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|Archived Press Releases
Apr 22, 2014 Participants of 100th National Management Course visit FBR

A group of fifty three senior civil servants undergoing the 100th National Management Course (NMC), along with the Rector, Dean and the faculty of the National School of Public Policy (NSPP) visited FBR House, here today.
The group was welcomed by Member Facilitation & Taxpayers’ Education (FATE) Mrs. Riffat Shaheen Qazi. She briefed the visiting officers and faculty of NMC about the organizational structure, working and revenue collection performance of FBR. She also highlighted the challenges faced by FBR and the way forward to resolve these issues.
The Chairman FBR Mr. Tariq Bajwa, in his comments, gave a detailed outline of the various policy and operational challenges faced by FBR and highlighted the strategies adopted by FBR to address these issues. He also discussed the major initiatives of FBR to enhance revenue generation through audit and enforcement initiatives and efforts broaden the tax base. He highlighted the measures being adopted by FBR to improve the tax to GDP and bridge the tax gap.
The briefing was followed by a detailed Questions & Answers session. The NMC participants freely asked questions which were candidly and frankly responded to by the Chairman FBR Mr. Tariq Bajwa himself as well as Member FATE Ms. Riffat Shaheen Qazi and Member Accounting Mr. Khwaja Tanveer Ahmed.
At the end of the Q&A session, the Rector National School of Public Policy Mr. Muhammad Ismail Qureshi thanked FBR for providing the participants of NMC with an opportunity to interact with FBR’s top management and to understand the grass-root issues facing the country’s economy and the revenue collection system. Appreciating the performance of FBR under the incumbent Chairman, he said that it is the need of the hour to adopt and promote tax culture at every level of the society.
Chairman FBR Mr. Tariq Bajwa and Rector NSPP Mr. Muhammad Ismail Qureshi exchanged institutional mementos.

Mohammad Shahzad
Secretary PR

Feb 19, 2014 FBR's Clarification / Press Release

Federal Board of Revenue has controverted a news item appearing in certain National Dailies. It has been alleged in the news that FBR has indiscriminately sent SMS messages to large number of persons requiring them to file their returns for the last five years. FBR has clarified that the SMS messages has been sent only to persons who have obtained National Tax Numbers but have not filed their returns of income for the last five tax years.
The Prime Minister of Islamic Republic of Pakistan on 28th November, 2013 announced a Tax Incentive Package incorporating various relief measures. One such measure is meant for the NTN holders who have not filed their returns for one or more tax years in the last five tax years i.e, 2008 to 2012. In order to encourage such NTN holders to voluntarily file their missing returns for the last five years they have been exempted from payment of default surcharge on late payment of tax, penalty for late filing of return and audit of the returns. These concessions will be available to those NTN holders who file their return by 28th February, 2014. FBR has initiated an outreach programme for educating the eligible sections of the population regarding the availability of the relief package. As an important step of this outreach programme FBR identified the names and mobile phone numbers of the NTN holders who have not filed their returns for the last five tax years and sent them SMS messages which constitute a polite reminder for filing their returns by 28th February, 2014, so as to avail the benefits of the concession announced by the Government. The SMS messages sent by the FBR were a reminder to NTN holders to fulfil their legal obligation and at the same time avail of the Special Incentive Package announced by the Prime Minister. Terming the effort of FBR in educating and facilitating the non-filers as harassment and source of panic is highly unjustified and unwarranted.
 

Mohammad Shahzad
Secretary (PR)

Jan 15, 2014 FBR Press Release

The official Spokesman FBR has clarified that the reports appearing in various sections of the Press including daily “The News” and “Jang” regarding non-filing of Income Tax Returns by Hon’able Speaker, National Assembly, Sardar Ayaz Sadiq are not based on facts. It is further stated that Hon’able Speaker, National Assembly, Sardar Ayaz Sadiq has regularly been filing Income Tax returns against NTN 2349094-2 and for Tax Years 2009 to 2013, these are available on e-portal of FBR.

Malik Amjed Zubair Tiwana
Official Spokesman, Federal Board of Revenue

Jan 03, 2014 FBR Press Release

It is clarified that the Secretary Finance and the Chairman FBR were summoned by the PAC on 01.01.2014. The FBR did not make any statement before the PAC but only responded to some very specific questions that were asked by the PAC. One of the questions was that whether it is a fact that the tax at source is deducted from the salaries of Parliamentarians. The Chairman responded to the aforementioned as “this is a fact”. However, it was explained to the PAC that despite this every person having income above the threshold was required to file an IT return. Another question that was asked was whether agriculture income tax was to be collected by the FBR’s and it was explained that this tax was to be collected by the Provincial Government as per the Constitution. On another question it was explained that the record of the IT as per IT Ordinance is confidential.
FBR would however like to clarify that as per sub-section (6) of section 216 the Federal Government is empowered to publish the particulars and the amount of tax paid by a holder of a public office as defined in the National Accountability Ordinance, 1999.
FBR takes strong exception to the negative profiling of its entire workforce in some sections of the print media and would like to clarify that like any other organization it has a mixed lot of human resource. It has its fair share of officers/officials of integrity and competence. In the last six months concerted efforts have been made to post officers of known integrity at critical positions.  These steps have been appreciated by the media also.
 

Shahid Hussain Asad
Member IR-Policy/ FBR's Official Spokesperson

Jan 01, 2014 In connection with the news item published in the national press regarding tax payment by the parliamentarians.

In connection with the news item published in the national press regarding tax payment by the parliamentarians, the issue was discussed in the PAC meeting today which was attended by the Secretary Finance and Chairman FBR along with his team. The PAC members expressed annoyance on the reports appearing in the press that they are not paying tax on their income. They stated that income tax is deducted on salary income of all the parliamentarians and they also pay tax on their agricultural income to the provincial governments. They desired that FBR should clarify this factual position.
 It is hereby clarified that income tax is deducted on the salary income of all the parliamentarians under section 149 of the Income Tax Ordinance, 2001. As far as agricultural income of the parliamentarians from the yield of agricultural land is concerned, under the constitution, Federal Government cannot tax agricultural income. However, the same is taxable under the provincial Agricultural Income Tax law.
 

Shahid Hussain Asad
Member (IR Policy) Official Spokesman FBR

Dec 27, 2013 The official spokesman of the FBR has clarified that reports circulating in various sections of the Press regarding discrepancies in the tax declarations of the parliamentarians are not released by FBR

The official spokesman of the FBR has clarified that reports circulating in various sections of the Press regarding discrepancies in the tax declarations of the parliamentarians are not released by FBR. Reports have recently surfaced in the Press wherein it has been claimed that the income and tax declared by various Parliamentarians were contradicted by the FBR. FBR’s official spokesman has clarified that these reports may have been individually worked out by various persons and as a source FBR has not been used in these reports.
The spokesman of the FBR clarified that during the Elections 2013 the FBR, along with SBP and NAB, was asked by Election Commission of Pakistan (ECP) to verify the credentials of the contesting candidates. The FBR only shared information regarding the income declared and tax paid by the contesting candidates for the three immediately preceding tax years i.e. 2010, 2011 and 2012 on the format devised by the ECP. However, this information was posted by the ECP on its website. Subsequently, the ECP also posted the Nomination Papers of the contesting candidates on its website. The reports circulating in the press are probably based on the analysis of the above information which has been taken from the website of the ECP.
The official spokesman further clarified that FBR has placed stringent security checks on the data available on its database due to which there is virtually no possibility of leakage of information. It has therefore been categorically pointed out that no leakage of official data/information available in the FBR database has taken place and the data given in the reports circulating in the press was in all likelihood based on information available on ECP website.
 

Shahid Hussain Asad
Official Spokesman,

Dec 17, 2013 Improvement in filing of Income Tax Returns witnessed

FBR has received about 800,000 returns of income/statements till 16-12-2013, which are considerably more than the 711,000 returns/statements received last year. In this way, a positive response to the taxpayer facilitation efforts of the government has been witnessed. The number of returns filed this year will further increase, as an appreciable number of income tax returns is in pipeline, which are being filed to avail the benefits announced by the Honorable Prime Minister in his Tax Incentive Package for the business community.
Further, the taxpayers who have been granted extension in filing the returns will also file such returns within a week or two. The returns of companies closing their accounts by 30th June, 2013, are due on 31 December, 2013. In this way, it is expected that about 125,000 more returns (including about 25,000 of companies) will be filed by 31st December, 2013.
This improvement in return filing is due to an aggressive campaign launched by the FBR and its field formations this year which was aimed at education and facilitation of the taxpayers for filing the returns of income. More than 200 KIOSKs/TFCs were established throughout Pakistan on important business places/offices/Chambers where efficient staff of FBR was available for guidance and help to the taxpayers. The staff also helped the taxpayers in e-filing their returns whosesoever the taxpayers were not having the computer/net facility or necessary expertise to file returns electronically.
The FBR stands committed to provide necessary guidance and facilitation to the taxpayers to discharge their national responsibility.
 

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

Nov 30, 2013 FBR's revenue collection figures

Federal Board of Revenue has collected Rs 169 billion during the month of November, 2013 as against Rs 140 billion collected during November 2012, showing an increase of 21 % over the same period during last year. Target for the month of November, 2013 was fixed at Rs 167 billion which has been achieved. Tax wise detail is as under:-

Income Tax        Rs 57 bn
Sales Tax        Rs 85 bn
FED            Rs 13 bn
Customs Duty    Rs 19 bn
Total            Rs 174 bn
Less:
Refunds issued    Rs 5 bn
Net collection    Rs 169 bn
 

Total collection for the period July 1, 2013 to Nov, 30, 2013 is Rs 806 billion.

 

Shahid Hussain Asad
Member (IR Policy)/Official Spokesman

Nov 26, 2013 The salaried individuals are informed that on 25.11.2013 the honourable Supreme Court of Pakistan has suspended the judgment of the honourable Sindh High Court that was announced in C.P NO.D-2342/2013 dated 25.10.2013.
The salaried individuals are informed that on 25.11.2013 the honourable Supreme Court of Pakistan has suspended the judgment of the honourable Sindh High Court that was announced in C.P NO.D-2342/2013 dated 25.10.2013. The FBR has filed a CPLA before the honourable Supreme Court against the judgment of the Sindh High Court.
The effect of the suspension of the Sindh High Court judgment referred above is that now the rates of tax as already provided in clause (1A) of Division I of Part I of the First Schedule to the Income Tax Ordinance 2001 shall apply to all salaried individuals.
Those persons who have paid less tax in view of the judgment of the Sindh High Court (above) and have filed the returns, may calculate the short paid tax and deposit the same upto 30.11.2013 to avoid default surcharge etc.
 
Mohammad Shahzad
Secretary PR

Nov 23, 2013 Efiling system at FBR's portal

It is notified that all known issues of e-Filing system have been removed at FBR Portal and the taxpayers & tax consultants are making maximum use of the e-Filing system of FBR. Despite public holiday today, speed of return filing was about 500 returns per hour. On Saturday, up to 7 pm 89,541returns were received electronically by FBR that is about one third of the returns received electronically last year. FBR has made special arrangements of burstable bandwidth through which the bandwidth pipe is expanded automatically based on the workload of return filers.

The eFBR helpline (051 111-772-772) operates round the clock for providing technical assistance for e-filing of the returns.
 

Shahid Hussain Asad
Official Spokesman,

Nov 19, 2013 Updation of Web Portal as per SRO 978(I)/2013

FBR has clarified that the FBR Web Portal has been updated on 18-11-2013 in the light of SRO 978(I)/2013 dated 13-11-2013 and is accepting returns of income for the Tax Year 2013 without Wealth Statement, in those cases of individuals whose last declared or assessed income or the declared income for the year is less than Rs. one million.

Web Portal is also accepting statements u/s 115(4) for the Tax Year 2013 without Wealth Statement of those individuals who fall under Final Tax Regime (FTR) and have paid Withholding Tax less than Rs. 35,000/-.

For further assistance in filing the returns and statements, the taxpayers can call the Call Centre at 051-111-772-772 which operates round the clock.
 

Shahid Hussain Asad
Official Spokesman FBR

Nov 13, 2013 FBR establishes more than 200 Tax Facilitation Kiosks for taxpayers’ facilitation

In order to facilitate the taxpayers for filing the returns of income for the tax year 2013, the FBR has established more than two hundred (200) Tax Facilitation Kiosks (KIOSKs)/Tax Facilitation Centres (TFCs) throughout the country on places like important business centres, shopping malls, offices of Traders' Associations and important markets where maximum number of taxpayers can avail the facility. Knowledgeable and competent officers/officials have been deputed in these KIOSKs/TFCs to guide and assist the taxpayers in the filing of tax returns. The details of such KIOSKs/TFCs and the contact numbers of the personnel manning these KIOSKs/TFCs have been displayed on the FBR website (http://www.fbr.qov.pk) for the convenience of the taxpayers. These KIOSKs/TFCs shall remain operational from Monday through Saturday, from 9:00 am to 8:00 pm daily. The prescribed proformae of returns and wealth statement are available on these KIOSKs/TFCs. Copies of the Taxpayers' Facilitation Guides published by the FATE Wing of the FBR are also available for the benefit of the taxpayers. The KIOSKs/TFCs would provide education and guidance to the taxpayers, and would help the taxpayers to properly fill in the tax declarations. The taxpayers are requested to contact the nearest Tax Facilitation Kiosk/Tax Facilitation Centre in case of any difficulty or problem in filing their returns.

The RTO wise detail of the KIOSKs/TFCs is as under:-

S. No.

Name of RTO

No. of KIOSKs/TFCs

1

RTO, Sialkot

15

2

RTO Sukkur

11

3

RTO, Quetta

03

4

RTO, Karachi

08

5

RTO-II, Karachi

07

6

RTO-III, Karachi

09

7

RTO, Bahawalpur

09

8

RTO, Islamabad

08

9

RTO Peshawar

10

10

RTO, Gujranwala

12

11

RTO, Faisalabad

11

12

RTO, Lahore

13

13

RTO-II, Lahore

18

14

RTO, Multan

13

15

RTO, Abbottabad

09

16

RTO, Rawalpindi

14

17

RTO, Sargodha

16

18

RTO, Hyderabad

20

 

Total

206

 

Mohammad Shahzad
Secretary PR

Nov 11, 2013 Extension of the date for payment of ST / FED and filing of ST / FED returns for the period October, 2013 for all registered persons

In view of 9th and 10th Muharram holidays falling on 14th and 15th November, 2013 and the weekend following immediately, the Federal Board of Revenue, in exercise of the powers conferred under section 74 of the Sales tax Act, 1990 and section 43 of the Federal Excise Act, 2005, is pleased to extend the date of payment of Sales tax & FED and of filing of Sales Tax / Federal Excise returns upto 20th November, 2013, for the tax period October, 2013 for all registered persons.

Shahid Hussain Asad
Official Spokesperson, FBR

Oct 29, 2013 99th NMC participants visits FBR

A group of fifty seven senior civil servants participating in the 99th National Management Course (NMC), along with the Rector, Dean and the faculty of the National School of Public Policy (NSPP) visited FBR House, here today.
The group was welcomed by Member Facilitation & Taxpayers’ Education (FATE) Mrs. Riffat Shaheen Qazi. She briefed the visiting officers and faculty of NMC about the organizational structure, working and revenue collection performance of FBR. She also highlighted the challenges faced by FBR and the way forward to resolve these issues.
Member Customs Mr. Nisar Muhammad Khan and Member (IR-Policy) Mr. Shahid Hussain Asad also briefed the visiting officers on the working of their respective wings.
The Chairman FBR Mr. Tariq Bajwa, in his comments, gave a brief outline of the various policy and operational challenges faced by FBR and highlighted the strategies adopted by FBR to address these issues. He also discussed the major initiatives of FBR to enhance revenue generation through audit and enforcement initiatives and efforts broaden the tax base. He highlighted the measures being adopted by FBR to improve the tax to GDP and reduce the tax gap in the coming years.
The briefing was followed by a detailed Questions & Answers session. The NMC participants freely asked questions which were candidly and frankly responded to by the Chairman FBR Mr. Tariq Bajwa himself.
At the end of the Q&A session, the Rector National School of Public Policy Mr. Muhammad Ismail Qureshi thanked FBR for providing the participants of NMC with an opportunity to interact with FBR’s top management and to understand the grass-root issues facing the country’s economy and the revenue collection system. Appreciating the performance of FBR under the incumbent Chairman, he said that it is the need of the hour to adopt and promote tax culture at every level of the society.
Chairman FBR Mr. Tariq Bajwa and Rector NSPP Mr. Muhammad Ismail Qureshi exchanged institutional mementos.
 

Mohammad Shahzad
Secretary PR

Oct 25, 2013 FBR CLARIFIES NEWS REPORTS REGARDING BROADENING OF TAX BASE INITIATIVE
In a section of the press, reports have been published today regarding the Broadening of the Tax Base Initiative by FBR. The position is clarified as under:- 
 
     During the 1st Quarter of current financial year 30,533 notices were issued to potential taxpayer in cases where FBR had information of quantifiable economic activity and the person was not on tax roll. In order to ensure a higher standard of delivery of these notices, the online delivery report of the tracking software of the courier service has not been made the basis of reporting. Notices are reported as delivered only when the physical acknowledgement receipt with signature and particulars of persons receiving the notices is received back from courier. So far 11,373 notices have been delivered. Out of these 1189 have registered themselves as taxpayers and 9,365 notices have been returned undelivered by the courier. Of the undelivered notices, 30% were returned due to incomplete addresses, 32% addresses were outside service areas of courier service, 15% had incorrect address, 18% cases were reported shifted or closed and a further 5% refused to receive the notice. Delivery report of further 9,795 notices is in transit with courier. FBR is cognizant of the urgent need to improve the delivery rate and exploring alternate options for delivery of notices. It has been decided to utilize alternate courier services and Pakistan Post extensively for areas not covered by other courier services. NADRA has been contacted for provision of full addresses in cases where notices could not be served due to incomplete addresses or shifting of the potential taxpayers. As a last option the service through field staff shall be undertaken.
 
(Riffat Shaheen Qazi) Member (FATE)
Official Spokesperson, FBR

Oct 04, 2013 FBR has not imposed any new tax on household gas and electrical appliances, tiles, tyres etc.. these goods were chargeable to sales tax on retail price basis.

FBR has not imposed any new tax on household gas and electrical appliances, tiles, tyres etc.. these goods were chargeable to sales tax on retail price basis. Sales Tax on retail price basis means that sales tax of the complete chain from manufacturer till retailer is paid upfront by the manufacturer. This business community approached FBR on grounds that that this system has posed many practical problems for them and requested FBR to do away with charging sales tax on retail price basis and in its lieu agreed to pay 2% additional sales tax (worked out on the basis of actual value addition from manufacturer till retailer) on all these items. This is, therefore, not a new tax or enhancement of existing rate but only collection of tax which even otherwise was payable by the supply chain. ”
 
The News item relayed by certain news channels regarding imposition of 2% additional sales tax on household gas and electrical appliances, ceramic tiles, tyres, foam & mattresses, auto parts, confectionery items is based on misinterpretation of SRO896(I)/2013 issued on 4th October 2013.
During Budget 2013, all these goods were added in the Third Schedule to the Sales Tax Act, 1990 to charge sales tax on retail price basis. The concept of charging sales tax on the basis of retail price is to charge the complete sales tax of the entire supply chain from the manufacturers till retail stage upfront from the manufacturer. This step was introduced to collect sales tax payable by dealers. Distributors and retailers on their value addition as virtually no collection was being made from these segments for these goods.
FPCCI, KCCI and Trade Associations of all these goods approached FBR with request that it is practically impossible for these sectors to comply with the requirements of printing retail price on each and every item to be sold in the market. These sectors also stated that the prices of these goods vary from market to market due to many circumstances, which makes it even more difficult to comply with the requirements of charging sales tax on retail price basis.
FPCCI, KCCI and Trade Associations requested that an alternate mode of collection of tax from dealers, distributors and retailers of these goods may be devised but the condition of charging sales tax on retail price basis may be done away with. In line with the requests of the these sectors, FBR omitted these items from the Third Schedule  to the Sales Tax Act, 1990, and in its lieu imposed a 2% additional tax on these items to be paid by the manufacturers in consultation and with the consensus of the trade bodies to provide relief to the business and for providing ease of business. The rate of 2% was also worked out on the basis of actual value addition of these sectors from the manufacturers till retail stage.
 
 
Furthermore, it is also informed that the following items of daily and essential use are not chargeable to sales tax:-
 

NOT CHARGEABLE TO SALES TAX

S.No.

Description

1

Vegetables

2

Pulses

3

Fruits

4

Red chillies

5

Eggs

6

Meat

7

Fish

8

Poultry

9

Poultry feeds

10

Ginger

11

Turmeric

12

Locally produced ware potato

13

Locally produced onion

14

Cereals

15

Products of milling industry

16

Ice

17

Sugarcane

18

Salt

19

Fruit juices

20

Bread

21

Nan

22

Chapattis

23

Sheermal

24

Bun

25

Rusk

26

Agricultural produce of Pakistan not subjected to process of manufacture

27

Milk

28

Yogurt

29

Butter

30

Cream

31

Desi ghee

32

Whey

33

Preparations for infant use

34

Fat filled milk

35

Colors in sets

36

Writing, drawing and marking inks

37

Erasers

38

Exercise books

39

Pencil sharpeners

40

Geometry boxes

41

Pens,

42

Ball pens

43

Markers and porous tipped pens

44

Pencils Color pencils

45

Color pencils


 

Mohammad Shehzad
Secretary PR

Oct 02, 2013 FBR has notified the return forms for filing of income tax returns by Company, AOP and Individuals.

FBR has notified the return forms for filing of income tax returns by Company, AOP and Individuals. All the returns forms can be downloaded from FBR's website by visiting https://fbr.gov.pk
Electronic filing of income tax returns is mandatory for Companies and AOPs. Moreover, all individuals registered for sales tax, drawing salary income of Rs. 500,000 and more and all refund claimants are also required to file the income tax return along with wealth statement electronically.
The electronic filing facility is available round the clock, moreover technical assistance for electronic filing can be sought by calling at PRAL call center (051 111-772-772) which also operates round the clock.

mohammad shehzad
secretary PR

Oct 01, 2013 FBR has collected revenue of Rs.202 billion in September this year against a total collection of Rs.180 billion in September, 2012.

FBR has collected revenue of Rs.202 billion in September this year against a total collection of Rs.180 billion in September, 2012. The total collection for the first quarter (July–September) stands at Rs.481 billion against an amount of Rs.414 billion collected for the corresponding period last year. The revenue of Rs.481 billion includes Rs.161 billion Income Tax, Rs.235 billion Sales Tax, Rs.54 billion Customs duty and Rs.31 billion Federal Excise duty.

Mohammad Shahzad
Secretary PR

Jul 18, 2013 Sales Tax Zero Rating facility restored on various items

As per the directions of Federal Minister for Finance Mr. Ishaq Dar, the facility of zero-rating has been restored on various dairy products, stationery items and bicycles along with their raw materials, packing materials, sub-components, components, sub-assemblies and assemblies, imported or purchased locally for manufacture of said goods.

In this regard S. R. O. 670(I)/2013 dated 18th July, 2013 has been issued by FBR today. The said SRO can be found at this address:

http://www.fbr.gov.pk/SROsShows.aspx?ActionID=5828&Path=http://download1.fbr.gov.pk/SROs/2013718147746747SRO670OF2013.pdf&Type=SROS

Mohammad Shahzad
Secretary PR

Jul 15, 2013 Sales Tax on old and used clothes has been reduced from 17% to 5%

Clarifying a news item appearing in a section of the press, the official spokesperson of FBR, stated that Sales Tax on old and used clothes has been reduced by the Federal Minister for Finance Mr. Mohammad Ishaq Dar, from 17% as stated on the floor of the National Assembly in his Budget speech on 5th June 2013, to 5% in his winding up speech and as incorporated in the Finance Act 2013.

This reduction in Sales Tax from 17% to 5% was due to Government’s consideration for the common man, who uses these old / used clothes.

Riffat Shaheen Qazi
Official Spokesperson, FBR

Jun 28, 2013 Collection of Duties / Taxes on 28th , 29th and 30th June, 2013

In order to facilitate the taxpayers in depositing their duties and taxes during the last few days of the current financial year, the State Bank of Pakistan, on request of FBR has decided to keep the designated branches of State Bank of Pakistan, National Bank of Pakistan, major branches of Commercial Banks and national Institute of Facilitation Technologies (NIFT) open for extended hours as under:-

  1. Friday the 28th and Saturday the 29th June, 2013 until 10:00 PM

  2. Sunday the 30th June, 2013 until 12:00 midnight.

2. Accordingly arrangements have been made to facilitate taxpayers in payment of Taxes / Duties and fulfill their national obligation. In this regard FBR has directed all its field formations to remain open till the same extended timings on the aforementioned days.
 

Riffat Shaheen Qazi
Official Spokesperson, FBR

Jun 26, 2013 FBR committed to Broaden the Tax Base

FBR has started an intensive effort to Broaden the Tax Base through using the National Data Warehouse and has finalized a detailed implementation plan in this regard.
The most important step in this direction has been the decision to use the National Data Warehouse (NDW) for identification of new taxpayers who can be brought into the tax net. The NDW would be used in various ways for this purpose including its usage for acquisition of data through profiling loading and Data mining & usage. Once this is done, respective RTOs would be sent the details and electronic profiles of these potential taxpayers so that BTB notifications are issued by the concerned tax commissioners. All the monitoring and control of the process would be automated and system based. FBR has also upgraded its call centre facility for the facilitation of the taxpayers. Linkages with 3rd party sources, including provincial revenue authorities have also been established for effective implementation and monitoring.
To strengthen the enforcement mechanism for the BTB plan, various decisions have been made by FBR which includes initiation of statutory proceedings against persons who fail to respond to Outreach notifications through issuance of notices under section 114 of the Income Tax Ordinance, 2001. In case of taxpayer’s persistence on non-compliance, provisional assessment would be finalized and the taxpayer would still have the option to file a return accompanied by a wealth statement and reconciliation of wealth statement within the period of sixty days whereby the provisional assessment order will be automatically vitiated. If the taxpayer does not file the return and required documents within sixty days, the tax liability raised as per the provisional assessment order would become final and will be recoverable and, if necessary, penal and prosecution proceedings, which may culminate in imprisonment and imposition of fine, will also be initiated in selected cases for creating a credible deterrence.
 

Riffat Shaheen Qazi
Member FATE/ Official Spokesperson FBR

Jun 19, 2013 FBR directs field offices to monitor that no sales tax is collected on exempted items

On the directive of the Federal Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization Mr. Mohammad Ishaq Dar, Chairman FBR Mr. Ansar Javed has directed all LTUs and RTOs to strictly monitor that no Sales Tax is collected on essential items exempt under section 13, read with Sixth Schedule of the Sales Tax Act 1990 and has directed them to take proper action under the law against violators.
FBR also wants to inform the general public by all appropriate means that these essential items including vegetables, meat, milk, eggs, red chilies, fish, drugs, pulses, fruits, poultry, ginger, turmeric, cereals and products of milling industry, ice, poultry feed, butter, yogurt, butter, salt, potato, onions, bread, nan, chapatti, bun, rusk and others continue to remain exempted from Sales Tax. It is also clarified that the increase in the rate of Sales Tax from 16% to 17% under the declaration issued under the Provisional Collection of Taxes Act, 1931 does not affect any of these items, which are exempted under the Sales Tax Act, 1990.
 

Mohammad Shahzad
Secretary PR

Jun 05, 2013 Bilateral sharing of expertise in Revenue generation and collection between Pakistan and UK discussed

Member of the UK’s House of Lords, Lord Nazir Ahmed of Rotherham called on Chairman FBR Mr. Ansar Javed at the FBR House here today. Riffat Shaheen Qazi, official spokesperson, and Member FBR was also present in the meeting.

During the meeting Chairman FBR stressed the need to enhance collaboration between the revenue and customs departments of both the countries so as to better understand the issues and to benefit from bilateral expertise in specific areas. FBR extended willingness to provide full support for any such proposal of collaboration and exchange of expertise between the two countries.

Lord Nazir Ahmed committed to take up this proposal with the concerned quarters in the UK and hoped that positive developments in this regard would be achieved.

 

 

Mohammad Shahzad
Secretary PR

May 29, 2013 Taxpayers / Public to lookout for fraudulent tax refund emails sent by fake FBR email addresses

It has been reported that some hackers are using a fake webpage of FBR created for nefarious purposes. The taxpayers receive an email about their tax refund from fake email addresses e.g. customerservice@fbr.gov.pk which appear to be originating from FBR but in fact are not. The email informs the taxpayers to collect their tax refund by clicking on the designated link to a fake website of FBR which has links to banks. FBR’s official website is http://www.fbr.gov.pk but the click leads to fake web address http://www.springtowinter.gr/fbr.gov.pk/fbr.gov.refundportal.htm asking for their bank account number and password. If the users provide the information, their identity thus gets stolen and their bank accounts are then hacked.

This is called Phishing and it is used by identity thieves around the world who misuse the online financial systems and deprive unsuspecting people of their money. Globally phishing deprives people of around a billion US$ annually.

The taxpayers and general public are advised not to send their bank account details and password to any emails received from any email address that is apparently from FBR. Any link to any bank is not provided on FBR’s website and FBR would never ask for your bank details and passwords on its home page. Banks always advise their customers against disclosing their password even to bank officials or bank’s genuine websites. Public is requested to be careful and prudent regarding such emails and the links provided through such emails. All taxpayers and general public are requested not to trust such emails and never disclose their bank account numbers, passwords and other details. 

These precautionary instructions are being issued in the public interest and public is also advised that if someone has become a victim of this phishing attack through using the link sent through above mentioned email, they must immediately change the password of the relevant online bank and never share it with anyone.

 

 

Mohammad Shahzad
Secretary PR

May 27, 2013 FBR field offices to remain open on all Saturdays till 30th June, 2013

Federal Board of Revenue has directed all its filed offices, including Model Customs Collectorates (MCCs), Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs), to remain open on all Saturdays till 30th June, 2013, as per normal office hours.

Mohammad Shahzad
Secretary PR

May 07, 2013 Chairman FBR discusses revenue collection with NMC participants

A group of sixty-nine senior civil servants participating in the 98th National Management Course (NMC) and faculty of National School of Public Policy (NSPP) visited FBR House, here today.
The group was welcomed by Member Facilitation & Taxpayers’ Education (FATE) Mrs. Riffat Shaheen Qazi. She briefed the visiting officers and faculty of NMC about the organizational structure, working and revenue collection performance of FBR. She highlighted the challenges faced by FBR and proposed way forward to tackle and resolve these issues.
The briefing was followed by a detailed Questions & Answers session. The NMC participants freely asked questions which were candidly and frankly responded to by the Chairman FBR Mr. Ansar Javed himself. He talked in detail about various initiatives launched by FBR to enhance revenue collection and to expand the tax base.
At the end of the Q&A session, the Rector National School of Public Policy Mr. Muhammad Ismail Qureshi thanked FBR for providing the participants of NMC with an opportunity to interact with FBR’s top management and to understand the grass-root issues facing the country’s economy and the revenue collection system.
Chairman FBR Mr. Ansar Javed and Rector NSPP Mr. Muhammad Ismail Qureshi exchanged institutional mementos.
 


Mohammad Shahzad
Secretary PR

Apr 30, 2013 FBR bids farewell to its two retiring Deputy Chairmen

  Officers and staff of Federal Board of Revenue held a farewell ceremony at the FBR House Islamabad for the two Deputy Chairmen of FBR Mr. Malik Abdul Samad and Mr. Shahid Rahim Sheikh who are retiring today.
  Addressing the ceremony held in the auditorium of FBR House, Member (FATE) Mrs. Riffat Shaheen Qazi lauded the services of the deputy chairmen. She said that it is a matter of pride for FBR that its officers have reached the highest level of civil service in Pakistan. “We would always look towards them for inspiration and guidance”, she added.
  Dy. Chairman Malik Abdul Samad, in his comments, thanked the seniors, juniors and colleagues for their support during his career.
  Thanking the officers and staff of FBR, the Dy. Chairman Shahid Rahim Sheikh said that he thoroughly enjoyed his career and learnt a lot from his seniors as well as juniors. He said that learning process should always continue, at every stage of life.
  Speaking on the occasion, Chairman FBR, Mr. Ansar Javed praised the dedication, commitment and professionalism of both the Deputy Chairmen, who happened to be his batch mates, and said that they will always be remembered for their meritorious services. He said that they would always remain a part of FBR’s family and expressed his best wishes for their future.
The Chairman FBR also presented mementos to the two retiring officers.
 

Mohammad Shahzad
Secretary PR

Apr 22, 2013 Mid-Career civil servants briefed on working of FBR

A group of Twenty-two participants of 15th Mid-Career Management Course (MCMC) and faculty of National Institute of Management (NIM) Karachi visited FBR House today, as part of their country study tour.
Member Facilitation & Taxpayers’ Education (FATE) Mrs. Riffat Shaheen Qazi welcomed the participants on behalf of Chairman FBR, followed by a presentation on FBR and a Questions and Answers session which was answered by the Chairman and relevant members of the Board. They were briefed in detail about the various initiatives launched by FBR to enhance revenue collection and to expand the tax base.
The Director General National Institute of Management Karachi Mr. Tauqeer Ahmad thanked FBR for providing the participants an opportunity to interact with FBR’s top management, at a time when the budget meetings are in progress. The DG NIM and Chairman FBR exchanged mementos.
 

Mohammad Shahzad
Secretary PR

Apr 15, 2013 Chairman FBR takes serious notice of the revenue shortfall

The Chairman FBR Mr. Ansar Javed, after assuming charge, has started hectic consultation with stakeholders. The first meeting was held with the Lahore Chamber of Commerce & Industry over the weekend.
The Chairman has taken serious note of the fall in revenue and started marathon meetings within FBR. The performance of each LTU and RTO is examined, and the Chief Commissioners are directed to devolve strategies to achieve the freshly assigned budget targets. He has directed Member (IR-Ops) to immediately issue letters to all the RTOs and LTUs highlighting their performance and achievements / shortfalls, and has directed that remedial strategies be made to ensure collection of the assigned targets for the last quarter ending 30th June, 2013.
 

Mohammad Shahzad
Secretary PR

Apr 07, 2013 No new tax has been imposed on Cell Phones: FBR

FBR has clarified that no new tax has been imposed on cell phones as is wrongly being portrayed by some quarters. The fixed amount of sales tax on activation stage was first introduced through SRO 390(I)/2001 dated 18th June, 2001, with a rate of Rs. 2000 per cell phone. However, on the request of cellular company operators to encourage the sector, the rate was reduced from time to time. Under SRO 542(I)/2008 dated 11th June, 2008 the fixed rate was Rs. 500 per mobile phone, which was subsequently reduced Rs. 250 per mobile phone. The collection mechanism in all these notifications was based on the old CDMA technology, which required activation/energization of mobile phones by the cellular company operators before they could be operated. However, CDMA technology is no longer prevalent on any mobile network in Pakistan as all mobile networks in the country are presently operating on GSM technology. Under GSM technology only a SIM Card is inserted in mobile phones which are ready for usage. These GSM technology-based mobile phones do not require activation/energization by the cellular mobile network. Due to this technology change from CDMA to GSM, SRO 542(I)/2008 dated 11th June, 2008 had become redundant and the Government exchequer was not getting the proper revenue from this sector as pre-activated cell phones were being imported resulting in a steep fall in revenue despite tremendous increase in volume of import. SRO 280(I)/2013 dated 04-04-2013 recently issued by the Government does not impose any new tax. It only aligns the law with the latest technology. This notification was necessitated to remove the anomalies occurring due to change in technology. It has shifted the time and mode of payment of tax from activation stage to import stage.The standard rate of sales tax under the Sales Tax Act, 1990 is 16% and prices of new mobile phones go as high as around Rs. 80,000/- or more. At the standard rate of sales tax, the amount of sales tax payable on a mobile phone costing Rs. 50,000/- would be Rs. 8,000/-, but under SRO 280(I)/2013 the fixed sales tax is only Rs. 1000/- which comes to around 2%.  Thus the fixed rate of sales tax under SRO 280(I)/2013 dated 04-04-2013 is still much lower than the standard rate of 16% chargeable on all other goods. This reduced fixed rate of Sales Tax has been retained on the request of cell phone operating companies to help and encourage the sector. The impression being created by certain vested interests that the Government has levied a new tax on cell phone is baseless and devoid of fact. The views being presented that imposition of sales tax under SRO 280(I)/2013 will ruin the businesses or lead to smuggling of mobile phones is also not correct as the present notification only brings the tax structure in line with the current cellular technology and it is aimed at safeguarding the interests of the exchequer which were being hurt due to the existence of a notification based on an obsolete technology. Even under the new notification fixed tax rate at a minimal level has been retained on mobile phones to save the industry from any possibility of smuggling. The rate of Rs. 1000/- is only for smart phones and satellite phones (which are admittedly costly phones). The fixed rate of sales tax on ordinary cellular mobile phones (other than Smart Phones and Satellite Phones) is only Rs. 500/- per mobile phone. This minimal rate of fixed tax shows the pro-industry policy of the Federal Government. It also shows that all tax policy changes are well-thought out by the Federal Government and no such policy is implemented which would create problems for the industry.

Mohammad Shahzad
Secretary PR

Apr 02, 2013 Vehicles Amnesty Scheme update

Federal Government’s Amnesty Scheme for smuggled and non duty paid vehicles has received phenomenal response. Till March 31, 2013, over 34,000 vehicles have been assessed to import duty and taxes at various custom offices all over the country.  The total revenue collected on such vehicles is approximately Rs. 10 billion.
The success is unprecedented compared to the identical facilities allowed in the past. Customs offices have been working over the weekend, beyond the normal call of duty for this to happen.
Considering the wide response and the demand, the Government has extended the last date for availing the Amnesty to 6th April, 2013. The persons in possession of non duty paid and smuggled vehicles can now surrender such vehicles to customs and get them legalized through payment of duty and taxes till 6th April, 2013.
Meanwhile, all Customs offices, in response to the queries received from the Office of Federal Tax Ombudsman, will cooperate with them and provide the data and record of the vehicles assessed so far.
 

Mohammad Shahzad
Secretary PR

Mar 29, 2013 FBR launches Taxpayers’ Facilitation Portal

Keeping in view the facilitation of taxpayers, FBR officially launched today its Taxpayers’ Facilitation Portal accessible at FBR’s web address http://www.fbr.gov.pk
This major paradigm shift from an official website towards a Taxpayers’ Facilitation Web Portal is the initiative of FBR’s Chairman Ali Arshad Hakeem with a view towards maximum online facilitation, guidance and help for the taxpayers, in line with best international practices.
All the information required by a taxpayer is minimally presented on the portal with the objective of making it more user-friendly. The new interface is designed with the principle of categorization of information and its presentation in a simple but graceful manner with the sole objective of maximum taxpayer facilitation and easy access to required information.
For the facilitation of taxpayers, all the links of online services provided by FBR are placed in a separate but easily visible section on the portal. All the information and links provided earlier on the website are also accessible with more ease.
For the ease of taxpayers, and if someone is more comfortable with the earlier layout of information, FBR’s previous website is also accessible from the same portal.
Taxpayers, stakeholders and general public are encouraged to give online feedback and suggestions through the same portal.
 

Mohammad Shahzad
Secretary PR

Mar 29, 2013 Designated branches of SBP and NBP to remain open on 30th and 31st March, 2013 to facilitate taxpayers

 

In order to facilitate taxpayers in timely payment of tax liabilities, all designated branches of State Bank of Pakistan and National Bank of Pakistan shall remain open on 30th and 31st March, 2013 (Saturday and Sunday) for receipt of duties / taxes.
For facilitation of the taxpayers, all Inland Revenue Offices will also remain open on 30th March, 2013.
 
Mohammad Shahzad
Secretary PR

Mar 28, 2013 10,000 SMUGGLED VEHICLES LEGITIMIZED THROUGH AMNESTY SCHEME SO FAR

The smuggled vehicles’ amnesty scheme notified by the Federal Government, for legitimizing smuggled vehicles upon payment of duty and taxes, has fetched Rs. 3 billion approximately to date, through legitimizing around 10,000 (ten thousand) vehicles across the country.
It is reiterated here again today, that the last date to avail this facility of the amnesty scheme will not be extended beyond 31st March, 2013.
It is further clarified that all Customs’ field formations will remain open on Saturday the 30th and Sunday the 31st March, 2013 as a special arrangement to facilitate persons availing this amnesty scheme. Moreover, designated branches of National Bank of Pakistan will also remain open on aforementioned days.
 

Mohammad Shahzad
Secretary PR

Mar 26, 2013 SMUGGLED VEHICLES’ AMNESTY SCHEME NOT TO BE EXTENDED BEYOND 31ST MARCH

The amnesty scheme notified by the Federal Government, for legitimizing the smuggled and non-duty paid vehicles upon payment of duty and taxes, will expire on 31st March, 2013. The scheme will not be extended beyond 31st March, 2013. The rumors suggesting possible extension in the deadline are absolutely unfounded.
 
2.      Those seeking to avail of this facility of the amnesty scheme must therefore present their smuggled / non-duty paid vehicles to Customs, latest by 31st March, 2013.
 
3.      It is further clarified that the Federal Board of Revenue is determined to redouble its drive against such vehicles after the expiry of the amnesty scheme on 31st March, 2013. Instructions have been issued to the Customs field formations to impound such vehicles, besides lodging FIRs against the persons found in the ownership or possession of these vehicles, provided they are not got legitimized under the amnesty scheme, upto 31st March, 2013.
 

Mujeeb-ur-Rehman Talpur
Second Secretary (Public Relations)

Feb 25, 2013 FBR HOLDS COMPUTER BALLOT FOR PARAMETRIC SELECTION OF CASES FOR AUDIT OF INCOME TAX, SALES TAX AND FED FOR TAX YEAR 2011

Federal Board of Revenue has conducted computer ballot for selection of cases for audit pertaining to tax year 2011. The selection has been made on the basis of three separate risk parameters for Income Tax, Sales Tax and Federal Excise Duty laws for corporate and non-corporate cases. The business community representatives, who pressed the button for selection of cases, were:-

·         Agha Mujeeb Ahmad Khan, President Rawalpindi Tax Bar.

·         Raja Amer Iqbal, Executive Member Rawalpindi Chamber of Commerce & Industry.

·         Naeem Siddique, President Islamabad Chamber of Commerce & Industry.

Other representatives present on the occasion of All Pakistan Tax Bar Association, Islamabad / Rawalpindi and Federation of Pakistan Chamber of Commerce and Industry, were Mr. M. Aslam Anwar, Mr. Faraz Fazal and Mr. Abrar Ahmad Qazi.

Member (Taxpayer Audit), while welcoming the participants, stated that payment of tax is national duty of all citizens, particularly those who are earning higher incomes. She informed the audience that FBR, through Universal Self Assessment Scheme, has reposed full confidence in the taxpayers’ community. Selection of 12609 cases out of 1.677 million (0.75%), filers of returns indicates that the audit selection is not for revenue generation, it is rather being used as a deterrence. Therefore, the selection of approximately 15% of returns filed in LTUs, 5% of returns filed by corporate cases and 2% of returns filed by non-corporate taxpayers in RTOs have been selected for audit only to promote voluntary compliance and taxpayers’ education. The selection is based on the parameters devised after consultation with all stakeholders.

She informed that FBR has ensured transparency in the process of selection of cases for audit. The list of cases selected for audit has been placed on FBR’s website showing taxpayer’s National Tax Number. 

Mohammad Shahzad
Secretary PR

Feb 24, 2013 2-Day Workshop on “Accelerating Tax Reforms” Concludes at Islamabad

  A 2-day International Workshop on “Accelerating Tax Reforms” was concluded at Islamabad today. Eleven  international and over 40 local experts including sector experts to the World Bank participated in the 2-day proceedings. Board Members and section Chiefs of FBR were also participants as were Collectors and Commissioners from Inland Revenues & Customs.

The workshop concluded with strategy recommendations aimed at improving Pakistan’s tax systems and resulting revenues. Recommendations covered following major areas:-

-    Tax policy
-    Information Technology
-  Change Management
-  Customs Border Management
-  Inland Revenue Benchmarking
Human Resource Policy

The Chairman FBR Ali Arshad Hakeem, who earlier in his welcome remarks yesterday, had highlighted weak areas in revenue collection and the need to finance our development from revenues for a better tomorrow, today thanked participants for working on a weekend and providing detailed policy input.

             Some of the major recommendations included:-

-     Lowering Tax/Duty Rates over time
-     To base policy on empirical data derived from research
-     Software development to be integrated over all taxes & processes
-     To create a Customs force to comprehensively cover borders, and create new customs areas at Torkhum & Chaman.
-     Integrate IT, telecom and EDI Messaging with all agencies and interior ministry.
-     Improve HRM and complete personnel rationalization study

The Chairman, FBR while delivering his concluding remarks, stressed upon the importance of collecting taxes and said “Every rupee we fail to collect will be a rupee not spent on  education, healthcare or development”.

The FBR’s reform management wing will prepare a detailed report on the workshop’s proceedings.


 

Mohammad Shahzad
Secretary PR

Feb 23, 2013 FBR Conducts Workshop on “Accelerating Tax Reforms” 23rd – 24th Feb. 2013

FBR has embarked upon an ambitious acceleration of tax reform for enhancing revenue mobilization. The objective is to increase competitiveness, documentation, and growth of Pakistan’s economy. Increased revenues will allow greater resource allocation for Pakistan’s development needs, while enhanced competitiveness and documentation will encourage both domestic and foreign investment with increased employment for Pakistan’s youth.
Successful implementation of FBR reform acceleration strategy involves broadening national tax base through better documentation of economy, better integrated tax management system through effective Information Technology (IT), and strengthened enforcement to reduce tax evasion. Linkages with all stakeholders will be developed to sustain the reform process.
World Bank has been providing valuable assistance to FBR in its reforms. The Tax Administration Reform Project (TARP) was launched with the Bank’s assistance which ended in 2011. Presently groundwork is being done for a new project for accelerating tax reform for Revenue Mobilization.
 In order to bring reforms on a fast track, FBR initiated here today, a two-day international workshop on “Accelerating Tax Reforms” on 23-24 February, 2013 in Islamabad. The objectives are to share regional and global best practices on tax policy and tax administration, identify key actions and strategic direction in the short to medium term and provide initial input into formulating an outline for a new/revised revenue mobilization strategy.
The two-day workshop would strengthen the ongoing reforms process and create commitment and ownership for result oriented tax machinery at par with international standard among the stakeholders.
Speaking to the participants, Chairman FBR Mr. Ali Arshad Hakeem advised them to focus on following areas while formulating strategy proposals:-

  • Country-wide roll out of CREST (Sales Tax software) within a month.
  • Identifying top 100 smugglers and an early action against them.
  • Effective enforcement of tax laws.
  • Arrests in tax frauds.

The areas under study in the said two-day workshop are:-

  • Change Management.
  • Human Resource Management and Performance Indicators
  • Benchmarking IRS
  • Benchmarking Customs and Border Management.
  • Tax Policy
  • Information Technology

 

Mohammad Shahzad
Secretary PR