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Tag: sales tax

  • FBR increases sales tax on petrol

    FBR increases sales tax on petrol

    ISLAMABAD: Federal Board of Revenue (FBR) has increased sales tax rate on petrol to 13 percent for the month of June 2019 from 12 percent, which was applicable in May 2019.

    The FBR issued SRO 603(I)/2019 dated May 31, 2019 and revised the sales tax rates on petroleum products effective from June 01, 2019.

    The sales tax on petrol has been increased to 13 percent from 12 percent.

    The sales tax rate on high speed diesel has been reduced to 13 percent from 17 percent.

    However, sales tax rates on kerosene oil and light diesel oil were kept unchanged at 17 percent.

    The government increased the prices of POL products for the month of June 2019, which are as follow: Petrol 108.42 increased to Rs112.68; High Speed Diesel 122.32 increased to Rs126.82; Kerosene (SKO) Rs96.77 to Rs98.46; and Light Diesel Oil (LDO) Rs86.94 to Rs88.62.

  • Sindh exempts sales tax on insurance services

    Sindh exempts sales tax on insurance services

    KARACHI: The Sindh government has exempted the insurance services from payment of sales tax up to June 30, 2019.


    Sindh Revenue Board (SRB) on Wednesday issued a notification stating that with the approval of the provincial government it had exempted the insurance services (other than its related re-insurance services) from the whole of the sales tax payable.


    The SRB said that the exemption is available with the condition that the amount of sales tax already charged, received or collected by the service provider shall be deposited by such service provider to the provincial exchequer.


    The following services have been exempted from sales tax:
    9813.1500 Life Insurance from July 01, 2018 to June 30, 2019
    9813.1600 Health Insurance from July 01, 2016 to June 30, 2019.


    The SRB said that the notification shall not entitle any person, whether a service provider or a service recipient, to any refund or adjustment of tax.
    The notification, if not rescinded earlier, shall stand rescinded at 2359 hours of the 30th day of June 2019.

  • 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.

  • FBR may proceed for sales tax blacklisting of M/s. Hascol Petroleum Limited

    FBR may proceed for sales tax blacklisting of M/s. Hascol Petroleum Limited

    KARACHI: Federal Board of Revenue (FBR) will start proceeding to blacklist a major oil marketing company after suspending this week for non-compliance and suppressing sales to evade taxes.

    The FBR suspended the sales tax registration of M/s. Hascol Petroleum Limited earlier this week for evading sales tax to the tune of Rs3.9 billion by concealing actual sales.

    The status of the company for active sales taxpayer is remained suspended on the official FBR website till 2:50AM on May 02, 2019.

    Hascol 01

    The status of the company can be checked at https://e.fbr.gov.pk/atlsearchutility.aspx?PID=BLcOS/IMzEf3Rn3kVI062g== by inserting company’s sales tax registration number (STRN) 1200271018373 or through National Tax Number (NTN) 1496632-8.

    A notice issued on April 29, 2019 for suspending sales tax registration of the OMC said that the company had concealed and evaded sales tax amounting to Rs3.69 billion and further tax amounting to Rs279.84 million.

    “Therefore, registered person is being charged with the contravention of Section 3, 3(1A), 6, 22, 23 and 26 of the Sales Tax Act, 1990 and Rs3.97 billion is recoverable Under Section 11(2) of the Sales Tax Act, 1990, along with default surcharge Under Section 34(1) and penalty Under Section 33(5) the Sales Tax Act, 1990,” according to the notice.

    The notice also stated: “sales tax registration of above mentioned registered person is hereby suspended with immediate effect till finalization of the proceedings,” it added.

    The OMC through a notice to Pakistan Stock Exchange (PSX) on April 30, 2019 flatly denied all the charges stating that it was not involved in any form of theft and tax fraud.

    Some section of press ran the story regarding suspension of sales tax registration of the company along with charges framed by the FBR. The notice sent to the PSX by M/s. Hascol Petroleum Limited also threatened to initiate legal action against such news reports.

    FBR sources said that suspension of sales tax registration of any company was not done on the wishes of a person. It is thorough process and a commissioner of Inland Revenue only issued such order after having sufficient records.

    The sources further said that since the centralization of system the suspension of sales tax registration was done through the main system of Inland Revenue and WeBOC system.

    The sources said: “Commissioner shall issue written order to the concerned registered person detailing the reasons for suspension. The order shall also be provided to all other Large Taxpayer Units (LTUs)/Regional Tax Offices (RTOs), the FBR‘s computer system, the STARR computer system and the Customs Wing computer system for information and necessary action as per law.”

    They also said that suspension of registered person will make them ineligible to avail input tax adjustment/refund. “Similarly, no input tax adjustment/refund shall be allowed to any other registered persons on the basis of invoices issued by such suspended person (whether issued prior to or after such suspension).”

    The sources said that the suspension would also disable a company to file a goods declaration in customs system for clearance of consignment.

    What is post suspension?

    According to FBR’s official website the suspended registered person will be issued a show cause notice (through registered post or courier service) within seven days of issuance of order of suspension by the Commissioner.

    “The registered person will have an opportunity of hearing with fifteen days of the issuance of such notice clearly indicating that he will be blacklisted.”

    In case of non-availability of the suspended person at the given address, the notice may be placed on the main notice Board of the LTU/RTO.

    The sources said that where the show cause notice is not issued within seven days of the order of suspension, the order of suspension shall become invalid.

    The notice issued by LTU Karachi to suspend the registration:

    Hascol 02Hascol 03

  • FBR reduces up to 88 percent sales tax on petroleum products

    FBR reduces up to 88 percent sales tax on petroleum products

    ISLAMABAD: Federal Board of Revenue (FBR) has significantly reduced the sales tax rates up to 88 percent on supply of petroleum products for five days.

    The FBR issued SRO 499(I)/2019 dated April 30, 2019 to announced reduction in sales tax rates on petroleum products.

    The government a day earlier announced not to immediately pass on the rise in oil prices to consumers and referred the issue to the Economic Coordination Committee of the Cabinet to decide the petroleum prices for the month of May 2019.

    Meanwhile, the government absorbed the rise in petroleum price by reducing the sales tax rates on petroleum products till May 05, 2019.

    The FBR amended the SRO 1574(I)/2018 dated December 31, 2018 through the latest notification, under which the sales tax on petrol reduced by 88 percent to 2 percent from 17 percent.

    The sales tax rate on High Speed Diesel has been reduced by 23.6 percent to 13 percent from 17 percent.

    The FBR reduced the sales tax rate on kerosene oil by 53 percent to 8 percent from previous 17 percent.

    Similarly the sales tax rate on light diesel oil has been reduced by 47 percent to 9 percent from 17 percent.

  • FBR issues rules for ADR in sales tax, federal excise cases

    FBR issues rules for ADR in sales tax, federal excise cases

    ISLAMABAD: Federal Board of Revenue (FBR) on Thursday notified rules to make Alternate Dispute Resolution Committee (ADRC) functional for cases in sales tax and federal excise.

    The FBR issued SROs 488 and 489 (I)/2019 to notify the rules. The ADRC is required to decide a case within 120 days and the decision will have binding effect on both taxpayers and tax officials.

    Under the rules any person interested for resolution of any dispute shall make a written application for alternative dispute resolution to the FBR.

    The FBR, after examination of contents of the application and facts stated therein and on satisfaction that the application may be referred to a Committee for the resolution of the hardship or dispute, shall appoint and notify a Committee, within a period of sixty days from receipt of the application.

    A retired judge not below the rank of District and Sessions Judge, appointed in a manner as aforesaid, shall be Chairperson of the Committee.

    After notification of the Committee, the applicant or the Commissioner or both, as the case may be, shall withdraw appeal pending before any court of law or an appellate authority relating to the hardship or dispute stated in the application.

    The Committee shall commence proceedings after receipt of order of withdrawal of appeal from the FBR.

    The chairperson of the Committee shall be responsible for deciding the procedure to be followed by the Committee which may, inter-alia, include the following, namely:-

    (a) to decide about the place of sitting of the Committee, in consultation with the Chief Commissioner having jurisdiction over the applicant;

    (b) to specify date and time for conducting proceedings by the Committee;

    (c) to supervise the proceedings of the Committee;

    (d) to issue notices by courier or registered post or electronic mail to the applicant;

    (e) to requisition and produce relevant records or witnesses from the Commissioner or other concerned quarters;

    (f) to ensure attendance of the applicant for hearing either in person or through an advocate, representative or a tax consultant;

    (g) to consolidate decision of the Committee and communicate it to the Board, the Commissioner and the applicant; and

    (h) for any other matter covered under these rules.

    The Committee may conduct inquiry, seek expert opinion, direct any officer of Inland Revenue or any other person to conduct an audit and make recommendations to the Committee in respect of dispute or hardship.

    The Committee may determine the issue and may thereafter seek further information or data or expert opinion or make or cause to be made such inquiries or audit as it may deem fit, to decide the matter.

    The Committee shall decide the dispute within one hundred and twenty days from the date of receipt of order of withdrawal from the FBR.

    Decision of majority members of the Committee shall be construed decision of the Committee which shall be communicated by the Committee to the FBR, the Commissioner having jurisdiction and the applicant.

    The decision of the Committee shall be binding on the Commissioner and the aggrieved person.

    On receipt of the Committee’s decision, the applicant shall make payment of sales tax and other taxes as specified by the Committee in its decision and the Commissioner shall modify order as per decision of the Committee.

  • Sales tax auditors form association against FBR’s unfair treatment

    Sales tax auditors form association against FBR’s unfair treatment

    KARACHI: The officers of Sales Tax have formed an association to voice against biased treatment of Federal Board of Revenue (FBR).

    A statement issued on Tuesday said that Senior Auditors of BS-16 and Audit Officers of BS-16 had formed the association against unfair treatment of the FBR.

    They said that the sales tax officers had been continuously ignored after the integration of services by the FBR.

    They said that the BS-18 audit officers had been compelled to work under BS-16 and BS-19 officers of Income Tax.

    The statement said that the situation was frustrating as officers having 20 years experience were compelled to work under inexperienced income tax officers. This situation has also jeopardized the revenue collection efforts.

    The statement pointed out that sales tax officers having higher education caliber including MBA, MCOM, ICMA etc, had been deprived of promotions. Instead those officers were upgraded in the name of promotions.

    It said that the sales tax wing was major arm of FBR and contributing huge sum in the shape of revenue collection. But the FBR is continuously ignoring the experience of sales tax officers, which is resulting in massive revenue shortfall.

    The association requested Prime Minister Imran Khan, Finance Minister Asad Umar and State Minister Hamad Azhar to take notice of unfair treatment of FBR and resolve the issue.

  • FPCCI recommends single digit sales tax rate

    FPCCI recommends single digit sales tax rate

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed reducing sales tax to single digit from existing 17 percent. In its pre-budget conference on Wednesday, the apex trade body present its set of proposals for budget 2019/2020.

    (more…)
  • FBR fixes sales tax rate for cottonseed

    FBR fixes sales tax rate for cottonseed

    ISLAMABAD: Federal Board of Revenue (FBR) has fixed Rs 8 as sales tax for 40 kilogram of cottonseed for the period starting from July 01, 2019.

    Similarly, Rs 7 sales tax for 40kg of cottonseed for the period of starting July 01, 2018 and ending on June 30, 2018 (both days inclusive).

    The FBR on Tuesday issued SRO 253(I)/2019 and said that SRO 188(I)/2015 dated March 05, 2018 was issued for a special procedure for payment of sales tax on cottonseed oil and to exempt cottonseed oil cake from payment of sales tax.

    The FBR further said that the notification was declared ultra vires by the Lahore High Court and the order of the Lahore High Court was upheld by the Supreme Court of Pakistan vide its order dated April 16, 2018 in Civil Petition No. 1028 to 1121, 1433 to 14558 and 2550 to 2553 of 2017 on the ground that the approval of the federal cabinet was not obtained.

    Therefore, the federal government approved the amendments to Sales Tax (Special Procedures) Rules, 2007, which would be effective July 01, 2018.

    The FBR said that the notified sales tax rates would be collected under the special procedure.

    It said that all cotton ginners, if not already registered or required to be registered, shall obtain sales tax registration for the purpose of these rules.

    The amount of sales tax so charged and collected by the cotton ginners shall be declared in the monthly returns and shall be deposited as such without any input tax adjustment.

    The suppliers of cottonseed shall mention sales tax charged separately on the sales tax invoice to be issued by them.

    The oil expelling units using the cottonseed on which sales tax has been charged and collected in the aforesaid manner shall be exempt from payment of sales tax on the supplies of oil cake produced from such cottonseed.

    The ginner shall submit a certificate to the commissioner having jurisdiction by the 15th day of the month following the tax period for the quantity of cottonseed supplied to the growers for sowing purpose.

  • FBR notifies rules for online monitoring of five major items

    FBR notifies rules for online monitoring of five major items

    ISLAMABAD: Federal Board of Revenue (FBR) has notified rules for electronic monitoring of five goods in order to prevent sales tax evasion.

    The FBR issued SRO 250(I)/2019 on Tuesday for electronic monitoring, tracking and tracing of production, import and supply-chain of the following goods, on real time basis, hereinafter referred to as the specified goods, namely:-

    (a) tobacco Products;

    (b) beverages;

    (c) sugar;

    (d) fertilizer; and

    (e) cement:

    Provided that any or all of the said specified goods above shall be monitored, tracked and traced in the manner provided in this Chapter from the date to be specified by the FBR, through a general order:

    Provided further that the specified goods, if brought from non-tariff area as defined in the Federal Excise Act, 2005, shall be treated as imported goods for the purposes of this chapter.

    The FBR said that goods to be affixed with tax stamps, banderoles, stickers, labels, barcodes, etc.

    (1) On every package, including a tin, container or bottle, of the specified goods whether manufactured or imported shall be affixed or printed a tax stamp, banderole, sticker, label, barcode, etc., hereinafter referred to as tax stamp, in the manner prescribed under this Chapter:

    Provided that in respect of such specified goods which are exempt or meant for export tax stamps shall not be required to be affixed thereon, but shall be clearly, legibly and indelibly marked as “Exempt Goods” or “For Export”, as the case may be.

    (2) Every tax stamp required to be affued under these rules shall bear such security features as are approved by the Board in order to-

    (a) prevent counterfeiting;

    (b) enable accounting of production of the specified goods; and

    (c) enable any person in the supply chain or an officer authorized by the Commissioner Inland Revenue to authenticate such tax stamp.

    (3) The system for imported goods shall be installed in a designated area at the port of importation or a customs bonded warehouse, as the case may be, declared by the importer for this purpose, or any other place approved by the Project Director:

    Provided that the Board may allow tax stamps to be affixed on any specified goods to be imported in a production facility in the exporting country, subject to such conditions as the Board may specify.

    (4) No person engaged in manufacturing, sale or purchase or handling of specified goods shall remove or tamper with the tax stamp affixed thereon until these are sold to the final consumer.