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|Archived Press Releases
Jul 14, 2015 FBR asks banks to refund excess deduction of WT on transactions

The rate of Withholding Tax on bank instruments issued out of account has been reduced from 0.6% to 0.3% till 30 -9-2015, through Presidential Ordinance dated 11.7.2015.
It has been reported to FBR that some of the banks are still deducting tax on bank instrument of non-filers @ 0.6%. FBR has directed the banks that if any bank has still deducted tax @ 0.6% on 13th of July, 2015 onwards, the excess amount must refunded/adjusted immediately

Shahid Hussain Asad
Member (Inland Revenue Policy Official Spokesman of FBR

Jun 29, 2015 Model Customs Collectorates to remain open on 30th

The Federal Board of Revenue (FBR) has directed to keep all Model Customs Collectorates open on 29th till 10pm and on 30th June till 12:00 (midnight) to facilitate taxpayers in the last two days of the current financial year.
All Model Customs Collectorates will observe extended working hours on 29th and 30th June 2015. Besides, Chief Collectors of Customs will also liaise with State Bank, National Bank of Pakistan (NBP) and with scheduled banks to transfer tax collection by these branches to State Bank on 30th June.
 

Nadeem Dar
Member (FATE)

Jun 22, 2015 FBR Deny Halting Legal Proceedings Against Ayyan Ali
It is clarified that some sections of the press and electronic media have wrongly reported that FBR has halted investigation and prosecution into the case of  Ms. Ayyan Ali. It is reported that Ms  Ayyan Ali was arrested by Pakistan Customs on March 14, 2015 at Benazir Bhutto International Airport on charges of currency smuggling amounting to US $0.5 million.
Case was registered against her under relevant provisions of the Customs Act, 1969. After completing investigations into the case, Investigation & Prosecution Cell of M.C.C.Islamabad Customs has submitted complete challan within due course of time with the Special Judge Customs, Islamabad. Trial of the case is under way and next hearing has been fixed as June 29, 2015. 
 
The accused Ms Ayyan Ali after dismissal of her bail applications by the Trial Court has filed Bail Application with the honourable High Court,  Lahore and hearing fixed on June 26, 2015. All other aspects of the case are being investigated and dealt with relevant provisions of law without any lapse.
 
It is clarified that FBR has not issued any directions to its any formation or officer to stop investigation or prosecution in this case.
 
(Shahid Hussain Asad)
Member (Policy-IR) / Official Spokesperson, FBR

Jun 12, 2015 FBR dissociates itself from Facebook page

Federal Board of Revenue (FBR) denies any connection with Facebook page “FBR Times”.
The page falsely conveys a false impression that misleads the public into believing that this page enjoys FBR sanction. This is a page by an unknown private source and has nothing to do with FBR which reserves the right to take legal action in the matter.

Nadeem Dar
Member FATE

Jun 06, 2015 Budget documents uploaded on FBR’s website

Federal Board of Revenue (FBR) has uploaded the FBR-related budget documents on its website www.fbr.gov.pk for the benefits of the taxpayers and general public.
The documents uploaded on the home page of FBR include:-
 Finance Bill 2015-16/Customs Tariff/SROs/CGOs/Notifications and/Budget 2015-16 Salient Features (FBR portion).


 

Nadeem Dar
Member (FATE)

Jun 04, 2015 Tariq Bajwa Inaugurates Printing of FBR’s Portion of Federal Budget 2015-16

 Chairman Federal Board of Revenue, Mr. Tariq Bajwa inaugurates printing of FBR’s Portion of Federal Budget 2015-16 here at FBR House today on 04th June, 2015 in a simple ceremony which started with recitation from Holy Quran. Successful completion of this complex task was prayed for alongwith strengthening of national economy.

   FBR’s annual budget proposals’ exercise commenced months earlier involving frequent consultations with business community representatives, other Federal Ministries, and in-house brain storming among FBR’s senior officers. The Federal Minister for Finance, Revenue and Privatization Mr. Ishaq Dar remained closely involved in the exercise, visiting FBR several times each week. The printing of the budget documents concludes this months-long trek by FBR.

      Mr. Bajwa appreciated the toil put in by budget making core-team, witnessing day and night efforts by all senior Members, supporting officers and FBR staff. Mr. Bajwa was confident that timely completion of the task shall be possible tonight or at most early morning. He stressed upon all officers and staff to ensure extending complete cooperation and effective coordination to achieve the task. Personnel engaged in the budget work will remain working throughout the night.  




Shahid Hussain Asad
Member (Policy-IR) / Official Spokesperson, FBR

May 29, 2015 FBR offices, NBP branches to collect duty, taxes tomorrow

As 31-05-2015 is a public holiday being Sunday, Federal Board of Revenue (FBR), Islamabad, in coordination with State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP), has made special arrangements for collection of duties and taxes tomorrow (Saturday 30th May, 2015).

The State Bank of Pakistan has directed settlement / clearing of FBR transactions on month end by National Bank of Pakistan as follows:-

  • The NBP Bank branches (A, B & C) will settle their transactions on same day i.e. 30th May, 2015 with respective SBP BSC Offices for which a special clearing will be arranged at 03:00 pm. by NIFT and NBP will settle the transactions with SBP BSC by 9:00 pm.
  • Further, to facilitate taxpayers, the NBP branches (A, B & C) will accept cash transactions at their counter till 05:00 pm. on 30th May, 2015.

All field offices of Federal Board of Revenue will remain open from 09:00 am to 09:00 pm. on Saturday 30th May, 2015


Shahid Hussain Asad
Member (Inland Revenue-Policy

May 21, 2015 NBP branches to remain open for settlement of duty, taxes on 30th
As 31-05-2015 is a public holiday being Sunday, Federal Board of Revenue (FBR), Islamabad, in coordination with State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP), has made special arrangements for collection of duties and taxes on Saturday 30th May, 2015. 
The State Bank of Pakistan has directed settlement / clearing of FBR transactions on month end by National Bank of Pakistan as follows:- 
•  The NBP Bank branches (A, B & C) will settle their transactions on same day i.e. 30th May, 2015 with respective SBP BSC Offices for which a special clearing will be arranged at 03:00 pm. by NIFT and NBP will settle the transactions with SBP BSC by 9:00 pm.
•  Further, to facilitate taxpayers, the NBP branches (A, B & C) will accept cash transactions at their counter till 05:00 pm. on 30th May, 2015. 
All field offices of Federal Board of Revenue will remain open from 09:00 am to 09:00 pm. on Saturday 30th May, 2015.
 
Hamid Raza Wattoo
Secretary PR

May 20, 2015 Pakistan lacks culture of tax compliance, says FBR Chairman.

Federal Board of Revenue (FBR) Chairman Mr. Tariq Bajwa Wednesday said Pakistan lacked a culture of tax compliance.
He was addressing a large gathering of students attending a ‘Tax Fair’ organized by FBR at the National University of Sciences and Technology (NUST) Islamabad.
The daylong ‘Tax Fair’ featured a number of informative, educational and dialogue-driven activities, including speeches, group discussions, stalls, mock theatres and Q&A session between FBR officers and students. The event was organized in collaboration with School of Social Sciences & Humanities of NUST and Gesellschaft International Zusammenarbeit (GIZ) which is assisting FBR under its good governance programme.
Mr. Tariq Bajwa who attended the ‘Tax Fair’ along with senior officials of FBR, said the government was determined to raise the tax-to-GDP ratio and broaden the tax base by adding 100,000 potential taxpayers every year to the tax net. “Last year, we added about 100,000 new taxpayers and we plan to raise another 100,000 this year to boost the tax revenues,” he said.
The FBR Chairman invited the student community to be the agents of change and promote discussion on social media and also within their circles on different facets of taxation. “I expect you to expand social media discussion on taxes to a critical mass that prompts an actual change in society,” he added.
Speaking on the occasion, leading economist Dr. Ashfaque Hasan Khan who is also the Dean of NUST Business School, dilated upon how the resource-starved Pakistan was amongst IMF’s most frequent nine borrowers out of its total 199 members, and how even Friends of Pakistan felt reluctant to loan to Pakistan, arguing why their taxpayers should be so penalized when a large swathe of population in Pakistan is not tax compliant.
He stressed the importance of economic sovereignty for Pakistan, and how “our youth at 100 million under 22 years of age, can be the catalyst to bring such change”. He welcomed the FBR’s initiative to tap the energy and dynamism of youth in its efforts for broadening of tax base.
Later, Member Facilitation and Taxpayer Education FBR, Mr. Nadeem Dar explained the purpose and scope of ‘Tax Fair’ which, he said, was the first of a series of activities planned as part of a “Tax Change Agent” campaign. It will be replicated at other leading educational institutes of the country under the theme ‘Banaey Naujawan, Behtar Pakistan’ (بنائے نو جوان، بہتر پاکستان).
The idea to engage student community in creating a tax culture that advocates voluntary tax compliance is conceived following similar exercises in other countries. The ‘Change Agent Campaign’ will motivate the youth to influence public opinion by engaging their peers, friends and relatives to contribute in nation building by filing correct tax returns and paying their due share of taxes voluntarily.
The event included interactive sessions of students with FBR’s tax officials. Many students with initiative and leadership skills came forward to act as change agents for promoting a tax culture in Pakistan. These game changers will interact within their social circles, influencing minds to awaken a national spirit leading towards a tax-compliant culture.
The event was hosted by eminent media personality and TV anchorperson Syed Talat Hussain who spiced up the discussion and Q&A session with his incisive ‘takes’ on the state of affairs resulting from a lamentable tax compliance.

 Federal Board of Revenue (FBR) Chairman Mr. Tariq Bajwa and others attending the inaugural ceremony of a ‘Tax Fair’ held at NUST Islamabad Wednesday.

A group of students performing in a play staged after the inaugural ceremony of a ‘Tax Fair’ held at NUST Islamabad Wednesday.

A group of students snapped on the occasion of a ‘Tax Fair’ held at NUST Islamabad Wednesday.






 

Hamid Raza Khan
Secretary Public Relations

May 19, 2015 Maulana Tariq Jameel delivers motivational lecture to FBR officers

Renowned Islamic scholar Maulana Tariq Jameel talked on ‘Morality, ethics and public service delivery’ to officers of FBR at Karachi today (on Monday). His talk highlighted the values of honesty, integrity, truthfulness and strength of character as being the hallmark of public service.
The talk was delivered at Directorate General of Training & Research (Customs), Karachi. A video up link to FBR offices also enabled officers of BS-17 and above working in field formations to hear the talk. The officers found the lecture as inspiring and motivating.
Maulana Tariq Jameel spoke on real-life examples, Islamic traditions, sayings of the Prophet (PBUH) and verses from the Quran to accentuate the need for virtues of honesty, truth and strength of character to deliver on the promise of civil service. He bemoaned what he saw as a growing ‘yes-’ culture thriving on sycophancy and obsequiousness in delivery of public services.
He likened civil service to a trust of Allah reposed in men, and urged customs and IRS officers to see their role as guardians of a sacred trust in them by both government and the Pakistan people and explained examples from history where such trustees had and brought their charge safe to their masters even though they would have loved to use it themselves but did not do so as they were bound by a trust. Just like those historical heroes, the Customs and IRS officials also needed to collect tax out of people’s pockets’ and deposit it in the national exchequer, and rely on government and the Lord Almighty to take care of their own livelihood.
Maulana Tariq Jameel also informed officers they would be judged by Allah not on basis of how much tax they collected but what character, truthfulness and integrity they brought into their work, and how it benefited the public. He said a single fair decision by them was worth more than a thousand night long vigil.  He quoted from the lives of the Holy Prophet (PBUH) and Hazrat Imam Hussain (AS), examples to illustrate how a life of poverty and privation, that is led on principles of truth and honesty, was better than rolling in ill-gotten wealth. People die and fade away but their character and the
contribution they make to humanity by spreading truth and love stays on. He concluded by suggesting the course of ‘change’ not through stick but through mind-making. The talk ended on a communal dua.
This is a first such coordinated action at FBR to also address ethical issues while improving revenue collection, and tries on a different track than the decades old appeal to “do more”.
It is one of the many new initiatives started by Chairman FBR Mr. Tariq Bajwa to breathe a new drive into the FBR routine working.
 

Hamid Raza Khan
Secretary (PR), FATE Wing

May 12, 2015 FBR clarifies news on negative collection by RTOs

Federal Board of Revenue (FBR) has clarified news item regarding negative revenue collection by certain Regional Tax Offices (RTOs), saying the news is not correct as it portrays only one aspect of work of RTO.  The tax amount mentioned in the news item is only one of the many taxes collected at the RTOs.
The actual figures of total revenue collection attributed to different RTOs are evident from following chart which clearly shows that the 11 RTOs quoted in recent news item collected Rs 420,520 million tax revenue as against Rs 4,925 million administrative expenditure that is only 1.2 per cent of taxes collected by them during year 2013-14.

 

S.No.

 

Office

Total Tax

Collection 2013-14 (Rs.)

1

RTO Karachi

122,831,000,000

2

RTO-III Karachi

70,905,000,000

3

RTO Quetta

31,097,000,000

4

RTO Multan

60,375,000,000

5

RTO Faisalabad

22,412,000,000

6

RTO Sargodha

4,981,000,000

7

RTO Gujranwala

10,558,000,000

8

RTO Sialkot

6,860,000,000

9

RTO Rawalpindi

46,898,000,000

10

RTO Peshawar

39,404,000,000

11

RTO Abbottabad

4,199,000,000

Overall Position

420,520,000,000

It is added that during last financial year, FBR’s total tax collection was Rs 2,254 billion and total expenditure of all offices of FBR was 0.68 % of total tax collection.  Even the office with highest collection cost had at most a 4.2 per cent expenditure and not over 100 per cent as alleged in media.

Pakistan collects federal taxes in a most efficient manner and amongst lowest as compared to other countries. For example, Malaysia has 1.4 % tax collection costs and South Africa has 1.1 % cost of tax collection. Compared to 0.68 % of Pakistan, Singapore’s revenue collection agency gets expenditure at 5 % of tax collection. FBR has collected tax last year at increase of 17 % more over its preceding year of 2013, and this year too, will collect tax in excess of last year. 


 

Hamid Raza Wattoo
Secretary PR

May 01, 2015 FBR Clarifies government’s policy on sugar export through land route

FBR has clarified a news item published in certain sections of the press attributing to FBR that “Sugar export through land route does not qualify for rebate”. The official Spokesperson, FBR said that that it was only a clarification of Policy of 2012 and does not affect current policy of the government, which allows subsidy on land route exports through Afghanistan and Central Asia

Mujeeb-ur-Rehman Talpur
Second Secretary

Apr 07, 2015 SUSPENSION OF IRS OFFICERS – CLARIFICATION REGARDING

FBR has suspended six IRS officers vide Notification dated 03-04-2015 on the charges that they have failed to disposed off the audit cases assigned to them as reflected in Taxpayers Audit Management System (TAMS).
2.However, certain sections of press have mis-reported this fact and have given the impression that these officers have been suspended on charges of “Corruption” which is absolutely untrue. The fact of the matter is that FBR monitors performance and efficiency of the Officers engaged in Audit through computer software and action is taken against those officers whose performance is found below the required threshold. The above six officers have been suspended for not meeting the required performance level in disposal of Audit cases.
 

Mujeeb-ur-Rehman Talpur
Second Secretary FATE Wing

Mar 05, 2015 FBR has not taken any advance from the banks

There have been some reports in the press that FBR is collecting advance from banks and paying 15% markup on it to add to its revenue collection. It is hereby clarified:
a)FBR has not taken any advance from the banks.
b)Compensation is being paid in only those cases where Appellate Tribunal/High Court/Supreme Court have set aside demand created and collected by FBR in the past.
c)Many of these cases have not attained finality. However, compensation is being paid as per Income Tax Ordinance, 2001.
d)These cases pertain to the period 1991 to 2012.
e)Compensation paid is subject to 35% income tax. Thus the effective rate is 9.75% and not 15%.
f)For future, FBR has decided that in such cases if refund is created as a result of decision of an appellate authority, the Commissioner must immediately file an application seeking stay order along with the appeal against the appellate order. If stay order is not granted or the order has attained finality the decretal amount must be settled within three months of the order. This will ensure that such a problem does not arise in future.
 

Shahid Hussain Asad
Member IR-Policy/ Official Spokesman, FBR

Feb 02, 2015 Action initiated for broadening of tax base against potential taxpayers

During the on-going drive for broadening of tax base, the Directorate General (BTB) under the leadership of its new Director General Mr. Rehmatullah Wazir has obtained information (transaction and non-transaction based information) totaling to 240,000 from various sources, which include information from Motor Vehicle Registration Authorities, Car Manufacturing Companies, Electricity Supply and Distributing Companies, Property Registration Authorities, Mobile phone subscribers Cos,  Medical and Dental  council, Pakistan Engineering Council, Pakistan Bar Council and information from Jamal’s Yellow Pages ( Business concerns). This information is collated and integrated in the IT Wing of FBR /PRAL along with already available information for preparation of profiles of potential taxpayers. FBR and its field formation have already issued notices to the tune of 240,000 for enforcing returns and in cases where returns have not been filed in potential taxpayers, orders under section 122C of the Income Tax Ordinance, 2001 have been passed and a demand over Rs.14 billion have been created. New taxpayers have already paid amount of tax of Rs. 570 (m). The Directorate General (BTB) has also taken recovery measures against chronic defaulters. In 278 cases bank accounts have been attached, warrants for arrest in 40 cases have been issued and in 117 cases vehicles have been attached and impounded. In 78 cases properties have been attached for auction/sale.
The Directorate General (BTB) has also sought information from other sources which include information from Airlines regarding frequent domestic and foreign travelers; information from Land Developers/Constructors of Commercial/Residential buildings regarding allottees/ purchasers of flats/shops/plots etc; information from Banks regarding cash withdrawal of Rs.5 (million) and above; information regarding Dealers/Distributors of big companies such as Uniliver Pakistan Ltd. Philips Morris (Pakistan) Ltd. Procter & Gamble Pakistan (Pvt) Ltd, Pakistan Tobacco Co, Ltd etc; information from NADRA regarding Traders/Vendors/Businessman, Industrialists etc.; information from ICAP/ICMA regarding its members; information regarding members of High Court Bars/ Pakistan Tax Bars etc.; information from Insurance Companies; information from District Motor Vehicles Registration Authorities regarding vehicles of 1000 CC and above; information from Schools, Colleges and Universities regarding education fee payers of Rs.100,000 and above; and information from big mobile phone subscribers of Ufone, Warid, Mobilink and Zong.
When central data bank based on the above information will be created, all the potential taxpayers will be brought into the tax net and no one will be left untouched/untaxed.  All the information will be used across the Board in fair and equitable manner against all the potential taxpayers.   
 

Shahid Hussain Asad
Member (Inland Revenue Policy)/

Jan 08, 2015 RECORD INCREASE OF 14 % REVENUE COLLECTION DURING FIRST SIX MONTHS OF CFY

During the month of December, 2014, FBR has made a net collection of Rs.270,216 million as against net collection of Rs. 231,539 million during December, 2013 showing an increase of 17%. From July, 2014 to December, 2014, FBR made a gross collection of Rs.1,230,376 million and issued refunds of Rs.58,508 million, resulting in net collection of Rs.1,171,868 million, whereas last year during first six months, FBR had made a gross collection of Rs.1,081,937 and after issuing of refunds of Rs.56,522 made a net collection of Rs.1,031,415 million, indicating a record increase of Rs.140,453 million which in percentage terms comes to around 14%.

Details of collection during July-December, 2014 as compared to July-December, 2013 are as under:

                                                                                                               (Rs in Million)

Revenue Head

Up to December 2014

Up to December 2013

 

Gross

Rebate/ Refund

Net

Gross

Rebate/ Refund

Net

1

2

3

4

5

6

7

Domestic Taxes

1,089,759

53,182

1,036,576

972,829

51,502

921,327

Direct Taxes

489,426

30,500

458,926

414,506

32,522

381,983

Sales Tax (a+b)

a) ST (Import)

b) ST (Domestic)

536,439

274,818

261,621

22,682

53

22,630

513,757

274,766

238,991

500,661

246,689

253,972

18,977

9

18,968

481,683

246,680

235,004

FED (a+b)

a) FED (Import)

b)FED (Domestic)

63,893

8,172

55,721

0

0

0

63,893

8,172

55,721

57,662

4,175

53,487

2

1

1

57,660

4,175

53,486

Customs

140,617

5,325

135,292

115,108

5,020

110,088

Grand Total

1,230,376

58,508

1,171,868

1,087,937

56,522

1,031,415

 

Shahid Hussain Asad
Member (Inland Revenue Policy)