Pkrevenue.com

Tag: tax collection

  • Banks to observe extended working hours on Dec 31 to facilitate taxpayers

    Banks to observe extended working hours on Dec 31 to facilitate taxpayers

    KARACHI: State Bank of Pakistan (SBP) on Friday announced that banks will observed extended working hours to facilitate taxpayers in payment of duty and taxes on December 31, 2019.

    In order to facilitate the collection of government receipts / duties / taxes, it has been decided that authorized branches of National Bank of Pakistan (NBP) as well as field offices of SBP Banking Services Corporation (SBP-BSC) will observe extended banking hours up to 9:00 PM on December 31, 2019 (Tuesday).

    Accordingly, NBP branches will settle their transactions with respective SBP-BSC field offices on the same day i.e. December 31, 2019 for which purpose a special clearing has been arranged at 7:00 P.M. by the NIFT.

    All banks are, therefore, advised to keep their concerned branches open on December 31, 2019 (Tuesday) till such time that is necessary to facilitate the special clearing for Government transactions, the SBP said.

  • FBR needs to collect Rs2,198 billion in first half of current fiscal year

    FBR needs to collect Rs2,198 billion in first half of current fiscal year

    KARACHI: Federal Board of Revenue (FBR) is required to collect Rs2,198 billion during first half of the current fiscal year as per revised performance criteria of International Monetary Fund (IMF).

    The revenue collecting agency has failed to achieve the first quarter performance criteria.

    According to Country Report Pakistan released by IMF on Monday the actual performance criteria for revenue collection was Rs2,367 billion during first half (July – December) of current fiscal year, which has been revised downward by Rs169 billion to Rs2,198 billion.

    This shows that the FBR will need to collect Rs590 billion in the month of December 2019 to achieve the revised performance criteria.

    The FBR’s provisional collection during first five months (July – November) 2019/2020 was Rs1,608 billion.

    As per IMF documents the FBR failed to achieve the first quarter (July – September) 2019/2020 target of Rs1,071 billion and its collection was at Rs964 billion.

    The actual revenue collection target for current fiscal year was Rs5,550 billion. However, the indicative target as per IMF documents has also been revised downward to Rs5,238 billion.

    The FBR has to raise revenue collection to Rs3,520 billion by March 2020 in order to ensure the desired target for current fiscal year.

    As per IMF documents: “Tax revenue is now expected to be 0.5 percent of GDP lower than originally expected: while domestic collection is envisaged to remain strong, growing by over 25 percent y-o-y over FY 2020, growth in trade-related tax revenues is expected to remain subdued as declining imports continue to weigh on collections—more than 40 percent of total tax revenue in Pakistan is collected at the import stage.”

    The FBR has been given revised Indicative Targets for end December 2019 including net tax collection to recognize the faster than expected external adjustment negatively impacting customs revenue, besides net accumulation of tax refund arrears to capture the authorities plan to reflect the end-June stock of tax refund arrears.

  • FBR needs around Rs4,267 billion in eight months to achieve FY20 target

    FBR needs around Rs4,267 billion in eight months to achieve FY20 target

    ISLAMABAD: The revenue collection target for fiscal year 2019/2020 appears to be more difficult as Federal Board of Revenue (FBR) requires Rs4,267 billion more in remaining eight months to achieve Rs5,550 billion tax collection target for current fiscal year.

    The FBR provisionally collected Rs1,283 billion during first four months (July – October) of fiscal year 2019/2020, which is only 23 percent of the total target of Rs5,550 billion set for the current fiscal year.

    The FBR is now required to collect Rs533 billion as average monthly collection in the remaining eight months of the current fiscal year, which appears to be tough ask.

    In a tweet message, Chairman FBR Shabbar Zaidi on Thursday, “FBR has collected Rs 320 billion during the month October 2019 and has maintained overall increase over last year of 16 percent and domestic tax over 25 percent. This is after taking into account negative aspect of import contraction of around Rs 50 billion.”

    Reportedly, the FBR collected Rs566 billion as sales tax during first four months, followed by about Rs468 billion through income and about Rs109 billion in customs.

    The remaining Rs137 billion came were collected via other taxes including Rs71 billion in federal excise duty.

  • Inland Revenue offices to remain open till midnight on Sept 30 for tax collection

    Inland Revenue offices to remain open till midnight on Sept 30 for tax collection

    ISLAMABAD: All the offices of Inland Revenue will remain open till 12:00 midnight on September 30, 2019 for the collection of duty and taxes and facilitate income tax return filing.

    The Federal Board of Revenue (FBR) on Thursday issued an office order directing all the chief commissioners of Large Taxpayers Units (LTUs)/Regional Tax Offices (RTOs) and Corporate RTOs to observe extended working hours till 12:00 midnight on Monday September 30, 2019 to facilitate the taxpayers in payment of duties and taxes and filing of income tax returns and statements.

    The chief commissioners have also been asked to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan to ensure transfer of tax collection by these branches on September 30, 2019 to the respective branches of SBP on the same date.

  • Banks to observe extended working hours on Sept 30 for tax collection: SBP

    Banks to observe extended working hours on Sept 30 for tax collection: SBP

    KARACHI: The State Bank of Pakistan (SBP) on Thursday said the banks will observe extended working hours on September 30, 2019 to facilitate collection of duty and taxes on the last day of first quarter of current fiscal year

    In order to facilitate the collection of Government receipts / duties / taxes, it has been decided that authorized branches of National Bank of Pakistan (NBP) as well as field offices of SBP Banking Services Corporation (SBP-BSC) shall observe extended banking hours upto 9:00 P.M. on September 30, 2019 (Monday), the SBP said.

    Accordingly, NBP branches will settle their transactions with respective SBP-BSC field offices on the same day i.e. September 30, 2019 for which purpose a special clearing has been arranged at 7:00 P.M. by the NIFT, it added.

    All banks are, therefore, advised to keep their concerned branches open on September 30, 2019 (Monday) till such time that is necessary to facilitate the special clearing for Government transactions.

  • Tax collection from salary income declines by 44 percent: State Bank

    Tax collection from salary income declines by 44 percent: State Bank

    KARACHI: Tax collection from salary income declined by 44 percent due to changes in income tax rates for all income slabs, according to a report issued by State Bank of Pakistan (SBP).

    The SBP said that during first nine-months of fiscal year 2018/2019 the tax collection on salaries remained much lower than in the same months of preceding year.

    The Federal Board of Revenue (FBR) collected Rs53.5 billion as tax from salary income during July – March of Fiscal year 2018/2019 as compared with collection of Rs95.2 billion in the same period of the preceding fiscal year.

    “Tax collection on salaries also remained much lower than last year. In absolute terms, tax on salaries declined by Rs 41.7 billion during the review period, mainly due to changes in income tax rates for all income slabs,” the SBP said.

    Direct taxes having a share of 37 percent in overall FBR tax collection recorded a decline of 0.8 percent during Jul-Mar FY19 in contrast to a rise of 12.2 percent during the same period last year.

    Measures like the suspension of tax on mobile top-ups; reduction in come tax rates on salaries; reduction in the withholding tax rate on dividends; and spending under the PSDP explain the decline in direct taxes.

    Within direct taxes, major hit emerged from withholding taxes (largest contributor in direct taxes), which recorded a contraction of 8.7 percent during Jul-Mar FY19 against a rise of 16.1 percent during the same period last year.

    One-half of the decline in total withholding taxes is in the category of telephone/mobiles. Collection from telephone was only Rs 5.3 billion during Jul-Mar FY19 compared to a collection of Rs 38.0 billion during the same period last year.

    This lower collection from telephone/mobile phones was not surprising amid suspension of taxes on mobile phone top-up by the Supreme Court.

    Receipts from contracts were also lower compared to last year largely owing to a cut in the PSDP. Voluntary payments increased by Rs 34.3 billion during Jul-Mar FY19.

  • FBR’s tax collection gap widens by Rs295bn; needs Rs1,698bn in three months to meet target

    FBR’s tax collection gap widens by Rs295bn; needs Rs1,698bn in three months to meet target

    ISLAMABAD: The deficit in tax collection has soared by 295 billion in first nine month of current fiscal year making it an impossible task for Federal Board of Revenue (FBR) to achieve Rs4,398 billion target for current fiscal year.

    The revenue collection for July – March 2019 was stood at Rs2,700 billion as against the target of Rs2,995 billion.

    The widening of tax gap posed a serious trouble for the government in meeting development expenditures and curtailing fiscal deficit.

    The State Bank of Pakistan (SBP) has already projected the fiscal deficit at 6 to 7 percent as against actual target of 4.9 percent of the GDP for the fiscal year 2018/2019.

    According to provisional collection the FBR collected Rs358 billion. The collection target for the month of March was Rs432 billion.

    FBR sources said that the collection of advance tax witnessed steep fall due to shrinking profitability of the corporate sector.

    The corporate sector pay advance income tax in March on the assumption of their income in the three quarters.

    As per the latest development in the revenue collection the FBR will required Rs1,698 billion during next three months in order to achieve the revenue collection target of Rs4,398 billion.