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