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Federal Board of Revenue-Archived/OLD News Room
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30th August, 2008 |
FBR SURPASSES JULY-AUGUST REVENUE COLLECTION TARGET |
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FBR has surpassed the revenue target of
Rs 134.8 billion, fixed for July -August 2008-09. The provisional tax
collection indicates a cumulative growth of 25.7%. The net collection
during the period has been Rs 139.7 billion as against Rs 111.1 billion
during the same period of last year. The revenue on account of direct
taxes has shown a healthy increase of 29.1% by collecting Rs 37.6
billion against Rs 29.1 billion. The sales tax collection has reached to
Rs. 65.4 billion against Rs 55.1 billion, indicating a growth of 18.8%.
The tax receipts on account of federal excise have registered a growth
of 74.4%, during the period under review. The collection has reached to
Rs 14.7 billion as against Rs 8.4 billion in the corresponding period of
last year. Finally revenue from Customs duties has increased by 19.0%
over the corresponding period of last year. The net collection has been
Rs. 22 billion against Rs 18.5 billion last year.
Provisional collection during the month of August 2008 indicates that an
amount of Rs 66.9 billion has been collected. Of the total taxes, direct
taxes has collected Rs 18.9 billion, sales tax Rs 31.9 billion, federal
excise Rs 6.5 billion and Customs duty Rs 9.6 billion.
It may be added that the figures are provisional and likely to increase
further at the time of finalization.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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30th August, 2008 |
SALES TAX AND FEDERAL EXCISE RETURNS FILING DATE EXTENDED UP TO 5TH
SEPTEMBER 2008 |
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Federal Board of Revenue has
further extended the date for online submission of Sales Tax and Federal
Excise Return for the tax period July, 2008 up to 5th September, 2008,
by issuing Sales Tax Circular No.
07/2008 dated 30th August 2008. However, the last date for payment
of due taxes shall remain unchanged at 20th August, 2008 as extended
vide Sales Tax Circular no. 05/2008 dated 16.08.2008.
It is also clarified that no further extension for the aforesaid tax
period shall be allowed. Therefore, the taxpayers are requested to avail
this last extension and file the returns by the 5th September, 2008.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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29th August, 2008 |
EXPLANATORY NOTES FOR SRO 895(1)/2008 |
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Federal Board of Revenue has issued a
Notification (Income Tax) /
SRO 895 (1)/2008, on 27th August, 2008. Following are its
explanatory notes:
This SRO is being issued in consequent to the introduction of a new
provision in the Income Tax Ordinance, 2001 through Finance Act, 2008
which has given powers to the Commissioner to require any person to
install and use an electronic tax register of such type and description
as may be prescribed for the purpose of storing and accessing
information regarding any transaction that has a bearing on the tax
liability of such person. This provision of law is an importance step
towards the documentation our economy and now the sale transactions of
big retailers and whole sellers may be audited for the taxation of their
income. This provision will not only help to assess the real tax
liability of a person but will also reduce the discretion of the
department which may be used for assessing such sale transactions by
bald estimation.
For the above purpose operational legal provisions were also required
which have been incorporated in the income Tax Rules, 2002 through the
above SRO prescribing the modus operandi of installation, use,
identification number, maintenance, and inspection by the tax authority
of the Electronic Tax Register (ETR).
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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28th August, 2008 |
IMPORT OF MINERAL OIL FOR AGRICULTURE EXEMPTS FROM 5% CUSTOMS DUTY
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Federal Government has exempted 5%
customs duty on import of mineral oil by persons registered with Plant
Protection Department as importer, formulator or manufacturer of
pesticides, if imported by October, 2008, by issuing Notification
(Customs) / SRO 892(I)/2008 dated 27th August, 2008 amending SRO
567(I)/2006 dated 05-06-2006 for its use as an adjuvant for the
effective control of attack of Mealy Bug on cotton crop. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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28th August, 2008 |
EXPLANATORY NOTES FOR SROs 894 & 897 (I)/2008 |
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Federal Board of Revenue has issued two Notifications (Sales Tax) / SROs
894 & 897 (1)/2008, first on 25th and second on 27th August, 2008,
respectively.
Explanatory notes for SRO 894 (1)/2008 dated 25th August, 2008, are as
under:
Acrylic polymer in primary form was zero-rated vide SRO 509(I)/2007
dated 09.06.2007. However, its PCT heading was mentioned as 3906.9080
instead of 3906.9090. The mistake was rectified vide SRO 538(I)/2008
dated 11.06.2008. Now this correction has been given retrospective
effect vide SRO 894(I)/2008 dated 25.08.2008 for the benefit of general
public.
Explanatory notes for SRO 897(I)/2008 dated 27th August, 2008, are as
follows:
In order to reduce input cost of agriculture products, the ECC
recommended removal of customs, sales tax and income tax on mineral oil
in its meeting dated 15.07.2008. Accordingly, sales tax exemption has
been granted to importers of mineral oil not exceeding 250 tons for
manufacture of pesticides subject to a certification by Plant Protection
Department.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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25th August, 2008 |
UNIVERSAL e-FILING OF SALES TAX RETURNS: FBR
APPRECIATES EXCELLENT RESPONSE OF TAXPAYERS. |
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Response of business community to FBR’s landmark decision of mandatory
electronic filing of Sales Tax Returns has been excellent. The measure
aims at requiring the registered persons to file their declarations
electronically at FBR’s website, without going through the hassle of
making long queues in front of banks for paying sales tax and submitting
the returns. For creating awareness about the smooth implementation of
the e-filing, FBR conducted seminars in all the major cities, in
coordination with representative trade bodies. Alive to the fact that
initial phase of such a remarkable step towards automation would entail
problems of comprehension and awareness, FBR adopted a proactive
approach at the highest level for redressal of problems and removal of
difficulties. For this purpose, Member (Sales Tax & FE) Mr. Abdul Wadood
Khan visited the offices of FPCCI Karachi, LCCI, Faisalabad Textile
Export Association, tax bodies and different RTOs at Lahore last week to
ascertain from the taxpayers the problems being faced by them with a
view to taking corrective action. The salient features of the scheme
were explained and the leaders of the business community were asked to
provide list of registered persons facing hardship in e-filing so that
difficulties, if any, are removed forthwith.
The business community and the e-Intermediaries have shown an
overwhelming response and so far 44,309 taxpayers have obtained
e-Enrollment at FBR Portal and 32,296 taxpayers have filed their Sales
Tax Returns electronically from their offices/ homes using internet. All
remaining taxpayers are either in the process of e-enrollment or
preparation of electronic returns.
For providing telephonic help in using the system a contact centre,
which operates round the clock (24 Hrs), is also established at (051)
111-772-772. The taxpayers are also provided assistance through e-Mails
which are received at eSupport@pral.com.pk. For those taxpayers who have
difficulty in working on the eFBR Portal due to internet or power
problem, FBR has established self service Kiosks and operator assisted
help desks in the Regional Tax Offices. In addition to the arrangements
described above, a data centre with high speed bandwidth of internet has
been established with an adequate setup of computer equipment to handle
the e-filing. The high speed band width arranged by is expanded
automatically on need basis; where as the maximum bandwidth utilized by
the taxpayers during this month is 40 Mbps.
Keeping in view the learning curve of taxpayers and large scale change
management from paper based filing of returns to e-Filing, FBR has
extended the last date of e-Filing of sales Tax returns to 31st August
2008.
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(Muhammad Hafeez Mughal)
Secretary (PR) |
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25th August, 2008 |
EXTENSION IN DUE DATE FOR FILING OF SALES TAX AND FEDERAL EXCISE
RETURN BY THE REGISTERED PERSONS. |
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The Federal Board of Revenue has extended the date for online submission
of Sales Tax and Federal Excise Return for the tax period July, 2008 up
to 31st August, 2008, by issuing Sales Tax
Circular no. 06/2008 dated
25th August 2008. However, the last date for payment of due taxes shall
remain unchanged at 20th August, 2008 as extended vide Sales Tax
Circular no. 05/2008 dated 16.08.2008.
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-Sd-
(Abdul Hameed Memon)
Secretary (ST&FE-L&P) |
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22nd August, 2008 |
EXPLANATORY NOTES FOR SRO
840(I)/2008 |
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Federal Board of Revenue has issued Notification (Sales Tax) / S.R.O.
840 (1)/2008 dated 13th August, 2008 which amends Sales Tax Rules, 2006,
with following objectives:
(i) To provide that where an e-intermediary, filing return on behalf of
his clients, has retained a printed copy of the return electronically
transmitted by him duly signed by the representative of the registered
person, he shall be deemed to have transmitted the return in good faith
and the provisions relating to fiscal and other liability of
e-intermediary under sub-section (5) of section 52A of the Sales Tax
Act, 1990, shall not be applicable.
(ii) New format of payment challans for sales tax and federal excise has
been prescribed.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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22nd August, 2008 |
EXPLANATORY NOTES FOR SRO
862(I)/2008 |
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Federal Board of Revenue has issued Notification (Sales Tax) / S.R.O.
862 (1)/2008 dated 20th August, 2008 which amends the Sales Tax Special
Procedures Rules, 2007, with following objectives:
(i) To remove references to income tax in the Chapter relating to
retailers. These references were redundant as income tax rates had
already been omitted through budgetary measures.
(ii) To provide that commercial importers shall not be entitled to
refund of sales tax paid at import stage in case of excess of input tax
over output tax.
(iii) To prescribe new amounts of sales tax to be mentioned on invoices
issued by registered persons in steel sector. The new amounts are based
on rate of 16% whereas old rates were based on 15%.
(iv) To provide option to steel sector units to operate in VAT mode and
prescribe conditions for the same. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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22nd August, 2008 |
EXPLANATORY NOTES FOR SRO
863(I)/2008 |
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Federal Board of Revenue has issued Notification (Sales Tax) /S.R.O. 863
(1)/2008 on 20th August, 2008. The said notification prescribes monthly
submission of production data by manufacturers by 25th of the following
month, in respect of 42 items mentioned therein. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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20th August, 2008 |
IMMOVABLE PROPERTY RATES: CHIEF SECRETARIES ASKED TO EXPEDITE REVIEW
OF EXISTING VALUES |
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Federal Board of Revenue has requested the Chief Secretaries of all the
four provinces to respond at the earliest on the Federal Cabinet's
decision to review the existing valuation rates of the immoveable
properties in their provinces for the purpose of transfer of such
properties.
Following the observation of the Federal Cabinet, in its meeting held on
June 11, 2008, that valuation rates of immoveable properties do not
commensurate with the fair market value of such immoveable properties,
the Federal Finance Minister, in his letter dated June 16, 2008, had
requested the Chief Ministers of all the four provinces to review and
rationalise the existing values fixed for the purpose of their transfer.
Federal Government has not received any response from any of the
province so far which indicates that the matter is still under
consideration of the provincial governments and the revision of the
rates is yet to be made.
It may be noted that the revision of the existing fixed rates was
expected to be completed during the month of June and was to be made
effective from July 1, 2008.
Member (Direct Taxes), FBR, in his separate letters dated August 13,
2008, has requested all the Chief Secretaries to look into the matter
personally and do the needful at the earliest. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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18th August, 2008 |
5% CUSTOMS DUTY ON IMPORT OF MINERAL OIL FOR AGRICULTURE WITHDRAWN |
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The Federal Government has exempted 5% customs duty on import of mineral
oil by persons registered with Plant Protection Department as importer,
formulator or manufacturer of pesticide, if imported by October, 2008,
by issuing SRO
857(1)/2008 dated 16-08-2008 amending SRO 567 (1)/2006
dated 05-06-2006 for its use as an adjuvant for the effective control of
attack of Mealy Bug on cotton crop. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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18th August, 2008 |
TAX OFFICIALS ENLIGHTENED ON TAX TREATMENT OF ISLAMIC FINANCIAL
INSTRUMENTS |
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Islamic Finance has gripped the world with a strong fervor and passion.
The world is recognizing the significance of Islamic Finance and it had
also been deliberated in 2nd and 3rd Session of UN Committee of Experts
for International Cooperation in Tax Matters in their annual meeting
held at Geneva. Asian Development Bank (ADB) has also introduced it as
an agenda item in its meeting scheduled to be held in October 2008 at
Tokyo (Japan). It will also be discussed in the 5th ATAIC Technical
Conference.
Realizing the importance of this issue, Federal Board of Revenue invited
the well known scholars of international repute Prof. Mufti
Munib-ur-Rahman and
Mr. Mujeeb Baig in the FBR House, Islamabad to enlighten the senior tax
officials of the Direct Taxes Wing on the "Tax Treatment of Islamic
Financial Instruments". Mr. Mumtaz Ahmad, Member (Legal), FBR
inaugurated the session while Mr. Irfan Nadeem, Member (Direct Taxes)
welcomed the honorable guest speakers. Mrs. Farida Amjad, Chief
(International Taxes) introduced the guest speakers to the participants.
The guest speakers made a presentation on the Islamic Financial
Instruments and enlightened the audience on the basic concept of the
riba free instrument. The session was followed by questions / answers,
which lasted for one hour and certain future steps to be taken in this
regard as to the tax treatment of the Islamic financial Instrument were
noted down by the Income Tax Policy Section for examination and
necessary action at the appropriate time. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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16th August, 2008 |
Explanatory notes for Sales Tax / Federal Excise Circular No. 5 of
2008 |
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The Board has extended the due date for
the payment of Sales Tax and Federal Excise Duty for the tax period
July, 2008 upto 20th August, 2008 in order to facilitate taxpayers who
faced difficulties in e-filling their Sales Tax and Federal Excise
Returns.
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(AFTAB AHMAD BHATTI)
Second Secretary (STM) |
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13th August, 2008 |
FBR CHAIRMAN EMPHAISES CLEARANCE OF
PENDING REFUND CASES ON PRIORITY BASIS
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Chairman, Federal Board of Revenue, Mr. Ahmad Waqar has directed the
senior tax mangers to clear all the pending refund payment cases on
priority basis and due payment must be made without any further delay.
He was addressing the Directors General, Large Taxpayers Units (LTUs) &
Regional Tax Offices (RTOs) at a Conference held at FBR Headquarters
here today.
The Chairman said that FBR was receiving a number of complaints
regarding refund payment. "We have to reduce this number to a minimal
level," he said and added, "Simultaneously, we need to keep a constant
check on fake refund claims so that no payment is made on fraudulent
claims."
Speaking on the on-going tax reforms programme, the Chairman asked the
tax officers to extend all help and support to make this programme a
complete success. He said that he was watching the reforms process
closely to achieve the desired results. He asked the Directors General
to identify the difficulties faced by them in the system so that
corrective measures are taken with immediate effect.
The Chairman asked the tax managers to share their ideas with the Board
to make further progress for achieving the targets including enhancement
in tax-to-GDP ratio and broadening of tax base.
Talking about the existing image of FBR, Mr. Ahmad Waqar said that we
have to improve the perception of being un-friendly with the taxpayers.
"Our approach should be to help and facilitate the taxpayers," he
stressed.
The Chairman observed that tax collection was not an easy job and added
"We have to create an environment in which the taxpayers pay the due
taxes, willingly."
Earlier, Member(Direct Taxes), Mr. Irfan Nadeem briefly outlined the
agenda items of today's conference which included matters pertaining to
direct taxes policy, withholding taxes, direct taxes operations,
recovery of arrears and revenue generation.
Later, the Chief (Tax Policy), Mr. Saeedullah briefed the participants,
about the policy changes made3 in the budget.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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12th August, 2008 |
SALES TAX RETURNS FILING DATE EXTENDED |
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Federal Board of Revenue has extended the
last date for filing of sales tax/federal excise returns for
tax-period July, 2008 from 15th August, 2008 to 25th August, 2008.
However, due amount of sales tax & federal excise duty has to be
deposited by the registered persons by 15th August, 2008.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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11th August, 2008 |
WORKSHOP ON E-FILING OF RETURNS TO BE HELD IN GUJRAT TOMORROW |
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Collectorate of Sales Tax & Federal Excise, Sialkot is arranging a
follow up Seminar/Workshop at Gujrat Chamber of Commerce & Industry
tomorrow at 11.00 a.m. on e-filing of tax returns.
Office-bearers and members of Gujrat Chamber of Commerce & Industry,
traders and businessmen besides officers/officials of the collectorate
are expected to attend the seminar/workshop in a big way.
Earlier, the Collectorate of Sales Tax & Federal Excise, Sialkot had
arranged various training workshops on e-filing of returns at Sialkot
and other areas of its jurisdiction. The purpose of these
seminars/workshops is to crate understanding and awareness amongst the
taxpayers and tax practitioners about the system, process and advantages
of e-filing of returns.
It may be noted that Federal Board of Revenue has already declared
e-filing of returns by all the registered persons of sales tax and
federal excise, mandatory.
All Collectorates of Sales Tax & Federal Excise, established in various
cities of the country, have been arranging seminars/workshop on e-filing
of returns in their respective areas to facilitate the taxpayers.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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9th August, 2008 |
WORKSHOP ON MANDATORY UNIVERSAL E-FILING OF RETURNS BY CORPORATE
SECTOR |
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It has been made mandatory for all Sales Tax and Federal Excise
registered persons to file all their returns electronically. A series of
workshops/ seminars were planned to educate the taxpayers and
consultants about the process of e-filing and these were also advertised
in newspapers. The schedule of one such workshop, which was earlier
planned to be held on Tuesday, 12th August, 2008, at Karachi Chamber of
Commerce and Industry, has been changed. This workshop shall now be held
on Monday, 11th August 2008, at 3.00 pm at Karachi Chamber of Commerce
and Industry. All taxpayers/ consultants are requested to attend.
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-Sd-
(Mujeeb-ur-Rehman Talpur)
Second Secretary (PR) |
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8th August, 2008 |
EXPLANATORY NOTE FOR CIRCULAR NO. 3 OF 2008 |
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The Federal Board of Revenue has issued circular No.8 of 2008 dated
8/8/2008. Amendments have been made in the Investment Tax Scheme, 2008
announced through circular No 3 of 2008 dated 01/07/2008.
The scheme shall not apply to the cases where proceedings are pending
before the department, appellate authority or any Court. Moreover, the
benefits of the Scheme shall accrue to the taxpayer in terms of its Para
2 (b) for any tax year or years ending on or before 30th June, 2007.
Para 2(b) has been amended as under.
"Unexplained income/assets" means any asset for which the taxpayer has
no explanation regarding nature and source and was chargeable to tax but
could not be so charged under Income Tax Ordinance, 2001, for any tax
year or years ended on or before 30th day of June, 2007 "
It has further been clarified that the term 'cash' as mentioned in Para
A of part - I of the Annexure to the said Scheme shall include cash in
foreign currency. However, for the purpose of calculation of 2 % tax
payable thereon, the amount shall be converted into Pak rupee at the
foreign exchange rate prevalent as on 30.6.08. |
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-Sd-
(Muhammad Irshad)
Chief (FATE) FBR.
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6th August, 2008 |
EXPLANATORY NOTE FOR
SRO 815(1)/2008 DATED
01-08-2008 |
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To promote and regulate development of Private Pension Schemes and Funds
in the country, six Pension Funds under the Voluntary Pension System
Rules, 2005 have been authorized by the Security Exchange Commission of
Pakistan. In order to create linkages between these Voluntary Pension
Funds with the existing occupational savings schemes, the Security
Exchange Commission of Pakistan proposed to allow the subscriber of a
Recognized Provident Fund to transfer funds to a Voluntary Pension Fund
under Voluntary Pension System Rules, 2005. For this purpose amendment
in Rules 103, 104, 105 and 106 of the Income Tax Rules, 2002 have been
made through this SRO.
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Sd-
(Khawar Khurshid Butt)
Member FATE / Official Spokesman, FBR |
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6th August, 2008 |
EXPLANATORY NOTE FOR
SRO 814(1)/2008 DATED 31-07-2008 |
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To facilitate the smooth working of the alternative dispute resolution
committee it has been provided through this SRO that the place of
sitting of the committee will be decided by the Chairman ADRC in
consultation with the Director General, Regional Tax Office or the
Director General, Large Taxpayer Unit, as the case may be. |
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Sd-
(Khawar Khurshid Butt)
Member FATE / Official Spokesman, FBR |
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1st August, 2008 |
FBR has successfully surpassed the revenue target of Rs.64.4 billion
by Rs. 1.6 billion during July, 2008. |
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FBR has successfully surpassed the revenue target of Rs.64.4 billion by
Rs. 1.6 billion during July, 2008. The net provisional collection during
July 2008 has been Rs. 66 billion. The recorded growth over July 2007
has been 29.7%. The performance of FBR has been broad based as all the
four taxes have recorded double digit growth.
Tax wise position indicates that Direct Taxes have collected Rs. 17.3
billion, Sales Tax Rs. 31.5 billion, FED Rs 6.7 billion and collection
under Customs Duty has been Rs. 10.5 billion. The figures are
provisional and expected to increase further after finalization.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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26th July, 2008 |
FBR CHAIRMAN CALLS FOR IMPROVING TAX-TO-GDP RATIO
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Chairman, Federal Board of Revenue and Secretary, Revenue Division, Mr.
Ahmed Waqar called upon the tax machinery to gear up its efforts to
improve tax-to-GDP ratio which at present was not upto the reasonable
level and low even in the region.
He was addressing the senior officers of the Board at the FBR
Headquarters here today.
In this regard, the Chairman directed the technical wings of FBR to
study and identify the grey areas which need to be tackled effectively.
"We have to improve our tax-to-GDP ratio and broaden the tax base to
enable FBR to play its due role in economic development of the country",
he added.
On public perception of FBR and its field offices, the Chairman stated
that every possible step including improvement in the existing automated
systems will be taken to root out corruption. "No compromise will be
made on this issue. We have to improve our image in public," he
categorically told the officials. Mr. Ahmed Waqar said that he was in
favour of enforcement of tax laws but without harassment of the
taxpayers.
Underlining the improvement in Board's performance, the Chairman
emphasised the need to adhere to strict discipline among the FBR
workforce to considerably enhance its performance and improve the image
of the department amongst the stakeholders.
Chairman said that although revenue collection target of Rs. 1250
billion for current fiscal year was challenging but it will, Inshallah,
be achieved with the team spirit. He told the officials that he was a
pro-reforms person and played his due role in this regard wherever he
served. He said that he was a strong believer of change as he believes
that status-quo was not good for any institution and reforms were
necessary for betterment.
Earlier, Member (FATE) & Official Spokesman of FBR, Mr. Khawar Khurshid
Butt, welcomed Mr. Ahmed Waqar, on behalf of the officers of FBR & on
his own behalf, on assuming the office of the Chairman and assured him
all cooperation in discharging of his official duties. He also lauded
the services of the out-going Chairman, Mr. M. Abdullah Yusuf during his
four and a half year stay and especially for initiating the difficult
task of tax administration reforms. He expressed the hope that under the
able guidance of the new Chairman, FBR reforms will be completed
successfully within the stipulated time.
Member (DT), Member (Customs) & Member (ST) also briefly explained to
the new Chairman about their respective Wings. It was decided that
detailed representations will be made by each Member separately in the
next two days.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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25th July, 2008 |
EXPLANATORY NOTE OF SRO. 767(1)/2008 |
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Pakistan source income of International
Finance Corporation (IFC) was exempt from tax in accordance with the
provisions of proviso to section 54 of the Income Tax Ordinance, 2001.
The said proviso was omitted wide the Finance Act, 2008. IFC,
accordingly approached the Federal Government and claimed that in view
of the agreement of 1955 and the IFC Act, 1956, the Pakistan source
income of IFC is exempt from tax. The claim has been considered and
found correct, accordingly, Part I of the Second Schedule to the Income
Tax Ordinance, 2001 has been amended and a new sub-clause (xxi) in
clause (66) has been inserted therein which exempts, any Pakistan source
income of the IFC. Like-wise, a new clause i.e. (67) has been inserted
in Part IV of the Second Schedule to the Ordinance which provides that
IFC would not be required to withhold tax while making any payment under
the different sections of the Ordinance.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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12th July, 2008 |
ABDULLAH YUSUF CALLS FOR EFFICIENT USE OF TECHNOLOGY FOR MORE REVENUE
GENERATION, ENHANCING TAX-TO-GDP RATIO |
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Secretary General, Revenue Division & Chairman, Federal Board of
Revenue, Mr. M. Abdullah Yusuf has called for efficient use of modern
technology for more revenue generation, enhancing tax-to-GDP ratio and
expanding the tax base.
He was addressing the Workshop on Management Automation Projects held at
the FBR Headquarters today. Among others, officers dealing with the
automation work at field offices of FBR attended the Workshop.
Chairman stressed upon the officers to equip themselves with latest
techniques and technologies. "This organisation has great potential.
Once you are fully equipped with modern knowledge, techniques and
technology, then it would not be difficult to achieve the desired
results", he added. He was of the opinion that as an institution or
country, we have to go for a better change. No country or organisation
can grow and progress if it remains stagnant. We have to change
ourselves with this rapid changing world to face the challenges of
modern times, he opined.
Chairman said that although we were happy to cross the psychological
barrier of Rs. One trillion in revenue collection in last fiscal year
(2007-08) but, according to his judgement, still there was a gap of Rs.
400 bn to Rs. 500 billion exists today. This gap cannot be bridged until
and unless we enhance our tax-to-GDP ratio from existing 11% to 15 /
16%. Its not impossible provided we have the will, commitment and tools
to do it, Mr. Abdullah Yusuf observed. He, however, said that despite
all constraints, handicaps and non-availability of necessary tools we
have been able to expand our tax base in last four years form one
million to 2.2 million taxpayers at the growth rate of 20% per annum.
Similarly, we have been able to enhance the revenue collection at an
average of about 18% per annum. "This is good & fine but, we have to
plug the existing gap". In next seven years, we have to achieve the
target of 15 /16% tax-to-GDP ratio with an annual growth of atleast 0.5
%, the Secretary General added.
Commenting on the on-going automation projects, Mr. Abdullah Yusuf said
that we have to realise the dream of making FBR a totally paperless
organisation.
He asked the relevant officers and officials to make all possible
efforts to achieve this goal.
On the occasion, the Chairman reminded FBR employees of their
responsibilities towards making FBR a most progressive and efficient
organisation. He added that the special treatment being given to FBR
employees, in perks and privileges, by the Government was not for all
times to come " We have to prove through our actions and achievements
that we fully deserve for this treatment," he remarked.
Earlier, in his welcome address, Director (Projects), FBR, Mr. Muhammad
Asghar Chaudhry informed that currently four pilot automation projects
were in the process of development and implementation. They are; "Human
Resource Management Solution (HRMS)" "Electronic Correspondence
Management System (e-Dox),' "Budget & Accounts/Inventory Management
System- SAP" and "e-Archiving." All these projects are at different
stages of implementation at FBR Headquarters. After their completion,
they will be replicated in the field offices of the Board, Mr. Chaudhry
added. He said that these systems will bring transparency and efficiency
in the overall administration and management system of the Board.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
8th July, 2008 |
PRESS RELEASE |
|
|
Secretary General, Revenue Division/Chairman Federal Board of Revenue
Mr. M. Abdullah Yusuf has called upon the businessmen, traders and
industrialists to take full advantage of the newly announced amnesty
scheme "Tax Investment Scheme 2008" for legalisation of their hidden
assets by paying just 2% tax.
Speaking at a ceremony held in connection with formal launching of the
scheme at the Islamabad Chamber of Commerce & Industy last evening, the
Chairman said that the scheme is applicable for both registered and
un-registered persons. On a query regarding ascertaining of the value of
the hidden / undeclared assets, the Chairman said that it would be
accepted on the basis of "fair market value of the assets as declared by
you."
He told the ICCI members that if any one declares assets of greater
value, he can take its advantage from the banks for further promotion of
his business. FBR Chairman said that the amnesty scheme was a major
initiative of the present Government and the business community needs to
respond it in a big way. He was confident that the Islamabad Chamber,
being a proposer of this scheme and a model chamber, would take lead and
show 100% compliance.
Stressing on the enhancement of tax-to-GDP ratio, the Chairman
underlined that we need to raise the existing ratio of 11% to 15%. Had
it been the 15% tax-to-GDP ratio today, the revenue collection for the
year 2007-08 would have reached to Rs. 1.4 trillion. In his opinion,
there was a gap of Rs. 400 billion in revenue collection due to lower
tax-to-GDP ratio.
Referring to the opportunities available in the country and the
challenges faced by the business Community, the Chairman hoped that they
will take all advantage of the opportunities and help to improve revenue
collection and expand tax base.
On the occasion, Mr. Abdullah Yusuf also referred to the recently
announced "Tax Arrears Settlement Incentive Scheme (TASIS)' of the
Government which allowed the taxpayers to settle their tax arrears,
including additional tax and penalty for non-payment. He hoped that the
taxpayers would also take benefit of this scheme and pay their
outstanding due without any penalty within the specified period.
Earlier, in his welcome address Mr. M. Muhammad Ijaz Abbasi, President
of ICCI, congratulated FBR Chairman, Mr. M. Abdullah Yusuf and members
of his team, for crossing the psychological barrier of Rs. One trillion
in revenue collection. "This is an outstanding performance. Credit goes
to Mr. Abdullah Yusuf and all of his team members," he added. He also
thanked the Chairman for accepting their proposal of the amnesty scheme.
FBR's Member (DT), Mr. Usman Khalid Mirza was also present on the
occasion.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
4th July, 2008 |
EXPLANATORY NOTES FOR
S.R.O. 713(I)/2008 |
|
|
Federal Board of Revenue has issued Notification (Sales Tax) /
S.R.O. 713 (1)/2008 dated 3rd July, 2008. The said Notification has
amended S.R.O. 647(I)/2007 dated 27th June 2007, which provides
exclusions to certain sectors from the limitation as prescribed in
section 8B of the Sales Tax Act, 1990. The sectors specified in the
S.R.O. are not subject to limitation of input tax adjustment to the
extent of 90% of output tax. Presently, following sectors are given
this benefit under S.R.O. 647(I)/2007:
|
1. |
Persons
registered in electrical energy sector. |
|
2. |
Oil
marketing companies and petroleum refineries. |
|
3. |
Fertilizers manufacturers. |
|
4. |
Manufacturers consuming raw materials chargeable to sales
tax at the rate of 18.5% or 21% provided value of such raw
materials exceeds 50% of value of all taxable purchases in a
tax period. |
|
5. |
Wholesalers-cum-retailers operating in Chapter XII of the
Sales Tax Special Procedures Rules, 2007. |
|
6. |
Commercial importers provided the value of imports subjected
to 2% value addition tax under Chapter X of the Sales Tax
Special Procedures Rules, 2007, exceeds 50% of value of all
taxable purchases in a tax period. |
|
7. |
Person
making zero-rated supplies provided value of such supplies
exceeds 50% of value of all taxable supplies in a tax
period. |
Through amendment by S.R.O. 713(I)/2008, following sectors have been
added to the existing list:
|
8. |
Distributors and wholesalers. |
|
9. |
Gas distribution companies. |
|
10. |
Solvent extracting units of edible oils. |
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
1st July, 2008 |
Explanatory notes for SRO
695(1)/2008 dated 26-06-2008 |
|
|
1. This SRO has been issued to reduce the pressure from e-portal and
also to provide reasonable time to the taxpayers to file their Income
Tax withholding statements. Earlier to this there was a same date for
e-filing of monthly return of Sales tax as well as Income Tax
Withholding statement and it used to slow down the whole process on
e-portal on the last dates. Through SRO No.353 dated 03-04-2008, the
last date of filing of withholding statement was changed to 10th of each
month. But it created problem for the taxpayers as the time available to
file their Income Tax withholding statement was too short. Hence the
present SRO has now prescribed the new date for filing withholding
statement for Income Tax as 20th of each month. The change in date of
Income Tax withholding statement will ease the pressure on e-portal
facilitating the taxpayer.
2. A further change has been brought and now e-filing has been made
mandatory for Non-Resident ship owner and air craft owner or Charterer
thereof. Both these provisions will be applicable w.e.f 1st July, 2008. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
1st July, 2008 |
VIDEO/PICTORIAL COVERAGE OF FBR CHAIRMAN'S PRESS CONFERENCE |
|
|
Secretary General, Revenue Division/Chairman, Federal Board of Revenue,
Mr. M. Abdullah Yusuf addressing a Press Conference on 2nd July, 2008
(Wednesday) at Conference Room, 3rd Floor, FBR Headquarters,
Constitution Avenue, Islamabad at 4.00 p.m.
The Chairman will apprise the media about revenue collection
achievements of FBR during the financial year 2007-08, ended last
mid-night. He will also respond to the queries, if any, about the
taxation measures, announced by the Government, in the new Federal
Budget.
All local & foreign economic correspondents, TV channels and Press
Photographers are cordially invited to cover the Conference. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
|
|
28th June, 2008 |
COLLECTION OF TAX REVENUE ON 28TH, 29TH & 30TH JUNE SBP, NBP, INCOME
TAX OFFICES TIMINGS EXTENDED |
|
|
In order to facilitate the taxpayers to pay their due taxes, all
authorized branches of State Bank of Pakistan and National Bank of
Pakistan will remain open till 6.00 p.m. on Saturday & Sunday, the 28th
& 29th June, 2008 and uptill 10.00 p.m. on Monday, the 30th June, 2008.
Accordingly, all Income Tax Offices will remain open till 8.00 p.m. on
Saturday & Sunday, (28th & 29th June) and till 12.00 midnight on
Saturday, the 30th June, 2008. They will receive CPRs (challans) and
arrange collection of tax and facilitate the taxpayers.
These measures have been taken by the Federal Board of Revenue as a part
of its policy to extend all possible help and cooperation to the
taxpayers in meeting their tax obligations.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
22nd June, 2008
|
Major Amendments in Finance Bill |
|
|
National Assembly of Pakistan today
approved the Finance Bill for financial year 2008-09. Out of total
76 amendments, proposed by the Senate of Pakistan, 51 proposals have
been accepted. The remaining 15 proposals will be duly considered
during the course of the year.
Major Amendments made in the
Finance Bill, passed by the National Assembly today, concerning
Sales Tax & Federal Excise are as under:
-
Definition of cottage industry has been amended to provide that
those manufacturers shall fall within the purview of cottage industry
whose annual utility bill is below seven lac rupees and annual turnover
is below Rs. Five million. Earlier the utility bill limit was six lac
rupees. It may be noted that supplies of cottage industry are exempt
from payment of sales tax.
-
Exemption from payment of sales tax has also been granted by amending
Sixth Schedule of Sales Tax Act, 1990, to hospitals owned by federal or
provincial government, hospitals of statutory teaching universities
having two hundred or more beds and charitable hospitals having fifty or
more beds.
-
The services of property developers and promoters have been subjected
to federal excise duty by amendment in First Schedule. The development
of plots shall be subject to FED at Rs. 100 per square yard and
construction of residential and commercial units shall be subject to FED
at Rs. 50 per square foot of covered area.
The duty structure for cigarettes has been changed to reflect increase
in prices of cigarettes. The new structure shall be effective from 22nd
June 2008.
Amendments pertaining to Customs include the reduction of import duty on sulphonic acid from 15% to 10%.
INCOME TAX :
Earlier, the definition of urban area for the purpose of CVT, apart from
rating areas, also included the following extended areas:I.
In respect of Karachi, 40 kms from the outer limit of rating area or
Cantonment Board.
II. In respect of Faisalabad & Lahore, 30 kms form the outer limit of
rating area or Cantonment Board.
III. In respect of other cities, 10 kms form the outer limit of the
rating areas.
Now, the urban area for the purpose of CVT has been restricted to rating
areas only and the above limits have been withdrawn.
2. In Finance Bill, a proposal was included whereby the limit of
donation to charitable institutions, educational intuitions and
hospitals etc were reduced from 30% and 15% to 10% of the taxable income
in respect of individuals and companies. By making amendment in the
Finance Bill this reduction in donation for the purpose of tax credit to
a donor has been withdrawn.
3. One time collection of Withholding Tax (WHT) on purchase of new cars
has been reduced substantially. The rate of WHT on purchase of new cars
will now be as under:
| ENGINE CAPACITY |
AMOUNT OF TAX |
| Upto 850cc |
Rs. 7, 500 |
| 851cc to 1000cc |
Rs. 10,500 |
| 1001cc to 1300cc |
Rs. 16,875 |
| 1301cc to 1600cc |
Rs. 16,875 |
| 1601cc to 1800 |
Rs. 22,500 |
| 1801cc to 2000cc |
Rs. 16,875 |
| Above 2000cc |
Rs. 50,000 |
4. Exemption form Withholding Tax (WHT) in respect of the following
categories of exporters
has been allowed:
i) Direct & Indirect exporters covered, by DTRE scheme.
ii) Goods temporarily imported into Pakistan for the purpose of
re-export.
iii) Manufacturing bonds.
Further, WHT on import of cotton lint, cotton yarn, and fabrics will be
subjected to 1% WHT. The anomaly has been removed by bringing it at par
with five (5) zero-rated sectors in Sales Tax.
5. Earlier, the senior citizens of age 60 and above were allowed a 50%
rebate on tax liability if their total taxable income was upto Rs.
400,000. This limit has been increased to RS. 500, 000 to give relief to
the senior citizens.
6. Earlier fixed tax was imposed on builders and developers. Now this
tax has been withdrawn as income tax and the Federal Excise duty on
services of property developers and builders has been levied.
Several other changes of editorial nature have also been made on the
basis of the discussion in the Parliament on the Bill.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
21st June, 2008 |
FBR, PNRA SIGN AGREEMENT TO COMBAT ILLICIT TRAFFICKING OF RADIOACTIVE
& NUCLEAR MATERIALS |
|
|
The Federal Board of Revenue and Pakistan Nuclear Regulatory Authority
signed a Memorandum of Understanding today to promote cooperation and
organize mutual assistance against illicit trafficking of radioactive
and nuclear materials.
Member (Customs), FBR, Mr. Mahmood Alam and Member Executive, PNRA, Mr.
Shakil-ur-Rehman singed the agreement on behalf of their respective
organisations.
Secretary General, Revenue Division/Chairman, Federal Board of Revenue,
Mr. M. Abdullah Yusuf and Chairman PNRA, Mr. Jamshed Azim Hashmi were
present on the occasion.
Speaking on the occasion, FBR Chairman said that Pakistan Customs was
engaged in combating commercial fraud, counterfeiting drug trafficking,
money laundering, electronic crime and smuggling of arms. In addition to
these challenges, the growing threat of international terrorism has,
now, emerged as a major concern for Customs Administrations which
includes potential threat of smuggling of nuclear and radioactive
materials, he added.
"This is a common threat to all countries including Pakistan which has
grave implication to security," Mr. Abdullah Yusuf said and added,
"Both, FBR and PNRA, recognize the need to formalize cooperation and
mutual assistance to meet the possible threat of smuggling of nuclear
and radioactive materials through Pakistan." As government department
that controls and administers the international movement of goods,
Pakistan Customs is in a unique position to contribute to the global
trade supply chain security besides socio-economic development in
Pakistan through revenue collection and trade facilitation. On the other
hand, Mr. Yusuf said, PNRA has the technical expertise to equip and
train Customs personnel for detection of radioactive and nuclear
materials. Therefore, by signing this MOU, FBR and PNRA shall achieve
cooperation to create an organizational framework which was needed to
effectively combat the nuclear terrorism threat, he added.
FBR Chairman was the opinion that this MOU shall enhance enforcement
capabilities of Pakistan Customs for preventing, detecting and
responding to illicit trafficking in nuclear and other radioactive
materials. It is intended to provide the framework to ensure that their
illicit trafficking is prevented. He informed that Pakistan Customs has
prepared an implementation plan including a Pilot Project for enforcing
provisions of this MOU. Pakistan Customs is committed to achieve the
objectives of this MOU as a national responsibility, the Chairman added.
Mr. Abdullah Yusuf assured that FBR shall undertake all necessary
measures to provide adequate training to Customs personnel through PNRA
for use of detection equipment so that all international entry and exit
points are fully monitored at the earliest. He was confident that the
MOU shall go a long way to bring security to this country and
international community.
PNRA Chairman, Mr. Jamshed Azim Hashmi, in his speech, said that both
FBR and PNRA will cooperate with each other to meet international
obligations to combat illicit trafficking of radioactive and nuclear
materials. He assured all support to FBR to make the borders secured.
The MOU, signed today, explains that the world today is facing a growing
international threat of illicit trafficking of radioactive and nuclear
materials which present a grave hazard to national and international
security. The Government of Pakistan recognizes its international
obligations to join global efforts to combat threat of illicit
trafficking of radioactive and nuclear materials.
Pakistan Customs is the primary enforcement agency at international
entry and exit stations including international airports, dry ports
among other Customs stations while PNRA is the national statutory
nuclear regulatory authority in Pakistan entrusted with the task to
regulate all aspects of application of ionizing radiations and nuclear
energy in Pakistan, Therefore, the two organizations have entered into
agreement for cooperation in joint measures for detection, and
subsequent management, of radioactive and nuclear materials at strategic
points. The necessary detection equipment has been procured by PNRA
which shall be handed over to Pakistan Customs after training of the
Customs personnel. This equipment shall be used by Pakistan Customs at
sea ports, dry ports, airports and at any other Customs station at
international border or for goods in transit or in transshipment or the
goods en route throughout territory of Pakistan.
Under this MOU, PNRA shall provide the Pakistan Customs training,
technical assistance and maintenance facilities for radiation detection
equipment and radiation protection, management of
radioactive/contaminated consignments while both shall cooperate to
manage radioactive sources/materials identified or seized/confiscated by
the Pakistan Customs.
It has been agreed that Pakistan Customs in association with PNRA shall
run a pilot project at Islamabad International Airport for comprehensive
enforcement model for Customs controls including monitoring/detection of
radioactive/nuclear materials. This model shall be applied to all other
international airports by the Pakistan Customs for effective and modern
enforcement controls after completion of the pilot project.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
10th June, 2008
|
FBR HELPLINE TIMINGS EXTENDED |
|
|
It has been decided that FBR Helpline
will remain open from 09.00 A.M. to 09.00 P.M. from 11th to 30th June,
2008 to facilitate the taxpayers regarding their queries about taxation
measures / changes in respect of Income Tax, Customs, Sales Tax and
Federal Excise proposed in the Federal Budget 2008- 2009.
Officers and staff will be available at FBR Helpline to answer queries
on budgetary measures immediately after the conclusion of Budget Speech.
Taxpayers can seek help and assistance at FBR’s Toll-Free Help line
number 0800-00 227 and 051-111-227-227. FBR’s website
www.fbr.gov.pk is also
accessible for free downloading of Budget 2008-2009 after the conclusion
of Budget Speech on 11th June 2008. |
|
|
- Signed-
(Khawar Khurshid Butt)
Member. FATE / Official Spokesman, FBR |
|
|
9th June, 2008 |
Explanatory notes for
SRO
522(1)/2008 dated 09-06-2008 |
|
|
This SRO has been issued to reduce the pressure from e-portal and also
to provide reasonable time to the taxpayers to file their Income Tax
withholding statements. Earlier to this there was a same date for
e-filing of monthly return of Sales tax as well as Income Tax
Withholding statement and it used to slow down the whole process on
e-portal on the last dates. There through SRO No.353 dated 03-04-2008,
the last date of filing of withholding statement was changed to 10th of
each month. But it created problem for the taxpayers as the time
available to file their Income Tax withholding statement was too short.
Hence the present SRO has now prescribed the new date for filing
withholding statement for Income Tax as 20th of each month. The change
in date of Income Tax withholding statement will ease the pressure on
e-portal facilitating the taxpayer. |
|
|
-Sd-
Usman Khalid Mirza
Member (Direct Taxes) |
|
|
2nd June, 2008 |
SUBJECT: FBR HAS SURPASSED THE REVENUE TARGET SET FOR MAY 2008. |
|
|
FBR has surpassed the revenue target of
Rs. 84.8 billion assigned for May 2008.
2. The provisional tax collection for May 2008 has achieved an
overall growth of 30.3%. The net collection during May 2008 has been Rs.
86 billion against Rs. 66 billion during May 2007. The revenue on
account of direct taxes has risen from Rs. 20 billion last May to Rs.
24.1 billion in May 2008 reflecting a growth of 20.3%. The sales tax
collection has jumped to Rs. 38.5 billion as against Rs. 27.4 billion of
last May showing a growth of 40.3%. While sales tax on import stage has
increased by 16.8%, the increase in the domestic component is 76%. The
collection of federal excise duties has increased by 15.9%, increasing
from Rs. 7.3 billion to Rs. 8.5 billion. Finally, a healthy growth of
33.3% has been recorded in the collection of customs duties where the
net receipts have reached Rs. 14.9 billion against Rs. 11.2 billion of
last May.
3. The July – May collection of FBR now stands at Rs. 849.6
billion as against Rs. 722.5 billion of corresponding period of last
year showing an overall growth of 17.6%.
4. The provisional figures for the month of May are expected to
increase further during the next few days. |
|
|
-Sd-
(Khawar Khurshid Butt)
Member (FATE)
Official Spokesman of Federal Board of Revenue
Dated: 02-06-2008 |
|
|
2nd June, 2008 |
FBR PROMOTES 111 CUSOTMS OFFICIALS AS DY. SUPERINTENDENT |
|
|
|
|
|
Federal Board of revenue has approved the promotion of 111 Customs
Inspectors/Stenotypists, working in BS 11/12, as Dy. Superintendent
(BS-14).
A meeting held under the chairmanship of Member (Admn), Maj.Gen. (Retd.)
Muhammad Yasin has given final approval to the recommendations of the
Department Promotion Committee (DPC) which met earlier in this regard.
The DPC was presided over by the Collector, Sales Tax, Lahore.
Earlier, FBR had promoted 63 Income Tax Inspectors as Income Tax
Officers, about a month back. |
|
|
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
17th MAY, 2008 |
EXTENSION IN DUE DATE FOR ELECTRONIC FILING OF SALES TAX-CUM-FEDERAL
EXCISE RETURN FOR THE TAX PERIOD APRIL 2008 BY PERSONS REGISTERED IN LTU,
Karachi. |
|
|
The taxpayers registered with Large Taxpayers Unit,
Karachi, are now required to file returns through FBR’s e-portal and the
previous system of filing returns through Banxis has been discontinued.
Because of difficulties anticipated in transition from e-filing on
Banxis to e-filing on FBR’s e-portal, the Federal Board of Revenue,
through ST Circular 03/2008 has extended the due date for electronic
filing of sales tax-cum-federal excise return and invoice summary
statements for the tax period April 2008 from 15th May to 20th
May, 2008, for registered persons falling in the jurisdiction of Large
Taxpayers Unit, Karachi. |
|
|
-Sd-
(Hameed Memon)
Secretary
ST-L&P FBR |
|
|
11th MAY, 2008 |
New device more efficient Tax Management System Renamed as ‘Mahassal’
(BUSINESS RECORDER DATED 11th MAY, 2008) |
|
|
|
|
|
ISLAMABAD: The Federal Board of Revenue (FBR)
has renamed the ‘Tax Management System’ (TMS) as ‘Mahassal’ for speedy
implementation of a homegrown system covering all income tax-related
functions, including returns analysis, assessment and verification
processes.
Sources told Business Recorder on Saturday that if the ‘Mahassal’ system
failed in proper computerization of direct taxes, the whole project of
automation and integration of taxes would suffer a serious set-back
under the reforms.
The ‘Mahassal’ team, headed by Project Director Ranna Ahmed, recently
met FBR Chairman Abdullah Yusuf to give a demonstration on the new
system.
There were some misunderstandings between the ‘Mahassal’ development
team from Lahore and tax officials at the FBR. However, the FBR Member,
Taxpayer Education and Facilitation, Khawar Khurshid Butt, took the
initiative for bridging the communication gap between the ‘Mahassal’
team and the FBR officials.
During 5-6 hours presentation, it was decided that the ‘Mahassal’ would
be made part of the reform process to declare it as a key initiative for
direct taxes automation. The FBR agreed to declare ‘Mahassal’ as a
project under the reform agenda.
The project would be an end-to-end solution to all direct taxes related
operations and maintenance of tax records. The project would cover
documentation of income tax returns, calculation of taxes, raising
demands, issuance of computerized notices, appeal system, taxpayer
ledger and balance system and other operations of direct taxes side.
The original project i.e. TMS was not functioning properly due to lack
of facilities and support to the ‘Mahassal’ team in Lahore. Practically,
the TMS was not functioning error-free for the last few months. This
prompted the team to revamp the entire system under a new name i.e.
‘Mahassal’ by applying new methodology with the help of FBR.
Moreover, the Pakistan Revenue Automation Limited (PRAL) wanted to
maintain its monopoly by installation of computerized system through its
own experts.
On the other hand, project development team informed the FBR that the
software would be almost free of cost as compared to expensive computer
systems being purchased from advance countries.
Sources said that the ‘Mahassal’ team is working at Lahore without any
proper support or funding creating problems for implementation of the
project. As a pilot project, the ‘Mahassal’ is being tested at the Large
Taxpayers Unit (LTU), Lahore, for processing of income tax data of
around 224 top business entities.
When the testing is successful, the system would be replicated at other
LTUs and reformed units across the country.
To accomplish the task, the FBR Chairman has directed the concerned
departments to provide necessary accommodation, resources, computer
servers and infrastructure to the ‘Mahassal’ development team in Lahore.
Sources said that the project team requested the FBR Chairman to develop
a new web-based E-portal for directly collecting data of income tax
returns under the ‘Mahassal’. The team has found that the existing
income tax returns information on E-portal is not error-free, which
pointed towards developing a new web-based system.
However, the representatives of PRAL argued why a separate E-portal was
required in the presence of an E-portal already collecting income tax
returns. The FBR Chairman directed the foreign consultant to provide
necessary information of both E-portals to the experts. It would be
decided whether ‘Mahassal’ proposed E-portal is better or not.
The project director demanded filing of returns electronically through
their proposed E-portal on experimental basis. This would allow the
‘Mahassal’ to directly upload the income tax returns on the system for
further analysis. Presently, taxpayers are still facing problems in
filing returns, electronically through the existing E-portal.
Sources said that the apprehensions of the project team were removed and
the system would be given due attention of the board for its
implementation countrywide.
FBR Chairman also directed the project team to ensure cleaning of income
tax data which is necessary for implementation of any integrated system. |
|
|
10th May, 2008 |
VISUAL/PICTORIAL COVERAGE OF PRE-BUDGET SEMINAR
|
|
|
Federal Board of Revenue, in collaboration with Federation of Pakistan
Chambers of Commerce & Industry, is organising a Pre-Budget Seminar at
National Library Auditorium (behind PM Secretariat), Islamabad on 12th
May, 2008 (Monday) at 10.30 a.m.
Federal Minister for Finance, Revenue, Economic Affairs & Statistics Mr.
Muhammad Ishaq Dar will be the Chief Guest while Chairman, FBR, Mr. M.
Abdullah Yusuf will preside the Seminar.
All accredited Economic Correspondents, TV channels & Press
Photographers are cordially invited to cover the Seminar.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
7th May, 2008 |
FBR
ARRANGES PRE-BUDGET SEMINAR ON 12TH MAY
|
|
|
Federal Board of Revenue, in collaboration with Federation of Pakistan
Chambers of Commerce & Industy, is organising a Pre-Budget Seminar on
12th May, 2008 here at National Library Auditorium.
Federal Minister for Finance, Revenue, Economic Affairs & Statistics,
Mr. Muhammad Ishaq Dar will be the Chief Guest. Secretary General,
Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah
Yusuf will preside over the Seminar.
Seminar will be held two sessions. Inaugural Session will be addressed
by the Chief Guest, Mr. Muhammad Ishaq Dar. Besides, President, FPCC&I,
Mr. Tanvir Ahmed Sheikh and President, SAARC Chamber of Commerce &
Industry, Mr. Tariq Saeed will also address the participants in the same
session. Earlier, FBR Chairman Mr. M. Abdullah Yusuf, in his address of
welcome, will outline the objectives of holding the Pre-Budget Seminar.
In working Session of the Seminar, representatives of industry & trade
will present their budget proposals. Member (FR&S), FBR, Dr. Ather
Maqsood, will also give his presentation. Secretary General, Revenue
Division/Chairman, FBR, Mr. M. Abdullah Yusuf, will conclude the Seminar
by his address to the participants.
Prominent businessmen, traders and industrialists across the country
office-bearers and members of the FPCC&I and other chambers, high
ranking officials and senior tax mangers are expected to largely attend
the Seminar.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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7th May, 2008 |
Explanatory Notes for SRO
410(I)/2008 |
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To implement the ECC decision regarding revision of salaries of Airport
security force (ASF), The proposed rates have been incorporated in FED
rates on Air Travel vide SRO
410(I)/2008 dated 29th April, 2008. |
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-sd-
Mehmood Alam
Additional Secretary |
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2nd May, 2008 |
Explanatory Notes for SRO
406(I)/2008 |
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The import and supply of CKD kits of single cylinder agriculture diesel
engines of 3 to 36 HP are exempt from sales tax. In order to exempt the
supply of finished product i.e. single cylinder agricultural diesel
engines (3 to 36 HP) this notification has been issued so that the same
is available to farmers on competitive prices. This step would
facilitate the farmers who use agricultural diesel engines for farming
activities. |
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-sd-
Mehmood Alam
Additional Secretary |
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30th April, 2008 |
FBR HAS SURPASSED THE REVENUE TARGET SET FOR APRIL 2008. |
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1. FBR has surpassed the revenue target of Rs. 74.3 billion
assigned for April 2008.
2. The provisional tax collection for April 2008 has achieved an
overall growth of 26.2%. The net collection during April 2008 has been
Rs. 75.1 billion against Rs. 59.5 billion during April 2007. The revenue
on account of direct taxes has risen sharply from Rs. 15.1 billion last
April to Rs. 23.8 billion in April 2008 reflecting a growth of 57.7%.
The sales tax collection has jumped to Rs. 31.4 billion as against Rs.
27 billion of last April showing a growth of 16.5%. While sales tax on
import stage has decreased by 7.6% due to zero-rating of crude oil, the
increase in the domestic component is 48.6%. The collection of federal
excise duties has increased by 10.1%, increasing from Rs. 7 billion to
Rs. 7.7 billion. Finally, a healthy growth of 16.8% has been recorded in
the collection of customs duties where the net receipts have reached Rs.
12.2 billion against Rs. 10.4 billion of last April.
3. The July – April collection of FBR now stands at Rs. 755
billion as against Rs. 656.5 billion of corresponding period of last
year showing a growth of 15%.
4. The provisional figures of April are expected to increase
further during the next few days.
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-Sd-
( Khawar Khurshid Butt )
Member (FATE)
Official Spokesman of
Federal Board of Revenue |
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30th April, 2008 |
SRO 408(I)/2008 EXPLAINED |
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SRO 408(I)/2008 dated 29.04.2008 amends the Chapter X of Sales Tax
Special Procedures Rules, 2007, which prescribes the procedure for
payment of sales tax by steel melters and re-rollers. This chapter
requires that sales tax from steel melters and re-rollers shall be
collected on the basis of electricity consumption at Rs. 4.75/ KWH.
However, Pakistan Steel Mills and Peoples Steel Mills have been excluded
from purview of payment on the basis of electricity consumption and have
to pay sales tax in normal VAT mode. Similar exclusion was requested by
M/s. Heavy Mechanical Complex (HMC) who also intend to supply ingots and
billets besides other products manufactured by them.
Since, the tax at Rs. 4.75/KWH is meant for units exclusively
manufacturing ingots, billets and other long re-rolled products,
therefore, SRO 408(I)/2008 amends the rules to provide similar exclusion
for HMC as is available to Pakistan Steel Mills and Peoples Steel Mills.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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29th April, 2008 |
63 INSPECTORS PROMOTED AS INCOME TAX OFFICERS |
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Federal Board of Revenue today
approved the promotion of 63 Inspectors of Income Tax Department from
BS-11 & 14 to BS-16 as Income Tax Officers.
The approval was given at a meeting of the Departmental Promotion
Committee held under the chairmanship of the Member (Admn) of FBR, Maj.
Gen. (Retd.) Muhammad Yasin.
This is after a long time that such a huge number of Inspectors have
been promoted as Income Tax Officers. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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25th April, 2008
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ABDULLAH YUSUF URGES TAX MANAGERS TO GEAR UP EFFORTS TO MAXIMIZE
REVENUE GENERATION RS. 257.6 BILLION DIRECT TAXES COLLECTED IN 9 MONTHS |
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Secretary General, Revenue Division & Chairman, Federal Board of
Revenue, Mr. M. Abdullah Yusuf has called upon the tax managers to gear
up their efforts to maximise revenue generation.
He was addressing the Directors General of Regional Tax Offices & Large
Taxpayers Units, Commissioners of Income Tax & Commissioners (Appeals)
at 17th National Tax Conference, held here today under the auspices of
FBR.
Mr. Abdullah Yusuf identified various grey areas from which the full
revenue potential is yet to be tapped. He also underlined the need of
plugging the revenue leakages to improve direct taxes collection.
Earlier, Member (Direct Taxes), Mr. Usman Khalid Mirza, in his
presentation, briefed the Conference about the overall performance of
the Wing and its field formations. Collection upto March 08 was Rs.
257.6 billion as against Rs. 237.8 billion in the corresponding period
of last year.
While discussing the performance, the Member (DT) pointed out the gaps
in various areas. He stressed upon bridging these gaps. He exhorted the
tax officers to pay attention on monitoring of withholding taxes,
Creation and Collection out of Demand and other avenues to enhance
revenue collection.
The Conference, during its deliberations, discussed and took decisions
on strategy for achieving the revenue targets, disposal of pending
refunds claims, recovery of arrears and the issue of tax exemptions.
Conference also reviewed the progress in data entry of returns and
annual employer’s statements and deliberated on achievements of targets
in remaining period of the current financial year.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR |
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26th April, 2008 |
Explanatory Notes for the
SRO 371(I)/2008 |
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Some amendments have been made in Federal Excise Rules, 2005 vide
SRO (I)/2008 dated 14th April, 2008 to incorporate the provision of
debit credit notes and harmonize return filing with that of sales tax
return omitting special FED returns. |
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-Sd-
Rizwan Salabat
Second Secretary Tariff
(ST 7 FE) |
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25th April, 2008 |
PRESS RELEASE |
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The sales of automobile industry (Local
Car Manufacturers) had gone down considerably in the beginning of this
year due to the power and political crises in the country and the
exchequer was suffering huge losses on account of customs duty and sales
tax. In order to safeguard, the revenue, the withholding tax @ 2.5%
under section 231B (Advance and Adjustable) collected by the
manufacturers or authorized dealers of motor car at the time of sale of
motor car was suspended, initially for a period of two months i.e.
February 21 to April 20, 2008. This temporary suspension of withholding
tax gave good results in the shape of increase in sales of cars and
consequently the Government revenue on account of collection of sales
tax and customs duty also increased in March 2008 as compared to
February 2008.
In view of increase in collection of customs duty and sales tax, the
Government decided to extend the period of suspension of collection of
advance withholding tax @ 2.5% collectable from the buyers of local
motor cars upto June 30, 2008 through Notification S.R.O. No.
383(1)/2008 dated April 21, 2008. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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24th April, 2008 |
LOCAL MANUFACTURE OF AGRICULTURAL DIESEL ENGINES (SINGLE CYLINDER OF
3-36HP) |
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The Agricultural Diesel Engines
Manufacturers Group requested the Federal Board Revenue to enhance the
existing range of Agriculture Diesel Engines (Single Cylinder) from
“12-32 HP” to “3-36 HP” in terms of serial number 94 of SRO 565(1)/2006
dated 05.6.2006 on the basis that Single Cylinder Diesel Engines of 3HP
to 36HP has been declared as manufactured locally vide CGO No. 18/2007
dated 29.12.2007.
The request was examined in consultation with the Ministry of Food,
Agricultural and Live Stocks (MINFAL) and the Engineering Development
Board (EDB). A consensus was evolved to accede the request of the
Agricultural Diesel Engines Manufactures Group and thereby to allow the
import of CKD Kits of Agriculture Diesel Engines (Single Cylinder 3-36
HP) at 10% concessionary rate of duty.
Accordingly, a notification SRO 384(1)/2008 dated 21st April, 2008
(Annex-I) has been issued enhancing the existing range of CKD Kits of
Agriculture Diesel Engines (Single Cylinder) from 12-32 HP to 3-36 HP
under SRO 565(1)/2006 dated 05.6.2006. Thereby, the CKD Kits will be
importable at 10% concessionary rate of duty for manufacture of said
engines. The notification dated 21st April, 2008 is effective from 29th
December, 2007 i.e., the date on which the CGO No. 18/2007 had been
issued. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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|
24th April, 2008 |
E-FILING OF SALES TAX RETURNS MANDATORY FROM 1ST JULY |
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Quarterly Conference of Collectors of
Sales Tax & Federal Excise & Collectors (Appeals), held here today under
the chairmanship of the Secretary General, Revenue Division & Chairman,
Federal Board of Revenue, Mr. M. Abdullah Yusuf, has decided to make
e-filing of sales tax returns mandatory from 1st July, 2008.
During the Conference, it was informed that total sales tax collection
in first nine month of current financial year (July-March) was Rs. 258.4
billion as compared to Rs. 218.4 bn in the corresponding period of the
last financial year, showing an increase of Rs. 40 billion.
Major sectors which have shown positive growth as compared to last year
were Telecom (24.6%), POL (48.9%), Natural Gas (4.3%), Sugar (1.3%),
Cigarettes (18.4%), Services (20.3%), Aerated Waters/Concentrate of
beverages (24.9%), Iron & Steel (112.2%) etc.
In federal excise, the total collection from July 2007 to March, 2008 (9
month) was Rs. 61.8 billion as compared to Rs.47.72 billion in the same
period last year, indicating an increase of Rs. 14.08 billion. Major
revenue spinners showing positive growth were Cigarettes (18.94%),
Natural Gas (8%), Services (252%) etc.
Speaking on the occasion, the Chairman called upon the Collectors to
intensify their efforts to enhance revenue collection. In this regard,
he emphasised on conducting sectoral research to identify the gap
between the revenue potential existing in various sectors of the country
and the taxes they were actually paying. We have to narrow down this gap
to enhance the sales tax and federal excise collection. To achieve this
objective, we need to implement a comprehensive strategy, he added.
Talking on the issue of sales tax refund claims, the Chairman stressed
the need of removing all the bottlenecks confronting the system to deal
with the issue in an effective manner. “We must know what is actually to
be paid”, he remarked.
He, however, underlined the need of clearly identifying the level & type
of the refund problem. All genuine refund claims must be cleared after
due verification by the system and all efforts must be directed towards
narrowing down the issue, Mr. Yusuf emphasised.
Commenting on automation systems, currently operating in various FBR
offices, the Chairman emphasised that all these systems must be
effective, reliable and productive and give the desired results.
“Incompleteness of the automated systems creates problems”, Mr. Abdullah
Yusuf observed.
Revenue impact of new budgetary measures, taken in the last budget, was
also reviewed during the Conference and termed it satisfactory. Budget
proposals for the year 2008-09, measures for expeditious feeding of
sales tax returns, recovery of arrears, audit performance of
collectorates adjudication pendency etc. also came under discussion and
necessary decisions were taken. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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24nd April, 2008 |
RTO KARACHI SHOWS ENCOURAGING FIGURES UP TO MARCH, 2008 |
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The Regional Tax Office, Karachi has
shown a remarkable performance as evidenced by the achievement of
revenue targets up to the month of March, 2008. Collection out of
current and arrear demand stands at Rs. 2126.859m as against Rs.
1202.463 m last year showing a 77% increase as against the collection up
to march last year whereas collection of tax at source has also
registered a 24% increase as compared to last year with the latest
figures at Rs. 55596.061 m. Net Income Tax collection shows an
encouraging 19% rise at Rs. 60111.211 m as opposed to last year figures
for the month of March at Rs. 50531.917 m. On the whole the total
collection including all heads plus CVT and WWF is also in the positive
range depicting 17% increase compared to the previous year. The short
fall being face under the heads of voluntary compliance i-e: Advance Tax
and Payment with returns is being covered with a 5.631b amount to be
remitted by the customs authorities under the head “Imports” during the
third quarter. |
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-Sd-
Shazia Abid
DCIT/TO
RTO, Karachi
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22nd April, 2008 |
GEN. YASIN APPOINTED CHIEF CO-ORDINATOR FOR REVENUE BUDGET 2008 |
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Federal Board of Revenue has appointed
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