Federal Board of Revenue-Press Releases

(FATE Wing-FBR)

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Ms. Riffat Shaheen Qazi, a BS-21 officer, has assumed charge of the office of Member Facilitation and Taxpayer Education (FATE) in the FBR Headquarters.

Ms. Qazi, a senior officer of Income Tax Group from the 7th Common, has already served in various key positions serving across the country in her illustrious career spanning over 31 years. Her last posting was in the Regional Tax Office Rawalpindi where she led a series of tax recovery drives as the Chief Commissioner Inland Revenue Service.

Ms. Qazi brings with her a rich professional and academic experience. She holds a Master’s degree and an MPhil in Economics from the University of Peshawar. Later she completed Masters in Business Administration from John F. Kennedy University USA. Her last academic pursuit was at the prestigious Harvard University, where she attended an extensive Senior Executive Management training course.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Chairman Mr. Sohail Ahmad has called for concerted efforts to improve the collection of revenue.

“Meeting the revenue collection target is a huge responsibility and we must pool and use all our resources to meet this challenge,” he said in his address to a seminar organised by the HRM Wing of the FBR on ‘IP framework for effective business processes’ here in the capital.

The Chairman emphasized the importance of IP and its contribution towards the performance of various FBR wings such as audit and enforcement. He announced similar seminars would be held in the coming days to gather feedback and break the disconnect between the Headquarters and the Field Formations.

The seminar attended by the concerned FBR Members, all Chief Commissioners from the Field Formations as well as Commissioners IP, DG (IMS), CEO (PRAL) and GM (PRAL) discussed a broad range of issues related with IP to identify a clear roadmap for better cross verification of information and broadening of tax base in the wake of functional and structural integration of domestic taxes within the FBR.

CEO PRAL, DG (IMS) and Member Sales Tax and Federal Excise also briefed the participants about the ongoing activities in the field and the actions required to be performed. The participants proposed removal of dormant NTNs, integration of all applications of Sales Tax and Income Tax, more training in Mahasil, STARR & their different modules as well as specific software
relevant to job descriptions.

At the end, the DG (HRM) thanked the participants for their valuable input and suggestions and assured that these suggestions would be sent to the concerned authorities for devising the future strategy.

 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Saturday denied the government was considering increasing Withholding Tax on electricity bills of commercial consumers by 100 per cent as reported in a section of the press.

A spokesman of the FBR has clarified that the government after looking at the revenue collection performance of Federal Board of Revenue during the second quarter (Oct-Dec 2009) has decided not to take any additional taxation measure.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Wednesday said the status of cases involving Sales Tax evasion that are pending for adjudication, had not been affected by the omission of section 45 of the Sales Tax Act, 1990, following the promulgation of Finance (Amendment) Ordinance, 2009, as claimed in the reports appearing in a section of the press in recent days.

In an official statement, the FBR spokesman has dispelled the wrong impression regarding the matters pertaining to section 45 of the Sales Tax Act, 1990, to the effect that section 45 provides no legal sanction for the process of adjudication. This section which is neither charging nor adjudicating in scope, only prescribes pecuniary limits for adjudication by various authorities. Orders of adjudication/assessment are not made under section 45 but under section 11 or section 36 of the Sales Tax Act, 1990.

The spokesman recalled that the Finance (Amendment) Ordinance, 2009, in an attempt to harmonize the domestic tax laws, abolished the separate tier of adjudicating authorities. Through insertion of sub-section 4(A) in section 25, the officer conducting audit, has been authorized to determine the tax liability by passing an order under section 11 or 36 of the Sales Tax Act, 1990.

Press reports had pointed out about pending adjudication proceedings, which had not been saved whereas the fact is that saving of pending adjudication proceedings was not required in view of section 6 of the General Clauses Act, 1897. Section 6 relates to consequences of repeal of Central Acts or Regulations and is equally applicable to amendments in Acts and Regulations.


Similarly, the process of adjudication by a separate authority was consciously discontinued for future cases. At present, final orders determining the tax liability in cases of registered persons are to be made by the same authority in harmony with the procedure under the Income Tax Ordinance, 2001. In the pending cases, adjudication will be continued and finalized under the un-amended provisions.

Moreover, reference to Additional Collector, Deputy Collector or Assistant Collector in the omitted Section 45 would mean reference to Additional Commissioner, Deputy Commissioner and Assistant Commissioner Inland Revenue, etc, as given in Section 72A of the Sales Tax Act, 1990, inserted through Finance (Amendment) Ordinance, 2009.

The spokesman further maintained that issuance of fresh show cause notices is not required and pending proceedings can be continued and finalized. Even otherwise, fresh show cause notices, if required, can be issued within the periphery of limitation of five years prescribed under section 11 and five and three years respectively under sub-section (1) and (2) of section 36. In case, where there is time limit for adjudication, the same can be extended by FBR as provided under section 74 of the Sales Act, 1990.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 

Federal Board of Revenue (FBR) has extended the date for filing, e-filing of income tax returns and statements up to January 25, 2010 to facilitate taxpayers in view of the prevailing situation in the country, says an official statement released Wednesday.

The extended time period shall be available only for those corporate cases where due tax to be paid is deposited by December 31, 2009 while the corresponding return may be filed by the extended date. Income tax returns/statements in cases of non-filers/short-filers individuals/association of persons (AOPs) may also be filed by depositing the tax payable along with the returns/statements by January 25, 2010.

According to the statement, penalties, additional tax and prosecution shall, therefore, not be attracted in cases where income tax returns/statements are filed/e-filed accordingly by the extended date 1.e., January 25, 2010, if the conditions mentioned above are fulfilled.

Relevant branches of State Bank of Pakistan and National Bank of Pakistan will remain open to receive tax payments up to 08:00pm, and all Inland Revenue Regional Tax Offices and Large Taxpayers Units will remain open till 9:00pm on December 31, 2009.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) will conduct *Computer-based random balloting to select units/persons for tax audit* at an open ceremony to be held at FBR House tomorrow (Friday). The schedule of the event is as under.

Venue: Lobby, 2nd Floor, FBR House, Islamabad

Date: December 11, 2009 (Friday)

Time: 2:45pm

2. You are requested to depute a team of reporter/camera man for the coverage of the said event at the given venue, date and time.**
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A spokesman of the Federal Board of Revenue has denied the contents of a news item captioned “we shall make an example of 300 big tax evaders: FBR” and attributing to Chairman FBR a reference to corruption of certain magnitude in the revenue collection machinery, particularly in the Customs department.

The spokesperson has clarified that the stated perception is based on some misunderstanding and has been reported in the press out of context. In fact, customs revenue collection of Rs. 56.7 billion is ahead of the target of Rs. 56.1 billion for first five months of the financial year. In the press conference, it was highlighted that the revenue performance of FBR, particularly of Customs, can further be improved through the ongoing reform process by effectively plugging the revenue leakages. Therefore the said impression of the magnitude of corruption in Customs created through the said news report is ill founded and is incorrect.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A spokesman of the Federal Board of Revenue (FBR) has clarified press reports published in a section of the press claiming the cultivation of beet crop in NWFP has been given up by farmers due to excess taxes.

The spokesman has described as misleading and irrelevant claims made by Anjuman-e-Kashtakaran NWFP officer-bearers who have been reported by the press as having complained that the cultivation of the beet crop in NWFP has creased due to imposition of central excise duty in 1995 and other levies in recent times.

The spokesman has maintained that the issue pertaining to year 1995 has no relevance after a lapse of 14 years in the last quarter of 2009 as currently the sugar made from cane or beet crop is chargeable to 8 per cent of sales tax and 1 per cent special excise duty. Hence, the reports blaming the present sugar crisis on the levy of excise duty on beet sugar in 1995 are
without logic and merit.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Pakistan and Morocco have concluded a treaty for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income of residents of the two countries.

The two sides exchanged Thursday an instrument of ratification at a ceremony held at the FBR House in the presence of FBR Chairman Mr. Sohail Ahmad who led the Pakistan side and Moroccan Ambassador to Pakistan, Mr. Mohammed Rida El-Fassi who represented the Kingdom of Morocco. FBR's Member Direct Policy Mr. Asrar Raouf and Chief International Taxes, Mr Saeedur Rahman were also present.

The negotiations for conclusion of the Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income between the Islamic Republic of Pakistan and the Kingdom of Morocco held a couple of years ago before the Convention was signed in Rabat, Morocco on May 18, 2006.

Highlighting the salient features of the convention, Mr. Sohail Ahmad, Chairman FBR, said the treaty had done away with the double taxation of income between the two countries to promote bilateral trade and commerce. Under the convention, principles had also been laid down for taxation of all sources of income as well as residential status of individuals and corporate
entities. Funds received by the students for the purpose of education have been exempted from tax under the convention which also provides comprehensively for cooperation in all important areas of international taxation, including exchange of information.

The FBR Chairman believed the new arrangement would not only provide safeguards against double taxation but it would also lay the ground for promoting economic cooperation and furthering mutual trade and investment by ensuring certainty of tax treatment.

Speaking on the occasion, Moroccan Ambassador Mr. Mohammed Rida El-Fassi appreciated the warm welcome and expressed the hope “the convention would serve as a significant step in enhancing economic ties between the two brotherly countries”.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 259.24 billion of revenues during the first quarter of the current fiscal year, according to provisional figures released by FBR on Monday.
According to the figures, the FBR has collected Rs 98.37 billion during the month of September 2009. Aggregate collection during the first quarter of the ongoing fiscal year thus works out to Rs 259.24 billion. The final revenue collection figures for the month of September 2009 are likely to increase further following the receipt of taxes, including taxes deducted at source, collected from different parts of the country.
The break-up of the tax collection figures for the month of September 2009 is attached for further details.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Mujeeb-ur-Rehman Talpur
Second Secretary (PR)
FBR

Federal Board of Revenue (FBR) has set up facilitation desks/kiosks all across Pakistan to help taxpayers filing their income tax returns before the September 30 deadline.
The kiosks and tax facilitation centres (TFCs) have been established in all major urban centres to provide technical support to taxpayers. A formal ceremony to mark the opening of the TFCs will be held in Lahore tomorrow (Saturday) where FBR Chairman Mr. Sohail Ahmad will speak as chief guest at the inauguration of a facilitation desk/kiosk in Liberty area.
The board has further clarified that e-filing mode for the submission of income tax returns is required only for individuals and companies with whose declared income is Rs 500,000 or more per annum and not for ordinary traders and individuals whose income falls below the specific threshold.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Finance Minister Shaukat Tarin Thursday said self-reliance was the only way forward for Pakistan to achieve economic stability and lessen dependence on revenue streams flowing in from donor agencies.

“As long as these revenue streams flow, things work well but once these streams go away, problems re-surface and economic independence becomes a distant dream,” he said in a keynote address to a two-day ‘Conference on Value Added Tax (VAT)’ that started in the capital here under the auspices of Federal Board of Revenue (FBR).

The minister said Pakistan heavily relied on taxes as a major source for government revenues required for socio-economic uplift of the people. Optimum revenues are achieved when an efficient taxation system is in place. Our Government’s vision and strategy of a better Pakistan also rests on a taxation régime which is based on equity and fairness, convenience of payment, economy in collection, and simplicity of procedures, he added.

He said reducing poverty through generating additional revenues is an important step towards achieving our government’s vision and that can only be achieved through an efficient taxation system which conforms to the best international practices in revenue collection.

Shaukat Tarin said these best practices were being adopted by countries all over the world and like others Pakistan had also set about modernising its taxation structure through the Tax Administrative Reforms Program (TARP) aimed at achieving greater efficiency and productivity in the tax collecting business processes and tapping new tax resources.

He admitted there were challenges in the way of generating additional indigenous revenues and exercise of discretionary powers by the government, lack of professionalism due to an inadequate capacity building and existence of certain exemptions in our tax regime were issues which needed to be addressed before the introduction of Value Added Tax.

Tarin said the tax managers alone could not do all this and “a lot depends on the policy, planning, vision and commitment of the political and economic managers”. “It is therefore a common responsibility of all the stakeholders to contribute towards achieving an efficient taxation system which can generate additional revenues for the country,” he added.

He also called for collective efforts to achieve a broader and larger goal of better standards of living for the people through better tax collection. This in turn requires increase in tax base by incorporating maximum categories of services into the tax net. While our tax base includes a wide range of goods, services sector, which is a major source of revenue around the world, is largely out of the tax net and it is time we revisited our exemptions, zero-rated items, rate variations and major sources of irritants to business, he added.

The finance minister said Pakistan could also draw on the experiences of other countries for developing a viable model best suited to our economy. He said the Value Added Tax could be considered as an effective tool for proper documentation of economy, widening of tax base and equitable taxation mechanism.

Later talking to media men, Shaukat Tarin highlighted the importance of value addition for taxation purposes on the retail stage as widening of taxation base. At the retail stage it is basically the issue of understanding and tapping the whole supply chain of goods and services. However, enforcement of any such tax on such a stage cannot be adequately done if the tax collecting machinery is not properly aware of the facts and figures regarding the different social segments, documentation of small to medium businesses, their supply chains and financial capacity of the retailers themselves. All this needs to be thoroughly researched, properly documented and comprehensively digitized by the tax machinery.

To another question, he underscored the VAT service delivery and its impact on the lives of our taxpaying community which is the backbone of our economy. FBR should keep in mind that VAT in today’s world is considered as a powerful tool in harnessing funds in domestic markets. These funds can then be used by the developing countries like Pakistan to meet the challenges like increasing mass education, poverty eradication and provision of socio-physical infrastructure.

The minister cited the example of Sri Lanka which at a 15 per cent VAT had been able to increase its tax-to-GDP ratio by seven per cent and if Pakistan could increase its tax-to-GDP ratio by four per cent through the implementation of VAT, it would be able to raise an additional Rs 600 billion, taking us close to bridging the Rs 722 billion fiscal deficit.

Earlier FBR Chairman Mr Sohail Ahmad in his address to the inaugural technical session of the conference highlighted the steps taken by FBR for generating more revenue through massive reforms, re-structuring and business process re-engineering which he said could also serve in the implementation of VAT from July 2010.

He said the government believed the impact of taxes generated through VAT would be significant in covering all those sectors which earlier enjoyed exemptions in one way or the other. He welcomed the participants of the conference which he hoped would be able to come up with a way forward for the implementation of value added tax in an incentive-based, transparent and harassment-free environment.

 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has launched a project for the automation of various work  processes involving financial and material management in the organisation.

Under the project expected to be completed within 15 months, various work processes, including budget management system, accounts expenditure management system and material management, would be configured and customized to meet the FBR requirements. The system after its completion at the FBR Headquarters would also be replicated in the field offices and
formations.

Speaking at a ceremony to mark the launch of the project at the FBR House Monday, FBR Chairman Sohail Ahmad hoped the project would enable FBR to execute real-time internal financial controls and ensure transparency, efficiency and enhanced decision support.

The system under which supported procurements will have electronic linkages with Ministry of Finance and AGPR Office will also go a long way in extending FBR’s visibility beyond the bounds of the organization through an interface with PIFRA system and future expansion. Besides, it will ensure end-to-end automated business processes, real-time integration, flexible, real-time reporting, interfacing and best practices that are the hallmark of efficient organisations.

The kick-off ceremony organised at the FBR Headquarters Islamabad was also attended by senior FBR Members and officials. Later, FBR Chairman Mr Sohail Ahmad and board members visited the newly-developed SAP Competency Center and appreciated the modern setup.

The project is coordinated by Sheikh Hafeez and Mr Shahbaz from Siemens while the FBR side is represented by Ch Muhammad Azam, Member (Admn), Mr Abdul Jaleel, Chief (Admn)/ Project Director(SAP), Mr Bakhtiar Muhammad, Director (Coord-SAP), Mr Sarwar Jang, Director SAP, Mr Ali Raza, Director MM and Mr M. Sauood ur Rauf, Director FI.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has started preparing an organizational framework for the proposed Inland Revenue Service (IRS) and the Customs group to be set up as part of the reforms process under way in the board.

The task for preparation of the organogram for the proposed service to be established on functional lines has been handed to the newly-furbished Human Resource Source Wing which has already put in place a host of measures aimed at accelerating the pace of reforms process with a focus on re-organisation and capacity building of the human resource.

As part of these measures, a special presentation was given to Finance Minister Mr. Shaukat Tareen who visited the FBR Headquarters recently to attend the DGs Conference. The minister appreciated the work done so far and called for its early completion to achieve the desired targets of the reforms programme.

The new service to be set up through an Act of the Parliament will replace the existing set-up, paving the way for a fully integrated tax administration of sales tax, excise and income tax in line with recommendations and aspirations of the stakeholders.

The renewed focus on the human resource management is also reflected in the appointment of a director general to head the all-important HRM Wing which was previously overseen by a chief. The move has resulted in various measures to reform and restructure the existing work processes with a view to enhancing the quality of skill sets and creating a performance-based reward system.

Some of the measures that have been taken in recent days include constitution of various teams to oversee progress of work on issues related to integration, preparation of new job descriptions, new performance evaluation reports, new performance-based bonus/reward scheme and the market-based salaries for which a survey is already under way to determine the extent of wages on offer in the private and public sector organisations.

Similarly, the HRM Wing has also started conducting various orientation/training workshops for the officers of both Income Tax and Customs & Excise groups. Such workshops are already under way at the Directorates of Training in Lahore, Karachi and Islamabad respectively.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has made it binding on all imported cargo entered in the customs area for clearance to be accompanied by a copy of packing list and invoice.

Earlier, Federal Board of Revenue had temporarily relaxed the provision added vide SRO No.198(I)/2005, dated 28.02.2005 to the Customs Rules, 2001, whereby all imported cargo entered in the customs area for clearance was to be accompanied with a copy of packing list and invoice. The relaxation had been granted through a board letter No.3(1)L&P/05 dated 20.05.2006. However, the issue has been re-examined recently in consultation with the Chamber of Commerce & Industry and Clearing Agents Associations and it has been decided to withdraw the above said letter of the board.

As a result, provision of Sub-chapter-I of Chapter XVIII of Customs Rules, 2001 shall become operational for all categories of goods except the old and used motor vehicles imported under various schemes; iron, steel and aluminum scrap; unpack bulk cargo like coal and raw cotton; goods imported under DTRE scheme; imports under section 22 of the Customs Act, 1969; old and used machinery; bulk imports of petrochemical; and defence cargo. The provision of sub-chapter-I of Chapter XVIII shall apply w.e.f. 05.10.2009. The importers have been advised to make arrangements with their foreign exporters to make sure that invoice and packing list are kept inside the containers of import.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has constituted a nine-member team of officials to oversee progress on the reforms programme with a focus on integration of domestic tax administration and preparation of a revenue-specific performance-appraisal system and job descriptions.

The reform project team headed by the Director General Human Resource Management Wing FBR and assisted by Chief (Management) comprises senior officers drawn from both Income Tax and Customs & Excise groups. Besides serving as a focal point driving an organised and focus effort to address the HR issues, the team will also assist and advise the FBR on the ongoing tax administration reforms strategy. The officers included in the team are Abdul Hameed Memon (BS-19), Ayesha Bashir Wani (BS-18) and Saeed Akram (BS-18) from Customs & Excise Group and Ayesha Khalid (BS-19), Bashirullah Khan (BS-19), Riaz Hussain Shah (BS-18), Masood Ahmed (BS-18), Reema Masood (BS-18) and Dr Irfan Abbas Shah (BS-18) from Income Tax Group. Besides this team, Shahid Zaman (BS-19) of Income Tax Group and Ali Abbas Gardezi (BS-18) of Customs & Excise Group have also been associated with the team to work as assigned to them by the team leader.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click to View SRO

The government has announced to charge sales tax at the rate of eight per cent on local supplies of sugar, says a press release issued by FBR Sunday.

The announcement has been made following issuance on Sunday of SRO(I)/2009 whereby “sales tax on local supplies of sugar shall be charged at the rate of eight per cent with immediate effect and until further orders”. A copy of the SRO is attached for reference.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Sugar producers have agreed to sell 200,000 tonnes of sugar at ex-mill price of Rs 45 per kilogram during the next three months, says an official press release issued by FBR Saturday.

The major cut in sugar prices has been made possible following an understanding reached between the government of Pakistan and sugar producers during a meeting at the Prime Minister’s House.

According to the understanding, sugar producers will sell 200,000 tonnes of sugar at ex-mill price of Rs 45 per kg for the next three months while the government in return will provide 50 per cent exemption on taxes levied on sugar.

It is hoped this arrangement will help in stabilising sugar prices in the local market besides easing the pressure on the common man till the next sugarcane crushing season in November 2009.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click for detail

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

We have no other option but to enhance revenue in order to support our government and economy during the difficult times. Addressing FBR Members, Chief Collectors and DGs of Large Tax Payers Units and Regional Tax Offices, Shaukat Tarin, Minister for Finance, Revenue, Economic Affairs & Statistics stressed upon FBR for determined efforts towards increasing the revenue. He was presiding over a Conference of Chief Collectors and DGs of Large Tax Payers Units and Regional Tax Offices here in Islamabad on 21st August 2009. Secretary Finance/Revenue Division, Salman Siddique was also present at the occasion among other FBR officials.

Members of Advisory Council on Revenues, S. Shabbar Zaidi, Bashir Ali Mohommad, Saqib Sherani and Shahid Hussain attended the said conference and offered proposals and suggestions towards developing a tax compliant culture.

Talking about revenue contribution made by different sectors, the Minister said, we have to enhance Tax to GDP ratio from 7% to 15- 20 percent by the year 2010. He was of the view that if we look at the contributions of Agriculture Sector towards the GDP, it is 22 percent but zero in the revenues, similarly Services Sector contributes 52 percent in the GDP but their contribution in revenues is only 17%. Whereas, Capital gains of Stock Exchange and Real Estate Sectors has much more potential. He showed his confidence in tax machinery and said that with realization of the situation and commitment we can achieve the desired results.

The Minister urged FBR to conduct a Third Party Audit, which would be carried with the help of ICAP. Strategy to improve collection, review and update on the revenue targets assigned to field formations, uniformity of practices in examination, valuation, assessment and trade facilitation and strategy to check smuggling also came under discussions.

Chairman FBR, Sohail Ahmad, in his concluding remarks assured that through the ongoing re-organisation of tax machinery, a definite improvement is expected. He was optimistic towards better performance of all the field formations. He stated that the main purpose of the Conference is to close the gap between policy making and implementation besides sharing of experience.
 

-Sd-
(Ehsanul Haq)
Member FATE / Official Spokesman, FBR
 

Federal Board of Revenue (FBR) has set up kiosks and work stations at offices of Large Taxpayers Units (LTUs), Regional Tax Offices (RTOs) Tax Facilitation Centres (TFCs) to streamline electronic filing of income tax returns and withholding tax statements by the taxpayers.

The setting up of work stations comes as part of a broad range of measures being taken on the instruction of FBR Chairman Mr. Sohail Ahmad to promote voluntary compliance as well as to facilitate associations of persons (AOPs) seeking to file their tax returns through e-filing process.

Under the programme, work stations (kiosks) have been established at each LTU/RTO along with provision of two sets of computers with internet connectivity. The stations are being manned by professional and technical staff to extend help to AOPs in e-filing. The computers will also be
available for self service for the AOPs.

Similar work stations have also been set up at all FBR TFCs to serve the AOPs seeking to e-file returns at remote and smaller towns. Besides, FBR has also started organising workshops at all LTUs/RTOs to explain e-filing procedures to the AOPs. Workshops for explaining procedures involving e-filing of withholding tax statements will continue until August 20 while workshops for explaining procedures for e-filing of income tax returns for the tax year 2009 will be held during August 15-17, 2009. As another facilitation measure, the timings of FBR helpline dealing with tax-related queries have also been extended from the existing 9:00am-4:00pm to 9:00am-9:00pm.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 74.07 billion of revenues during the first month of the 2009-10 fiscal year showing increase of 2.4 per cent over corresponding period of the last year.
According to the provisional figures, the FBR has collected Rs 74.07 billion during the month of July 2009 as against Rs 72.36 billion collected during the corresponding month last year. The break-up of the tax collection figures is attached for further details.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click here to see Urdu Version

Federal Board of Revenue (FBR) has constituted a team of senior officials to draw up a plan for the enforcement of VAT (value added tax) at retail stage from the next fiscal year.
The five-member committee comprising senior Customs officials, including Strategic Planning & Statistics Member Mr. Zafar-ul-Majeed and ST&FE Chief Mr. Abrar Ahmad Khan, has been directed by FBR Chairman Mr. Sohail Ahmad to “come up with a comprehensive plan to fully enforce the VAT at retail stage by July 2010,” says a press release issued Monday.
The decision to constitute the process re-engineering team that also includes Collector Sales Tax RTO Lahore, Additional Collector LTU Islamabad and Deputy Director Customs Evaluation Karachi has been taken in view of the importance of extending VAT to the entire retail stage, allowing adjustment of tax paid at earlier stages.
The decision comes in the wake of a growing realization of the fact that a large number of transactions in the economy take place at retail place. While existing legislation provides for levy of VAT at retail stage, its practical enforcement and collection has faced enormous problems for more than a decade and currently only retailers with threshold of Rs 5 million are required to be registered.
It may be added that the 3rd Schedule of the Sales Tax Act, 1990 provides for levy of VAT on the retail process of certain specified supplies, including e.g., cigarettes. Sales Tax Act, 1990 that was enforced in November 1996, is designed for a classical VAT Model. At present, VAT is being collected on imports and supplies by manufacturers, wholesalers, distributors and big retailers.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of revenue (FBR) has collected over Rs 1150 billion revenue for the financial year 2008-9 so far with a substantial amount of revenues collected for the month of June still in the pipeline.

According to an official statement issued Thursday, several misleading reports have currently been published in some sections of the press depicting an unrealistic picture of the latest revenue collection for the current financial year.

The statement clarifies that a substantial amount of the revenues collected for the month of June 2009 is still in the pipeline and the final figures are likely to be settled by this weekend. Nevertheless, the provincial figures of total revenues worked out so far are over Rs 1150 billion as against Rs 1007-50 billion collected during the last financial year. The present provincial figures thus show an increase of over 14 per cent vis-à-vis the last year’s collection. However, the final figures are expected to be on the higher side.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407