|
|
Federal Board of Revenue-News Room
|
|
|
|
View Media Coverage |
View Archived News |
|
|
September 30, 2008 |
FBR extends date for filing IT returns up to October 31 |
|
|
Federal Board of Revenue (FBR) has extended the last date for filing of
income tax returns up to October 31 to facilitate the taxpayers.
The one-month extension has been granted following representations
received by the FBR from various chambers of commerce & industry, tax
bar associations, trade bodies, advocates/income tax practitioners and
taxpayers seeking extension of time for filing their IT returns due to
constraints faced because of the holy month of Ramazan, Aitkaf,
performance of Umrah and the temporary disruption suffered by the
e-filing process. The extension would help individuals, associations of
persons and the corporate sector to file their returns with convenience
and ease.
Meanwhile, the FBR has also extended the due date up to October 31, 2008
for availing of ‘Tax Arrears Settlement Scheme 2008’ (TASIS) introduced
earlier vide Circular No.4 of 2008. Under the scheme, individuals,
associations of persons and companies against whom tax arrears including
additional tax and penalties are outstanding, can settle their
outstanding amount of income tax on payment of principal amount only. No
additional tax, penalty or fine would be levied in cases where returns
are filed in the extended periods.
In another decision, the FBR has also extended up to October 10, 2008
the due date for submission of sales tax and federal excise return and
special return for production and supplies, for the tax period August,
2008, and annual sales tax return for the period 2007-08. The board,
however, made it clear the payment of taxes for August 2008 had to be
made by September 20 as already announced and no further extension would
be given to those yet to deposit their taxes.
|
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary PR
051-9208407/0346-5023333 |
|
|
September 30, 2008 |
EXTENSION IN DUE DATE FOR FILING OF SALES TAX AND FEDERAL EXCISE
RETURN, ANNUAL SALES TAX RETURN AND SPECIAL RETURN FOR PRODUCTION AND
SUPPLIES. |
|
|
Keeping in view the shut down of FBR’s
e-portal for six days due to bomb blast in Marriott Hotel and because of
approaching Eid holidays, the Federal Board of Revenue is pleased to
extend the due date for submission of Sales Tax and Federal Excise
Return (STR-7) and Special Return for Production and Supplies, for the
tax period August, 2008, and Annual Sales Tax Return for the period
2007-08, up to 10th October, 2008.
The last date for payment of due taxes for August 2008 shall remain
unchanged at 20th September, 2008, as already extended vide Sales Tax
Circular no. 09/2008 dated 15.09.2008.
|
|
|
(Abdul Hameed Memon)
Secretary (ST&FE-L&P)
|
|
|
September 29, 2008 |
FBR sets up 10 tax facilitation kiosks in capital
|
|
|
Federal Board of Revenue (FBR) has set up 10 tax facilitation centres in
the capital to facilitate taxpayers seeking to file their income tax
returns.
The facilitation centres have been set up by Regional Tax Office
Islamabad in line with the FBR’s revenue strategy of reforms with
special focus on taxpayer facilitation. The centres are spread over
the entire capital territory and are situated within the vicinity of
business and commercial centres in ten major sectors which include F-6
near Shaheen Homeo, F-7 near Book Fair Jinnah Super, F-8 near Dainty’s
Restaurant, F-10 near Saeed Jewellers Main Double Road, G-6 near
National Bank, Melody Market, G-8 Markaz near Mundail Plaza, G-9 Markaz
near Bus Stand, G-10 near Saon and Bella Road Junction, I-9/3 Regional
Tax Office Plot 210, Street 6, and Blue Area near Rajgan Enterprises.
Senior IT officials have also been deputed for supplying and receiving
IT returns and other similar statements. In case of any inconvenience
and facilitation, Yasmin Yousuf, deputy commissioner Income Tax RTO
Islamabad, can also be contacted at 051-9257164.
|
|
|
|
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary Public Relations
051-9208407 / 0346 502 3333 |
|
|
27th September, 2008 |
FBR exempts ADB from taxes |
|
|
Federal Board of Revenue (FBR) has
exempted the Asian Development Bank (ADB) from payment of all taxes,
including payment and collection of withholding taxes, says an official
statement issued here Saturday.
It says the exemption was already being enjoyed by the ADB under a
proviso to section 54 of the Income Tax Ordinance, 2001. However, the
proviso was withdrawn following an amendment made through Finance Act,
2008, leaving no cushion or protection to the ADB income from levy of
taxes w.e.f. tax year, 2009 and onwards.
The ADP however took up the matter with the Ministry of Finance,
requesting for continuation of exemption to the bank as allowed earlier
on under Article 56 of the Asian Development Bank Ordinance, 1971, which
deals with the implementation of international agreements for
establishment and operation of the bank and protects the bank's income
from levy of all taxes, including payment and collection of withholding
taxes.
The FBR, therefore, has again allowed the exemption to the ADB by
amending the Second Schedule to the Income Tax Ordinance, 2001 and
adding new clauses vide SRO No. 1012(I)/2008 dated 23.09.2008 whereby
the ADB's income has been exempted from all taxes as "under the Asian
Development Bank Ordinance, 1971 (IX of 1971)". |
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary (PR) |
|
|
26th September, 2008 |
FBR extends date for submission of ST, FE returns by 5 days |
|
|
Federal Board of Revenue (FBR) has
further extended the due date for the submission of sales tax and
federal excise return and special sales tax return for production and
supplies for the tax period August 2008, up to September 30.
The decision to extend the due date which was previously set for
September 25, has been taken due to the technical disruption the FBR's
web portal suffered following the Marriott hotel blast. The bomb
explosion at the hostel left the board's web portal inoperative for six
days, leading to problems for the already registered persons to e-file
their sales tax and federal excise returns for the tax period August,
2008.
The board, however, made it clear the payment of taxes for August 2008
had to be made by September 20 as already announced and no further
extension would be given to those yet to deposit their taxes. Similarly,
the board would not change September 30 being the last date for the
submission of annual sales tax return by the corporate sector. |
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary (PR) |
|
|
26th September, 2008 |
FBR modifies IT rules to facilitate salaried taxpayers |
|
|
Federal Board of Revenue (FBR) has
modified the Income Tax rules to judge taxability and seek more
information about the salaried taxpayers.
Under the
SRO No. 997(1)/2008 issued by the board, the annual statement of
deduction of income tax from salary to be submitted by the employer as
specified under Part IX, of the Second Schedule to the income Tax Rules,
2002 has been substituted.
As per new format more information regarding the employee is sought for
record of the Tax department in view of the fact that wherever
employer's annual statement is filed, employees having no other source
of income are not required to file their return of income. The new
format also caters to the change in law regarding taxability of salary
income for the facility of the employers.
In another
SRO No. 998(1)/2008 issued by the FBR, monthly statement of
deduction of income tax at source to be filed by the withholding agents
in accordance with provisions of section 165(2) as specified in Part X
of the Second Schedule to the Income Tax Rules, 2002 has been
substituted.
As per new format specified information regarding the nature of payments
and taxability of the translations is sought in accordance with change
in law and for better monitoring/ analysis of taxes withheld. The
changes in the IT rules have been made with a view to facilitating the
taxpayers regarding verification/credit of tax withheld.
|
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary (PR) |
|
|
24th September, 2008 |
FBR sets up 9 tax facilitation centres in capital |
|
|
Federal Board of Revenue (FBR) has set up
nine tax facilitation centres in the capital to facilitate taxpayers
seeking to file their income tax returns before the September 30
deadline.
The facilitation centres have been set up by Regional Tax Office
Islamabad in line with the FBR's revenue strategy of reforms with
special focus on taxpayer facilitation. The centres are spread over the
entire capital territory and are situated within the vicinity of
business and commercial centres in nine major sectors which include F-6,
F-7, F-8, F-10, G-6, G-8, G-9, G-10 and Blue Area. Senior IT officials
have also been deputed for supplying and receiving IT returns and other
similar statements. |
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary (PR) |
|
|
23rd September, 2008 |
FBR clarifies news item on duty drawback |
|
|
Federal Board of Revenue (FBR) has
clarified a news item published in a section of the press, regarding
calculation of duty drawback rates.
In an official statement, the board terms as misleading the news item
which says: "The exchange rate of dollar against the rupee has not very
much impact for payment of duty drawback on the basis of FOB value.
Contrary to this, exporters have to suffer losses for claiming rebate
and duty drawback on the basis of export goods quantity calculated in
kilograms. The working of duty drawback in kgs on the old exchange rate
has negative implications for the export sectors."
The Federal Board of Revenue clarifies that in most of items the duty
drawback is allowed on the basis of FOB value whereas the number of
items on which duty drawback is allowed on the basis of specific rate is
quite small. Therefore, impact of parity rates is insignificant on items
where FOB value is the criteria.
For revision of duty drawback rates the criteria is laid down in the
Customs Rules. According to relevant rules, such revision should be
completed by the 30th January for preceding year, the exercise for
revision of the rates is in hand by IOCO and the revised rates would be
finalised by the due date. |
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary (PR) |
|
|
16th September, 2008 |
FBR extends date for filing of sales tax, federal excise duty |
|
|
The Federal Board of Revenue (FBR) has
extended the date for payment of sales tax and federal excise duty,
including special excise duty, for the tax period August 2008, up to
September 20, 2008.
The board has further extended the due date for submission of sales tax
and federal excise return for the said tax period up to September 25,
2008. The extension has been granted keeping in view the recent
introduction of mandatory electronic filing of sales tax and federal
excise returns and to facilitate taxpayers to familiarise themselves
with the new system. |
|
|
-Sd-
(Hamid Raza Wattoo)
Secretary (PR) |
|
|
13th September, 2008 |
Explanatory Notes of SRO 946(I)/2008 |
|
|
The Federal Government has issued a
notification
SRO 946(I)/2008 dated 04.09.2008 whereby regulatory duty equivalent
to the Price Differential Claims (PDC), in Rupees per litre, of High
Speed Diesel (HSD) and Superior Kerosene Oil (SKO) as notified by the
Ministry of Petroleum & Natural Resources, plus 1% of prevalent consumer
price to cover for foreign exchange loss, shall be levied on export of
HSD and SKO to Afghanistan as per rates given in the following Table:- |
|
|
|
Description |
HSD(Rs/Litre) |
SKO (Rs/Litre) |
|
PDC on HSD with effect from 01.09.2008 |
13.62 |
16.73 |
|
1% coverage for exchange loss on consumer price effective
01.09.2008 |
0.65 |
0.58 |
|
Total: |
14.27 |
17.31 |
|
|
|
2. The rates given the table
shall remain inforce till an amendment is made by the Ministry of
Petroleum and Natural resources on the basis of their calculations. |
|
|
3.The exports of HSD & SKO made to
Afghanistan shall be contingent upon strict adherence to the procedure,
terms and conditions laid down in the Export Policy Order. |
|
|
-Sd-
(Khalid Mahmood)
Secretary (Export Policy) |
|
|
2nd September, 2008 |
FBR EXTENDS LAST DATE FOR FILING ANNUAL WHT STATEMENT UP TO 5TH
SEPTEMBER |
|
|
Tax Bar Associations and taxpayers
have requested for extension in last date for filing of annual
withholding tax statement due on 31st August, 2008 on account of their
pre-occupation with e-filing of sales tax returns.
The request has been considered by the Federal Board of Revenue and it
has been decided to facilitate the taxpayers. Accordingly, the last date
for filing of annual withholding tax statements is extended up to 5th
September, 2008, with no penal action.
All withholding tax agents are requested to ensure filing of their
annual withholding tax statements by the extended date i.e. 5th
September, 2008. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
30th August, 2008 |
FBR SURPASSES JULY-AUGUST REVENUE COLLECTION TARGET |
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
30th August, 2008 |
SALES TAX AND FEDERAL EXCISE RETURNS FILING DATE EXTENDED UP TO 5TH
SEPTEMBER 2008 |
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
29th August, 2008 |
EXPLANATORY NOTES FOR SRO 895(1)/2008 |
|
|
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).
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
28th August, 2008 |
IMPORT OF MINERAL OIL FOR AGRICULTURE EXEMPTS FROM 5% CUSTOMS DUTY
|
|
|
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. |
|
|
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
28th August, 2008 |
EXPLANATORY NOTES FOR SROs 894 & 897 (I)/2008 |
|
|
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.
|
|
|
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
25th August, 2008 |
UNIVERSAL e-FILING OF SALES TAX RETURNS: FBR
APPRECIATES EXCELLENT RESPONSE OF TAXPAYERS. |
|
|
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.
|
|
|
|
|
|
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
25th August, 2008 |
EXTENSION IN DUE DATE FOR FILING OF SALES TAX AND FEDERAL EXCISE
RETURN BY THE REGISTERED PERSONS. |
|
|
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.
|
|
|
-Sd-
(Abdul Hameed Memon)
Secretary (ST&FE-L&P) |
|
|
22nd August, 2008 |
EXPLANATORY NOTES FOR SRO
840(I)/2008 |
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
22nd August, 2008 |
EXPLANATORY NOTES FOR SRO
862(I)/2008 |
|
|
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. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
22nd August, 2008 |
EXPLANATORY NOTES FOR SRO
863(I)/2008 |
|
|
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. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
20th August, 2008 |
IMMOVABLE PROPERTY RATES: CHIEF SECRETARIES ASKED TO EXPEDITE REVIEW
OF EXISTING VALUES |
|
|
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. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
18th August, 2008 |
5% CUSTOMS DUTY ON IMPORT OF MINERAL OIL FOR AGRICULTURE WITHDRAWN |
|
|
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. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
18th August, 2008 |
TAX OFFICIALS ENLIGHTENED ON TAX TREATMENT OF ISLAMIC FINANCIAL
INSTRUMENTS |
|
|
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. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
16th August, 2008 |
Explanatory notes for Sales Tax / Federal Excise Circular No. 5 of
2008 |
|
|
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.
|
|
|
(AFTAB AHMAD BHATTI)
Second Secretary (STM) |
|
|
13th August, 2008 |
FBR CHAIRMAN EMPHAISES CLEARANCE OF
PENDING REFUND CASES ON PRIORITY BASIS
|
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
12th August, 2008 |
SALES TAX RETURNS FILING DATE EXTENDED |
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
11th August, 2008 |
WORKSHOP ON E-FILING OF RETURNS TO BE HELD IN GUJRAT TOMORROW |
|
|
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.
|
|
|
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
9th August, 2008 |
WORKSHOP ON MANDATORY UNIVERSAL E-FILING OF RETURNS BY CORPORATE
SECTOR |
|
|
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.
|
|
|
-Sd-
(Mujeeb-ur-Rehman Talpur)
Second Secretary (PR) |
|
|
8th August, 2008 |
EXPLANATORY NOTE FOR CIRCULAR NO. 3 OF 2008 |
|
|
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. |
|
|
-Sd-
(Muhammad Irshad)
Chief (FATE) FBR.
|
|
|
6th August, 2008 |
EXPLANATORY NOTE FOR
SRO 815(1)/2008 DATED
01-08-2008 |
|
|
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.
|
|
|
Sd-
(Khawar Khurshid Butt)
Member FATE / Official Spokesman, FBR |
|
|
6th August, 2008 |
EXPLANATORY NOTE FOR
SRO 814(1)/2008 DATED 31-07-2008 |
|
|
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. |
|
|
Sd-
(Khawar Khurshid Butt)
Member FATE / Official Spokesman, FBR |
|
|
1st August, 2008 |
FBR has successfully surpassed the revenue target of Rs.64.4 billion
by Rs. 1.6 billion during July, 2008. |
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
26th July, 2008 |
FBR CHAIRMAN CALLS FOR IMPROVING TAX-TO-GDP RATIO
|
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
25th July, 2008 |
EXPLANATORY NOTE OF SRO. 767(1)/2008 |
|
|
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.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
12th July, 2008 |
ABDULLAH YUSUF CALLS FOR EFFICIENT USE OF TECHNOLOGY FOR MORE REVENUE
GENERATION, ENHANCING TAX-TO-GDP RATIO |
|
|
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) |
|
|
|
|