Sep 04, 2018 FBR launches application to let taxpayers fill out returns in offline mode

Federal Board of Revenue (FBR) has launched an application enabling taxpayers to prepare Income Tax Return and Wealth Statement without using Internet to resolve the connectivity issues often faced by the taxpayers.

The application called Iris-ADX (Asynchronous Data Exchange) has been prepared and launched by the The Information Technology (IT) Wing of the FBR to facilitate the taxpayers. The application allows the taxpayer / E-intermediary to prepare data related to Income Tax return and wealth Statement in Offline mode. This application will help taxpayers to prepare Income Tax Return and Wealth Statement without using internet which will overcome and resolve the issue of connectivity they face locally and during the peak hours. After preparing the statements in offline mode, the same can be uploaded to FBR’s repository seamlessly.

Hamid Raza Khan
Secretary PR

Aug 20, 2018 Bank accounts of non-filers not frozen by FBR

In order to allay the misconception being caused by a segment of print media regarding freezing of bank accounts held by non-filers of income tax return, it is clarified that FBR has not issued any such instructions.

 

It is further clarified that Income Tax Law does not restrict banking transactions out of bank accounts held by any person whether filer or non-filer.

 

 

Hamid Raza Wattoo
Secretary PR, FATE Wing

Aug 02, 2018 Switzerland never offered to return Pakistanis’ assets in its banks: FBR

In order to allay the misconception being caused by a segment of print and electronic media regarding Switzerland offering to return $200 billion, in 2014, under an Avoidance of Double Taxation Agreement (ADTA) with Pakistan, it is clarified that as per record available with FBR, Switzerland never, at any time, offered to return even a single dollar of Pakistanis deposited in Swiss accounts. It is further clarified that ADTAs are not meant for retrieval of assets. The primary purpose of ADTAs is elimination of double taxation and exchange of information on request. The media has also attempted to raise questions regarding sending of junior officers for negotiations with the Pakistani delegation. In this regard it is clarified that the composition of the delegation was strictly in accordance with the delegations sent for negotiating ADTAs and the then Chairman, Mr Tariq Bajwa, could not accompany for administrative reasons and the fact that the officer leading the delegation from Swiss side was also of lower rank. Lastly, the impression conveyed in the media reports that non-implementation of the draft initialed in 2014 has caused loss to Pakistan as otherwise Pakistan would have been able to access the benefits thereof immediately is totally misconceived since ADTAs are not for retrieval of dollars or assets.

 

Hamid Raza Khan
Secretary (PR-FATE)

Jul 27, 2018 FBR suspends officer on misconduct in Tax Amnesty drive
Federal Board of Revenue (FBR) has suspended a BS-17 officer following an inquiry into an act of misconduct committed by him during an official matter falling under the Tax Amnesty 2018. 
Mr. Saleem Hussain, an officer of the Inland Revenue Service posted as Assistant Commissioner-IR, Regional Tax Office, Sahiwal, was reported for irregularity and misconduct in an issue falling under the domain of ongoing Tax Amnesty 2018. The matter was investigated and the officer was placed under suspension for a period of three (03) months with immediate effect by the competent authority in exercise of powers conferred under section 5(1)(i) of Government Servants (Efficiency & Discipline) Rules, 1973. 
FBR has made it clear that it would not brook any act of official misconduct or irregularity, and zero tolerance would be shown in the event of any instance where the due process under Tax Amnesty in case of any individual is illegally obstructed
 
Hamid Raza Khan
Secretary (PR-FATE)

Jul 26, 2018 FBR field offices to remain open on Saturday to collect taxes

Federal Board of Revenue (FBR) has announced that all Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) shall remain open and observe normal working hours on Saturday, the 28th July 2018, to facilitate the taxpayers for payment of duties and taxes.

Hamid Raza Khan
Secretary (PR-FATE)

Jul 24, 2018 Launch of Induction Programme in Pakistan by OECD for implementation of new international tax standard

An OECD delegation met Dr. Shamshad Akhtar, the Finance Minister, Ms. Rukhsana Yasmin, Chairperson of the Federal Board of Revenue and Dr. Mohammad Iqbal, Member Inland Revenue Policy, here in Islamabad, to discuss the progress of the country in implementing the new international standards to combat tax avoidance and tax evasion as part of the induction programme to support the implementation of the Base Erosion and Profit Shifting (BEPS) measures. A technical workshop facilitated by the OECD, was held from the 16th to 19th of July at FBR (HQ) which was attended by senior officials of the Federal Board of Revenue and served to identify the areas where assistance was required. Pakistan's outstanding progress made on the implementation of the BEPS minimum standards, who is an active member of the Inclusive Framework on BEPS and the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) was lauded by the visiting delegates. At the end a Roadmap was agreed upon delineating the future actions to be undertaken in furtherance of implementation of international standards.

Launch of Induction Programme in Pakistan by OECD  Launch of Induction Programme in Pakistan by OECD FBR

Malik Zubair Tiwana
SA to Chairperson

Jul 17, 2018 FBR rebuts news report regarding payment of tax under tax amnesty

Federal Board of Revenue (FBR) has strongly rebutted a news report published in a section of the national press regarding payment of tax under foreign tax amnesty scheme by a Karachi-based taxpayer. 

FBR has rejected the contents of the report and strongly denied that the baseless information has been provided by FBR sources. In this connection, FBR wants to clarify that it is bound by strict confidentiality provisions contained in Foreign Assets (Declaration and Repatriation) Act, 2018 and Voluntary Declaration of Domestic Assets Act, 2018. Under these provisions disclosure is punishable by fine from five hundred thousand to one million rupees or imprisonment for a term not exceeding one year or with both. 

To ensure confidentiality of the declarants, FBR has developed an online system for filing amnesty declarations, which has proper safeguards in place and restricts access to information contained in the declarations.

 
Hamid Raza Khan
Secretary PR

Jul 17, 2018 FBR Member calls for making the most of Tax Amnesty, rules out extension
Member Taxpayer Audit FBR Ms. Nausheen Javaid Amjad has called on the people to make an optimal use of the ongoing Tax Amnesty which because of its low tax rates and legal protection from penalties and prosecution was the best scheme that could be rolled out to allow the people to declare their undisclosed income and assets in the country and abroad. 
She made this statement while speaking to a large gathering of traders, businessmen and members and office-bearers of Sarhad Chamber of Commerce & Industry Peshawar, Women Chamber of Commerce & Industry Peshawar, Institute of Chartered Accountants of Pakistan, Tax Bar Association Peshawar and other business organizations in the provincial capital. 
She said the scheme offered a golden opportunity to the people holding undeclared and undisclosed income and assets to declare them simply by paying a nominal 2% tax on declaration and repatriation of foreign assets, 3 % on declaration of immovable foreign assets and 5 % on declaration and non-repatriation of assets under the Foreign Assets (Declaration & Repatriation) Act, 2018 and Voluntary Declaration of Domestic Assets Act 2018 duly approved by the Parliament. 
She said a positive response shown so far by the people to the Tax Amnesty was indicative of a desire among the people to become part of the tax system by declaring their income and assets without facing any hassle. “This should serve as a sign of encouragement to those who are still making up their mind to avail of the tax amnesty as once the amnesty ends, there could be legal repercussions for those who fail to benefit from it,” she said. 
Ms Nausheen Amjad said the tax amnesty had already been extended for a month and there were no chances of its further extension. “I sincerely advise the people to make use of this amnesty in their own interest to declare their undisclosed assets as this window of opportunity would not last long and the people failing to avail it of would have to face detection under the new international regime for exchange of information, taxation at normal rates on declared foreign assets and income without any time limitation as well as penalty and prosecution in addition to tax on their undeclared assets and income,” she added
 
 
 
Hamid Raza Khan
Secretary PR

Jul 16, 2018 Member FBR briefs Sialkot business community on tax amnesty

Member FBR briefs Sialkot business community on tax amnestyMember Facilitation and Taxpayer Education (FATE) FBR Ms. Lubna Farrukh Mirza visited Sialkot to hold a meeting with the office-bearers and representatives of Sialkot Chamber of Commerce & Industry and members of Tax Bar Associations from Sialkot and Gujrat to brief them on the salient features of the Tax Amnesty 2018.

Addressing a large gathering of businessmen, traders and tax lawyers, she said the government had launched the Tax Amnesty to allow those holding undeclared properties and assets both in Pakistan and abroad to disclose them by paying nominal tax and become part of the tax system.

She welcomed the response shown by the people to the scheme and hoped people still not able to make up their mind about this scheme would also understand the advantages and benefits of availing of this amnesty.

She said under the scheme the people holding undeclared and undisclosed income and assets could pay 2% tax on declaration and repatriation of foreign assets, 3 % on declaration of immovable foreign assets and 5 % on declaration and non-repatriation of assets under the Foreign Assets (Declaration & Repatriation) Act, 2018 and Voluntary Declaration of Domestic Assets Act 2018 duly approved by the Parliament.

Ms Lubna Farrukh Mirza ruled out any extension in the deadline of Tax Amnesty beyond 31st July 2018 and advised the people to make use of the amnesty in their own interest to declare their undisclosed assets as after the expiry of amnesty, they could face detection under the new international regime for exchange of information, taxation at normal rates on declared foreign assets and income without any time limitation as well as penalty and prosecution in addition to tax on their undeclared assets and income.

 

.

 

Hamid Raza Khan
Secretary PR

Jul 09, 2018 FBR registers 11.4% growth during 2017-18

Federal Board of Revenue during 2017-18 has recorded a provisional net revenue collection of over Rs. 3751 billion as against Rs. 3368 billion collected during previous fiscal year, excluding collection on account of book adjustments for June, 2018.

FBR has also recorded an increase of around 11.37% over the revenue collected during last fiscal year. Federal Board of Revenue has also issued Rs 45 billion more refunds than the previous year.

Annual assigned revenue targets for Inland Revenue Service and Customs were Rs 3335 billion and Rs 600 billion, respectively. Whereas, Customs has surpassed its target by Rs 6 billion, Inland Revenue fell short by Rs 190 billion. Tax-wise break-up of revenue collected is as under:

 

 

 

Assigned Target

Collection

Excess/(Shortfall)

(Rs in billions)

Income Tax

1562

1441

(121)

Sales Tax

1541

1488

(53)

Federal Excise

232

216

(16)

Inland Revenue

3335

3145

(190)

Customs duty

600

606

6

FBR Target

3935

3751

(184)

The collection of Rs 3751 billion does not include Rs 90 billion received on account of foreign and domestic amnesty schemes.

Hamid Raza Khan
Secretary PR

Jul 07, 2018 Downward revision of sales tax on petroleum products
The honourable Supreme Court during the course of hearing held on 5th July, 2018 relating to suo motu notice of increase in petroleum prices directed the Federal Government to reconsider the matter in order to provide all possible relief to the general public. 
 
In view of the directions of the honourable Court, the matter has been reconsidered and the Federal Cabinet has decided that sales tax rates be reduced from 17% to 12% for Motor spirit and Kerosene Oil, from 31% to 24% on High Speed Diesel and from 17% to 9% on Light Diesel Oil. Federal Government is confident that the relief in petroleum prices will not only provide much needed respite to the masses but also reduce the cost of production and give a boost to the economic activity.
 
The reduction in prices of petroleum products will be effective from 12:00 midnight.
 
 
Hamid Raza Khan
Secretary (PR-FATE)

Jul 01, 2018 Extension in closing date for tax amnesty - 2018

Federal cabinet, on the recommendations of the Finance Minister, has approved extension of closing date of tax amnesty schemes for declaration of foreign assets and domestic income and assets till July 31st, 2018. This has been effected through a Presidential Ordinance.

The deadline for filing amnesty declarations was June 30th, 2018. However, during last week a large number of representations have been received from trade bodies, professional associations and general public for extending the closing date due to short operational period after clearing legal and procedural challenges. The extension was also needed to remove ambiguities through clarifications and explanations required to provide certainty to the general public and to ensure effective implementation of the schemes. In addition, declarants of foreign assets faced problems in the payment of tax on foreign assets and repatriation of liquid assets.

The Finance Minister recommended extension of the cut-off date for availing amnesty schemes as there has been an overwhelming demand and response which is on the rise. The date has been extended by one month to enable general pubic to file declarations for undeclared foreign assets and undeclared domestic assets and income and thereby get their tax affairs in order. It will also help the government in bringing undocumented persons, assets and income into the documented sector. Depending on flows, the schemes have potential to bring in macroeconomic and fiscal stability in the economy.

Hamid Raza Khan
Secretary (PR-FATE)

Jun 26, 2018 Banks to observe extended working hours on 29th & 30th to collect taxes
All field offices of the Federal Board of Revenue (FBR) will remain open and observe extended working hours till 8:00pm on 29th June, 2018 (Friday) and till 10:00pm on 30th June (Saturday) for collection of duties and taxes.
 
The Chief Collectors of Customs will liaise with the State Bank of Pakistan, National Bank of Pakistan and other scheduled commercial banks in their respective jurisdiction to ensure transfer of the taxes collected by these branches to the respective offices of the State Bank of Pakistan on the same date and to account the same towards collection for the month of June, 2018
Banks to observe extended working hours on 29th & 30th to collect taxes
Hamid Raza Khan
Secretary PR

Jun 21, 2018 Chairman-led FBR team to visit chambers, tax bars to promote tax amnesty

FBR team headed by the Chairman is travelling to various cities to meet Chambers and Tax Bars for promoting the tax amnesty scheme.

The Government has announced two tax amnesty schemes, namely Voluntary Declaration of Domestic Assets Act, 2018 for undisclosed income and domestic assets and Foreign Assets (Declaration and Repatriation) Act, 2018 for undisclosed foreign assets. 

FBR has undertaken a widespread advertisement campaign on print and electronic media and sent emails to taxpayers. FBR has also set up helplines which operate 24/7 with dedicated telephone lines and emails for quickly responding to queries of declarants and intermediaries. 

Frequently Asked Questions (FAQs) and online user guide have also been published on FBR’s website which are continuously updated in view of the feedback and queries of stakeholders

 
Hamid Raza Khan
Secretary (PR-FATE)

May 31, 2018 FBR issues over 100 billion refunds during current year

Federal Board of Revenue today (31st May, 2018) issued further refunds of Rs 31.3 billion to take the total amount of refunds issued during the year to more than Rs 100 billion in first 11 months as against Rs 54 billion issued during the entire 12 months of the previous year.

Meanwhile, Federal Board of Revenue during the first 11 months  of the current financial year has also recorded a provisional net revenue collection of over Rs. 3274 billion as against Rs. 2854 billion collected during the same period of the previous fiscal year, excluding collection  on account of book adjustments which depicts an increase of around 15%.

The provisional collection for the month of May 2018 is Rs 351 billion excluding collection on account of book adjustments. The figures of collection received in the treasuries of the remote areas may further swell the revenue figures. The revenue collection trend during the first eleven months of the financial year augurs well for the efforts of FBR towards achievement of the assigned revised annual revenue target.

 

Hamid Raza Khan
Secretary (PR-FATE)

May 11, 2018 NUST students visit FBR to learn about fiscal policy, tax collection

A group of students of Department of Government and Public Policy from the School of Social Sciences and Humanities at National University of Sciences & Technology (NUST) Islamabad visited FBR House today to learn about the working of FBR and its role in fiscal policy, tax collection and revenue generation.

Welcoming the students, Member Facilitation and Taxpayers Education (FATE) Wing FBR Ms. Nausheen Javaid Amjad explained to the students the entire framework of fiscal policy and the role of FBR in formulating and implanting the fiscal policy as well as its role in revenue generation and resource mobilization.

She told the visiting students about the various stages of formulation of fiscal policy, budget-making process and the long, extensive exercise FBR routinely undertook every year to reach out to the chambers, trade bodies, tax bars, various professional, business and sectoral organizations and the general taxpayers to take their input for finalizing the budget proposals.

Ms Nausheen Amjad also briefed the students on various initiatives undertaken in recent years to automate, modernize and further improve various work processes in FBR to create a taxpayer-friendly system of taxation. She said FBR had done really well in the last five years by introducing a broad range of policy and administrative reforms, including broadening of tax base, withdrawal of exemptions/concessions and differential taxation for non-filers.

Later, Chief FATE FBR Ms. Tehmina Aamer gave a detailed presentation to the visiting students on the working of Inland Revenue Service and Pakistan Customs, their respective contributions towards revenue collection and the various initiatives and reforms undertaken in both the services to meet the challenges they were likely to face in years ahead.    

Later, an interactive Q&A session followed during which visiting students asked FBR officials keen questions on dynamics of fiscal policy and taxation. Commemorative shields were exchanged on the occasion. Interactive Q&A session was followed.

NUST Students with Member & Chief FATE FBR

Students of Department of Government and Public Policy from the School of Social Sciences and Humanities at National University of Sciences & Technology (NUST) in a group photo with Member FATE Ms Nausheen Javaid Amjad and other officers at FBR House on Friday.

 

 

Hamid Raza Khan
Secretary PR

May 02, 2018 Haroon dares Opposition on economic performance, recounts gains of 5 years

Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has hit out at the Opposition for glossing over five-year achievements of the government and painting a bleak picture of the economy requiring imposition of an “economic emergency”.

“Surely, the suggestion of an economic emergency would have made sense in 2013 when the economy was in shambles, with almost all economic indicators showing a bleak situation, but for the Opposition to insinuate and belittle our economic achievements of the last five years shows their inherent bias and poor understanding of the economy,” he said in a statement in response to what he called “unjust” and “unwarranted” criticism by the Opposition of the government’s economic performance over the last five years.

Haroon Akhtar Khan reminded the Opposition that five years ago in 2013, GDP growth was merely 3.68 per cent while it was 5.79 per cent now. Similar growth trends were visible in the industry which grew from 0.75 per cent in 2013 to 5.80 in 2018; in agriculture which grew from 2.68 per cent in 2013 to 3.81 per cent; and in Services sector which had grown from 5.13 per cent in 2013 to 6.43 per cent in 2018.

He also alluded to an impressive growth recorded in the industrial sector during the last five years with large-scale manufacturing leading the way with 2.98 per cent growth in 2013 to 6.24 in 2018 while even greater growth had been recorded in the construction sector which had risen from 1.08 per cent in 2013 to 9.13 per cent in 2018.

The Minister drew attention of the Opposition towards a massive increase in the agriculture credit given to farmers during the last five years, saying while a puny amount of Rs 196.12 billion was loaned to framers in 2013, the figure had reached Rs 569.97 billion in 2018 while the target for financial year 2018 was Rs 1,001 billion. “Similar growth trends can be seen for the last five years in the wheat crop which grew from 24.21 million tonnes in 2013 to 25.49 million tonnes in 2018; rice which grew from 5.54 to 7.44 million tonnes; maize which improved from 4.22 to 5.70 million tonnes; sugarcane which rose from 63.75 to 81.10 million; and whole sale & retail trade which went up from 3.53 WRT to 7.51 WRT.”

Haroon Akhtar Khan also challenged the Opposition on the inflation front where in the last five years, the CPI had come down from 7.98 in July-March 2013 to merely 3.78 per cent in July-March 2018, with the core inflation also going down from 10.05 per cent to 5.45 per cent. “Similarly, our foreign exchange reserves rose from $ 11.85 billion in April 2013 to $16.91 billion in April 2018 while per capita income had also increased from $ 1,333 in June 2013 to $1,640 in April 2018,” he added.

He also drew the attention of the Opposition towards a 160 per cent hike in the allocations for the BISP which received Rs 121 billion in 2017-18 as against Rs 46.5 in 2012-13. “Not only this, we have also brought down the unemployment rate from 6.2 per cent to 5.9 per cent, risen the PSX index from 19,916 to 45,877, market capitalization from Rs 5.049 trillion to Rs 9.449 trillion at 87.1 per cent growth rate, and incorporation of companies from 2,876 to 8,349, recording an impressive 190.3 per cent growth over FY 2012-13.

Talking about the government’s achievements on the monetary front, Haroon Akhtar said the SBP policy rate had been brought down from 9.0 per cent in 2012-13 to 6.0 per cent in 2017-18 while credit to private sector (flows) had shot from a negative 7.6 per cent for full year in 2012-13 to an impressive Rs 469.2 billion in July-March 2017-2018.

He also questioned the Opposition’s criticism of the public debt saying the total debt of the government was 60.2 per cent of GDP in 2013 while it was fractionally higher at 61.4 per cent of the GDP in 2017.

Haroon Akhtar Khan also mentioned a remarkable almost 100 per cent growth revenue growth registered by the government during the last five years. “We provided maximum facilitation to the taxpayers and businesses by introducing one audit in three years with salaried class completely out of audit, simplified return form for salaried class, 40B to be directly supervised by FBR, 10% payment on automatic stay at Commissioner’s Appeal and making ADRC decisions binding,” he added.

In the Income Tax, he listed several incentives and concessions given by the government in the areas of super tax, bonus share, corporate rate, AoP rate, relaxing of distribution of 40% net profit to 20% and the tax from 7.5% to 5% per cent. “Similar incentives and concessions have also been given in the areas of Custom duty and Sales tax and many pro-business and pro-growth revenue measures have also been adopted to further steady the existing and achieve 7 per cent growth in the coming years,” he added. 

 

 

Hamid Raza Khan
Secretary PR

Apr 30, 2018 FBR registers 17% growth during April

Federal Board of Revenue during first ten months  of the current financial year has recorded a provisional net revenue collection of over Rs. 2922 billion as against Rs. 2513 billion collected during the same period of the previous fiscal year, excluding collection  on account of book adjustments. which depicts an increase of over 16%. The increase is despite Rs 68 billion tax refunds issued during 2018 as compared to 53 billion refunds issued during the corresponding period of previous fiscal year recording an increase of 28%.

The provisional collection for the month of April 2018 is Rs 295 billion excluding collection  on account of  book adjustments as against Rs 252 billion collected during the corresponding month of the previous fiscal year. FBR has recorded an increase of over 17% over the revenue collected during the April, 2017. The figures of collection received in the treasuries of the remote areas may further swell the revenue figures.

The revenue collection trend during the first ten months of the financial year augurs well for the efforts of FBR towards achievement of the assigned revised annual revenue targets

Hamid Raza Khan
Secretary (PR-FATE)

Apr 18, 2018 Haroon Akhtar, Sikandar Bosan meet to discuss pro-agri budget proposals

Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan held a meeting with various stakeholders and associations working in the agriculture sector to discuss their proposals and recommendations for the upcoming budget.

Federal Minister for National Food Security & Research Sikandar Hayat Khan Bosan and a team of senior officers from his Ministry also attended the meeting. Chairman FBR Mr. Tariq Mahmood Pasha and senior officers of FBR were also present.

Various proposals and recommendations were discussed for boosting the agriculture sector, as well as measures for facilitating the farmers and strengthening the domestic rural economy.

Haroon Akhtar Khan said agriculture was the backbone of the national economy. Strengthening agriculture and its allied sectors had been a key priority of the government which was committed to protecting the rights of the farmers and ensuring them better returns and prices on their farm yields. "The government is keen to continue extending and improving various subsidies and incentives already given to the farmers and proposals and recommendations in this regard would be sincerely considered and examined to make them part of the upcoming budget," he added

Haroon Akhtar Khan

 

Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan and Federal Minister for National Food Security & Research Sikandar Hayat Khan Bosan holding a meeting at FBR House with various stakeholders and associations working in the agriculture sector to discuss their proposals and recommendations for the upcoming budget. Chairman FBR Mr. Tariq Mahmood Pasha and senior officers of FBR also seen.

Hamid Raza
Secretary PR

Apr 16, 2018 Increased CPEC-trade flow, business activity to boost revenues - Member FBR

Member Facilitation & Taxpayers Education (FATE) Wing FBR Ms. Nausheen Javaid Amjad has said increased trade flow and greater business activity would help broaden the tax base, increase revenue collection and improve tax infrastructure along modern lines.

She made this statement while dilating on the “Challenges of Taxation in CPEC-related Projects” at a three-day seminar held at National University of Science & Technology (NUST) under the title “CPEC – Harnessing the Opportunities and Addressing the Challenges”. The seminar was attended by policymakers, industrialists, entrepreneurs, Chinese officials and leading academics.

In her keynote address to the seminar, Member FATE gave the audience a detailed presentation in a highly interactive session, highlighting the challenges FBR is facing and possible measures that could help build a future laced with development and inclusive economic growth for the country.

Member FATE emphasized the potential opportunities through bilateral cooperation for the region. The creation of Special Economic Zones (SEZs) will play a key role in bringing foreign investment, promoting industrial growth, job creation and improving competitiveness and efficiency of the local industry.

She stressed to bring in effective monitoring of imports and exports to minimize smuggling and pilferage through implementation of latest technology such as Radio Frequency Identification Devices (RFIDs), E-tagging along with an alarm system to notify of any anomalies in the operations process. Responsible Data Management would help in making the monitoring process more robust, ensuring that the interests of the local industry are safeguarded.

She shared that FBR has formed a Joint Tax Working Group that will work in collaboration with the Chinese side to iron out potential Tax anomalies and issues. She emphasized that in order to fully reap the benefits of CPEC, all the stakeholders have to work together to ensure that every possible facility to improve ease of doing business is made available, helping Pakistan create an enabling environment for sustained growth.

FATE

Member FATE FBR, Nausheen Javaid Amjad, addressing a seminar on 'CPEC-Harnessing the Opportunities and Addressing the Challenges' at NUST Islamabad.

Hamid Raza
Secretary PR

Apr 16, 2018 Haroon Akhtar seeks greater S. Korean investments in Pakistan

Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has said business & investment environment in Pakistan has improved considerately due to marked improvement in security, steady growth in the economy and pro-business & pro-investment policies of the government.

He was speaking to Mr. Kwak Sungkyu, Ambassador of South Korea who met the Minister at FBR House today. The envoy briefed the Minister on various business ventures undertaken by Korean businessmen in Pakistan and a desire by many investors back in Korea to bring investment worth billions of dollars to Pakistan in the coming years.

Haroon Akhtar Khan invited the Korean investors to benefit from the conducive business and investment climate in Pakistan and participate in the economic growth in the country. "The market in Pakistan is ripe for new business ventures due to good returns and favourable economic and investment policies of the government," he said.

The Korean ambassador said his country looked at Pakistan as a rapidly growing economy with lots of space opening for investment and business opportunities. He also expressed his happiness with the improved security situation in the country and the investment-friendly climate which he hoped would persist in the future to attract more foreign investment.

Haroon Akhtar Khan

         SA to PM on Revenue Senator Haroon Akhtar Khan meeting Mr. Kwak Sungkyu, Ambassador of South Korea, at FBR House today.

 

 

Hamid Raza Khan
Secretary PR

Apr 12, 2018 We delivered what we promised to business community, says Haroon Akhtar

Haroon Akhtar KhanSpecial Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has said the government has successfully delivered on all the promises made with the business community during the last five years.

"The business community asked us for amnesty, we gave them; they asked us for lowering the tax rates, we did that; in some cases, we gave them even more relief than what they asked and the entire purpose of facilitating the business community was to foster business activities, promote growth and generate more revenues in the process," he said while chairing the ceremony for Computerised Balloting for Audit held at FBR House today.

He said the government had bridged the gap between the business community and the tax collectors and it was expression of the trust and confidence that the government reposed in the taxpayers and the general public. "The taxpayers have surely responded to that by helping FBR achieve several milestones on the revenue growth front but the onus now lies on the non-filers to come forward and pay their due share of taxes by benefiting from the incentives and facilitation FBR has offered them," he said.

Earlier, parametric computer ballot as per Audit Policy 2017 was held for selection of cases for audit for Tax Year 2016 and Tax Periods from 1st July, 2015 to 30th June, 2016, in respect of Income Tax, Sales Tax & FED. Senator Haroon Akhtar Khan and representatives of Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Institute of Chartered Accountant of Pakistan (ICAP), Pakistan Tax Bars Association (PTBA), Islamabad Women Chamber of Commerce and Industry, Islamabad Chamber of Commerce and Industry, Rawalpindi Chamber of Commerce and Industry and FBR officers were also present on the occasion.

Highlighting the economic and tax policies of the government, Haroon Akhtar Khan underscored the importance of audit in a country like Pakistan where universal self assessment scheme is prevalent. He elaborated that in order to facilitate the taxpayers, it was decided that the case of a tax payer once selected for audit under section 214C of Income Tax Ordinance 2001, section 72B of the Sales Tax Act 1990 and section 42B of the FED Act 2005 will not be selected for audit for next (consecutive) two tax years. For such purpose, base year would be Tax Year 2015 for Income Tax & Tax Periods July 2014 to June 2015 for Sales Tax & Federal Excise Duty. He further added that all cases of income exclusively from salary and where the salary exceeds 50% of taxable income would are excluded from this parametric computer balloting. However, the salary cases having business income were not excluded from this balloting.

The Minister assured that the tax audit would be conducted in a professional and transparent manner. The selection was based on risk parameters resultantly compliant taxpayers would not be selected.

Later on, computer ballot was conducted in respect of six categories i.e. corporate cases of Income Tax, Sales Tax and FED & Non-corporate case of Income Tax, Sales Tax and FED. Resultantly the cases were selected for audit for Tax Year 2016. The cases have been selected for audit in respect of six categories are detailed as under:

 

i. Income Tax (Corporate) 1,499
ii. Income Tax (Non-Corporate) 34,515
iii. Sales Tax (Corporate) 1,274
iv. Sales Tax (Non-Corporate) 7,532
v. Federal Excise Duty(Corporate) 28
vi. Federal Excise Duty(non-Corporate) 20
     
  --------------------
Total 44,868
  --------------------

National Tax Numbers/ CNIC of cases selected for audit would shortly be displayed on the official website of FBR. The Audit Policy 2017 for Tax Year 2016 has been placed on the official website of FBR.

Meanwhile, Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan held separate meetings with the office-bearers and members of Pakistan Retail Business Council (PRBC) and All Pakistan Cement Manufacturers Association who came to share with him various budget proposals and recommendations to further boost their respective sectors.

The Minister assured them the government was keen to present a pro-industry, pro-businessman and growth-friendly federal budget and all genuine and realistic proposals and recommendations for the upcoming budget would be favourably considered and made part of the Finance Bill.

Member IT

Hamid Raza Khan
Secretary PR

Apr 11, 2018 FBR launches system to monitor restaurants' sale in real time

Federal Board of Revenue has launched the Restaurant Invoice Management System (RIMS), a technological based solution that enables monitoring of sales on real time basis thus reducing the human interface and bringing transparency in the tax collection process.

The prime objective of web-based RIMS is to facilitate the taxpayers by relying on modern techniques to tap the difference between current and potential collection.

The ceremony was attended by Senator Haroon Akhtar Khan, Special Assistant to the Prime Minister on Revenue, Mr. Sheikh Amir Waheed Tariq, President ICCI and Mr. Khurram Khan, representative from restaurant association.

It is appreciable that RIMS has so far been successfully installed in 80 plus renowned restaurants operating in the Federal Capital and further implementation in remaining restaurants is in process.

FBR, as a part of its ongoing strategy, is committed to rely more on use of modern techniques to bring about efficiency and effectiveness in tax collection. FBR is all set to work in close collaboration with Chambers and Restaurants Associations to ensure application of this system in all restaurants of Islamabad. 

 

Hamid Raza Khan
Secretary (PR)

Apr 10, 2018 Audit Policy for 2017 pertaining to Tax Year 2016

Audit Policy for 2017 pertaining to Tax Year 2016 has been approved by the Federal Board of Revenue. Criteria for selection of cases (for all taxes) for TY 2016 would be parametric. It has been decided by the Board that in order to provide ease and facilitate the tax payers case of a tax payer once selected for audit though ballot shall not be selected for audit for next (consecutive) two tax years under section 214C of the Income Tax Ordinance 2001, under section 72B of the Sales Tax Act 1990 and 42B of the Federal Excise Act 2005 respectively. For such purposes base year would be TY 2015 for Income Tax & Tax Periods July 2014 to June 2015 for Sales Tax & Federal Excise Duty. The Parameters for selection of cases for audit in the aforementioned Audit Policy are as follows:

  1. Income Tax: According to section 214C (1A) of Income Tax Ordinance, 2001 the Board shall keep the parameters confidential.
  1. Sales Tax: Following risk parameters have been determined by the Board for selection of cases for audit under Sales Tax:
  1. Decline in value of supplies is greater than 10% over last year;
  2. Consistent decrease in output tax/input tax ratio over last three years;
  3. Decrease in ratio of taxable supplies to total supplies by 10% or more as compared to previous year;
  4. Non-filer, nil-filer or null-filer for more than 6 months in the year in case the Registered Person is showing any turnover in income tax return of the corresponding period;
  5. Manufacturers showing value addition of less than 10%;
  6. Where more than 30% purchases are from “unregistered persons”.
  7. Where more than 30% sales are to “unregistered persons”.
  8. Increase in carry forward of input tax and reduction in sales by margin of 10%.
  1. Federal Excise

Following risk parameters have been determined by the Board for selection of cases for audit under Federal Excise:

  1. Decline in value of supplies is greater than 10% over last year;
  2. Consistent decrease in output tax/input tax ratio over last three years;
  3. Decrease in proportion of taxable supplies to total supplies by 10% as compared to previous year;
  4. Non-filer, nil-filer or null-filer for more than 6 months in the year, in case the Registered Person is showing any turnover in income tax return of the corresponding period;
  5. Manufacturers showing value addition of less than  10%;
  6. Where more than 30% purchases are from “unregistered persons”;
  7. Where more than 30% sales are to “unregistered persons”;
  8. Increase in carry forward of input tax and reduction in sales by margin of 10%.

Balloting on the basis of such policy would be held shortly. Audit Policy for 2017 pertaining to Tax Year 2016 has also been placed on the website of FBR which can be accessed at www.fbr.gov.pk

Hamid Raza
Secretary PR

Apr 10, 2018 No additional tax will be imposed on telecom sector - Haroon Akhtar Khan

No additional tax will be imposed on telecom sector as the government of Pakistan wants growth of this sector, said Haroon Akhtar Khan, Special Assistant to Prime Minister on Revenue in a meeting with CEOs and other high level representatives of telecom companies working in Pakistan here at the FBR House on Tuesday.

Delegation of telecom sector comprised of Irfan Waheed Khan, CEO Telenor, Naveed Khalid Butt VP Corporate Affairs Ufone, Syed Naveed Akhtar, Executive Director Finance Operations Zong, Ali Naseer, Chief CRA Jazz and other high level representatives. On behalf of FBR, Chairman FBR Tariq Mahmood Pasha, Member Custom Zahid Khokar, Member IR Policy Dr Mohammad Iqbal and other officers took part in the meeting.

Taxation issues of telecom industry, proposals for Budget 2017-18, Withholding Tax issues, industrial undertaking for the telecom industry, federal excise duty, sales tax exemption on import were discussed in detail.

Haroon Akhtar Khan assured them that the government of Pakistan wants the growth of this industry as this sector has great ability to grow. “We want this industry to flourish so that the people of Pakistan get better and better services at their door step,” he said

Haroon Akhtar Khan

 

Haroon Akhtar Khan, Special Assistant to Prime Minister on Revenue in a meeting with CEOs and other high level representatives of telecom companies at the FBR House on Tuesday

Hamid Raza Khan
Secretary (PR)

Apr 04, 2018 Govt doubled GDP and revenue growth, halved inflation, says Haroon

Haroon Akhtar KhanSpecial Assistant to the Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has said the government has doubled the country's GDP growth as well as the tax revenue and halved the inflation during the last five years.

"The economic indicators themselves are a proof of the gains we have achieved on these fronts and this has been made possible by the prudent and realistic economic policies of the government," he said while talking to participants of the 108th National Management Course who visited the FBR House here today to have a strategic vision and understanding of the working of FBR and its role in the fiscal policy.

He noted that Pakistan's imports were increasingly mainly because of buoyancy and strength of the economy and demand for foreign machinery for the burgeoning local industry. "We have been able to arrest and reverse the declining trend in our exports which since July last year have rebounded, showing almost 12 per cent growth," he said.

However, he said a long-term solution to the country's economic woes lay in strengthening the manufacturing base to achieve and ensure a sustainable 7 per cent growth rate in coming years. "In my view, building the manufacturing base and making use of cheap labour available in Pakistan is the key to jumpstarting growth in the country," he said.

The Minister pointed out that despite hardships, low inflation and cheap prices, particularly of petrol which was the cheapest in Pakistan throughout this region, the tax machinery had done exceedingly well by almost doubling the tax revenues during the last five years. "In 2013 when the government took over, the tax revenue stood at 1946 and we are positive we would be able to double this figure before the close of ongoing tax year," he added.

He said that because of enhanced revenue, the government had been able to transfer an extra Rs 3000 billion to the provinces during the last five years, allowing the provincial governments greater fiscal space and freedom to launch and execute mega projects.

Meanwhile, Special Assistant to the Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan chaired a meeting of the high-powered Implementation Committee-Tax Reforms Commission (TRC) at the FBR House today to review and discuss various proposals and recommendations regarding taxation for the upcoming budget.

The Minister underlined that the government was aiming for a balanced and pro-growth budget focusing more on relief and incentives for the filers and disincentives for the non-filers with a view to broadening the tax base. He said the government wanted to facilitate the business community by providing them a level-playing field to grow their businesses and contribute to revenue generation.

Hamid Raza Khan
Secretary PR

Apr 02, 2018 Strengthening manufacturing base key to achieving 7% growth rate, says Haroon Akhtar

Special Assistant to the Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has said the government is aware of the need to strengthen and enhance the manufacturing base which holds the key to achieving 7 per cent growth in the coming years.

"If we have to grow at 7 per cent, we will have to enhance our manufacturing base," he said while talking to a delegation of All Pakistan Textile Mills Association (APTMA) which met the Minister and top officials in FBR to share with them a set of proposals and recommendations for boosting the export oriented textile industry.

Special Assistant to the Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan hold a meeting with a delegation of All Pakistan Textile Mills Association (APTMA) at FBR House

The Minister assured the delegation that the government was keen to pay outstanding Sales Tax refunds and modalities were being worked out for their payment by the end of May. "The PM is very keen on that as he believes the money should be where it belongs," he said.

Haroon Akhtar Khan lauded the contribution of the textile sector in helping the government achieve the target of nearly doubling the country's tax revenues since 2013 and also appreciated the industry for playing its part in arresting and reversing the decline in exports. "There was about 15 % increase in exports in the month of February whereas the overall growth has been around 11 to 12 per cent during this fiscal year which speaks about the effectiveness of government's packages and other facilitative measures announced for this sector," he added.

Meanwhile, a delegation of Association of Builders and Developers of Pakistan also met Senator Haroon Akhtar Khan and management of FBR to discuss their outstanding issues and the proposals and recommendations for resolving them. The Minister assured them their genuine issues would be resolved and their budget proposals would also be closely examined and considered in the upcoming Federal budget.

Special Assistant to the Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan hold a meeting with a delegation of Association of Builders and Developers of Pakistan at FBR House

 

Hamid Raza
Secretary PR

Apr 02, 2018 FBR registers 16% growth in first 9 months

Federal Board of Revenue during first nine months  of the current financial year has recorded a provisional net revenue collection of over Rs. 2621 billion as against Rs. 2260 billion collected during the same period of the previous fiscal year, excluding collection on account of book adjustments. FBR has recorded an increase of around 16% over the revenue collected during the corresponding period of last fiscal year.

The provisional collection for the month of March 2018 was 361 billion excluding collection on account of book adjustments. The figures of collection received in the treasuries of the remote areas may further increase the revenue figures.

The revenue collection trend during the first nine months of the financial year augurs well for the efforts of FBR towards achievement of the assigned annual revenue targets.

 

Hamid Raza
Secretary PR

Mar 30, 2018 Our resolve, sacrifices delivered Pakistan from terror, Haroon tells German envoy

Special Assistant to the Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has said the resolve and sacrifices of the Pakistani nation and its jawans have won the country peace and security after a long, drawn-out battle against the evil forces of terror.

"We have been through some of the most trying circumstances nations go through but with the help of collective resolve and determination of our people and through countless sacrifices of our forces, we have been able to vanquish the forces of terror," he said while talking to Mr. Martin Kobler, Ambassador of Federal Republic of Germany to Pakistan.

He said the peace and security prevailing in the country has already paid dividends with economy stabilizing and investors coming to Pakistan in a big way to benefit from the investment opportunities and the favourable business climate.

He welcomed the German investment in different sectors of Pakistan's economy and appreciated the efforts of the Germany envoy for his efforts towards image-building of Pakistan.

Earlier,  Mr. Martin Kobler briefed Senator Haroon Akhtar Khan on the scope of German investment in Pakistan, particularly the smaller convenience stores set up across Pakistan which had flourished quite well by registering double digit growth during the last two years. He said Pakistan had also moved during the last six months from a "question-mark country" status to the "group of opportunities countries" in the eyes of potential German investors who were now looking at Pakistan as a potential market offering good returns on their investment.

He said "quality control" was a hallmark of the German businesses and the German investment in Pakistan was also driven by this ideal with a view to providing the customers quality services and products at affordable prices.

Haroon Akhtar meets

Hamid Raza
Secretary PR

Mar 28, 2018 FBR launches knowledge-base portal

Federal Board of Revenue (FBR) has launched the first version (Beta) of Knowledge Base Portal for guidance and facilitation of taxpayers. The portal was launched jointly by Mr. Muhammad Zahid, Member Customs and Khawaja Adnan Zahir, Member IT, FBR.

Knowledge Base Portal is a digital help library for taxpayers, tax collectors and other related stakeholders. It is the first common help platform of FBR which provides instant guidance on all issues related to federal taxes and duties.

FBR Knowledge Base is an interactive portal and allows users to provide feedback regarding improvement in the articles and suggestions for addition of further articles. The articles on the portal shall be published after vetting by an expert domain team of FBR. All users will be able to search for their required material just like on any other search engine e.g. Google, Yahoo etc. by writing the key words in the search bar.

There are around thirty articles in the first version (Beta) of the portal and FBR plans to improve and increase the number of articles based on the feedback and suggestions of the users. The articles will mainly focus on helping the users on how to use FBR’s IT systems and also educate them on the laws behind the various modules of Iris, WeBOC and e-portal. This is a major step towards providing maximum ease and facilitation to the all users of FBR’s IT systems. Step by step help will also be available during filing of return.

Mr. Muhammad Zahid, Member Customs and Khawaja Adnan Zahir, Member IT, FBR

 

Hamid Raza Khan
Secretary (PR)

Mar 28, 2018 Business, trade bodies call on Haroon Akhtar to share budget proposals

Office-bearers and members of Pakistan Dairy Association as well as Steel & Iron Merchants Association held separate meetings with Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan to share with him proposals and recommendations for boosting growth and business opportunities in their respective sectors.

The meetings were held at FBR House and attended by senior officers of FBR. State Minister for Finance Rana Muhammad Afzal Khan also c-chaired the meeting held with office-bearers of the Pakistan Dairy Association.

The meetings were aimed at having an in-depth analysis of various proposals and recommendations shared by both the important bodies for the development and growth of their respective sectors. Different proposals and recommendations were closely examined and scrutinized and both the bodies were assured that all their genuine and realistic proposals and demands for relief and incentives would be properly studied and presented to the federal cabinet for further evaluation and approval before being incorporated in the budget.

Speaking on the occasion, Senator Haroon Akhtar Khan said the government was aiming at a pro-industry, pro-investment and business-friendly federal budget as only through further development of different sectors of the economy more revenue could be generated for the socio-economic uplift of the country.

Haroon Akhtar meets trade bodies

Hamid Raza Khan
Secretary (PR)

Mar 21, 2018 Taxpayers outreach: FBR's Member FATE meets PSO's leadership

As part of FBR's taxpayers outreach programme aimed at acknowledging the contribution of taxpayers and offering them further help and assistance in a bid to broaden the tax base, Ms. Nausheen Javaid Amjad, Member Facilitation and Taxpayers Education (FATE) Wing FBR met the top leadership of Pakistan State Oil Company Limited at the Company's headquarters in Karachi.

           Sheikh Imranul Haque, Managing Director & CEO PSO, Yacoob Suttar, DMO-Finance/CFO PSO and Imtiaz Jaleel General Manager Finance PSO received the FBR Member at the PSO House and discussed with her ways and means for further strengthening the relationship between FBR and PSO. Senior officers from Large Taxpayers UNit (LTU) Karachi were also present.

            Member FATE FBR Ms. Nausheen Javaid Amjad said FBR wanted to reach out to the corporate world to offer them all kinds of technical help and assistance to discharge their tax related obligations. "FATE Wing of the FBR has undertaken this initiative since September last year at the behest of Chairman FBR Mr. Tariq Mahmood Pasha to strengthen our relationship with the corporate world and build a culture of trust and shared responsibility that leads to optimal revenue generation and tax compliance," she told the PSO leadership.

            Ms. Nausheen Amjad mentioned a marked increase recorded this year in the number of tax returns filed by the salaried class, both in the private and the public sector, due to timely technical assistance and facilitation provided by FATE Wing to the taxpayers as part of FBR's outreach efforts. "Our aim is to create greater awareness and understanding about the significance and advantages of discharging tax obligations for the taxpayers and filers who can benefit significantly in terms of paying lower rates of taxes on a host of financial and business transactions as compared to non-filers who have to pay far higher rates for their non-compliance," she said.    

            PSO's MD & CEO Sheikh Imranul Haque said he was impressed with the efforts of FBR and particularly the Facilitation and Taxpayers Education Wing for bringing a fresh impetus and refreshing change in its professional dealings with the taxpayers. He noted that a direct and frank way of knocking at the doors of large corporate taxpayers as the FBR had done for the last six months, was a welcome departure from the past and hoped such efforts would be continued in the best interest of the taxpayers and for an optimal revenue generation and resource mobilization. He assured the Member FATE fullest support from his company towards FBR's taxpayers outreach efforts. 

Hamid Raza Khan
Secretary (PR)

Mar 21, 2018 FBR, NTC sign MoU for electronic exchange of information
Federal Board of Revenue (FBR) and National Tariff Commission (NTC) have signed a Memorandum of Understanding (MoU) for electronic exchange of information for accurate and timely implementation of notifications for levying countervailing, anti-dumping and safeguard duties. The electronic exchange will help save time, reduce cost of doing business and improve efficiency. 
 
INTRA (Integration of Regulatory Authorities) is initiative of FBR (Pakistan Customs) through which regulatory authorities are being integrated with customs automated clearance system. The integration permits electronic exchange of import documents, which are prerequisites for allowing import of certain items under prevailing import policy. The aim is to improve ease of Doing Business in Pakistan by facilitating cross border trade. Customs has already signed MoUs in this regard with State Bank of Pakistan, Engineering Development Board, Provincial Revenue Authorities of KP, Punjab and Sindh. 
 
The MoU signed between Federal Board of Revenue and National Tariff Commission aims at electronic exchange of information for accurate and timely implementation of notifications for levying countervailing, anti-dumping and safeguard duties. Signing of MoU with NTC is yet another milestone in the direction of facilitating trading across borders.Electronic interface has provided real time access to authorized officials from NTC to feed/upload notifications for levying such duties electronically in WeBOC through unique User IDs. NTC shall also have monitoring access for the said notifications. 
 
The electronic exchange shall save time and reduce cost of doing business. Moreover, exchange of information on real time basis between the two government agencies is expected to strengthen government controls and reduce chances of fraud or mis-declarations.Data integration will lead to use of shared data for other purposes like risk profiling and audits. Both departments can make use of this data for future policy planning and reconciling their respective records.

MOU with NTC

Mohammad Zahid Khokar, Member Customs FBR and Tipu Sultan, Member NTC sign MoU regarding electronic exchange of information at the FBR Headquarters on Wednesday. 

 

Hamid Raza Khan
Secretary (PR)

Mar 20, 2018 FBR launches facility for payment of taxes through ATM, online banking

Haroon Akhtar KhanSpecial Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan launching facility for payment of taxes through ATM, online banking at the FBR House today. Chairman FBR Tariq Mahmood Pasha, State Bank Governor Mr. Tariq Bajwa and Member IT FBR Kh Adnan Zahir look onFederal Board of Revenue in collaboration with the State Bank of Pakistan and 1-Link launched the facility for payment of federal taxes including income tax, sales tax, customs duty and federal excise duty through alternate delivery channels, i.e. ATM, online banking, phone banking and contact centers.

The facility was launched at a ceremony at the FBR House today. Mr. Haroon Akhtar Khan, Federal Minister/Special Assistant to the Prime Minister on Revenue, Mr. Tariq Bajwa, Governor State Bank of Pakistan, Mr. Tariq Mehmood Pasha, Chairman FBR and other officers of FBR as well as representatives from the Prime Minister’s Office, State Bank of Pakistan, Ministry of Finance, AGPR, PRAL and 1-Link were also present.

Before the launch of this facility taxpayers had to visit the designated branches of SBP and NBP during working hours and sometimes had to stand in long queues to pay their taxes. Now, the taxpayers can pay their taxes through the ATM of any bank or from their homes and offices 24 hours a day, seven days a week. Taxpayers can even pay their taxes from outside Pakistan using their online bank accounts.

In his welcome address, Mr. Tariq Mehmood Pasha, Chairman FBR said that this was a revolutionary step and showed that if organizations worked with dedication and synergy, no goal was beyond reach. He also said that this, along with FBR’s other measures including the automatic registration of a company on its incorporation by SECP, launched last week, would substantially improve Pakistan’s ranking on the World Bank’s ease of doing business index and attract local as well as foreign investment.

Speaking on the occasion, Mr. Tariq Bajwa said that this facility would have three major benefits, namely facilitation of the taxpayer, reduction in the time lapse between payment of taxes and its reporting, and instant reconciliation of payments. These three benefits would improve the efficiency of FBR.

Hamid Raza Khan
Secretary (PR-FATE)

Mar 14, 2018 Govt not in favour of counter-productive taxation, says Haroon

Special Assistant to Prime Minister on Revenue/Federal Minister Senator Haroon Akhtar Khan has said the government is willing to review and adjust high taxation rates in case they are found to be stymieing growth of any sector or industry.

"The government is not in favour of counter-productive taxation as our prime objective is to promote growth and help businesses flourish and contribute more revenue to the national exchequer," he said while talking to a delegation of the American Business Council of Pakistan which met him at his office.  

The Minister told the delegation that the government valued the contribution made by multinationals to growth of revenue and economy and the downward revision of corporate tax rates from the previous 35 to the current 30 per cent was indicative of the government desire to further facilitate the corporate sector. "We are reviewing proposals and recommendations to further facilitate this sector in the upcoming budget which would be pro-investment and pro-businessman in nature," he added.

Earlier, Kamran Nishat, president of the American Business Council of Pakistan, said the investment environment had considerably improved in Pakistan as indicated by recent perception surveys, indicating marked improvement in law and order and ease of doing business. He also shared with the Minister a set of proposals and recommendations for further boosting economic and revenue growth.

SA to PM Haroon Akhtar

Hamid Raza Khan
Secretary (PR-FATE)

Mar 02, 2018 FBR fetes Member Taxpayers Audit on retirement

The 7th meeting of the Board-in-Council of FBR was held here with Chairman FBR Mr. Tariq Mahmood Pasha in the chair to bid farewell to Mr. Rahmatullah Khan Wazir, Member Taxpayers Audit FBR, on his retirement from service.

In line with the tradition in FBR, the BiC meeting attended by all FBR Members paid glowing tributes to Mr. Wazir (BS-22) for his meritorious services for the promotion of public policy and tax culture while working on various senior positions in the Board and field formations of FBR. The Members shared their reminiscences of pleasant memories and experiences while working with the honourably retired officer.

Rahmatullah Khan Wazir, speaking on the occasion, expressed his gratefulness to God for enabling him to complete a remarkable phase of his life with dignity and pride and spoke profusely of the enabling and equally challenging work environment in which he shouldered his multifarious responsibilities in various positions in FBR.           

He said he was leaving the service he started in 1982, as a fully happy and satisfied man and remarked that much of what he achieved during his career would not have been possible without the support and assistance of his colleagues in FBR. He said he was humbled by the sentiments of love and compassions expressed by his colleagues on his retirement.

The Chairman, FBR in his remarks appreciated the services of Mr. Rahmatullah Khan Wazir and his hard work and commitment to the organization and wished him a healthy and prosperous life in future. Towards the end, the Chairman, FBR presented souvenirs and flower bouquets to the outgoing Member of FBR

FBR fetes Member Taxpayers Audit on retirement

 

Hamid Raza Khan
Secretary (PR-FATE)

Mar 02, 2018 1,260,181 returns, 246,945 more than last year, received by FBR by 28th February

Federal Board of Revenue has rejected claims of reduction in the number of Income Tax returns filed for the current year as compared with last year.

Certain news reports and opinions appearing in the print and electronic media on the subject have pointed out that the returns received by the FBR for the current year i.e. tax year 2017 are above 1.2 million whereas the returns received for the tax year 2016 were above 1.3 million and hence there is a decline of around one hundred thousand in the number of returns received this year.

FBR has termed the above referred reports and opinions as misleading and based on a lack of understanding of the return filing cycle. It needs to be understood that there is no cut-off date for filing of Income Tax returns. Income Tax law does provide a due date for filing of returns but the taxpayers are allowed to file their returns for a tax year several years after the end of the tax year.

A meaningful comparison of the number of returns filed for a year with the preceding year has to be for a given date because the returns for the preceding year continue to be filed even in the next year. By the 28th of February 2018, 1,260,181 returns have been filed for the tax year 2017 and that are 246,945 more than the 1,013,528 returns received for the tax year 2016 by the same date i.e. 28th of February 2017. Returns for tax year 2016 continued to be filed after this date and by the 30th of June 2017 the number of returns received became 1,185,172 and 1,392,181 by 28th of February 2018. It is therefore obvious that the figures being presented to the public by the sections of the print and electronic media do not compare apples to apples and are misleading

Hamid Raza Khan
Secretary (PR-FATE)

Feb 28, 2018 FBR registers 17.65% revenue growth in first 8 months

Federal Board of Revenue (FBR) during first eight months of the current financial year has recorded a provisional net revenue collection of over Rs. 2259 billion as against Rs. 1920 billion collected during the same period of the previous fiscal year, excluding collection  on account of book adjustments. FBR has recorded an increase of around 17.65% over the revenue collected during the corresponding period of last fiscal year.

The provisional collection for the month of February 2018 was Rs 263 billion excluding collection on account of book adjustments as against Rs 227.5 billion collected during February, 2017. The figure of monthly collection is encouraging and shows an increase of around 16%. The figures of collection received in the treasuries of the remote areas may further swell the revenue figures. The target for the year has been fixed with an annual increase of around 19% over the previous year.

The revenue collection trend during the first eight months of the financial year augurs well for the efforts of FBR towards achievement of the assigned annual revenue targets.

 

Hamid Raza Khan
Secretary (PR-FATE)

Feb 21, 2018 Govt to fully support Thar Coal Power projects, says Haroon

Special Assistant to the Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has assured full government support for the timely completion of the Thar Coal Power projects in view of the enormous benefits they would bring to the national economy besides transforming the landscape of Thar.

"These projects are vital for Pakistan not only in meeting its future energy requirements but also in cutting down on expensive imports of the fuel for the newly built coal-fired power stations," he said while talking to a delegation of companies executing the Thar Coal-Fired Power Projects.

The Minister said the country had long faced severe power shortages due to limited capacity of renewable energy sources and it was important to have year-round power supply in the coming years when the economy was set to boom and grow at a fast pace. He said the power generation through coal was almost negligible in Pakistan as compared to nearly  70% in India and China and it was time to fully tap the coal resources to meet our future energy requirements.

Earlier, the Minister was told that the work on mining and other related activities of the Thar Coal Power projects was going well and the first phase of the project was scheduled to complete about four months ahead of its timeline. Once the project is completed, it would furnish around a fifth of the country’s electricity for the next 50 years while other financial rewards could also be vast.

Haroon Akhtar Khan

Hamid Raza Khan
Secretary (PR-FATE)

Feb 20, 2018 Govt aiming for pro-investment, pro-business budget, ADB told

Special Assistant to the Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has said the government is aiming for a pro-investment and business-friendly federal budget for the coming year to jumpstart growth and boost the economy.

"We are looking into all possible ways to boost the GDP growth and we are willing to work with the industry and all stakeholders to prepare a budget that addresses the major concerns and issues facing the economy, particularly the manufacturing sector which holds the key to developing the country on a sustainable basis," he said while talking to Ms. Xiaohong Yang, Country Director Pakistan Resident Mission of Asian Development Bank who along with her team met the Minister at FBR House to share with him their views and recommendations on the current state of economy and the issues it faces. 

Haroon Akhtar Khan said the government had brought down the corporate tax rates from 35 to 30 per cent and had also taken certain other measures to reverse the decline in exports which had started going up since June last year. "We are aware that our manufacturing sector needs to be given more incentives to fuel a broad-based growth and we are working on different proposals to lift this sector and put the country on the industrialization path," he said.

He told the ADB team the country had done much better on the revenue generation front where there had been nearly 75 per cent revenue growth accumulatively during the last four years and even for the current year, FBR was maintaining 18 per cent growth. "We are practically taxing only 79 per cent of the economy which brings out tax-to-GDP ratio to almost 16 per cent," he contended.

Ms. Xiaohong Yang said she was happy with the way Pakistani economy had performed during the last four years and the situation required for more incentives and pro-investment measures to strengthen these gains and ensure continuity of growth in the coming years.

 

Haroon Akhtar

Hamid Raza Khan
Secretary (PR-FATE)

Feb 16, 2018 Haroon Akhter Khan Special Assistant to Prime Minister on Revenue - Federal Minister in a meeting with the representatives of Pakistan Tax Bar Association on Friday.

Special Assistant to Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has said the government values the contribution of tax bar associations in the country towards broadening of tax base and their proposals on improving the tax regime would be welcomed for the next budget.

"We appreciate the good work being done by the tax bar associations and it is our endeavor to work closely with them for broadening of tax base and further improving the tax regime," he said while talking to a delegation of Pakistan Tax Bar Association (PTBA) that met him at the FBR House today.

Haroon Akhtar Khan said tax bar associations served the purpose of think-tanks and their input and proposals would be welcomed in the routine taxpayers outreach activities and seminars conducted by FBR for broadening of tax base and improving tax collection.

The PTBA office-bearers congratulated Haroon Akhtar Khan on his elevation as Federal Minister and commended him for impressive revenue collection during the last four years and for acting as a bridge between the government and the business community. They shared with him a plan of action for BTB seminars, outreach and better collection of taxes. They also invited him to chair a workshop on direct and indirect taxes to be organised by PTBA in Lahore in the coming month.


 

Hamid Raza Khan
Secretary (PR-FATE)

Feb 15, 2018 Pakistan aiming for 6% GDP growth - Haroon tells Turkish investors

Special Assistant to Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has said the government is aiming for a 6 % GDP growth this year on the basis of strong economic indicators.

" Our economy has done very well and we are aiming for 6 % GDP growth this year as reflected by the low inflation rate which is below 4 % and fiscal deficit which is around 5 %," he said while talking to a delegation of Turkish investors and businessmen who as part of the Turkish-Pakistan Business Council met him at the FBR House today.

The Minister told the visiting delegation that Pakistan had gone through some rough times in the past facing the spread of terrorism mostly due to international problems, but the Pakistanis had proved to be a very resilient nation.  "Five years ago the situation was not what it is today. The situation is very good now. We have proved to the world that we are a frontline nation in the fight against terror. We have made a lot of sacrifices. We had a slight political turmoil because of which stock market went down but it has come back again."  

Haroon Akhtar Khan said that he meets a number of businessmen, trade associations and chambers of commerce, including Pakistan Business Council and Overseas Investors Chamber of Commerce, and they always told him that people were hungry to invest in Pakistan. "They come to tell me that profit margins are going up, their business volumes are going up. The fast moving consumer goods are doing very well. That is the strength of our economy. Our international ratings have been improving consistently. Today is the right environment to come to Pakistan."

He further told Turkish businessmen Pakistan had a population of 200 million people blessed with one of the largest proportion of younger people which as per statistics stood around 65 million below the age bracket of 30. "This youth bulge is our strength and that is what we can use in the future."

He conceded that Pakistan had to go through the industrialization route before aspiring to become a fully developed country. "We believe that we need a lot of jobs for the skilled as well as the unskilled labour. Our people go and work all over the world, even in the 50 degree temperature under the hot sun in most of the Gulf countries. They work 18 hours a day, live a very simple life and send back valuable money back home which also helps our economy. We are a resilient people, we are tough people, we work hard. Our labour as compared to many countries around us is also considerably cheap."

The Minister apprised the delegation that the corporate tax rates in Pakistan had come down from 35% to 30% and the government was further reviewing them in the coming budget. However, there were many other advantages to reap for the foreign investors in Pakistan. "We have no inheritance tax, no gift tax, no wealth tax and almost negligible social security tax which is very small as a percentage of salaries. These are the advantages for the foreigners who can also own 100% of their company, can bring investment through their offshore concerns and can own properties here."

Haroon Akhtar Khan said Pakistan knew fully well that its future was in foreign investments and increase in exports. "But let me tell you every Pakistani businessman who goes abroad to do business comes back and the ultimate conclusion he makes is, that one makes more money in Pakistan."

He conceded that there was a culture of red-tapism in the country but that was getting better. "Yes, we had not been fully able to enforce the one-window operation but we are fully cognizant of that. We are not very high in the ease of doing business index but we are working on that. We like businesses to prosper. We do not want to tax them to a point where they stop making money. We don't like to kill the goose because it lays the golden egg. What we want is that while businesses are going strong and making money, the government also makes some money."

He said the government held the companies in the highest esteem by trusting them and believing in their balance sheets. "We give special treatment to the multinationals and large taxpayers because we know they pay their taxes."

He said that while there could be problems with regard to our systems and procedures but the government was ready to help out the investors in all possible ways. "I understand that for a company coming here, the consistency of policies is very important. I know somebody who comes here for investment, does not come for a few months or a year but for a decade. Obviously, companies make feasibility policies on the basis of prevailing policies and if those policies change, that too negatively, that is disheartening for an investor. So whichever government comes in Pakistan in the next general election, already understands that the future of Pakistan and the future of our economy depends on foreign investment."

He said Pakistan's economy was in a better shape now. Previously there were problems with the current account deficit caused by trade deficit and lack of foreign investment. "We have done very well as far as the CPEC is concerned, the Chinese investment amounts to $ 57 billion over the next four to five years. However, more investment together with exports, would take care of our trade and current account deficit. We don't want to go to the donor agencies. We do not want to go to IMF because we want to achieve 7 to 8 per cent GDP growth figure and we like to do that for at least a decade just like Turkey did by achieving roughly 10 % growth for nearly 10 years which turned around Turkey and made it an economic power."

The Turkish investors and businessmen thanked the Minister for briefing them on the state of economy and the investment opportunities available in Pakistan. They told the Minister they had set up their businesses for many years now and could see for themselves vast improvements in the security situation and an increasing level of credibility that Pakistan now enjoyed as an investment destination abroad. They also told the Minister that there were many more Turkish companies and businessmen keen to come to Pakistan due to improvement in investment environment here, particularly the overcoming of energy shortages and the overall feel-good factor the country.

 
 
 
Hamid Raza Khan
Secretary (PR-FATE)

Feb 09, 2018 Haroon woos German investors to Pakistan

Special Assistant to the Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has called for re-doubling of efforts to strengthen business-to-business partnerships and forge new collaborations between Pakistan and Germany.

Pakistan is an ideal market with vast opportunities for investment in many sectors of the economy and the German investors should benefit from our pro-investment and business-friendly policies to make healthy returns on their investments," he said while talking to His Excellency Martin Kobler, Ambassador of Federal Republic of Germany to Pakistan, who met the Minister along with representatives of the German-Pakistan Chamber of Commerce at FBR House today (Friday).

Haroon Akhtar Khan appreciated the ongoing local German investment and business initiatives in Pakistan and hoped the number of German companies engaged in business in Pakistan would grow considerably in the coming days given a vast improvement in the law and order and security situation in Pakistan. He also briefed the envoy on the sacrifices rendered by the Pakistani nation and its military and para-military forces for eradicating the evil of terrorism and contributing to the regional security.  

Mr. Martin Kobler told the Minister the strength of the German economy was its medium-sized companies and it would be good for businessmen from both German and Pakistan to forge business collaborations and join partnerships in the medium-sized enterprises in Pakistan which he conceded had a huge potential for growth in coming years. He said the number of German companies operating in Pakistan could increase substantially through greater initiative from the German-Pakistan Chamber of Commerce and the efforts of its members for presenting a true and softer image of Pakistan to the outside world

Hamid Raza Khan
Secretary (PR-FATE)

Feb 01, 2018 No missing of target - revenue collection on track- FBR

The performance of Federal Board of Revenue, during the first quarter of the current Fiscal Year, has been positive and satisfactory, as opposed to the impression conveyed by a particular journalist through the news story published in daily The Express Tribune on 1st February, 2018.

The insinuation that FBR has missed its budgetary target for the period July to January by an imaginary figure of Rs 74 billion is baseless and misconceived.  It is pertinent to mention that no monthly, quarterly or half yearly revenue target have been assigned to FBR. The question of missing the seven monthly target therefore does not arise as no such target exists. The target assigned to the FBR is to collect Rs 4013 billion in the current fiscal year through generating revenue growth of 19.2% over the revenue collection for the last fiscal Year. FBR has clocked provisional collection of Rs 2,000 billion for the first seven months of the fiscal year. This impressive performance is despite the fact that during the current year 33% more amount has been issued as refund/rebate as compared with the previous year. In the month of January 2018 alone FBR as per the provisional figures has collected Rs 273 billion as against Rs 228 billion in January 2017, showing growth of 19.7% over the collection of January 2017. It may be kept in mind that the collection to be received through book adjustment entries is not included in the provisional figures. This is a huge improvement on the growth of around 8% registered in the last year.

Implying that the performance of FBR is unsatisfactory is not only against facts but also unfair to the hard work put in by its officials. This is the same organization which has surpassed revenue collection of Rs 1946 billion in the entire fiscal year 2012-13 in just seven months of the current year. It is worth mentioning that historical trends show that in the first seven months around 50% of the annual collection is realized and revenue of over Rs. 2,000 billion in this period shows that FBR is on track to achieve the target of Rs. 4013 billion for the year.

Hamid Raza Khan
Secretary (PR-FATE)

Jan 31, 2018 FBR surpasses Rs 2 trillion mark in first 7 months
During January, 2018, Federal Board of Revenue yet again replicates its robust performance by surpassing 2 trillion mark in the first seven months of the current fiscal year. It may be recalled that when the present government took over in 2013, the net revenue collection for the entire year was less than 1.95 trillion. The provisional collection for the month of January 2018 was 272 billion excluding collection on account of book adjustments which may range between 2 to 3 billion. The figure of monthly collection is extremely encouraging as 228 billion was collected during January, 2017 showing an increase by more than 19%. The increase is despite issuing Rs 3 billion more tax refunds in January, 2018 as compared to refunds issued during the corresponding period of previous fiscal year. Moreover, figures of collection received in the treasuries of the remote areas may further swell the revenue figures. The target for the year has been fixed with an annual increase of around 19% over the previous year.
 
During first seven months of the current financial year, Federal Board of Revenue has recorded provisional net revenue collection of over Rs. 2 trillion as against Rs. 1699 billion collected during the same period of the previous fiscal year, recording an increase of more than 300 billion.  
 
Hamid Raza Wattoo
Secretary PR FBR

Jan 30, 2018 We are committed to protecting, promoting local industry, says Haroon

Special Assistant to Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has said the government is committed to protecting and promoting the local industry "as the strength of our manufacturing base would determine the pace of growth, creation of jobs and prosperity of the country and the people in the years ahead".

 "Increasing the manufacturing base by facilitating the local industry through removal of undue restrictions and provision of a level-playing field is the key to growing at a faster pace as a country and as an economy," he said while talking to a group of LED manufacturers who met the Minister at FBR House today. Mr. Sajjad Ahmad, president of the LED Bulbs Manufacturing Association, and other office-bearers of the body were also present.

 The delegation apprised the minister of various taxation related issues facing the local LED bulbs manufacturers and sought help from the government for removal of what they described as anomalies and restrictions hindering the growth of the industry. They said the local LED bulbs industry was growing at a fast pace and even exporting products to the outside world, including some developed countries, and it was necessary to further facilitate it by removing restrictions and providing it a level-playing field.

Haroon Akhtar Khan told the delegation the government was keen to promoting the local industry and providing the private sector all possible facilities and rightful protections. "We want the private sector to grow and flourish as doing the business is not the government's business," he said. He asked the Association to brainstorm and come up with logical and realistic recommendations for consideration and incorporation in the next budget. 

Hamid Raza Khan
Secretary (PR-FATE)

Jan 26, 2018 Trade bodies meet Haroon to mull budget proposals

 Office-bearers and representatives of various trade associations met Special Assistant to PM on Revenue/Federal Minister Haroon Akhtar Khan here at FBR House to discuss with him various proposals aimed at further facilitating the business community and boosting government revenues.

 Those who met the Minister included office-bearers and representatives from the Pakistan Tyres & Tubes Manufacturers Association as well as other trade bodies. The meetings were part of an extensive consultative process initiated by Haroon Akhtar Khan and his team at FBR to have a first-hand understanding of the issues and concerns of the business community ahead of firming up and finalizing tax proposals for the next year budget.  

 The representatives of the Pakistan Tyres & Tubes Manufacturers Association briefed Mr. Haroon Akhtar Khan on what they described as anomalies in the taxation regime governing the tyre industry and presented their proposals to the Minister for providing the industry a level-playing field and further boosting growth. They told the Minister the industry was doing considerably well, not only meeting a major share of the local market but also exporting their products abroad because of their competitive prices and better quality.

  Haroon Akhtar Khan told them he and his team at FBR would sincerely look into their issues and concerns and their proposals for redressing the situation would be considered for inclusion in the next year's budget. "The government is determined to come up with a pro-industry and pro-investment budget before ending its term on a successful note," he said.

 In his meeting with the office-bearers and members of trade bodies of twin cities, the Minister assured them the government was concerned about their  issues and concerns and due consideration would be accorded to their recommendations and proposals for the upcoming Finance Bill. The Chambers' representatives thanked the Minister for understanding their issues and assured full support to FBR's efforts for broadening the tax base and promoting tax compliance.

Hamid Raza Khan
Secretary (PR-FATE)

Jan 25, 2018 FBR launches IRIS-ADX for offline entry of Sales Tax data

In continuation of FBR’s policy of facilitation of taxpayers and ensuring ease of doing business, Federal Board of Revenue (FBR) has launched Iris-ADX (Asynchronous Data eXchange), an application that allows the taxpayer / E-intermediary to prepare data related to Sales Tax return including sales invoices, debit/credit notes and sales tax withholding, in offline mode.

            With the launching of this application, the taxpayer / EI will be able to prepare sales tax invoices without having to remain connected with the internet, thus the issues related to connectivity, peak load, system downtime etc. will have no effect on the speed / efficiency of data entry. This will especially facilitate data preparation of large taxpayers including DISCOs, MNCs etc. and will indirectly benefit the buyers who require input adjustment on purchases from large taxpayers, thus enhancing the efficiency of the whole supply chain.  

            It may be noted that this is the first version of Iris-ADX which will be further enhanced to allow offline preparation of all declarations including Income Tax Returns / Statements in the near future.

 

Hamid Raza Khan
Secretary (PR-FATE)

Jan 25, 2018 Haroon seeks Japanese investment for infrastructure development

Special Assistant to Prime Minister on Revenue//Federal Minister Mr. Haroon Akhtar Khan on Tuesday invited the Japanese businessmen and investors to visit Pakistan and explore investment opportunities in a broad range of areas, particularly infrastructure development in the country.

 "We have a much improved security situation and a stable economy with all economic indicators doing very well which should make a strong case for Japanese investors to come to Pakistan and benefit from the investment opportunities available here," he said during a meeting with Japan's Ambassador to Pakistan Mr. Takashi Kurai who met the Minister at FBR House to discuss matters related to bilateral economic relationship in the backdrop of recent visit of Mr. Taro Kono, Minister for Foreign Affairs of Japan, to Pakistan.

 Mr. Haroon briefed the visiting envoy on the headways made by the government in overcoming energy shortages and reducing the gap between demand and supply of natural gas in the country. "The evidence for all this is on the ground as we have moved from a routine 18-hour load-shedding in the past to a minimal power outage now, and the same can be said about the gas sector where the recent installation of two LNG terminals has considerably reduced the demand-supply gap, enabling the government to provide regular, always-on gas supply to the industry," he said.

The Minister pointed out that these initiatives and gains reaped in the energy sector had already started showing results as evidenced by a 15 per cent year on year jump in the month of December, tax-to-GDP ratio had risen from 9.5 % to 12.5% over the last four years and an impressive 18 per cent revenue growth had been recorded since the start of the fiscal which pointed to the burgeoning of businesses and a strong health of the economy.

 The Japanese Ambassador lauded the government of Pakistan for its liberal, business-friendly and pro-investment policies and evinced a strong desire on behalf of the government and the people of Japan for a strong and prosperous Pakistan. He assured the Japanese investors would further bring their businesses and forge partnerships with their Pakistani counterparts in days ahead, and requested the Minister for a more liberalized, favourable tax regime in this regard.    

 The Ambassador also lauded the role being played by Pakistan in improving regional stability and fighting terrorism, and reaffirmed his country's support for the Pakistan government's efforts for industrial development, improvement of socio-economic environment and security situation.

Hamid Raza Khan
Secretary (PR-FATE)

Jan 23, 2018 Govt to back business and revenue promoting budget proposals, says Haroon Akhtar

Special Assistant to Prime Minister on Revenue//Federal Minister Mr. Haroon Akhtar Khan on Tuesday assured the real estate industry that the government would sincerely consider and welcome any budget proposals which promote businesses and bring in more revenue.

"The government is not there to merely tax the people and their businesses, but to offer them a level-playing field which can help boost and sustain healthy growth of their businesses," he said while talking to a delegation of Federation of Realtors of Pakistan (Real Estate) which met him at FBR House. Major Muhammad Rafique, the President of the Realtors Federation was leading the visiting delegation which also presented a set of proposals and recommendations to the Minister for the uplift of the real estate business in Pakistan.

Other office-bearers and members of the Federation, including Rana M. Arshad, Israr Ul Haq, M Aslam Khan Dawar, Javed Khattak, M Ahsan Malik, Shafqat Bandesha, Ch. Ihsan ul Haq, Ch. Tahir Masood, Mian M Naeem, Muhammad Waseem Chaudhry and Muhammad Faizan were also present.

Mr. Haroon Akhtar Khan assured the delegation that the government understood the issues and concerns of the real estate sector and the recent revision of FBR valuation rates for few localities in six cities of the country in response to a number of representations made to the government in recent months, was a proof of the government's intention and sincerity to resolve the issues hindering growth and resultantly leading to dwindling of revenues from this critical source for the government. He said the government was also actively considering ways and means to attract the overseas Pakistanis to bring their hard-earned money and assets back to Pakistan.

Earlier, Major Muhammad Rafique, president of the Realtors Federation, and Chairman Musarat Ejaz Khan, briefed the Minister on taxation issues which they said were impeding growth in the sector and requested for their resolution to increase the investors' confidence, accelerate growth of the real estate business and the entire value chain and boost government revenue. They also requested for measures to reduce the hardships of the developers, eliminate cash economy, promote financial inclusion, boost economic activity and create a friendly tax culture

Hamid Raza Khan
Secretary (PR-FATE)

Jan 20, 2018 We are a responsible state, Haroon Akhtar tells US delegation

Special Assistant to Prime Minister/ Federal Minister on Revenue has said Pakistan is a fully responsible state committed to the global fight against terror and eradicating the menace of smuggling and money-laundering from its soil and the region. "Our customs and its standards are on a par with the world and, in some cases, even better than some of the best customs in the region," he said while speaking to a high-level delegation from US Control and Border Security (EXBS) which met him at his office at FBR House today. US EXBS Country Director Ms Shelly Atkinson led the US delegation which also included officials from the US Department of Homeland Security and US Embassy in Pakistan. Member Customs FBR Mr. Mohammad Zahid Khokhar and other senior officers of FBR were also present. Haroon Akhtar Khan apprised the delegation, "Our entire system is now fully computerized and we have made some major inroads against smuggling and money laundering by unearthing some substantial cases in recent years". The Minister also offered to send officers from Pakistan Customs for training to the US to learn from the US experiences and share with them what Pakistan had been able to achieve in modernizing its customs and securing its borders. "We would like this cooperation to be further strengthened and consolidated in intelligence sharing and exchange of resources," he said. Haroon Akhtar Khan told the US delegation Pakistan was a much better and equally safer place than what the international media sometimes tended to show it to the outside world. "We have come a long way in our fight against terror, and our success on this front owes to the massive sacrifices of our nation as well as our military and paramilitary officers and soldiers who have laid down their lives in stamping out the forces of evil from our soil," he added. He also briefed the US delegation on the state of Pakistan economy which, he said, was in a good shape and certainly much better than it was a few years ago. "Our democratic experience is going very well and the second democratic government is now on the verge of completing its full five-year term which shows the strength of our democratic institutions," he said. Ms Shelly Atkinson thanked the Minister and the FBR for giving her and her colleagues valuable insights into the working of Pakistan Customs which, she conceded, had been excelling in many areas and doing far better than some of the countries in the region. "We look forward to benefiting from the Pakistani experiences by engaging one or two Pakistani instructors to be part of the learning and capacity-building programmes in the US Department of Homeland Security," she said.

Hamid Raza Khan
Secretary (PR)

Jan 16, 2018 Revised real estate valuation rates to boost revenue collection

The recent adjustment of real estate valuation rates in selected areas of some major urban centers of the country is aimed at providing level playing field to all and is likely to boost revenue collection and promote healthy growth of the real estate sector in the long run.

The adjustment of property valuation rates has been carried in only a small number of localities out in six large cities. Among these areas and localities where the valuation rates have been adjusted include only one locality (Hayatabad) out of 335 residential localities in Peshawar, one locality (Eden Orchids) in 395 localities of Faisalabad, six localities namely Gujarpura, Anmol Cooperative Housing Society, Attari Saroba, Balhar, Dev Khurd Kalan and EME Society in the entire 1234 localities of Lahore and three sectors of I-15, I-16 and E-12 in the 64 localities of the federal capital. Similarly, only three out of 195 localities in Karachi and only two localities in Rawalpindi have been adjusted because of certain anomalies in the previous valuation rates.

The FBR rates have been revised after several representations made by the various Real Estate Agents Associations in view of the negative impact of the previous FBR notified rates which in certain cases were in excess of true market rates or in few cases reached upto 70 to 80 per cent of the market rates. These anomalies led to stagnation in real estate activity and, in some cases, crippling of real estate business in the market.

This rationalization and revision of rates in certain localities, to remove anomalies, is aimed at not only to boost the market but also to have a positive impact on the growth of revenue from the real estate business in aforementioned areas wherein it had reduced to a standstill due to a lack of interest and a sharp decline in real estate investments. The FBR rates are also likely to be revised upward in the next budget following consultations and input from all the stakeholders.

 

 

Hamid Raza Khan
Secretary PR

Jan 12, 2018 Govt aiming for business-friendly, pro-industry budget, says Haroon Akhtar

Special Assistant to the Prime Minister/Federal Minister on Revenue Haroon Akhtar Khan has said the government is aiming for a businessman-friendly and pro-industry budget for the next fiscal year.
"We want the next budget to be a reflection of our intent to improve the areas of economy which have not kept up with growth in other sectors, as well as the aspiration and expectations of the business community which has always reposed confidence in our government to provide them a level-playing field to boost their businesses," he said while talking to a delegation of the Rawalpindi Chamber of Commerce & Industry which called on him at the FBR House today.
The delegation was led by President RCCI Mr. Zahid Latif Khan, SVP Mr. Mohammad Nasir Mirza, VP Mr. Khalid Farooq Qazi and formers presidents of the RCCI, including Mr. Sohail Altaf, Mr. S.M. Naseem and Syed Asad Mashadi. Former SVP RCCI Rashid Waien and Director RIET-Islamabad Stock Exchange Mr. Masoom Akhtar were also present.
The delegation congratulated Mr. Haroon Akhtar Khan on his elevation as the Federal Minister, calling it a very welcome development given his experience and expertise on the revenue side as well as his deep understanding of the day-to-day problems and issues confronting the business community. They said the business community and chambers were keen to work with him to broaden the tax base and add more people to the tax net.
Haroon Akhtar Khan appreciated the gesture of the delegation and invited the Rawalpindi Chamber and other trade and business organisations across the country to come up with solid and practical proposals and recommendations for incorporation in the next financial budget to sustain and further accelerate the pace of growth and economic activity in the country. He said the Prime Minister was keen to give maximum possible incentives and concessions to the business community in the next budget and his team at FBR was working on those lines to make the next budget more favourable for the business community.
He said the government was keen to further accelerate the pace of economic growth and already several suggestions and propositions were being considered and examined to give maximum relief and incentives to the business community. He said the next year budget would be entirely businessman-friendly and pro-industry and it would include several innovative policy measures to shore up the growth rate and jumpstart further economic activity in the country


Hamid Raza Khan
Secretary (PR-FATE)

Jan 12, 2018 No reversal of policy on real estate valuation, says FBR

Federal Board of Revenue (FBR) has taken strong exception to news reports appearing in a section of the press claiming the downward revision of real estate valuation for some areas has partially reversed the policy decision taken in 2016 for adoption of market value of real estate for the purposes of collection of Federal taxes.
In an official statement, FBR has asserted that there is no deviation or reversal of the policy to revise the FBR rates in phases and make them equal to the market rate in a reasonable period. The revision of rates in six cities is meant only to remove the anomalies in the existing valuation tables.

FBR rates for immovable properties were notified in August 2016. Before notifying the rates, the fair market value of all the areas was determined. Thereafter, the FBR rates were fixed after consultation with the stake holders. The overall average of FBR rates were fixed at a certain percentage of the fair market value with the intention to take the FBR rates equal to the fair market value gradually over a reasonable period of time.

Various representations/complaints were received regarding anomalies in valuation tables of FBR. It was reported that FBR rates in some areas are higher than the approximate overall average percentage of the fair market value and in some areas even higher than 100% of the fair market value.  In this regard, FBR also held various meetings with the stakeholders to remove the anomalies. The anomalies pointed out were of two main categories which are as under:-
i.    The FBR rate in some areas was fixed much higher than the overall average percentage of the fair market value and in some cases even higher than the fair market value.
ii.    The FBR rate as percentage of fair market value was higher when compared with a similar comparable location.

Accordingly, the FBR rates for specified areas have been revised to remove the above anomalies. It is pertinent to mention that the revision of FBR valuation tables is meant to redress the genuine grievances of the stakeholders so that FBR rates of all areas remain at a certain percentage of the fair market value and there is no anomaly in fixation of the fair market value between comparable areas.
 

Hamid Raza Khan
Secretary (PR-FATE)

Jan 12, 2018 FBR rebuts duplication of revenue collection figures

Federal Board of Revenue (FBR) has strongly denied a news item captioned "Duplicated collection figures irk FBR highups" and published in a section of the press insinuating that the collection figures reported to and by FBR include duplication.

In an official statement issued on Friday, FBR clarified that it follows a meticulous process of reporting revenue collection and takes all possible care to preclude duplication or misreporting of figures. Furthermore, these figures are authenticated and reconciled not only with State Bank of Pakistan but also with AGPR. Therefore, the question of fudging of figures does not merit consideration.

FBR also clarified that no inquiry on the issue of duplicate reporting is being conducted in FBR. In order to strengthen internal controls and management, FBR like all responsible organizations continuously endeavours to streamline its core business processes and reporting mechanisms and such efforts may not be scandalized by insinuations of any wrongdoing by the FBR or its field offices.

It is reiterated that the revenue collection figures reported by the FBR are totally reliable and the provisional collection figures announced at the end of each month are invariably on the lower side and the final reconciled collection figures are always higher than the provisional figures.
 

Hamid Raza Khan
Secretary (PR-FATE)

Jan 11, 2018 Haroon Akhtar meeting with Foam Manufacturers Association

Mr. Haroon Akhtar Khan, Special Assistant to Prime Minster on Revenue has said that the government believes in creating business friendly environment for all business community and wants to address their genuine problems.
In meeting   with delegation of All Pakistan Foam Manufacturers Association (Non-Exempted Group) here at the FBR House on Thursday he said, “We shall try to resolve the problem of sales tax on foam manufacturers in the upcoming budget and will take further steps to uplift this industry,” he said.
The delegation of All Pakistan Foam Manufacturers Association (Non-Exempted Group) was comprised of Sheikh Usman Rashid (Ruby Foam), Sheikh Mohammad Ismail (Cannon Foam), Mian Umer Javaid (Joy Foam), Mehr Mohammad Saleem (Crown Foam), Mahommad Jadoon (United Foam) and others.
The delegation also congratulated Mr. Haroon Akhtar Khan on being elevated as federal minister on revenue by Prime Minister Shahid Khaqan Abbasi and briefed the minister about their problems and requested him to save industry from total collapse.
The minister said that field formations will also be mobilized to curtail the problems in tax matters of foam manufacturers. Member IR Policy Dr Mohammad Iqbal and Member Custom Mohammad Zahid Khokar and other FBR officials were also present in the meeting


Hamid Raza Khan
Secretary (PR-FATE)

Jan 10, 2018 FBR offers to train NBP employees to file tax returns

A team of Facilitation and Taxpayer Education (FATE) Wing of FBR met the top leadership of National Bank of Pakistan (NBP) in Karachi today as part of FBR's taxpayers' outreach programme started last year to create awareness and understanding of the advantages of filing of tax returns and extending FBR's help and facilitation to employees of large organisations at their doorsteps for e-filing.

The meeting was held between the FBR team led by Member FATE Ms Nausheen Javaid Amjad and National Bank of Pakistan (NBP) President Saeed Ahmed who was also assisted by Mr. Abdul Wahid Sethi (SEVP/CFO) and Zahid Mahmood Chaudhry (SEVP & Group Chief, Human Resources Management Group).

The meeting was in continuation of the proactive steps taken by the FBR in recent months to apprise the large public and private sector organizations of the advantages of e-filing by their employees. The Member FBR told the NBP management that as per data available with the FBR, a considerable number of the employees of major banks were not filing Income Tax returns and sought help from NBP President and his team to motivate their employees to fulfill their national obligation by filing their tax returns.

NBP President Mr. Saeed Ahmed assured his full cooperation for this national cause, and directed the bank management to instruct the employees to file their Income tax returns at the earliest. He also welcomed Member FATE FBR Ms. Nausheen Amjad's offer for deputing FBR teams to impart one-day training and assist the bank officials in filing of their due returns.

 

Member FATE FBR Ms Nausheen Javaid Amjad holding a meeting with National Bank of Pakistan (NBP) President Saeed Ahmed. Mr. Abdul Wahid Sethi (SEVP/CFO) and Zahid Mahmood Chaudhry (SEVP & Group Chief, Human Resources Management Group) of the NBP 




Hamid Raza Khan
Secretary (PR-FATE)

Jan 04, 2018 FBR initiates drive to make tax education part of university curricula
A team of Facilitation and Taxpayer Education (FATE) Wing of FBR visited the National University of Sciences & Technology (NUST) Islamabad today to request for greater academic focus and research on taxation and inculcation of tax education as a key component of university curricula.
 
The team led by Member FATE Ms Nausheen Javaid Amjad met the management of NUST School of Social Science and Humanities and had a detailed, interactive session with a large gathering of faculty and students of various departments on the need and importance of tax education and tax literacy for enabling the students to be the change agents for promoting a tax compliant society.
 
She briefed the students on various initiatives taken by FBR in recent months such as the modernization of FBR's helpline, installation of a state-of-the-art Customer Relationship Management System (CRMS), publication of facilitation brochures and material and various tax awareness and outreach programmes to bridge the gap between the tax authority and the taxpayers as well as to create the essential awareness and understanding of taxes and filing of Income Tax returns. "People need to know that filing of Income Tax returns is not only a national and civic duty, it also entails many benefits and advantages in terms of low tax rates on various transactions for the filers," she said.
 
The FBR Member also dilated upon various outreach sessions and training workshops conducted by FBR on e-filing and other aspects of taxation for the employees of several large public and private sector organisations in recent months, and offered to hold similar training sessions and workshops for the outgoing students of NUST. "Our efforts have already resulted in significant improvement in the number of return filers this year and we hope our academic institutions can further create tax literacy to increase tax compliance and help the students learn the importance of something they confront well before they receive their first salaries and incomes after joining the business world as entrepreneurs and high-end professionals," she added.
 
Speaking on the occasion, Dr. Ashfaque Hassan Khan, Principal and Dean of the NUST School of Social Science and Humanities, and Prof Dr. Athar Maqsood Ahmad, Head of Economics Department at NUST welcomed the FBR's initiative of doing away with the traditional, one-way communication of the past and starting a more engaging, interactive and productive partnership with the taxpayers and particularly students who were the future's opinion makers and business leaders, leading the way in the use and adoption of new innovative technologies to drive socio-economic changes in the society.
Hamid Raza Wattoo
Secretary PR FBR