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|RECORD INCREASE OF 14 % REVENUE COLLECTION DURING FIRST SIX MONTHS OF CFY|
During the month of December, 2014, FBR has made a net collection of Rs.270,216 million as against net collection of Rs. 231,539 million during December, 2013 showing an increase of 17%. From July, 2014 to December, 2014, FBR made a gross collection of Rs.1,230,376 million and issued refunds of Rs.58,508 million, resulting in net collection of Rs.1,171,868 million, whereas last year during first six months, FBR had made a gross collection of Rs.1,081,937 and after issuing of refunds of Rs.56,522 made a net collection of Rs.1,031,415 million, indicating a record increase of Rs.140,453 million which in percentage terms comes to around 14%.
Details of collection during July-December, 2014 as compared to July-December, 2013 are as under:
(Rs. in Million)
Shahid Hussain Asad
|FBR officers, staff offer Fateha for martyrs of Peshawar School Tragedy|
officers and staff of the Federal Board of Revenue (FBR)
Headquarters gathered on Wednesday to offer Fateha for the
martyrs, including 132 innocent schoolchildren, of the
horrific Peshawar School Tragedy.
The Chairman, FBR emphasized that the only way to root out
this menace from the society is to isolate the extremist
elements from our ranks and work together for the prosperity
of the country.
Hamid Raza Wattoo
Nov. 22, 2014
INCOME TAX RETURNS FILED BY OR BEFORE 05th DECEMBER, 2014 EXEMPTED FROM PAYMENT OF PENALTY FOR LATE FILING OF RETURN AND DEFAULT SURCHARGE FOR LATE PAYMENT OF TAX
A number of representations have been received from Pakistan Tax Bar Association, Pakistan Tax Advisors Association, FPCCI, various chambers of Commerce & Industry and other various professional/business/trade bodies requesting the extension in the last date of filing of returns for tax year 2014, which was already extended on the demand of the taxpayers more than once, first for salaried persons from 31-8-2014 to 30-09-2014, then for all taxpayers from 30-09-2014 to 31-10-2014 and then to 21-11-2014. FBR has brought the request of the taxpayers to the notice of Hon’able Federal Finance Minister, Mr. Muhammad Ishaq Dar, and it has been decided that the date for filing of returns should not be further extended.
However, in order to facilitate the taxpayers who are really keen to file their returns but could not file due to some genuine problems, it has been decided by the Federal Finance Minister that the taxpayers who file their returns for tax year 2014, by or before 5th December, 2014 should be exempted from payment of penalty for late filing of return and default surcharge for late payment of tax .
FBR has impressed upon all taxpayers to file their returns as early as possible so that they don’t face any difficulty to file return on last date. After 5th December, 2014, non filers will be issued notices for levy of penalty. It may be noted that the minimum amount of penalty is Rs. 20,000/-. Default surcharge for late payment of tax will also be charged under section 205 of Income Tax Ordinance, 2001. It may also be noted that if the return is not filed by a taxpayer even by 5th December, 2014, penalty and default surcharge will be levied w.e.f. 22-11-2014.
Shahid Hussain Asad
Member (Inland Revenue-Policy) / Spokesman, FBR
Nov. 18, 2014
Last date for filing of Income Tax return (electronically/manually) for Tax Year 2014 is 21-11-2014
As the last date for filing of income tax return (electronically/manually) for tax year 2014 is 21-11-2014, all Inland Revenue offices will remain open till 8.00 pm on 21 November, 2014 for receipt of manually filed income tax returns.
It may be reminded that in order to facilitate the taxpayers for filing the returns of income for the tax year 2014, the FBR has established more than two hundred (200) Tax Facilitation Kiosks (KIOSKs)/Tax Facilitation Centers (TFCs) throughout the country on places like important business centers, shopping malls, offices of Traders' Associations/Chambers of Commerce & Industry, National & Provincial Assembly buildings, Federal Secretariat, Civil Secretariats in all the provincial capitals, press clubs in Islamabad and in the four provincial capitals, offices of the big public sector enterprises, and important markets where maximum number of taxpayers can avail the facility. Knowledgeable and competent officers/officials have been deputed in these KIOSKs/TFCs to guide and assist the taxpayers in the filing of tax returns. These KIOSKs/TFCs are operational from Monday through Saturday from 9.00 am to 5:00 pm daily. These KIOSKs/TFCs will also remain open from 9.00 am to 8:00 pm on 21st November, 2014. The prescribed proformae of returns and wealth statement are available on these KIOSKs/TFCs. The KIOSKs/TFCs would provide education and guidance to the taxpayers, and would help the taxpayers to properly fill in the tax declarations. The taxpayers are requested to contact the nearest Tax Facilitation Kiosk/Tax Facilitation Centre in case of any difficulty or problem in filing their returns.
FBR has impressed upon all taxpayers to file their returns as early as possible so that they don't face any difficulty to file return on last date of filing of returns. After due date non filers will be issued notices for levy of penalty. It may be noted that the minimum amount of penalty is Rs. 20,000/-. In genuine needs the taxpayers may obtain extension for fling of returns up to 15 days from their relevant commissioners
Shahid Hussain Asad
Member (IR Policy Official Spokesman FBR
Oct. 31, 2014
Filing of Income Tax Return date further extended to 21st November, 2014
Federal Finance Minister and Federal Board of Revenue have received a number of requests for extension in date of filing of Income Tax Returns for Tax Year 2014, from FPCCI, Provincial Chambers of Commerce & Industry, All Pakistan Tax Bars Association, Pakistan Tax Advisors Association, All Pakistan Anjuman-e-Tajran and various other Trade Bodies and Business Associations stating that due to advent of Muharram-ul-Haram a number of taxpayers will be busy in observing their religious rites starting from the last week of October, 2014. Moreover many taxpayers remained outside Pakistan for performance of Hajj and many of them have still not arrived back.
2. The FBR has considered the request of the taxpayers and on the directions of the Federal Minister for Finance and Revenue, Senator Ishaq Dar, it has been decided that the date of filing of returns which was already extended to 31st October, 2014 may further be extended to 21st November, 2014. However, taxpayers are advised in their own interest to file their returns as early as possible without waiting for the last date because when everybody approaches FBR’s web-portal during the last dates to file their returns there is a possibility of overloading the system which may cause difficulties for the taxpayers.
Shahid Hussain Asad
Member (Inland Revenue-Policy) Spokesman, FBR
Oct. 14, 2014
A Joint FBR-Business Community Committee Formed For Better Understanding and Better Implementation Of SRO-608)
A delegation of All Pakistan Anjuman-e-Tajran met the Chairman FBR here today on 14-10-2014 at FBR House, Islamabad. Mian Abdul Mannan, MNA, Mr. Pervez Malik, MNA, Mr.Muhammad Ajmal Baloch, President All Pakistan Anjuman-e-Tajran, Mr. Naeem Ahmad Mir, General Secretary, Mr. Zafar Iqbal Siddiqui, Chairman Tax Reforms Committee, Mr. Zahid Hameed, Mr. Faisal Mandokhel (Baluchistan) and Mr. Shahid Ghafoor Piracha, President Rawalpindi Anjuman-e-Tajran were also present in the meeting. The following issues came under discussion:
(i) SRO 608 regarding two tiers of compulsory Sales Tax Registration for Retailers,
(ii) Penalty on late filing of WHT Statements and
(iii) New Income Tax Return Form for Tax Year 2014.
The delegation assured the Chairman that the business community realizes the importance of collection of revenue for the social sector development and would continue contributing its due share in the government exchequer. However, they are facing some difficulties in understanding and implementation of the SRO 608. It was decided to form a committee comprising representatives from FBR and business community for better understanding and effective implementation of SRO 608.
It was also decided to form advisory committees for all the RTOs for having liaison between FBR and business community at RTO levels.
Shahid Hussain Asad
Member (Inland Revenue Policy)
Sept. 25, 2014
|77,500 RETURNS OF SIX CATEGORIES SELECTED FOR AUDIT THROUGH RANDOM COMPUTER BALLOT|
Random computer ballot was conducted here today at
Federal Board of Revenue, Islamabad for selection of cases
for audit for Tax Year 2013 and Tax Period 1st July 2012 to
30th June, 2013 in respect of Income Tax, Sales Tax and FED
at FBR House, Islamabad.
Sept. 24, 2014
TV/PICTORIAL COVERAGE OF RANDOM COMPUTER BALLOT FOR SELECTION OF AUDIT CASES OF INCOME TAX, SALES TAX AND FEDERAL EXCISE FOR THE YEAR 2013
The Minister for Finance, Revenue,
Economic Affairs, Statistics and Privatization Senator Ishaq Dar
will preside over the subject computer ballot at Federal Board of
Revenue (HQs), Islamabad, tomorrow i.e. Thursday the 25th September,
2014 as per following schedule:-
Venue: Auditorium Hall of FBR House, Constitution Avenue, Islamabad.
Time: 04:00 PM Sharp.
2. Only Cameramen of News / TV Channels and Press Photographers are cordially invited to cover this important event. Result of the said Ballot shall be uploaded on FBR’s website www.fbr.gov.pk and a detailed Press Release shall also be issued immediately after the conclusion of the event.
Second Secretary (PR)
Sept. 19, 2014
More than 200 Tax Facilitation Kiosks/Centers Established for Filing of Income Tax Returns
In order to facilitate the taxpayers for filing the returns of income for the tax year 2014, the FBR has established more than two hundred (200) Tax Facilitation Kiosks (KIOSKs)/Tax Facilitation Centers (TFCs) throughout the country on places like important business centers, shopping malls, offices of Traders’ Associations/Chambers of Commerce & Industry, National & Provincial Assembly buildings, Federal Secretariat, Civil Secretariats in all the provincial capitals, press clubs in Islamabad and in the four provincial capitals, offices of the big public sector enterprises, and important markets where maximum number of taxpayers can avail the facility. Knowledgeable and competent officers/officials have been deputed in these KIOSKs/TFCs to guide and assist the taxpayers in the filing of tax returns. The details of such KIOSKs/TFCs and the contact numbers of the personnel manning these KIOSKs/TFCs are being displayed on the FBR website (www.fbr.gov.pk) for the convenience of the taxpayers. These KIOSKs/TFCs shall remain operational from Monday through Saturday, from 9:00 am to 5:00 pm daily, and till 8:00 pm on 29th & 30th of September, 2014. The prescribed proformae of returns and wealth statement are available on these KIOSKs/TFCs. The KIOSKs/TFCs would provide education and guidance to the taxpayers, and would help the taxpayers to properly fill in the tax declarations. The taxpayers are requested to contact the nearest Tax Facilitation Kiosk/Tax Facilitation Centre in case of any difficulty or problem in filing their returns.
Shahid Hussain Asad
Aug. 21, 2014
FBR Chairman strongly denies Association with any Facebook Account in his name
Mr. Tariq Bajwa, Secretary Revenue Division / Chairman Federal Board of Revenue has strongly denied having any association with a facebook account in his name, under the link www.facebook.com/tariq.bajwa.9469.
He has vehemently stated that this is a fake account, he is not associated with it in any way and all correspondence made on his behalf is false. The facebook administration has been contacted to block/remove the said fake account.
Shahid Hussain Asad
July 25, 2014
|FBR ISSUES MORE THAN 120,000 INITIAL NOTICES UNDER SECTION 144 OF INCOME TAX ORDINANCE, 2001|
More than 120,000 initial notices (u/s 114 of the Income Tax Ordinance 2001) have been issued – based on large potential fiscal liabilities and location to ensure the initiative is nationwide- and more than 38,000 second notices (under section 122C) which are to be followed by provisional assessment, collection procedures, and penal and prosecution proceedings. So far, more than 17,000 individuals have filed returns as a result of the initiative. Provisional tax assessment (under section 122 of the law) has been made in more than 28,000 cases
Broadening of Tax Base Status as on 30.06.2014
The new policy measures taken through Finance Act 2014 to broaden the tax base include a new regime wherein different rates of withholding of Income tax for income tax return filers and non-filers on certain transactions have been introduced. This includes sale and purchase of immovable property, purchase, registration and transfer of ownership of motor vehicles, cash withdrawal from banks, and payment of profit on debt and dividend income. The higher rates of tax for non-filers will not only provide an incentive to non-filers to file returns and declare their income from all sources, but also provide a database to FBR for identification of potential taxpayers to be pursued of broadening of tax base initiative.
July 23, 2014
Daylong seminar held to explain budgetary changes to tax officials
A one-day seminar on “Budgetary changes brought in through Finance Act 2014” was held at Federal Board of Revenue (FBR) Headquarters here in the capital.
Member Facilitation and Taxpayers Education (FATE) FBR, Ms Riffat Shaheen Qazi chaired the seminar. Officers from Regional Tax Office (RTO) Islamabad, RTO Rawalpindi, LTU Islamabad, RTO Peshawar and RTO Abbottabad attended the seminar. Chief Sales Tax and Automation Ashfaq Ahmed Tunio and Chief Income Tax Policy Malik Amjad Zubair Tiwana briefed the participants on the changes brought in through the said Act.
In his address, Chief Sales Tax and Automation Ashfaq Ahmed Tunio explained different aspects of Sale Tax and Federal Excise measures in steel sector, steel units in sugar mills, cigarettes, aerated waters, cement, travel by air, chartered flights and retailers.
Chief Income Tax Policy Malik Amjad Zubair Tiwana explained different features of amendments relating to Income Tax law through Finance Act 2014. He explained major amendments in withholding taxes, other revenue measures and relief measures taken by the government. He also made clear different aspects of withholding taxes, new withholding taxes, enhancing rates of existing withholding taxes, creating distinction between filer and non-filer, enhancing withholding tax rates, increasing cost of doing business for non-filers, increasing cost of doing business for non-filers, revision in token tax, advance tax on registration and transfer, reduction in withholding tax rates, expense allocation in banking companies and reduction in tax rates.
Speaking on the occasion, Acting Chairman FBR Shahid Hussain Asad underscored the role of FBR officials and staff in resource mobilization and revenue generation extremely vital for the economic independence and socio-economic development of the country. He lauded the FATE Wing for organizing the seminar to educate the FBR officers and explain to them the legal provisions introduced in the Finance Act 2014.
Earlier, Ms Riffat Shaheen Qazi, Member FATE Wing welcomed the participants of the seminar and urged the officers to utilize their energies with dedication and commitment to achieve the revenue collection target set for the next fiscal year.
The briefing was followed by a questions-answers session. The participants raised different technical questions and they were answered accordingly.
Hamid Raza Wattoo
July 04, 2014
NO NEW DISCRETIONARY POWERS GIVEN TO COMMISSIONERS THROUGH SRO 608(I)/2014 - FBR CLARIFIES
The news item captioned “FBR opens doors to corruption” published in a section of the press today on 04th of July, 2014 is not factually correct. Referring to SRO 608(I)/2014 dated 26.06.2014, it has been wrongly stated that Commissioners of Inland Revenue have been given extra discretionary powers.
The actual facts are that in accordance with the government’s policy to phase out the SRO regime, many concessions in existing SROs were either withdrawn or reduced in the Budget 2014-15. However, a limited number of concessions were continued due to their essential or socially sensitive nature, by way of transposition into the Fifth or Sixth Schedules to the Sales Tax Act, 1990. Since SRO 670(I)/2013 dated 18.07.2013 granted conditional zero-rating on sensitive items like milk, milk products, stationery items and bicycles, the government decided to continue the concession. This was done by transposing the Table of the SRO into the Fifth Schedule to the Sales Tax Act, 1990, while the conditions for availing zero-rating were incorporated into the Sales Tax Special Procedure Rules, 2007 through SRO 608(I)/2014.
It is therefore, clarified that no new discretionary powers have been granted to the Commissioners through SRO 608(I)/2014, but only the procedure and conditions already existing in SRO 670(I)/2013 were transposed into the Sales Tax Special Procedure Rules, 2007 through SRO 608(I)/2014.
Shahid Hussain Asad
Member (Policy-IR) / Official Spokesperson, FBR
June 26, 2014
Collection of duties, taxes on 28th, 29th and 30th June, 2014
In order to facilitate the taxpayers in depositing their duties and taxes during the last few days of the current financial year, the State Bank of Pakistan, on request of FBR has decided to keep authorized branches of State Bank of Pakistan, National Bank of Pakistan, Commercial Banks and National Institute of Facilitation Technologies (NIFT) open for extended hours.
According to details, State Bank of Pakistan branches would remain open on 30th of June 2014 till 10:00pm. National Bank of Pakistan branches would remain open till 8:00pm on 28th and 29th June for collection of FBR taxes/duties and till 10:00 for cheque collection and 12:00 midnight for cash counters on 30th June 2014 (Monday) for government receipts and payments. Similarly, designated branches of Commercial Banks would remain open on 28th June 2014 (normal working hours) and 30th June 2014 until 10:00pm. NIFT will also remain available to collect and sort the clearing instruments deposited on 28th & 29th June 2014 from NBP. Two special clearings on Monday 30th June 2014 at 3:00pm and 10:00pm respectively have also been arranged besides normal clearings.
Besides the opening for extended hours of banks, arrangements have also been made to facilitate taxpayers in payment of Taxes / Duties and fulfill their national obligation. In this regard FBR has directed all its field formations to remain open on 28th and 29th June 2014 until 8:00pm and on 30th June 2014 until 12:00 midnight.
Shahid Hussain Asad
Official Spokesperson, FBR
June 07, 2014
ZERO RATING ON POTATOES, TOMATOES OTHER VEGETABLES AND PULSES PROPOSED TO BE CONTINUED - FBR CLARIFIES
The news item captioned “New Budget concedes more to Qatari, Emirati Royals than Pakistanis” published in a section of the press today on 7th June is not based on facts. No new taxes have been proposed to be levied on potatoes, tomatoes and medical syringes. The existing zero rating on potatoes, tomatoes other vegetables and pulses have been proposed to be continued in the Finance Bill. Similarly, existing concessions on all pharmaceutical raw materials, products/drugs have been proposed to be maintained and no new duty & taxes have been proposed on medical syringes and glucose strips.
In Finance Bill, the government has proposed reduction of duty rate from 30% to 25% on items like food preparations, fruits, kitchen wares and electronic appliances etc .However, regulatory duty is proposed to be levied on high end consumer goods.
Further, the government has not proposed any new concessions for Qatar/ Emirates dignitaries in the Finance Bill. The existing concessions have been proposed to be maintained
Shahid Hussain Asad
Member (Policy-IR) / Official Spokesperson, FBR
June 05, 2014
FBR CLARIFICATION REGARDING ISSUANCE OF SROs
Certain quarters have raised doubts about the authority of the Federal Government regarding the issuance of notifications SRO 420(I)/2014, 421(I)/2014 and 422(I)/2014, all dated 04.06.2014 without approval of the Parliament.
It is clarified that the Federal Government has delegated powers to issue and withdraw notifications under the relevant provisions of the Sales Tax Act, 1990 and the Federal Excise Act, 2005. The notifications in question could have been issued at any time during the financial year.
In its Order dated 21.03.2014 in CMA No. 3821/2013 in Constitutional Petitions No. 33 & 34/2005, the Honorable Supreme Court had rightly held that there can be no taxation without approval or Parliament. As such, the Provisional Collection of Taxes Act, 1931 had been struck down as unconstitutional. Accordingly, the provisions of the Act were not pressed into service to alter the rate of duties and taxes at the time of presenting Finance Bill 2014-15 before the Parliament.
The present notifications do not impose any new taxation: SR0 420(I)/2014 dated 04.06.2014 only seeks to withdraw the concessionary rate of sales tax available to finished imported textile and leather goods (other than used and worn clothing). By this notification, the standard rate of sales tax (17%) has been made applicable.
Similarly, in case of SRO 421(I)/2014 dated 04.06.2014, the rate of sales tax applicable to steel melters, re-rollers and ship-breakers, etc. has been rationalized. The tax has not been imposed in excess of the standard rate of sales tax specified in section 3(1) of the Sales Tax Act, 1990.
The existing rates for steel sector and the imported textile and leather goods were also notified through SROs and amendments thereto were also required to be made through SROs and therefore, there is no irregularity or transgression of powers by the Federal Government in issuance of the above –mentioned notifications.
SRO 422(I)/2014 dated 4th June,2014 has been issued by the Federal Government in exercise of power conferred upon it by clause (b) of sub-section (3) of section 3 of the Federal Excise Act,2005 and it has modified the federal excise duty rates for cigarettes.
The exercise of powers by the Federal Government to make the above adjustments is an entirely valid exercise of the powers conferred by the Legislature.
Shahid Hussain Asad
Member (Policy-IR) / Official Spokesperson, FBR
May 06, 2014
CORRECTION / CLARIFICATION
It is clarified that the Member Inland Revenue (Policy) and Official Spokesperson, FBR while talking to the Participants of 17th MCMC, did not say that all the Rs.500 billion tax exemptions would be withdrawn in next fiscal year. Instead he said that currently there are exemptions of around Rs. 500 billion which are planned to be withdrawn in phases during three years, starting from the next fiscal year i.e. 2014-15.
Good news for Businessmen !
Now new business portal www.pakcustoms.com has been launched with great features like NTN verification, flight schedules and much more ! This is word press based site and very easy to use ! Enjoy ! This is gift for Pakistanis !
Feb. 19, 2014
FBR's Clarification / Press Release
Federal Board of Revenue has controverted a news item appearing in certain National Dailies. It has been alleged in the news that FBR has indiscriminately sent SMS messages to large number of persons requiring them to file their returns for the last five years. FBR has clarified that the SMS messages has been sent only to persons who have obtained National Tax Numbers but have not filed their returns of income for the last five tax years.
The Prime Minister of Islamic Republic of Pakistan on 28th November, 2013 announced a Tax Incentive Package incorporating various relief measures. One such measure is meant for the NTN holders who have not filed their returns for one or more tax years in the last five tax years i.e, 2008 to 2012. In order to encourage such NTN holders to voluntarily file their missing returns for the last five years they have been exempted from payment of default surcharge on late payment of tax, penalty for late filing of return and audit of the returns. These concessions will be available to those NTN holders who file their return by 28th February, 2014. FBR has initiated an outreach program for educating the eligible sections of the population regarding the availability of the relief package. As an important step of this outreach program FBR identified the names and mobile phone numbers of the NTN holders who have not filed their returns for the last five tax years and sent them SMS messages which constitute a polite reminder for filing their returns by 28th February, 2014, so as to avail the benefits of the concession announced by the Government. The SMS messages sent by the FBR were a reminder to NTN holders to fulfill their legal obligation and at the same time avail of the Special Incentive Package announced by the Prime Minister. Terming the effort of FBR in educating and facilitating the non-filers as harassment and source of panic is highly unjustified and unwarranted.
Jan. 15, 2014
FBR Press Release
The official Spokesman FBR has clarified that the reports appearing in various sections of the Press including daily “The News” and “Jang” regarding non-filing of Income Tax Returns by Hon’able Speaker, National Assembly, Sardar Ayaz Sadiq are not based on facts. It is further stated that Hon’able Speaker, National Assembly, Sardar Ayaz Sadiq has regularly been filing Income Tax returns against NTN 2349094-2 and for Tax Years 2009 to 2013, these are available on e-portal of FBR.
Malik Amjed Zubair Tiwana
Official Spokesman, Federal Board of Revenue
Jan. 03, 2014
FBR Press Release
It is clarified that the Secretary Finance and the Chairman FBR were summoned by the PAC on 01.01.2014. The FBR did not make any statement before the PAC but only responded to some very specific questions that were asked by the PAC. One of the questions was that whether it is a fact that the tax at source is deducted from the salaries of Parliamentarians. The Chairman responded to the aforementioned as “this is a fact”. However, it was explained to the PAC that despite this every person having income above the threshold was required to file an IT return. Another question that was asked was whether agriculture income tax was to be collected by the FBR’s and it was explained that this tax was to be collected by the Provincial Government as per the Constitution. On another question it was explained that the record of the IT as per IT Ordinance is confidential.
FBR would however like to clarify that as per sub-section (6) of section 216 the Federal Government is empowered to publish the particulars and the amount of tax paid by a holder of a public office as defined in the National Accountability Ordinance, 1999.
FBR takes strong exception to the negative profiling of its entire workforce in some sections of the print media and would like to clarify that like any other organization it has a mixed lot of human resource. It has its fair share of officers/officials of integrity and competence. In the last six months concerted efforts have been made to post officers of known integrity at critical positions. These steps have been appreciated by the media also.
Shahid Hussain Asad
Member IR-Policy/ FBR's Official Spokesperson
Jan. 01, 2014
In connection with the news item published in the national press regarding tax payment by the parliamentarians.
In connection with the news item published in the national press regarding tax payment by the parliamentarians, the issue was discussed in the PAC meeting today which was attended by the Secretary Finance and Chairman FBR along with his team. The PAC members expressed annoyance on the reports appearing in the press that they are not paying tax on their income. They stated that income tax is deducted on salary income of all the parliamentarians and they also pay tax on their agricultural income to the provincial governments. They desired that FBR should clarify this factual position.
It is hereby clarified that income tax is deducted on the salary income of all the parliamentarians under section 149 of the Income Tax Ordinance, 2001. As far as agricultural income of the parliamentarians from the yield of agricultural land is concerned, under the constitution, Federal Government cannot tax agricultural income. However, the same is taxable under the provincial Agricultural Income Tax law.
Shahid Hussain Asad
Member (IR Policy) Official Spokesman FBR
Dec. 27, 2013
The official spokesman of the FBR has clarified that reports circulating in various sections of the Press regarding discrepancies in the tax declarations of the parliamentarians are not released by FBR
The official spokesman of the FBR has clarified that reports circulating in various sections of the Press regarding discrepancies in the tax declarations of the parliamentarians are not released by FBR. Reports have recently surfaced in the Press wherein it has been claimed that the income and tax declared by various Parliamentarians were contradicted by the FBR. FBR’s official spokesman has clarified that these reports may have been individually worked out by various persons and as a source FBR has not been used in these reports.
The spokesman of the FBR clarified that during the Elections 2013 the FBR, along with SBP and NAB, was asked by Election Commission of Pakistan (ECP) to verify the credentials of the contesting candidates. The FBR only shared information regarding the income declared and tax paid by the contesting candidates for the three immediately preceding tax years i.e. 2010, 2011 and 2012 on the format devised by the ECP. However, this information was posted by the ECP on its website. Subsequently, the ECP also posted the Nomination Papers of the contesting candidates on its website. The reports circulating in the press are probably based on the analysis of the above information which has been taken from the website of the ECP.
The official spokesman further clarified that FBR has placed stringent security checks on the data available on its database due to which there is virtually no possibility of leakage of information. It has therefore been categorically pointed out that no leakage of official data/information available in the FBR database has taken place and the data given in the reports circulating in the press was in all likelihood based on information available on ECP website.
Shahid Hussain Asad
Dec. 17, 2013
Improvement in filing of Income Tax Returns witnessed
FBR has received about 800,000 returns of income/statements till 16-12-2013, which are considerably more than the 711,000 returns/statements received last year. In this way, a positive response to the taxpayer facilitation efforts of the government has been witnessed. The number of returns filed this year will further increase, as an appreciable number of income tax returns is in pipeline, which are being filed to avail the benefits announced by the Honorable Prime Minister in his Tax Incentive Package for the business community.
Further, the taxpayers who have been
granted extension in filing the returns will also file such returns
within a week or two. The returns of companies closing their
accounts by 30th June, 2013, are due on 31 December, 2013. In this
way, it is expected that about 125,000 more returns (including about
25,000 of companies) will be filed by 31st December, 2013.
This improvement in return filing is due to an aggressive campaign launched by the FBR and its field formations this year which was aimed at education and facilitation of the taxpayers for filing the returns of income. More than 200 KIOSKs/TFCs were established throughout Pakistan on important business places/offices/Chambers where efficient staff of FBR was available for guidance and help to the taxpayers. The staff also helped the taxpayers in e-filing their returns whosesoever the taxpayers were not having the computer/net facility or necessary expertise to file returns electronically.
The FBR stands committed to provide necessary guidance and facilitation to the taxpayers to discharge their national responsibility.
Shahid Hussain Asad
Member (Inland Revenue Policy) Official Spokesman of FBR
Nov. 30, 2013
FBR's revenue collection figures
Federal Board of Revenue has collected Rs 169 billion during the month of November, 2013 as against Rs 140 billion collected during November 2012, showing an increase of 21 % over the same period during last year. Target for the month of November, 2013 was fixed at Rs 167 billion which has been achieved. Tax wise detail is as under:-
Income Tax Rs 57 bn
Sales Tax Rs 85 bn
FED Rs. 13 bn
Customs Duty Rs 19 bn
Total Rs. 174 bn
Refunds issued Rs. 5 bn
Net collection Rs. 169 bn
Total collection for the period July 1, 2013 to Nov, 30, 2013 is Rs. 806 billion.
Shahid Hussain Asad
Member (IR Policy)/Official Spokesman
Nov. 26, 2013
The salaried individuals are informed that on 25.11.2013 the honourable Supreme Court of Pakistan has suspended the judgment of the honourable Sindh High Court that was announced in C.P NO.D-2342/2013 dated 25.10.2013.
The salaried individuals are informed that on 25.11.2013 the honourable Supreme Court of Pakistan has suspended the judgment of the honourable Sindh High Court that was announced in C.P NO.D-2342/2013 dated 25.10.2013. The FBR has filed a CPLA before the honourable Supreme Court against the judgment of the Sindh High Court.
The effect of the suspension of the Sindh High Court judgment referred above is that now the rates of tax as already provided in clause (1A) of Division I of Part I of the First Schedule to the Income Tax Ordinance 2001 shall apply to all salaried individuals.
Those persons who have paid less tax in view of the judgment of the Sindh High Court (above) and have filed the returns, may calculate the short paid tax and deposit the same upto 30.11.2013 to avoid default surcharge etc.
Nov. 23, 2013
Efiling system at FBR's portal
It is notified that all known issues of e-Filing system have been removed at FBR Portal and the taxpayers & tax consultants are making maximum use of the e-Filing system of FBR. Despite public holiday today, speed of return filing was about 500 returns per hour. On Saturday, up to 7 pm 89,541returns were received electronically by FBR that is about one third of the returns received electronically last year. FBR has made special arrangements of burstable bandwidth through which the bandwidth pipe is expanded automatically based on the workload of return filers.
The eFBR helpline (051 111-772-772) operates round the clock for providing technical assistance for e-filing of the returns.
Shahid Hussain Asad
Nov. 19, 2013
Updation of Web Portal as per SRO 978(I)/2013
FBR has clarified that the FBR Web Portal has been updated on 18-11-2013 in the light of SRO 978(I)/2013 dated 13-11-2013 and is accepting returns of income for the Tax Year 2013 without Wealth Statement, in those cases of individuals whose last declared or assessed income or the declared income for the year is less than Rs. one million.
Web Portal is also accepting statements u/s 115(4) for the Tax Year 2013 without Wealth Statement of those individuals who fall under Final Tax Regime (FTR) and have paid Withholding Tax less than Rs. 35,000/-.
For further assistance in filing the returns and statements, the taxpayers can call the Call Centre at 051-111-772-772 which operates round the clock.
Shahid Hussain Asad
Official Spokesman FBR
Nov. 13, 2013
|FBR establishes more than 200 Tax Facilitation Kiosks for taxpayers’ facilitation|
In order to facilitate the taxpayers for filing the returns of income for the tax year 2013, the FBR has established more than two hundred (200) Tax Facilitation Kiosks (KIOSKs)/Tax Facilitation Centres (TFCs) throughout the country on places like important business centres, shopping malls, offices of Traders' Associations and important markets where maximum number of taxpayers can avail the facility. Knowledgeable and competent officers/officials have been deputed in these KIOSKs/TFCs to guide and assist the taxpayers in the filing of tax returns. The details of such KIOSKs/TFCs and the contact numbers of the personnel manning these KIOSKs/TFCs have been displayed on the FBR website (http://www.fbr.gov.pk) for the convenience of the taxpayers. These KIOSKs/TFCs shall remain operational from Monday through Saturday, from 9:00 am to 8:00 pm daily. The prescribed proformae of returns and wealth statement are available on these KIOSKs/TFCs. Copies of the Taxpayers' Facilitation Guides published by the FATE Wing of the FBR are also available for the benefit of the taxpayers. The KIOSKs/TFCs would provide education and guidance to the taxpayers, and would help the taxpayers to properly fill in the tax declarations. The taxpayers are requested to contact the nearest Tax Facilitation Kiosk/Tax Facilitation Centre in case of any difficulty or problem in filing their returns.
Nov. 11, 2013
Extension of the date for payment of ST / FED and filing of ST / FED returns for the period October, 2013 for all registered persons
In view of 9th and 10th Muharram holidays falling on 14th and 15th November, 2013 and the weekend following immediately, the Federal Board of Revenue, in exercise of the powers conferred under section 74 of the Sales tax Act, 1990 and section 43 of the Federal Excise Act, 2005, is pleased to extend the date of payment of Sales tax & FED and of filing of Sales Tax / Federal Excise returns upto 20th November, 2013, for the tax period October, 2013 for all registered persons.
Shahid Hussain Asad
Official Spokesperson, FBR
Oct. 29, 2013
|99th NMC participants visits FBR|
group of fifty seven senior civil servants participating in
the 99th National Management Course (NMC), along with the
Rector, Dean and the faculty of the National School of
Public Policy (NSPP) visited FBR House, here today.
Member Customs Mr. Nisar Muhammad Khan and Member (IR-Policy) Mr. Shahid Hussain Asad also briefed the visiting officers on the working of their respective wings.
The Chairman FBR Mr. Tariq Bajwa, in his comments, gave a
brief outline of the various policy and operational
challenges faced by FBR and highlighted the strategies
adopted by FBR to address these issues. He also discussed
the major initiatives of FBR to enhance revenue generation
through audit and enforcement initiatives and efforts
broaden the tax base. He highlighted the measures being
adopted by FBR to improve the tax to GDP and reduce the tax
gap in the coming years.
Oct. 25, 2013
FBR CLARIFIES NEWS REPORTS REGARDING BROADENING OF TAX BASE INITIATIVE
In a section of the press, reports have been published today regarding the Broadening of the Tax Base Initiative by FBR. The position is clarified as under:-
During the 1st Quarter of current financial year 30,533 notices were issued to potential taxpayer in cases where FBR had information of quantifiable economic activity and the person was not on tax roll. In order to ensure a higher standard of delivery of these notices, the online delivery report of the tracking software of the courier service has not been made the basis of reporting. Notices are reported as delivered only when the physical acknowledgement receipt with signature and particulars of persons receiving the notices is received back from courier. So far 11,373 notices have been delivered. Out of these 1189 have registered themselves as taxpayers and 9,365 notices have been returned undelivered by the courier. Of the undelivered notices, 30% were returned due to incomplete addresses, 32% addresses were outside service areas of courier service, 15% had incorrect address, 18% cases were reported shifted or closed and a further 5% refused to receive the notice. Delivery report of further 9,795 notices is in transit with courier. FBR is cognizant of the urgent need to improve the delivery rate and exploring alternate options for delivery of notices. It has been decided to utilize alternate courier services and Pakistan Post extensively for areas not covered by other courier services. NADRA has been contacted for provision of full addresses in cases where notices could not be served due to incomplete addresses or shifting of the potential taxpayers. As a last option the service through field staff shall be undertaken.
(Riffat Shaheen Qazi) Member (FATE)
Official Spokesperson, FBR
Oct. 04, 2013
FBR has not imposed any new tax on household gas and electrical appliances, tiles, tyres etc.. these goods were chargeable to sales tax on retail price basis.
FBR has not imposed any new tax on household gas and electrical appliances, tiles, tyres etc.. these goods were chargeable to sales tax on retail price basis. Sales Tax on retail price basis means that sales tax of the complete chain from manufacturer till retailer is paid upfront by the manufacturer. This business community approached FBR on grounds that that this system has posed many practical problems for them and requested FBR to do away with charging sales tax on retail price basis and in its lieu agreed to pay 2% additional sales tax (worked out on the basis of actual value addition from manufacturer till retailer) on all these items. This is, therefore, not a new tax or enhancement of existing rate but only collection of tax which even otherwise was payable by the supply chain. ”
The News item relayed by certain news channels regarding imposition of 2% additional sales tax on household gas and electrical appliances, ceramic tiles, tyres, foam & mattresses, auto parts, confectionery items is based on misinterpretation of SRO896(I)/2013 issued on 4th October 2013.
During Budget 2013, all these goods were added in the Third Schedule to the Sales Tax Act, 1990 to charge sales tax on retail price basis. The concept of charging sales tax on the basis of retail price is to charge the complete sales tax of the entire supply chain from the manufacturers till retail stage upfront from the manufacturer. This step was introduced to collect sales tax payable by dealers. Distributors and retailers on their value addition as virtually no collection was being made from these segments for these goods.
FPCCI, KCCI and Trade Associations of all these goods approached FBR with request that it is practically impossible for these sectors to comply with the requirements of printing retail price on each and every item to be sold in the market. These sectors also stated that the prices of these goods vary from market to market due to many circumstances, which makes it even more difficult to comply with the requirements of charging sales tax on retail price basis.
FPCCI, KCCI and Trade Associations requested that an alternate mode of collection of tax from dealers, distributors and retailers of these goods may be devised but the condition of charging sales tax on retail price basis may be done away with. In line with the requests of the these sectors, FBR omitted these items from the Third Schedule to the Sales Tax Act, 1990, and in its lieu imposed a 2% additional tax on these items to be paid by the manufacturers in consultation and with the consensus of the trade bodies to provide relief to the business and for providing ease of business. The rate of 2% was also worked out on the basis of actual value addition of these sectors from the manufacturers till retail stage.
Furthermore, it is also informed that the following items of daily and essential use are not chargeable to sales tax:-
NOT CHARGEABLE TO SALES TAX
4 Red chillies
9 Poultry feeds
12 Locally produced ware potato
13 Locally produced onion
15 Products of milling industry
19 Fruit juices
26 Agricultural produce of Pakistan not subjected to process of manufacture
31 Desi ghee
33 Preparations for infant use
34 Fat filled milk
35 Colors in sets
36 Writing, drawing and marking inks
38 Exercise books
39 Pencil sharpeners
40 Geometry boxes
42 Ball pens
43 Markers and porous tipped pens
44 Pencils Color pencils
45 Color pencils
Oct. 02, 2013
FBR has notified the return forms for filing of income tax returns by Company, AOP and Individuals.
FBR has notified the return forms for filing of income tax returns by Company, AOP and Individuals. All the returns forms can be downloaded from FBR's website by visiting https://fbr.gov.pk
Electronic filing of income tax returns is mandatory for Companies and AOPs. Moreover, all individuals registered for sales tax, drawing salary income of Rs. 500,000 and more and all refund claimants are also required to file the income tax return along with wealth statement electronically.
The electronic filing facility is available round the clock, moreover technical assistance for electronic filing can be sought by calling at PRAL call center (051 111-772-772) which also operates round the clock.
Oct. 01, 2013
FBR has collected revenue of Rs.202 billion in September this year against a total collection of Rs.180 billion in September, 2012.
FBR has collected revenue of Rs.202 billion in September this year against a total collection of Rs.180 billion in September, 2012. The total collection for the first quarter (July–September) stands at Rs.481 billion against an amount of Rs.414 billion collected for the corresponding period last year. The revenue of Rs.481 billion includes Rs.161 billion Income Tax, Rs.235 billion Sales Tax, Rs.54 billion Customs duty and Rs.31 billion Federal Excise duty.
July 18, 2013
Sales Tax Zero Rating facility restored on various items
As per the directions of Federal Minister for Finance Mr. Ishaq Dar, the facility of zero-rating has been restored on various dairy products, stationery items and bicycles along with their raw materials, packing materials, sub-components, components, sub-assemblies and assemblies, imported or purchased locally for manufacture of said goods.
In this regard S. R. O. 670(I)/2013 dated 18th July, 2013 has been issued by FBR today. The said SRO can be found at this address:
July 15, 2013
Sales Tax on old and used clothes has been reduced from 17% to 5%
Clarifying a news item appearing in a section of the press, the official spokesperson of FBR, stated that Sales Tax on old and used clothes has been reduced by the Federal Minister for Finance Mr. Mohammad Ishaq Dar, from 17% as stated on the floor of the National Assembly in his Budget speech on 5th June 2013, to 5% in his winding up speech and as incorporated in the Finance Act 2013.
This reduction in Sales Tax from 17% to 5% was due to Government’s consideration for the common man, who uses these old / used clothes.
Riffat Shaheen Qazi
Official Spokesperson, FBR
June 28, 2013
Collection of Duties / Taxes on 28th , 29th and 30th June, 2013
In order to facilitate the taxpayers in depositing their duties and taxes during the last few days of the current financial year, the State Bank of Pakistan, on request of FBR has decided to keep the designated branches of State Bank of Pakistan, National Bank of Pakistan, major branches of Commercial Banks and national Institute of Facilitation Technologies (NIFT) open for extended hours as under:-
Friday the 28th and Saturday the 29th June, 2013 until 10:00 PM
Sunday the 30th June, 2013 until 12:00 midnight.
2. Accordingly arrangements have been made to facilitate taxpayers in payment of Taxes / Duties and fulfill their national obligation. In this regard FBR has directed all its field formations to remain open till the same extended timings on the aforementioned days.
Riffat Shaheen Qazi
Official Spokesperson, FBR
June 26, 2013
FBR committed to Broaden the Tax Base
FBR has started an intensive effort to Broaden the Tax Base through using the National Data Warehouse and has finalized a detailed implementation plan in this regard.
The most important step in this direction has been the decision to use the National Data Warehouse (NDW) for identification of new taxpayers who can be brought into the tax net. The NDW would be used in various ways for this purpose including its usage for acquisition of data through profiling loading and Data mining & usage. Once this is done, respective RTOs would be sent the details and electronic profiles of these potential taxpayers so that BTB notifications are issued by the concerned tax commissioners. All the monitoring and control of the process would be automated and system based. FBR has also upgraded its call centre facility for the facilitation of the taxpayers. Linkages with 3rd party sources, including provincial revenue authorities have also been established for effective implementation and monitoring.
To strengthen the enforcement mechanism for the BTB plan, various decisions have been made by FBR which includes initiation of statutory proceedings against persons who fail to respond to Outreach notifications through issuance of notices under section 114 of the Income Tax Ordinance, 2001. In case of taxpayer’s persistence on non-compliance, provisional assessment would be finalized and the taxpayer would still have the option to file a return accompanied by a wealth statement and reconciliation of wealth statement within the period of sixty days whereby the provisional assessment order will be automatically vitiated. If the taxpayer does not file the return and required documents within sixty days, the tax liability raised as per the provisional assessment order would become final and will be recoverable and, if necessary, penal and prosecution proceedings, which may culminate in imprisonment and imposition of fine, will also be initiated in selected cases for creating a credible deterrence.
Riffat Shaheen Qazi
Member FATE/ Official Spokesperson FBR
June 19, 2013
FBR directs field offices to monitor that no sales tax is collected on exempted items
On the directive of the Federal Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization Mr. Mohammad Ishaq Dar, Chairman FBR Mr. Ansar Javed has directed all LTUs and RTOs to strictly monitor that no Sales Tax is collected on essential items exempt under section 13, read with Sixth Schedule of the Sales Tax Act 1990 and has directed them to take proper action under the law against violators.
FBR also wants to inform the general public by all appropriate means that these essential items including vegetables, meat, milk, eggs, red chilies, fish, drugs, pulses, fruits, poultry, ginger, turmeric, cereals and products of milling industry, ice, poultry feed, butter, yogurt, butter, salt, potato, onions, bread, nan, chapatti, bun, rusk and others continue to remain exempted from Sales Tax. It is also clarified that the increase in the rate of Sales Tax from 16% to 17% under the declaration issued under the Provisional Collection of Taxes Act, 1931 does not affect any of these items, which are exempted under the Sales Tax Act, 1990.
June 05, 2013
Bilateral sharing of expertise in Revenue generation and collection between Pakistan and UK discussed
Member of the UK’s House of Lords, Lord Nazir Ahmed of Rotherham called on Chairman FBR Mr. Ansar Javed at the FBR House here today. Riffat Shaheen Qazi, official spokesperson, and Member FBR was also present in the meeting.
During the meeting Chairman FBR stressed the need to enhance collaboration between the revenue and customs departments of both the countries so as to better understand the issues and to benefit from bilateral expertise in specific areas. FBR extended willingness to provide full support for any such proposal of collaboration and exchange of expertise between the two countries.
Lord Nazir Ahmed committed to take up this proposal with the concerned quarters in the UK and hoped that positive developments in this regard would be achieved.
May 29, 2013
Taxpayers / Public to lookout for fraudulent tax refund emails sent by fake FBR email addresses
It has been reported that some hackers are using a fake webpage of FBR created for nefarious purposes. The taxpayers receive an email about their tax refund from fake email addresses e.g. firstname.lastname@example.org which appear to be originating from FBR but in fact are not. The email informs the taxpayers to collect their tax refund by clicking on the designated link to a fake website of FBR which has links to banks. FBR’s official website is http://www.fbr.gov.pk but the click leads to fake web address http://www.springtowinter.gr/fbr.gov.pk/fbr.gov.refundportal.htm asking for their bank account number and password. If the users provide the information, their identity thus gets stolen and their bank accounts are then hacked.
This is called Phishing and it is used by identity thieves around the world who misuse the online financial systems and deprive unsuspecting people of their money. Globally phishing deprives people of around a billion US$ annually.
The taxpayers and general public are advised not to send their bank account details and password to any emails received from any email address that is apparently from FBR. Any link to any bank is not provided on FBR’s website and FBR would never ask for your bank details and passwords on its home page. Banks always advise their customers against disclosing their password even to bank officials or bank’s genuine websites. Public is requested to be careful and prudent regarding such emails and the links provided through such emails. All taxpayers and general public are requested not to trust such emails and never disclose their bank account numbers, passwords and other details.
These precautionary instructions are being issued in the public interest and public is also advised that if someone has become a victim of this phishing attack through using the link sent through above mentioned email, they must immediately change the password of the relevant online bank and never share it with anyone.
May 27, 2013
FBR field offices to remain open on all Saturdays till 30th June, 2013
Federal Board of Revenue has directed all its filed offices, including Model Customs Collectorates (MCCs), Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs), to remain open on all Saturdays till 30th June, 2013, as per normal office hours.
May 10, 2013
|24/7 taxpayers’ grievance redressal cell established in FBR|
For redressal of taxpayers’ grievances and to facilitate them, a Cell under Section 7 of the FBR, Act, 2007 is already functioning under Member (FATE).
On the instructions of Dr. Shahid Amjad Chaudhry, Advisor to Prime Minister on Finance, Revenue, Economic Affairs, Statistics and Planning & Development, the Competent Authority has decided that the said Cell will also receive all kinds of grievances pertaining to the working of FBR. Member (FATE) will refer the grievances so received to the concerned wing of FBR for redressal.
This grievance Redressal Cell has started operating round the clock in Room No. 208 in FBR House in accordance with the duty roster issued for this purpose.
Telephone numbers of the Emergency Duty Cell are as under:-
+92-51-9207540 extension 342
Fax No. +92-51-9207172
May 07, 2013
|Chairman FBR discusses revenue collection with NMC participants|
group of sixty-nine senior civil servants participating in
the 98th National Management Course (NMC) and faculty of
National School of Public Policy (NSPP) visited FBR House,
April 30, 2013
|FBR bids farewell to its two retiring Deputy Chairmen|
Officers and staff of Federal
Board of Revenue held a farewell ceremony at the FBR House
Islamabad for the two Deputy Chairmen of FBR Mr. Malik Abdul
Samad and Mr. Shahid Rahim Sheikh who are retiring today.
April 22, 2013
|Mid-Career civil servants briefed on working of FBR|
group of Twenty-two participants of 15th Mid-Career
Management Course (MCMC) and faculty of National Institute
of Management (NIM) Karachi visited FBR House today, as part
of their country study tour.
April 15, 2013
Chairman FBR takes serious notice of the revenue shortfall
The Chairman FBR Mr. Ansar Javed, after assuming charge, has started hectic consultation with stakeholders. The first meeting was held with the Lahore Chamber of Commerce & Industry over the weekend.
The Chairman has taken serious note of the fall in revenue and started marathon meetings within FBR. The performance of each LTU and RTO is examined, and the Chief Commissioners are directed to devolve strategies to achieve the freshly assigned budget targets. He has directed Member (IR-Ops) to immediately issue letters to all the RTOs and LTUs highlighting their performance and achievements / shortfalls, and has directed that remedial strategies be made to ensure collection of the assigned targets for the last quarter ending 30th June, 2013.
April 07, 2013
No new tax has been imposed on Cell Phones: FBR
FBR has clarified that no new tax has been imposed on cell phones as is wrongly being portrayed by some quarters. The fixed amount of sales tax on activation stage was first introduced through SRO 390(I)/2001 dated 18th June, 2001, with a rate of Rs. 2000 per cell phone. However, on the request of cellular company operators to encourage the sector, the rate was reduced from time to time. Under SRO 542(I)/2008 dated 11th June, 2008 the fixed rate was Rs. 500 per mobile phone, which was subsequently reduced Rs. 250 per mobile phone. The collection mechanism in all these notifications was based on the old CDMA technology, which required activation/energization of mobile phones by the cellular company operators before they could be operated. However, CDMA technology is no longer prevalent on any mobile network in Pakistan as all mobile networks in the country are presently operating on GSM technology. Under GSM technology only a SIM Card is inserted in mobile phones which are ready for usage. These GSM technology-based mobile phones do not require activation/energization by the cellular mobile network. Due to this technology change from CDMA to GSM, SRO 542(I)/2008 dated 11th June, 2008 had become redundant and the Government exchequer was not getting the proper revenue from this sector as pre-activated cell phones were being imported resulting in a steep fall in revenue despite tremendous increase in volume of import. SRO 280(I)/2013 dated 04-04-2013 recently issued by the Government does not impose any new tax. It only aligns the law with the latest technology. This notification was necessitated to remove the anomalies occurring due to change in technology. It has shifted the time and mode of payment of tax from activation stage to import stage.The standard rate of sales tax under the Sales Tax Act, 1990 is 16% and prices of new mobile phones go as high as around Rs. 80,000/- or more. At the standard rate of sales tax, the amount of sales tax payable on a mobile phone costing Rs. 50,000/- would be Rs. 8,000/-, but under SRO 280(I)/2013 the fixed sales tax is only Rs. 1000/- which comes to around 2%. Thus the fixed rate of sales tax under SRO 280(I)/2013 dated 04-04-2013 is still much lower than the standard rate of 16% chargeable on all other goods. This reduced fixed rate of Sales Tax has been retained on the request of cell phone operating companies to help and encourage the sector. The impression being created by certain vested interests that the Government has levied a new tax on cell phone is baseless and devoid of fact. The views being presented that imposition of sales tax under SRO 280(I)/2013 will ruin the businesses or lead to smuggling of mobile phones is also not correct as the present notification only brings the tax structure in line with the current cellular technology and it is aimed at safeguarding the interests of the exchequer which were being hurt due to the existence of a notification based on an obsolete technology. Even under the new notification fixed tax rate at a minimal level has been retained on mobile phones to save the industry from any possibility of smuggling. The rate of Rs. 1000/- is only for smart phones and satellite phones (which are admittedly costly phones). The fixed rate of sales tax on ordinary cellular mobile phones (other than Smart Phones and Satellite Phones) is only Rs. 500/- per mobile phone. This minimal rate of fixed tax shows the pro-industry policy of the Federal Government. It also shows that all tax policy changes are well-thought out by the Federal Government and no such policy is implemented which would create problems for the industry.
April 02, 2013
Federal Government’s Amnesty Scheme for smuggled and non duty paid vehicles has received phenomenal response. Till March 31, 2013, over 34,000 vehicles have been assessed to import duty and taxes at various custom offices all over the country. The total revenue collected on such vehicles is approximately Rs. 10 billion.
The success is unprecedented compared to the identical facilities allowed in the past. Customs offices have been working over the weekend, beyond the normal call of duty for this to happen.
Considering the wide response and the demand, the Government has extended the last date for availing the Amnesty to 6th April, 2013. The persons in possession of non duty paid and smuggled vehicles can now surrender such vehicles to customs and get them legalized through payment of duty and taxes till 6th April, 2013.
Meanwhile, all Customs offices, in response to the queries received from the Office of Federal Tax Ombudsman, will cooperate with them and provide the data and record of the vehicles assessed so far.
March 29, 2013
FBR launches Taxpayers’ Facilitation Portal
Keeping in view the facilitation of taxpayers, FBR officially launched today its Taxpayers’ Facilitation Portal accessible at FBR’s web address http://www.fbr.gov.pk
This major paradigm shift from an official website towards a Taxpayers’ Facilitation Web Portal is the initiative of FBR’s Chairman Ali Arshad Hakeem with a view towards maximum online facilitation, guidance and help for the taxpayers, in line with best international practices.
All the information required by a taxpayer is minimally presented on the portal with the objective of making it more user-friendly. The new interface is designed with the principle of categorization of information and its presentation in a simple but graceful manner with the sole objective of maximum taxpayer facilitation and easy access to required information.
For the facilitation of taxpayers, all the links of online services provided by FBR are placed in a separate but easily visible section on the portal. All the information and links provided earlier on the website are also accessible with more ease.
For the ease of taxpayers, and if someone is more comfortable with the earlier layout of information, FBR’s previous website is also accessible from the same portal.
Taxpayers, stakeholders and general public are encouraged to give online feedback and suggestions through the same portal.
March 29, 2013
Designated branches of SBP and NBP to remain open on 30th and 31st March, 2013 to facilitate taxpayers
In order to facilitate taxpayers in timely payment of tax liabilities, all designated branches of State Bank of Pakistan and National Bank of Pakistan shall remain open on 30th and 31st March, 2013 (Saturday and Sunday) for receipt of duties / taxes.
For facilitation of the taxpayers, all Inland Revenue Offices will also remain open on 30th March, 2013.
March 28, 2013
10,000 SMUGGLED VEHICLES LEGITIMIZED THROUGH AMNESTY SCHEME SO FAR
The smuggled vehicles’ amnesty scheme notified by the Federal Government, for legitimizing smuggled vehicles upon payment of duty and taxes, has fetched Rs. 3 billion approximately to date, through legitimizing around 10,000 (ten thousand) vehicles across the country.
It is reiterated here again today, that the last date to avail this facility of the amnesty scheme will not be extended beyond 31st March, 2013.
It is further clarified that all Customs’ field formations will remain open on Saturday the 30th and Sunday the 31st March, 2013 as a special arrangement to facilitate persons availing this amnesty scheme. Moreover, designated branches of National Bank of Pakistan will also remain open on aforementioned days.
March 26, 2013
SMUGGLED VEHICLES’ AMNESTY SCHEME NOT TO BE EXTENDED BEYOND 31ST MARCH
The amnesty scheme notified by the Federal Government, for legitimizing the smuggled and non-duty paid vehicles upon payment of duty and taxes, will expire on 31st March, 2013. The scheme will not be extended beyond 31st March, 2013. The rumors suggesting possible extension in the deadline are absolutely unfounded.
2. Those seeking to avail of this facility of the amnesty scheme must therefore present their smuggled / non-duty paid vehicles to Customs, latest by 31st March, 2013.
3. It is further clarified that the Federal Board of Revenue is determined to redouble its drive against such vehicles after the expiry of the amnesty scheme on 31st March, 2013. Instructions have been issued to the Customs field formations to impound such vehicles, besides lodging FIRs against the persons found in the ownership or possession of these vehicles, provided they are not got legitimized under the amnesty scheme, upto 31st March, 2013.
Second Secretary (Public Relations)
Feb. 25, 2013
|FBR HOLDS COMPUTER BALLOT FOR PARAMETRIC SELECTION OF CASES FOR AUDIT OF INCOME TAX, SALES TAX AND FED FOR TAX YEAR 2011|
Federal Board of Revenue has conducted computer ballot for selection of cases for audit pertaining to tax year 2011. The selection has been made on the basis of three separate risk parameters for Income Tax, Sales Tax and Federal Excise Duty laws for corporate and non-corporate cases. The business community representatives, who pressed the button for selection of cases, were:-
· Agha Mujeeb Ahmad Khan, President Rawalpindi Tax Bar.
· Raja Amer Iqbal, Executive Member Rawalpindi Chamber of Commerce & Industry.
· Naeem Siddique, President Islamabad Chamber of Commerce & Industry.
Other representatives present on the occasion of All Pakistan Tax Bar Association, Islamabad / Rawalpindi and Federation of Pakistan Chamber of Commerce and Industry, were Mr. M. Aslam Anwar, Mr. Faraz Fazal and Mr. Abrar Ahmad Qazi.
Member (Taxpayer Audit), while welcoming the participants, stated that payment of tax is national duty of all citizens, particularly those who are earning higher incomes. She informed the audience that FBR, through Universal Self Assessment Scheme, has reposed full confidence in the taxpayers’ community. Selection of 12609 cases out of 1.677 million (0.75%), filers of returns indicates that the audit selection is not for revenue generation, it is rather being used as a deterrence. Therefore, the selection of approximately 15% of returns filed in LTUs, 5% of returns filed by corporate cases and 2% of returns filed by non-corporate taxpayers in RTOs have been selected for audit only to promote voluntary compliance and taxpayers’ education. The selection is based on the parameters devised after consultation with all stakeholders.
She informed that FBR has ensured transparency in the process of selection of cases for audit. The list of cases selected for audit has been placed on FBR’s website showing taxpayer’s National Tax Number.
Feb. 14, 2013
FBR has extended the Sales Tax Withholding Regime through its notification SRO 98(1)/2013
Federal Board of Revenue (FBR) has extended the Sales Tax Withholding Regime through its notification SRO 98(1)/2013, dated 14-02-2013. The said SRO says that all companies as defined in Income Tax Ordinance, 2001 as are registered for sales tax, FED or Income Tax, shall be subjected to Withholding tax at one-fifth (l/5th) of the applicable rate of sales tax on all purchases.
Furthermore, the persons registered as exporters are also now to be subjected to withholding tax of one-fifth (l/5th) of the applicable rate of sales tax on all purchases from registered persons.
Earlier, from corporate sector only LTU registered person was required to withhold 1% Sales Tax of the value of taxable supplies from persons registered outside LTU (this has now been amended) and all companies are required to withhold sales tax. This amendment is effective from 14, February 2013.
The relevant SRO (number 98(1)/2013) is available on the FBR website.
Jan. 24, 2013
FBR holds training on Litigation Management Software
FBR’s Legal Wing completed a 3-day, training activity on Litigation Management System (LMS) at Directorate General of Training & Research (DOT- IR), Islamabad to build the capacity of 40 officers and officials of FBR as Master Trainers.
Additional Commissioners, Deputy Commissioners, and Assistant Commissioner of Inland Revenue from Islamabad, Rawalpindi, Abbotabad, and Peshawar participated in the training.
Member Legal Mr. Muhammad Aqil Usman, while inaugurating the training, highlighted the importance of the Litigation Management Software (LMS) system. He emphasized the senior management of LTUs and RTOs to get the system implemented.
This system aims at streamlining data entry and its updation of information on Supreme Court and High Court cases (References, Appeals, Writ Petitions, CPLAs etc.) into the Litigation Management software.
FBR plans to extend this training to its entire field staff as this will enable senior management with instant access to position on litigated cases and bring improvement in the tax-legal system at FBR (HQ) and the field formations.
Jan. 23, 2013
Finance Minister chairs Tax Reforms Coordination Group (TRCG) meeting
A meeting of Tax Reforms Coordination Group (TRCG) was held under the Chairmanship of Federal Minister for Finance Dr. Abdul Hafeez Sheikh at the FBR House here today to discuss proposals for upcoming Federal Budget 2013.
Chairman FBR Mr. Ali Arshad Hakeem, in his opening remarks, as host, briefed the Minister about the various proposals prepared by FBR for the upcoming budget.
Federal Minister for finance Dr. Hafeez Sheikh, while chairing the meeting, advised members of the group to structure their proposals in line with objectives of practicality, expansion of business and economy, reduction of trade barriers and curbing of smuggling. The Minister also stressed the need for increasing momentum of revenue collection to achieve the revenue target. He expressed confidence that FBR will achieve assigned budget target.
Following a presentation by FBR’s Sr. Member (IR-Policy) Mr. Asrar Raouf, discussions were held on strategy to improve tax policy to increase revenues. The Tax Reforms Coordination Group also deliberated proposals regarding Tax Registration Scheme, Alternate Dispute Resolution Committee (ADRC), Input Tax scheme, Zero Rating Facility, Sales Tax input adjustment pertaining to unregistered persons and review of Withholding Tax (WHT) and FED rates to facilitate business, reduce cost of doing business, avoid economic burden, harmonize tax laws and promote industry while also improving tax collection.
This was the first meeting of the TRCG for this year and it initiated the TRCG’s mechanism for public and private sector partnership in policy-formulation for considering proposals for the June 2013 upcoming annual budget.
The meeting was attended by Deputy Chairman Planning Commission Dr. Nadeem ul Haque and Members TRCG Mr. Abdullah Yousuf, Mr. Arshad Zuberi, Mr. Bashir Ali Mohammad, Mr. Shabbar Zaidi, Mr. Ali Habib, Mr. Arshad Chaudhary and Mr. Ali Jameel alongwith FBR’s other relevant members.
Mohammad Shahzad Secretary PR
Jan. 11, 2013
|FBR’s drive against illicit tobacco / cigarette trade|
The Anti Illicit Tobacco/Cigarette Unit working under the
Inland Revenue Wing of FBR has successfully launched its
wide ranged operations covering almost all segments of this
evasion prone sector. In addition to enforcement activities
audits have also been conducted identifying recoverable
Duty/taxes over RS 262 million.
Millions of untaxed cigarettes have been confiscated and the
business concerns have been sealed. The confiscated
cigarettes include both locally manufacturing and foreign
brands. The last factory raided was M/s C.M Tobacco located
in Mid Ranjha Sargodha, where 1,100,000 cigarettes were
seized. The value of the cigarettes seized, on which duty
has not been paid, is Rs, 11, 57,200. The machinery of M/s
CM Tobacco has also been sealed.
In order to
raise awareness-level of taxpayers in the cigarette
industry, an awareness campaign was also organized by FBR’s
Intelligence and Investigation Directorate. The campaign was
focused towards provision of information to Retailers/
Dealers/ Wholesalers through FBR’s web portal. The campaign
also used print and electronic media, and notices to
wholesalers / retailers of cigarettes.
Jan. 04, 2013
Employees of FBR have thanked the Prime Minister Raja Pervez Ashraf, Federal Minister for Finance Dr. Abdul Hafeez Shaikh, Minister of State for Finance Mr. Saleem H. Mandviwalla, Chairman FBR Mr. Ali Arshad Hakeem and the senior management of FBR for getting approval of upgradation of 4384 posts of FBR in BS-14 and 15 to BS-16 from the Prime Minister.
President Mian Abdul Qayyum and office bearers of Federal Revenue Alliance Employees Union (FRAEU) and Chief Organizer Mr. Aslam Pervaiz and Office bearers of All Pakistan Tax Employees Association (APTEA) expressed their heartfelt gratitude in a meeting with the Minister of State for Finance Mr. Saleem H. Mandviwalla, Chairman FBR Mr. Ali Arshad Hakeem and senior officials of FBR at the FBR Headquarters, here today.
The Minister congratulated the employees whose posts would be upgraded with this decision and urged them to work with more zeal towards achieving the revenue target. The Minister expressed satisfaction on this decision by the Prime Minister and said that the government is conscious of the need to strengthen the welfare of staff and extends effort to provide them with relief. The Minister was confident that FBR employees will exhibit more diligence to achieve the revenue collection target.
The Chairman FBR Mr. Ali Arshad Hakeem said that FBR’s officers and workers are committed to achieve their revenue targets and in-shaa-Allah they will achieve targets well in time. “We are working on various other initiatives for the welfare and benefit of our employees and will also expand into supporting quality housing, education and medical facilities for them”, he added.
The Minister of State also discussed the current revenue position with the chairman FBR and advised him to keep track of the coming-June-targets.
Jan 03, 2013
Prime Minister approves upgradation of 4384 posts of FBR in BS-14--BS-16
The Prime Minister of Pakistan Mr. Raja Pervez Ashraf has kindly approved the upgradation of FBR’s 4384 posts of BS-14 to Bs-16.
Chairman FBR Mr. Ali Arshad Hakeem had taken up this important but long outstanding issue with the Prime Minister, during his visit to the FBR Headquarters on 4th October, 2012. The Chairman had presented the facts of the issue and the negative effects it was causing to the morale of the workers. After getting the verbal approval from the Prime Minister, the Chairman Mr. Ali Arshad Hakeem personally pursued the summary and finally got it approved from the Prime Minister.
According to the details 4384 posts of BS-14 to BS-16 including 1596 Inspectors Customs/ Sales Tax, 1226 Inspectors Inland Revenue, 361 Preventive Officers, 119 Intelligence Officers, 185 Examiners, 263 Appraisers, 07 Valuation Officers, 44 Sr. Intelligence Officers, 50 Inspectors (Preventive Service) and 533 Deputy Superintendants in Customs and Sales Tax would be upgraded with this approval.
With this, a long outstanding demand of the employees of FBR has been accepted. The employees of FBR have thanked the Prime Minister Raja Pervez Ashraf and Chairman FBR Mr. Ali Arshad Hakeem for taking care of their welfare and accepting their demand for upgrading these posts.
Jan. 03, 2013
FBR has not contributed to the CIRP
It is for the information of all that FBR has not contributed to the report of Center for Investigative Reporting in Pakistan’s (CIRP) titled “Representation without Taxation”.
FBR has not provided any information on declared annual incomes or tax paid by the parliamentarians to CIRP for any study. Section 216 of the Income Tax Ordinance 2001 specifically places restrictions on the release of such data. Recent news items appearing in the press over the last few weeks based on the information available in the report are therefore, apparently not in line with the actual facts on record. FBR, therefore, does not endorse the conclusions drawn in the CIRP’s report.
However, FBR has constituted a committee to probe into the likelihood of ‘data theft’ and any involvement of any FBR officer/official in the matter, if found shall be dealt with seriously.
It is further clarified that the salary income of the parliamentarians is subjected to deduction of tax at source, and non-filing of return does not lead to the conclusion that no tax has been paid.
Jan. 02, 2013
CREST—FBR’s software to facilitate taxpayers
FBR is capturing transactions by registered persons to identify where a registered person is denied benefit admissible under the Sales Tax Act. Accordingly, FBR has developed Computerised Risk-based Evaluation of Sales Tax (CREST) software that checks information in monthly returns, import / export data and cross matches for every registered person. Exceptions that emerge will be conveyed electronically to registered taxpayers who in turn can explain the position to FBR by using CREST and attaching their supporting documents.
The CREST system has in-built capacity to verify the veracity of reply received from the registered person. CREST system is designed for Sales Tax and is based on declarations and covers following areas:
1. Purchases including Input tax adjustment of buyers and suppliers.
2. Zero Rated Sales to registered person with non-active ATL or blacklisted or suspended Sales Tax Registration Numbers (STRNs).
3. Section 8B-exemption-claims against qualifying criteria per notification.
4. Exports claim in returns which do not match with Customs export data.
5. Commercial Imports by non-manufactures who also do not show value addition on imports.
Introductory workshops were held in Lahore and Karachi. The system is in test-stage and messages to 1,000 sales tax payers have already been sent by FBR alerting them to discrepancies detected in their cases. The features of this new system are:
• CREST allows faster and timely sending of discrepancy-alerts to taxpayers. CREST also provides taxpayers an IT system that they can use in order to reply to the CREST discrepancy-alerts without taxpayer needing to visit the tax offices.
• CREST use by taxpayers is an optional-facility and taxpayers can ignore it and make an in-person visit to tax office to explain his position regarding the discrepancy-alert.
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