seed oil and edible oil the tax rate shall be 1.5 percent of gross amount.


    Supply made by distributors of fast moving consumer goods shall be 2 percent of gross amount in case of company and 2.5 percent of gross amount in case of other than company.


    For sale of any other goods:


    (i) in the case of company the filer of income tax return shall pay 4 percent and the rate of withholding tax shall be 8 percent for non-filer.


    (ii) In the case of other than companies the tax rate for filer shall be 4.5 percent and 9 percent for non-filer.


    The FBR said that no deduction of tax where payment is less than Rs75,000 in aggregate during a financial year.


    The withholding tax rate for transport services under Section 153(1)(b) shall be two percent.


    All others under the section shall be:


    (i) in the case of companies the filer shall pay 8 percent and 14.5 percent for non-filer.


    (ii) in all other than company taxpayers the withholding tax shall be 10 percent for filer and 17.5 percent for non-filer.


    (iii) Person making payment to electronic and print media for advertising services: filer shall pay 1.5 percent; non-filer shall pay 12 percent; and non-filer other than company shall pay 15 percent.


    The FBR said that no deduction of tax where payment is less than Rs30,000 in aggregated during a financial year.


    The rate of withholding tax on execution of contracts under Section 153(1)(c) shall be:


    (i) in case of sportsperson the rate shall be 10 percent


    (ii) in the case of companies the withholding tax rate for filers shall be 7 percent and 14 percent for non-filers.


    (iii) In the case of other than companies the rte of withholding tax shall be 7.5 percent for filers and 15 percent for non-filers.


    Every exporters or export house shall deduct tax on payments in respect of services of stitching, dying, printing etc. received or provided under Section 153(2) the withholding tax rate shall be one percent.


  • Sales Tax Act 1990: No suit shall lie against government servant

    Sales Tax Act 1990: No suit shall lie against government servant

    KARACHI: The sales tax law had explained that no suit, prosecution or other legal proceeding shall lie against the federal government or against any public servant in respect of any order passed in good faith.

    The updated Sales Tax Act, 1990 issued by the Federal Board of Revenue (FBR) explained the bar of suits, prosecution and other legal proceedings under this act.

    Section 51: Bar of suits, prosecution and other legal proceedings

    Sub-Section (1): No suit shall be brought in any Civil Court to set aside or modify any order passed, any assessment made, any tax levied, any penalty imposed or collection of any tax made under this Act.

    Sub-Section (2): No suit, prosecution or other legal proceeding shall lie against the Federal Government or against any public servant in respect of any order passed in good faith under this Act.

    Sub-Section (3): Notwithstanding anything in any other law for the time being in force, no investigation or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or direction made or issued thereunder without the prior approval of the Board.

    Section 52: Appearance by authorized representative

    A registered person required to appear before the Appellate Tribunal or an officer of 2[Inland Revenue] in connection with any proceedings under this Act may, in writing, authorize any person having such qualification as may be prescribed to represent him or appear on his behalf.

    Section 52A: e-intermediaries to be appointed

    Sub-Section (1): Subject to such conditions, limitations and restrictions, the Board may, by a notification in the official Gazette, appoint a person to electronically file return under Chapter V and such other documents electronically, as may be prescribed from time to time, on behalf of a person registered under section 14.

    Sub-Section (2): A person registered under section 14 may authorize an e-intermediary to electronically file return or any other documents, as specified in sub-section (1).

    Sub-Section (3): The return or such other documents filed by an e-intermediary on behalf of a registered person shall be deemed to have been filed by that registered person.

    Sub-Section (4): Where this Act requires anything to be done by the registered person and if such thing is done by an e-intermediary authorized by the registered person under sub-section (2), unless the contrary is proved, shall be deemed to have been done with the knowledge and consent of such registered person so that in any proceedings under this Act, the registered person shall be liable as if the thing has been done by him.

    Sub-Section (5): Where an e-intermediary, authorized by a registered person under sub-section (2) to act on his behalf, knowingly or willfully submits a false or incorrect information or document or declaration with an intent to avoid payment of tax due or any part thereof or claiming a tax credit or a refund that is not due to the registered person, such e-intermediary shall be jointly and severally responsible for recovery of the amount of tax short paid or the amount refunded in excess as a result of such incorrect or false information or document or declaration, without prejudice to any other action that may be taken against him under the relevant provisions of the law.

    Sub-Section (6): The Board may, by notification in the official Gazette, prescribe rules for the conduct and transaction of business of e- intermediaries, including their appointment, suspension and cancellation of appointment, subject to such conditions as specified therein.

    Section 53: Estate of deceased person

    The tax liability of a deceased registered person under the Act shall be the first charge on his estate in the hands of his successors.

    Section 54: Estate in bankruptcy

    Sub-Section (1): If a registered person is declared bankrupt, the tax liability under this Act shall pass on to the estate in bankruptcy if it continues to operate the business.

    Sub-Section (2): If tax liability is incurred by an estate in bankruptcy, the tax is deemed to be a current expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by other creditors are settled.

  • FBR provisionally revokes sales tax registration suspension of Hascol Petroleum

    FBR provisionally revokes sales tax registration suspension of Hascol Petroleum

    KARACHI: Federal Board of Revenue (FBR) has provisionally revoked the suspension of sales tax registration of M/s. Hascol Petroleum Limited on directives issued by Sindh High Court.

    A communication sent to Pakistan Stock Exchange (PSX) said that the company had filed a constitution petition before the Sindh High Court against the FBR challenging the order issued by Large Taxpayers Unit (LTU) Karachi for suspension of sales tax registration of the company.

    “Upon directors of the Sindh High Court, the commissioner Inland Revenue, FBR has by order May 03, 2019 provisionally revoked the suspension of the sales tax registration of the company with immediate effect,” the company said, adding that consequently the sales tax registration of the company is operative and effective as of date.

  • Sales Tax Act 1990: ownership transfer of taxable activity

    Sales Tax Act 1990: ownership transfer of taxable activity

    KARACHI: The sales tax law has explained application of sales tax on taxable activity or transfer of ownership.

    According to updated Sales Tax Act, 1990 issued by Federal Board of Revenue (FBR) the law explained the sales of taxable activity or transfer of ownership.

    Section 49: Sales of taxable activity or transfer of ownership

    Sub-Section (1): In case of termination of taxable activity or part thereof or its sale or transfer of ownership to a non-registered person, the possession of taxable goods or part thereof by the registered person shall be deemed to be a taxable supply and the registered person shall be required to account for and pay the tax on the taxable goods held by him:

    Provided that if the tax payable by such registered person remains unpaid, the amount of unpaid tax shall be the first charge on the assets of the business and shall be payable by the transferee of business.

    (2) In the case of sale or transfer of ownership of a taxable activity or part thereof to another registered person as an ongoing concern, the taxable goods or part thereof shall be transferred to the new owner through a zero-rated invoice and the sales tax chargeable thereon shall be accounted for and paid by the registered person to whom such taxable activity or part thereof is transferred.

  • FBR notifies sales tax rates on petroleum products for May 2019

    FBR notifies sales tax rates on petroleum products for May 2019

    ISLAMABAD: Federal Board of Revenue (FBR) on Saturday notified sales tax rates for petroleum products for the month of May 2019.

    The FBR issued SRO 507(I)/2019 on May 04, 2019 to amend the rates issued on April 30 and also amend the SRO 57(I)/2016 dated January 29, 2016.

    Following sales tax rates on petroleum products will be applicable for the month of May 2019:

    Petrol 12 percent ad valorem

    High Speed Diesel oil 17 percent ad valorem

    Kerosene 17 percent ad valorem

    Light Diesel Oil 17 percent ad valorem

    Earlier, the FBR issued SRO 499(I)/2019 issued on April 30, 2019 and reduced temporarily till May 05 at the rates: petrol 2 percent, HSD 13 percent, kerosene 8 percent and light diesel oil 9 percent.

  • Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    Withholding tax rates on purchase, registration of motor vehicle for Tax Year 2019

    KARACHI: Federal Board of Revenue (FBR) has issued updated withholding tax rates on purchase and registration of motor vehicles.

    The withholding tax rates have been updated through Finance Supplementary (Second Amendment) Act, 2019 as on March 09, 2019.
    The withholding tax rate on registration of motor vehicle to be collected by excise and taxation department of provincial government under Sub-Section 1 of Section 231B of Income Tax Ordinance, 2001:
     

    Registration of Motor VehicleFilerNon-Filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000

     
    Every leasing company or a scheduled bank or a non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether shariah compliant or under conventional mode, at the time of leasing of a motor vehicle to a non-filer, either through ijara or otherwise, shall collect advance tax at the rate of four per cent of the value of the motor vehicle under Sub-Section 1A of Section 231B of Income Tax Ordinance.

    Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of transfer of registration or ownership of a private motor vehicle, at the following rates under Sub-Section 2 Section 231B of Income Tax Ordinance, 2001:
     

    Engine CapacityTax for FilerTax for Non-Filer
    Up to 850CCRs 0Rs5,000
    851CC to 1000CCRs5,000Rs15,000
    1001CC to 1300CCRs7,500Rs25,000
    1301CC to 1600CCRs12,500Rs65,000
    1601CC to 1800CCRs18,750Rs100,000
    1801CC to 2000CCRs25,000Rs135,000
    2001CC to 2500CCRs37,500Rs200,000
    2501CC to 3000CCRs50,000Rs270,000
    Above 3000CCRs62,500Rs300,000

     
    Provided that no collection of advance tax under this sub-section shall be made on transfer of vehicle after five year from the date of first registration in Pakistan.

    Every manufacturer of a motor vehicle shall collect, at the time of sale of a motor car or jeep, advance tax at the following rates under Sub-Section 3 of Section 231B of Income Tax Ordinance, 2001 from the person to whom such sale is made:
     

    Engine CapacityTax for FilerTax for Non-filer
    Up to 850CCRs7,500Rs15,000
    851CC to 1000CCRs15,000Rs37,500
    1001CC to 1300CCRs25,000Rs60,000
    1301CC to 1600CCRs50,000Rs150,000
    1601CC to 1800CCRs75,000Rs225,000
    1801CC to 2000CCRs100,000Rs300,000
    2001CC to 2500CCRs150,000Rs450,000
    2501CC to 3000CCRs200,000Rs600,000
    Above 3000CCRs250,000Rs675,000