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|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.qov.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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