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Federal Board of Revenue-Archived/OLD News Room
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View FBR Current News
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8th July, 2008 |
PRESS RELEASE |
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Secretary General, Revenue Division/Chairman Federal Board of Revenue
Mr. M. Abdullah Yusuf has called upon the businessmen, traders and
industrialists to take full advantage of the newly announced amnesty
scheme "Tax Investment Scheme 2008" for legalisation of their hidden
assets by paying just 2% tax.
Speaking at a ceremony held in connection with formal launching of the
scheme at the Islamabad Chamber of Commerce & Industy last evening, the
Chairman said that the scheme is applicable for both registered and
un-registered persons. On a query regarding ascertaining of the value of
the hidden / undeclared assets, the Chairman said that it would be
accepted on the basis of "fair market value of the assets as declared by
you."
He told the ICCI members that if any one declares assets of greater
value, he can take its advantage from the banks for further promotion of
his business. FBR Chairman said that the amnesty scheme was a major
initiative of the present Government and the business community needs to
respond it in a big way. He was confident that the Islamabad Chamber,
being a proposer of this scheme and a model chamber, would take lead and
show 100% compliance.
Stressing on the enhancement of tax-to-GDP ratio, the Chairman
underlined that we need to raise the existing ratio of 11% to 15%. Had
it been the 15% tax-to-GDP ratio today, the revenue collection for the
year 2007-08 would have reached to Rs. 1.4 trillion. In his opinion,
there was a gap of Rs. 400 billion in revenue collection due to lower
tax-to-GDP ratio.
Referring to the opportunities available in the country and the
challenges faced by the business Community, the Chairman hoped that they
will take all advantage of the opportunities and help to improve revenue
collection and expand tax base.
On the occasion, Mr. Abdullah Yusuf also referred to the recently
announced "Tax Arrears Settlement Incentive Scheme (TASIS)' of the
Government which allowed the taxpayers to settle their tax arrears,
including additional tax and penalty for non-payment. He hoped that the
taxpayers would also take benefit of this scheme and pay their
outstanding due without any penalty within the specified period.
Earlier, in his welcome address Mr. M. Muhammad Ijaz Abbasi, President
of ICCI, congratulated FBR Chairman, Mr. M. Abdullah Yusuf and members
of his team, for crossing the psychological barrier of Rs. One trillion
in revenue collection. "This is an outstanding performance. Credit goes
to Mr. Abdullah Yusuf and all of his team members," he added. He also
thanked the Chairman for accepting their proposal of the amnesty scheme.
FBR's Member (DT), Mr. Usman Khalid Mirza was also present on the
occasion.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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4th July, 2008 |
EXPLANATORY NOTES FOR
S.R.O. 713(I)/2008 |
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Federal Board of Revenue has issued Notification (Sales Tax) /
S.R.O. 713 (1)/2008 dated 3rd July, 2008. The said Notification has
amended S.R.O. 647(I)/2007 dated 27th June 2007, which provides
exclusions to certain sectors from the limitation as prescribed in
section 8B of the Sales Tax Act, 1990. The sectors specified in the
S.R.O. are not subject to limitation of input tax adjustment to the
extent of 90% of output tax. Presently, following sectors are given
this benefit under S.R.O. 647(I)/2007:
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1. |
Persons
registered in electrical energy sector. |
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2. |
Oil
marketing companies and petroleum refineries. |
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3. |
Fertilizers manufacturers. |
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4. |
Manufacturers consuming raw materials chargeable to sales
tax at the rate of 18.5% or 21% provided value of such raw
materials exceeds 50% of value of all taxable purchases in a
tax period. |
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5. |
Wholesalers-cum-retailers operating in Chapter XII of the
Sales Tax Special Procedures Rules, 2007. |
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6. |
Commercial importers provided the value of imports subjected
to 2% value addition tax under Chapter X of the Sales Tax
Special Procedures Rules, 2007, exceeds 50% of value of all
taxable purchases in a tax period. |
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7. |
Person
making zero-rated supplies provided value of such supplies
exceeds 50% of value of all taxable supplies in a tax
period. |
Through amendment by S.R.O. 713(I)/2008, following sectors have been
added to the existing list:
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8. |
Distributors and wholesalers. |
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9. |
Gas distribution companies. |
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10. |
Solvent extracting units of edible oils. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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1st July, 2008 |
Explanatory notes for SRO
695(1)/2008 dated 26-06-2008 |
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1. This SRO has been issued to reduce the pressure from e-portal and
also to provide reasonable time to the taxpayers to file their Income
Tax withholding statements. Earlier to this there was a same date for
e-filing of monthly return of Sales tax as well as Income Tax
Withholding statement and it used to slow down the whole process on
e-portal on the last dates. Through SRO No.353 dated 03-04-2008, the
last date of filing of withholding statement was changed to 10th of each
month. But it created problem for the taxpayers as the time available to
file their Income Tax withholding statement was too short. Hence the
present SRO has now prescribed the new date for filing withholding
statement for Income Tax as 20th of each month. The change in date of
Income Tax withholding statement will ease the pressure on e-portal
facilitating the taxpayer.
2. A further change has been brought and now e-filing has been made
mandatory for Non-Resident ship owner and air craft owner or Charterer
thereof. Both these provisions will be applicable w.e.f 1st July, 2008. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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1st July, 2008 |
VIDEO/PICTORIAL COVERAGE OF FBR CHAIRMAN'S PRESS CONFERENCE |
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Secretary General, Revenue Division/Chairman, Federal Board of Revenue,
Mr. M. Abdullah Yusuf addressing a Press Conference on 2nd July, 2008
(Wednesday) at Conference Room, 3rd Floor, FBR Headquarters,
Constitution Avenue, Islamabad at 4.00 p.m.
The Chairman will apprise the media about revenue collection
achievements of FBR during the financial year 2007-08, ended last
mid-night. He will also respond to the queries, if any, about the
taxation measures, announced by the Government, in the new Federal
Budget.
All local & foreign economic correspondents, TV channels and Press
Photographers are cordially invited to cover the Conference. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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28th June, 2008 |
COLLECTION OF TAX REVENUE ON 28TH, 29TH & 30TH JUNE SBP, NBP, INCOME
TAX OFFICES TIMINGS EXTENDED |
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In order to facilitate the taxpayers to pay their due taxes, all
authorized branches of State Bank of Pakistan and National Bank of
Pakistan will remain open till 6.00 p.m. on Saturday & Sunday, the 28th
& 29th June, 2008 and uptill 10.00 p.m. on Monday, the 30th June, 2008.
Accordingly, all Income Tax Offices will remain open till 8.00 p.m. on
Saturday & Sunday, (28th & 29th June) and till 12.00 midnight on
Saturday, the 30th June, 2008. They will receive CPRs (challans) and
arrange collection of tax and facilitate the taxpayers.
These measures have been taken by the Federal Board of Revenue as a part
of its policy to extend all possible help and cooperation to the
taxpayers in meeting their tax obligations.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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22nd June, 2008
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Major Amendments in Finance Bill |
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National Assembly of Pakistan today
approved the Finance Bill for financial year 2008-09. Out of total
76 amendments, proposed by the Senate of Pakistan, 51 proposals have
been accepted. The remaining 15 proposals will be duly considered
during the course of the year.
Major Amendments made in the
Finance Bill, passed by the National Assembly today, concerning
Sales Tax & Federal Excise are as under:
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Definition of cottage industry has been amended to provide that
those manufacturers shall fall within the purview of cottage industry
whose annual utility bill is below seven lac rupees and annual turnover
is below Rs. Five million. Earlier the utility bill limit was six lac
rupees. It may be noted that supplies of cottage industry are exempt
from payment of sales tax.
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Exemption from payment of sales tax has also been granted by amending
Sixth Schedule of Sales Tax Act, 1990, to hospitals owned by federal or
provincial government, hospitals of statutory teaching universities
having two hundred or more beds and charitable hospitals having fifty or
more beds.
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The services of property developers and promoters have been subjected
to federal excise duty by amendment in First Schedule. The development
of plots shall be subject to FED at Rs. 100 per square yard and
construction of residential and commercial units shall be subject to FED
at Rs. 50 per square foot of covered area.
The duty structure for cigarettes has been changed to reflect increase
in prices of cigarettes. The new structure shall be effective from 22nd
June 2008.
Amendments pertaining to Customs include the reduction of import duty on sulphonic acid from 15% to 10%.
INCOME TAX :
Earlier, the definition of urban area for the purpose of CVT, apart from
rating areas, also included the following extended areas:I.
In respect of Karachi, 40 kms from the outer limit of rating area or
Cantonment Board.
II. In respect of Faisalabad & Lahore, 30 kms form the outer limit of
rating area or Cantonment Board.
III. In respect of other cities, 10 kms form the outer limit of the
rating areas. Now, the urban area for the purpose of CVT has been restricted to rating
areas only and the above limits have been withdrawn.
2. In Finance Bill, a proposal was included whereby the limit of
donation to charitable institutions, educational intuitions and
hospitals etc were reduced from 30% and 15% to 10% of the taxable income
in respect of individuals and companies. By making amendment in the
Finance Bill this reduction in donation for the purpose of tax credit to
a donor has been withdrawn.
3. One time collection of Withholding Tax (WHT) on purchase of new cars
has been reduced substantially. The rate of WHT on purchase of new cars
will now be as under:
| ENGINE CAPACITY |
AMOUNT OF TAX |
| Upto 850cc |
Rs. 7, 500 |
| 851cc to 1000cc |
Rs. 10,500 |
| 1001cc to 1300cc |
Rs. 16,875 |
| 1301cc to 1600cc |
Rs. 16,875 |
| 1601cc to 1800 |
Rs. 22,500 |
| 1801cc to 2000cc |
Rs. 16,875 |
| Above 2000cc |
Rs. 50,000 |
4. Exemption form Withholding Tax (WHT) in respect of the following
categories of exporters
has been allowed:
i) Direct & Indirect exporters covered, by DTRE scheme.
ii) Goods temporarily imported into Pakistan for the purpose of
re-export.
iii) Manufacturing bonds.
Further, WHT on import of cotton lint, cotton yarn, and fabrics will be
subjected to 1% WHT. The anomaly has been removed by bringing it at par
with five (5) zero-rated sectors in Sales Tax.
5. Earlier, the senior citizens of age 60 and above were allowed a 50%
rebate on tax liability if their total taxable income was upto Rs.
400,000. This limit has been increased to RS. 500, 000 to give relief to
the senior citizens.
6. Earlier fixed tax was imposed on builders and developers. Now this
tax has been withdrawn as income tax and the Federal Excise duty on
services of property developers and builders has been levied.
Several other changes of editorial nature have also been made on the
basis of the discussion in the Parliament on the Bill.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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21st June, 2008 |
FBR, PNRA SIGN AGREEMENT TO COMBAT ILLICIT TRAFFICKING OF RADIOACTIVE
& NUCLEAR MATERIALS |
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The Federal Board of Revenue and Pakistan Nuclear Regulatory Authority
signed a Memorandum of Understanding today to promote cooperation and
organize mutual assistance against illicit trafficking of radioactive
and nuclear materials.
Member (Customs), FBR, Mr. Mahmood Alam and Member Executive, PNRA, Mr.
Shakil-ur-Rehman singed the agreement on behalf of their respective
organisations.
Secretary General, Revenue Division/Chairman, Federal Board of Revenue,
Mr. M. Abdullah Yusuf and Chairman PNRA, Mr. Jamshed Azim Hashmi were
present on the occasion.
Speaking on the occasion, FBR Chairman said that Pakistan Customs was
engaged in combating commercial fraud, counterfeiting drug trafficking,
money laundering, electronic crime and smuggling of arms. In addition to
these challenges, the growing threat of international terrorism has,
now, emerged as a major concern for Customs Administrations which
includes potential threat of smuggling of nuclear and radioactive
materials, he added.
"This is a common threat to all countries including Pakistan which has
grave implication to security," Mr. Abdullah Yusuf said and added,
"Both, FBR and PNRA, recognize the need to formalize cooperation and
mutual assistance to meet the possible threat of smuggling of nuclear
and radioactive materials through Pakistan." As government department
that controls and administers the international movement of goods,
Pakistan Customs is in a unique position to contribute to the global
trade supply chain security besides socio-economic development in
Pakistan through revenue collection and trade facilitation. On the other
hand, Mr. Yusuf said, PNRA has the technical expertise to equip and
train Customs personnel for detection of radioactive and nuclear
materials. Therefore, by signing this MOU, FBR and PNRA shall achieve
cooperation to create an organizational framework which was needed to
effectively combat the nuclear terrorism threat, he added.
FBR Chairman was the opinion that this MOU shall enhance enforcement
capabilities of Pakistan Customs for preventing, detecting and
responding to illicit trafficking in nuclear and other radioactive
materials. It is intended to provide the framework to ensure that their
illicit trafficking is prevented. He informed that Pakistan Customs has
prepared an implementation plan including a Pilot Project for enforcing
provisions of this MOU. Pakistan Customs is committed to achieve the
objectives of this MOU as a national responsibility, the Chairman added.
Mr. Abdullah Yusuf assured that FBR shall undertake all necessary
measures to provide adequate training to Customs personnel through PNRA
for use of detection equipment so that all international entry and exit
points are fully monitored at the earliest. He was confident that the
MOU shall go a long way to bring security to this country and
international community.
PNRA Chairman, Mr. Jamshed Azim Hashmi, in his speech, said that both
FBR and PNRA will cooperate with each other to meet international
obligations to combat illicit trafficking of radioactive and nuclear
materials. He assured all support to FBR to make the borders secured.
The MOU, signed today, explains that the world today is facing a growing
international threat of illicit trafficking of radioactive and nuclear
materials which present a grave hazard to national and international
security. The Government of Pakistan recognizes its international
obligations to join global efforts to combat threat of illicit
trafficking of radioactive and nuclear materials.
Pakistan Customs is the primary enforcement agency at international
entry and exit stations including international airports, dry ports
among other Customs stations while PNRA is the national statutory
nuclear regulatory authority in Pakistan entrusted with the task to
regulate all aspects of application of ionizing radiations and nuclear
energy in Pakistan, Therefore, the two organizations have entered into
agreement for cooperation in joint measures for detection, and
subsequent management, of radioactive and nuclear materials at strategic
points. The necessary detection equipment has been procured by PNRA
which shall be handed over to Pakistan Customs after training of the
Customs personnel. This equipment shall be used by Pakistan Customs at
sea ports, dry ports, airports and at any other Customs station at
international border or for goods in transit or in transshipment or the
goods en route throughout territory of Pakistan.
Under this MOU, PNRA shall provide the Pakistan Customs training,
technical assistance and maintenance facilities for radiation detection
equipment and radiation protection, management of
radioactive/contaminated consignments while both shall cooperate to
manage radioactive sources/materials identified or seized/confiscated by
the Pakistan Customs.
It has been agreed that Pakistan Customs in association with PNRA shall
run a pilot project at Islamabad International Airport for comprehensive
enforcement model for Customs controls including monitoring/detection of
radioactive/nuclear materials. This model shall be applied to all other
international airports by the Pakistan Customs for effective and modern
enforcement controls after completion of the pilot project.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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10th June, 2008
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FBR HELPLINE TIMINGS EXTENDED |
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It has been decided that FBR Helpline
will remain open from 09.00 A.M. to 09.00 P.M. from 11th to 30th June,
2008 to facilitate the taxpayers regarding their queries about taxation
measures / changes in respect of Income Tax, Customs, Sales Tax and
Federal Excise proposed in the Federal Budget 2008- 2009.
Officers and staff will be available at FBR Helpline to answer queries
on budgetary measures immediately after the conclusion of Budget Speech.
Taxpayers can seek help and assistance at FBR’s Toll-Free Help line
number 0800-00 227 and 051-111-227-227. FBR’s website
www.fbr.gov.pk is also
accessible for free downloading of Budget 2008-2009 after the conclusion
of Budget Speech on 11th June 2008. |
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- Signed-
(Khawar Khurshid Butt)
Member. FATE / Official Spokesman, FBR |
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9th June, 2008 |
Explanatory notes for
SRO
522(1)/2008 dated 09-06-2008 |
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This SRO has been issued to reduce the pressure from e-portal and also
to provide reasonable time to the taxpayers to file their Income Tax
withholding statements. Earlier to this there was a same date for
e-filing of monthly return of Sales tax as well as Income Tax
Withholding statement and it used to slow down the whole process on
e-portal on the last dates. There through SRO No.353 dated 03-04-2008,
the last date of filing of withholding statement was changed to 10th of
each month. But it created problem for the taxpayers as the time
available to file their Income Tax withholding statement was too short.
Hence the present SRO has now prescribed the new date for filing
withholding statement for Income Tax as 20th of each month. The change
in date of Income Tax withholding statement will ease the pressure on
e-portal facilitating the taxpayer. |
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-Sd-
Usman Khalid Mirza
Member (Direct Taxes) |
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2nd June, 2008 |
SUBJECT: FBR HAS SURPASSED THE REVENUE TARGET SET FOR MAY 2008. |
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FBR has surpassed the revenue target of
Rs. 84.8 billion assigned for May 2008.
2. The provisional tax collection for May 2008 has achieved an
overall growth of 30.3%. The net collection during May 2008 has been Rs.
86 billion against Rs. 66 billion during May 2007. The revenue on
account of direct taxes has risen from Rs. 20 billion last May to Rs.
24.1 billion in May 2008 reflecting a growth of 20.3%. The sales tax
collection has jumped to Rs. 38.5 billion as against Rs. 27.4 billion of
last May showing a growth of 40.3%. While sales tax on import stage has
increased by 16.8%, the increase in the domestic component is 76%. The
collection of federal excise duties has increased by 15.9%, increasing
from Rs. 7.3 billion to Rs. 8.5 billion. Finally, a healthy growth of
33.3% has been recorded in the collection of customs duties where the
net receipts have reached Rs. 14.9 billion against Rs. 11.2 billion of
last May.
3. The July – May collection of FBR now stands at Rs. 849.6
billion as against Rs. 722.5 billion of corresponding period of last
year showing an overall growth of 17.6%.
4. The provisional figures for the month of May are expected to
increase further during the next few days. |
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-Sd-
(Khawar Khurshid Butt)
Member (FATE)
Official Spokesman of Federal Board of Revenue
Dated: 02-06-2008 |
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2nd June, 2008 |
FBR PROMOTES 111 CUSOTMS OFFICIALS AS DY. SUPERINTENDENT |
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Federal Board of revenue has approved the promotion of 111 Customs
Inspectors/Stenotypists, working in BS 11/12, as Dy. Superintendent
(BS-14).
A meeting held under the chairmanship of Member (Admn), Maj.Gen. (Retd.)
Muhammad Yasin has given final approval to the recommendations of the
Department Promotion Committee (DPC) which met earlier in this regard.
The DPC was presided over by the Collector, Sales Tax, Lahore.
Earlier, FBR had promoted 63 Income Tax Inspectors as Income Tax
Officers, about a month back. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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17th MAY, 2008 |
EXTENSION IN DUE DATE FOR ELECTRONIC FILING OF SALES TAX-CUM-FEDERAL
EXCISE RETURN FOR THE TAX PERIOD APRIL 2008 BY PERSONS REGISTERED IN LTU,
Karachi. |
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The taxpayers registered with Large Taxpayers Unit,
Karachi, are now required to file returns through FBR’s e-portal and the
previous system of filing returns through Banxis has been discontinued.
Because of difficulties anticipated in transition from e-filing on
Banxis to e-filing on FBR’s e-portal, the Federal Board of Revenue,
through ST Circular 03/2008 has extended the due date for electronic
filing of sales tax-cum-federal excise return and invoice summary
statements for the tax period April 2008 from 15th May to 20th
May, 2008, for registered persons falling in the jurisdiction of Large
Taxpayers Unit, Karachi. |
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-Sd-
(Hameed Memon)
Secretary
ST-L&P FBR |
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11th MAY, 2008 |
New device more efficient Tax Management System Renamed as ‘Mahassal’
(BUSINESS RECORDER DATED 11th MAY, 2008) |
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ISLAMABAD: The Federal Board of Revenue (FBR)
has renamed the ‘Tax Management System’ (TMS) as ‘Mahassal’ for speedy
implementation of a homegrown system covering all income tax-related
functions, including returns analysis, assessment and verification
processes.
Sources told Business Recorder on Saturday that if the ‘Mahassal’ system
failed in proper computerization of direct taxes, the whole project of
automation and integration of taxes would suffer a serious set-back
under the reforms.
The ‘Mahassal’ team, headed by Project Director Ranna Ahmed, recently
met FBR Chairman Abdullah Yusuf to give a demonstration on the new
system.
There were some misunderstandings between the ‘Mahassal’ development
team from Lahore and tax officials at the FBR. However, the FBR Member,
Taxpayer Education and Facilitation, Khawar Khurshid Butt, took the
initiative for bridging the communication gap between the ‘Mahassal’
team and the FBR officials.
During 5-6 hours presentation, it was decided that the ‘Mahassal’ would
be made part of the reform process to declare it as a key initiative for
direct taxes automation. The FBR agreed to declare ‘Mahassal’ as a
project under the reform agenda.
The project would be an end-to-end solution to all direct taxes related
operations and maintenance of tax records. The project would cover
documentation of income tax returns, calculation of taxes, raising
demands, issuance of computerized notices, appeal system, taxpayer
ledger and balance system and other operations of direct taxes side.
The original project i.e. TMS was not functioning properly due to lack
of facilities and support to the ‘Mahassal’ team in Lahore. Practically,
the TMS was not functioning error-free for the last few months. This
prompted the team to revamp the entire system under a new name i.e.
‘Mahassal’ by applying new methodology with the help of FBR.
Moreover, the Pakistan Revenue Automation Limited (PRAL) wanted to
maintain its monopoly by installation of computerized system through its
own experts.
On the other hand, project development team informed the FBR that the
software would be almost free of cost as compared to expensive computer
systems being purchased from advance countries.
Sources said that the ‘Mahassal’ team is working at Lahore without any
proper support or funding creating problems for implementation of the
project. As a pilot project, the ‘Mahassal’ is being tested at the Large
Taxpayers Unit (LTU), Lahore, for processing of income tax data of
around 224 top business entities.
When the testing is successful, the system would be replicated at other
LTUs and reformed units across the country.
To accomplish the task, the FBR Chairman has directed the concerned
departments to provide necessary accommodation, resources, computer
servers and infrastructure to the ‘Mahassal’ development team in Lahore.
Sources said that the project team requested the FBR Chairman to develop
a new web-based E-portal for directly collecting data of income tax
returns under the ‘Mahassal’. The team has found that the existing
income tax returns information on E-portal is not error-free, which
pointed towards developing a new web-based system.
However, the representatives of PRAL argued why a separate E-portal was
required in the presence of an E-portal already collecting income tax
returns. The FBR Chairman directed the foreign consultant to provide
necessary information of both E-portals to the experts. It would be
decided whether ‘Mahassal’ proposed E-portal is better or not.
The project director demanded filing of returns electronically through
their proposed E-portal on experimental basis. This would allow the
‘Mahassal’ to directly upload the income tax returns on the system for
further analysis. Presently, taxpayers are still facing problems in
filing returns, electronically through the existing E-portal.
Sources said that the apprehensions of the project team were removed and
the system would be given due attention of the board for its
implementation countrywide.
FBR Chairman also directed the project team to ensure cleaning of income
tax data which is necessary for implementation of any integrated system. |
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10th May, 2008 |
VISUAL/PICTORIAL COVERAGE OF PRE-BUDGET SEMINAR
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Federal Board of Revenue, in collaboration with Federation of Pakistan
Chambers of Commerce & Industry, is organising a Pre-Budget Seminar at
National Library Auditorium (behind PM Secretariat), Islamabad on 12th
May, 2008 (Monday) at 10.30 a.m.
Federal Minister for Finance, Revenue, Economic Affairs & Statistics Mr.
Muhammad Ishaq Dar will be the Chief Guest while Chairman, FBR, Mr. M.
Abdullah Yusuf will preside the Seminar.
All accredited Economic Correspondents, TV channels & Press
Photographers are cordially invited to cover the Seminar.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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7th May, 2008 |
FBR
ARRANGES PRE-BUDGET SEMINAR ON 12TH MAY
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Federal Board of Revenue, in collaboration with Federation of Pakistan
Chambers of Commerce & Industy, is organising a Pre-Budget Seminar on
12th May, 2008 here at National Library Auditorium.
Federal Minister for Finance, Revenue, Economic Affairs & Statistics,
Mr. Muhammad Ishaq Dar will be the Chief Guest. Secretary General,
Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah
Yusuf will preside over the Seminar.
Seminar will be held two sessions. Inaugural Session will be addressed
by the Chief Guest, Mr. Muhammad Ishaq Dar. Besides, President, FPCC&I,
Mr. Tanvir Ahmed Sheikh and President, SAARC Chamber of Commerce &
Industry, Mr. Tariq Saeed will also address the participants in the same
session. Earlier, FBR Chairman Mr. M. Abdullah Yusuf, in his address of
welcome, will outline the objectives of holding the Pre-Budget Seminar.
In working Session of the Seminar, representatives of industry & trade
will present their budget proposals. Member (FR&S), FBR, Dr. Ather
Maqsood, will also give his presentation. Secretary General, Revenue
Division/Chairman, FBR, Mr. M. Abdullah Yusuf, will conclude the Seminar
by his address to the participants.
Prominent businessmen, traders and industrialists across the country
office-bearers and members of the FPCC&I and other chambers, high
ranking officials and senior tax mangers are expected to largely attend
the Seminar.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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7th May, 2008 |
Explanatory Notes for SRO
410(I)/2008 |
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To implement the ECC decision regarding revision of salaries of Airport
security force (ASF), The proposed rates have been incorporated in FED
rates on Air Travel vide SRO
410(I)/2008 dated 29th April, 2008. |
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-sd-
Mehmood Alam
Additional Secretary |
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2nd May, 2008 |
Explanatory Notes for SRO
406(I)/2008 |
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The import and supply of CKD kits of single cylinder agriculture diesel
engines of 3 to 36 HP are exempt from sales tax. In order to exempt the
supply of finished product i.e. single cylinder agricultural diesel
engines (3 to 36 HP) this notification has been issued so that the same
is available to farmers on competitive prices. This step would
facilitate the farmers who use agricultural diesel engines for farming
activities. |
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-sd-
Mehmood Alam
Additional Secretary |
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30th April, 2008 |
FBR HAS SURPASSED THE REVENUE TARGET SET FOR APRIL 2008. |
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1. FBR has surpassed the revenue target of Rs. 74.3 billion
assigned for April 2008.
2. The provisional tax collection for April 2008 has achieved an
overall growth of 26.2%. The net collection during April 2008 has been
Rs. 75.1 billion against Rs. 59.5 billion during April 2007. The revenue
on account of direct taxes has risen sharply from Rs. 15.1 billion last
April to Rs. 23.8 billion in April 2008 reflecting a growth of 57.7%.
The sales tax collection has jumped to Rs. 31.4 billion as against Rs.
27 billion of last April showing a growth of 16.5%. While sales tax on
import stage has decreased by 7.6% due to zero-rating of crude oil, the
increase in the domestic component is 48.6%. The collection of federal
excise duties has increased by 10.1%, increasing from Rs. 7 billion to
Rs. 7.7 billion. Finally, a healthy growth of 16.8% has been recorded in
the collection of customs duties where the net receipts have reached Rs.
12.2 billion against Rs. 10.4 billion of last April.
3. The July – April collection of FBR now stands at Rs. 755
billion as against Rs. 656.5 billion of corresponding period of last
year showing a growth of 15%.
4. The provisional figures of April are expected to increase
further during the next few days.
|
|
|
-Sd-
( Khawar Khurshid Butt )
Member (FATE)
Official Spokesman of
Federal Board of Revenue |
|
|
30th April, 2008 |
SRO 408(I)/2008 EXPLAINED |
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|
SRO 408(I)/2008 dated 29.04.2008 amends the Chapter X of Sales Tax
Special Procedures Rules, 2007, which prescribes the procedure for
payment of sales tax by steel melters and re-rollers. This chapter
requires that sales tax from steel melters and re-rollers shall be
collected on the basis of electricity consumption at Rs. 4.75/ KWH.
However, Pakistan Steel Mills and Peoples Steel Mills have been excluded
from purview of payment on the basis of electricity consumption and have
to pay sales tax in normal VAT mode. Similar exclusion was requested by
M/s. Heavy Mechanical Complex (HMC) who also intend to supply ingots and
billets besides other products manufactured by them.
Since, the tax at Rs. 4.75/KWH is meant for units exclusively
manufacturing ingots, billets and other long re-rolled products,
therefore, SRO 408(I)/2008 amends the rules to provide similar exclusion
for HMC as is available to Pakistan Steel Mills and Peoples Steel Mills.
|
|
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
29th April, 2008 |
63 INSPECTORS PROMOTED AS INCOME TAX OFFICERS |
|
|
Federal Board of Revenue today
approved the promotion of 63 Inspectors of Income Tax Department from
BS-11 & 14 to BS-16 as Income Tax Officers.
The approval was given at a meeting of the Departmental Promotion
Committee held under the chairmanship of the Member (Admn) of FBR, Maj.
Gen. (Retd.) Muhammad Yasin.
This is after a long time that such a huge number of Inspectors have
been promoted as Income Tax Officers. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
25th April, 2008
|
ABDULLAH YUSUF URGES TAX MANAGERS TO GEAR UP EFFORTS TO MAXIMIZE
REVENUE GENERATION RS. 257.6 BILLION DIRECT TAXES COLLECTED IN 9 MONTHS |
|
|
Secretary General, Revenue Division & Chairman, Federal Board of
Revenue, Mr. M. Abdullah Yusuf has called upon the tax managers to gear
up their efforts to maximise revenue generation.
He was addressing the Directors General of Regional Tax Offices & Large
Taxpayers Units, Commissioners of Income Tax & Commissioners (Appeals)
at 17th National Tax Conference, held here today under the auspices of
FBR.
Mr. Abdullah Yusuf identified various grey areas from which the full
revenue potential is yet to be tapped. He also underlined the need of
plugging the revenue leakages to improve direct taxes collection.
Earlier, Member (Direct Taxes), Mr. Usman Khalid Mirza, in his
presentation, briefed the Conference about the overall performance of
the Wing and its field formations. Collection upto March 08 was Rs.
257.6 billion as against Rs. 237.8 billion in the corresponding period
of last year.
While discussing the performance, the Member (DT) pointed out the gaps
in various areas. He stressed upon bridging these gaps. He exhorted the
tax officers to pay attention on monitoring of withholding taxes,
Creation and Collection out of Demand and other avenues to enhance
revenue collection.
The Conference, during its deliberations, discussed and took decisions
on strategy for achieving the revenue targets, disposal of pending
refunds claims, recovery of arrears and the issue of tax exemptions.
Conference also reviewed the progress in data entry of returns and
annual employer’s statements and deliberated on achievements of targets
in remaining period of the current financial year.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR |
|
|
26th April, 2008 |
Explanatory Notes for the
SRO 371(I)/2008 |
|
|
Some amendments have been made in Federal Excise Rules, 2005 vide
SRO (I)/2008 dated 14th April, 2008 to incorporate the provision of
debit credit notes and harmonize return filing with that of sales tax
return omitting special FED returns. |
|
|
-Sd-
Rizwan Salabat
Second Secretary Tariff
(ST 7 FE) |
|
|
25th April, 2008 |
PRESS RELEASE |
|
|
The sales of automobile industry (Local
Car Manufacturers) had gone down considerably in the beginning of this
year due to the power and political crises in the country and the
exchequer was suffering huge losses on account of customs duty and sales
tax. In order to safeguard, the revenue, the withholding tax @ 2.5%
under section 231B (Advance and Adjustable) collected by the
manufacturers or authorized dealers of motor car at the time of sale of
motor car was suspended, initially for a period of two months i.e.
February 21 to April 20, 2008. This temporary suspension of withholding
tax gave good results in the shape of increase in sales of cars and
consequently the Government revenue on account of collection of sales
tax and customs duty also increased in March 2008 as compared to
February 2008.
In view of increase in collection of customs duty and sales tax, the
Government decided to extend the period of suspension of collection of
advance withholding tax @ 2.5% collectable from the buyers of local
motor cars upto June 30, 2008 through Notification S.R.O. No.
383(1)/2008 dated April 21, 2008. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
24th April, 2008 |
LOCAL MANUFACTURE OF AGRICULTURAL DIESEL ENGINES (SINGLE CYLINDER OF
3-36HP) |
|
|
The Agricultural Diesel Engines
Manufacturers Group requested the Federal Board Revenue to enhance the
existing range of Agriculture Diesel Engines (Single Cylinder) from
“12-32 HP” to “3-36 HP” in terms of serial number 94 of SRO 565(1)/2006
dated 05.6.2006 on the basis that Single Cylinder Diesel Engines of 3HP
to 36HP has been declared as manufactured locally vide CGO No. 18/2007
dated 29.12.2007.
The request was examined in consultation with the Ministry of Food,
Agricultural and Live Stocks (MINFAL) and the Engineering Development
Board (EDB). A consensus was evolved to accede the request of the
Agricultural Diesel Engines Manufactures Group and thereby to allow the
import of CKD Kits of Agriculture Diesel Engines (Single Cylinder 3-36
HP) at 10% concessionary rate of duty.
Accordingly, a notification SRO 384(1)/2008 dated 21st April, 2008
(Annex-I) has been issued enhancing the existing range of CKD Kits of
Agriculture Diesel Engines (Single Cylinder) from 12-32 HP to 3-36 HP
under SRO 565(1)/2006 dated 05.6.2006. Thereby, the CKD Kits will be
importable at 10% concessionary rate of duty for manufacture of said
engines. The notification dated 21st April, 2008 is effective from 29th
December, 2007 i.e., the date on which the CGO No. 18/2007 had been
issued. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
24th April, 2008 |
E-FILING OF SALES TAX RETURNS MANDATORY FROM 1ST JULY |
|
|
Quarterly Conference of Collectors of
Sales Tax & Federal Excise & Collectors (Appeals), held here today under
the chairmanship of the Secretary General, Revenue Division & Chairman,
Federal Board of Revenue, Mr. M. Abdullah Yusuf, has decided to make
e-filing of sales tax returns mandatory from 1st July, 2008.
During the Conference, it was informed that total sales tax collection
in first nine month of current financial year (July-March) was Rs. 258.4
billion as compared to Rs. 218.4 bn in the corresponding period of the
last financial year, showing an increase of Rs. 40 billion.
Major sectors which have shown positive growth as compared to last year
were Telecom (24.6%), POL (48.9%), Natural Gas (4.3%), Sugar (1.3%),
Cigarettes (18.4%), Services (20.3%), Aerated Waters/Concentrate of
beverages (24.9%), Iron & Steel (112.2%) etc.
In federal excise, the total collection from July 2007 to March, 2008 (9
month) was Rs. 61.8 billion as compared to Rs.47.72 billion in the same
period last year, indicating an increase of Rs. 14.08 billion. Major
revenue spinners showing positive growth were Cigarettes (18.94%),
Natural Gas (8%), Services (252%) etc.
Speaking on the occasion, the Chairman called upon the Collectors to
intensify their efforts to enhance revenue collection. In this regard,
he emphasised on conducting sectoral research to identify the gap
between the revenue potential existing in various sectors of the country
and the taxes they were actually paying. We have to narrow down this gap
to enhance the sales tax and federal excise collection. To achieve this
objective, we need to implement a comprehensive strategy, he added.
Talking on the issue of sales tax refund claims, the Chairman stressed
the need of removing all the bottlenecks confronting the system to deal
with the issue in an effective manner. “We must know what is actually to
be paid”, he remarked.
He, however, underlined the need of clearly identifying the level & type
of the refund problem. All genuine refund claims must be cleared after
due verification by the system and all efforts must be directed towards
narrowing down the issue, Mr. Yusuf emphasised.
Commenting on automation systems, currently operating in various FBR
offices, the Chairman emphasised that all these systems must be
effective, reliable and productive and give the desired results.
“Incompleteness of the automated systems creates problems”, Mr. Abdullah
Yusuf observed.
Revenue impact of new budgetary measures, taken in the last budget, was
also reviewed during the Conference and termed it satisfactory. Budget
proposals for the year 2008-09, measures for expeditious feeding of
sales tax returns, recovery of arrears, audit performance of
collectorates adjudication pendency etc. also came under discussion and
necessary decisions were taken. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
24nd April, 2008 |
RTO KARACHI SHOWS ENCOURAGING FIGURES UP TO MARCH, 2008 |
|
|
The Regional Tax Office, Karachi has
shown a remarkable performance as evidenced by the achievement of
revenue targets up to the month of March, 2008. Collection out of
current and arrear demand stands at Rs. 2126.859m as against Rs.
1202.463 m last year showing a 77% increase as against the collection up
to march last year whereas collection of tax at source has also
registered a 24% increase as compared to last year with the latest
figures at Rs. 55596.061 m. Net Income Tax collection shows an
encouraging 19% rise at Rs. 60111.211 m as opposed to last year figures
for the month of March at Rs. 50531.917 m. On the whole the total
collection including all heads plus CVT and WWF is also in the positive
range depicting 17% increase compared to the previous year. The short
fall being face under the heads of voluntary compliance i-e: Advance Tax
and Payment with returns is being covered with a 5.631b amount to be
remitted by the customs authorities under the head “Imports” during the
third quarter. |
|
|
-Sd-
Shazia Abid
DCIT/TO
RTO, Karachi
|
|
|
22nd April, 2008 |
GEN. YASIN APPOINTED CHIEF CO-ORDINATOR FOR REVENUE BUDGET 2008 |
|
|
Federal Board of Revenue has appointed
Maj.Gen. (Retd.) Muhammad Yasin, Member (Admn), FBR, as Chief
Coordinator for the Revenue Budget-2008, according to an office order,
issued by the Board.
Mr. Saeed-ur-Rehman, Chief (Management), FBR, has been appointed
Coordinator and Mr. Saeed Iqbal, Chief (Admn.) & Mr. Mahmood Hussain,
Secretary(S&M) have been appointed Chief Security Officer & Dy. Chief
Security Officer respectively for the Revenue Budget 2008.
All these appointments have been made with the approval of the Acting
Chairman, FBR, Mr. Usman Khalid Mirza. |
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|
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
19th April, 2008
|
PRESS RELEASE |
|
|
A 46-member group comprising officers of the senior Management Course of
National Management College, Lahore, currently on inland study tour,
today visited Federal Board of Revenue and remained there for some time.
During the visit, the course participants were briefed by the Official
Spokesman & Member, Facilitation & Taxpayers Education of FBR, Mr.
Khawar Khurshid Butt on the on-going tax Administration Reforms
Programme. He informed the participating senior officers that the total
cost of the programme has been estimated as $ 149 million which was
funded by the World Bank, DFID and Government of Pakistan. He said,
three Large Taxpayers Units, 12 Regional Tax Offices, Model Customs
Collectorates and 65 Tax Facilitation Centres have been established for
the facilitation of the taxpayers under TARP.
The Spokesman said that the results of the Programme so far achieved
were very encouraging in terms of increase in revenue collection,
facilitation of the taxpayers, reducing cost of dong business,
minimizing interaction between the tax collectors and taxpayers,
reducing the level of corruption, attracting foreign investment etc. He
said the revenue collection which was in the vicinity of Rs. 300 billion
few years back was reached at Rs. 846 bn in 2006-07.
Later, the spokesman answered the questions of the course participants.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
18th April, 2008 |
FBR AMENDS S.R.O. 330 (1)2008 TO CHECK SMUGGLING INTO ALL NEIGHBORING
COUNTRIES
|
|
|
Federal Board of Revenue has amended its
Notification S.R.O. 330(1)/2008, dated 31-03-2008 to improve the
vigilance on the possible smuggling of rice, pulses of all sorts, wheat
and wheat products into all neighboring countries. Previously, these
powers were restricted to check smuggling into Afghanistan only.
The powers will remain delegated to Frontier Corps (NWFP and Balochistan)
and Pakistan Rangers (Punjab and Singh) till 15.5.2008. |
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR |
|
|
10th April, 2008 |
Explanatory notes for
SRO 353(I)/2008
dated 03.04.2008 |
|
|
This SRO has been issued to reduce the pressure from e-portal as there
was a same date for e-filing of monthly return of Sales tax as well as
Income Tax Withholding Statement and it used to slow down the whole
process on last dates. The change in date of withholding statement will
ease the pressure on e-portal facilitating the taxpayer. |
|
|
sd-
Usman Khalid Mirza
Additional Secretary |
|
|
5th April, 2008 |
Explanatory notes for
SRO 337(I)/2008 dated 02.04.2008 |
|
|
This SRO has been issued to fix the assessable value of sugar for sales
tax purposes from Rs. 21/- to Rs. 19/- per kg as the wholesale price of
sugar has gone down from Rs. 25.40 to Rs. 23.40 per kg. In order to
rationalize the tax burden, the assessable value of sugar has been
decreased. This step would facilitate the consumers and ensure the
availability of sugar on normal price. |
|
|
sd-
Asif Abbas
Second Secretary (ST-Budget) |
|
|
5th April, 2008 |
CUSTOMS DUTY ON PHOSPHATE ROCK EXEMPTED |
|
|
The Federal Government has exempted 5% customs duty on phosphate rock,
ground, PCT heading 2510.2000 by issuing
SRO 333 dated 02-04-2008
amending SRO 567(1)/2006 dated 05-06-2006.
This measure has been taken to mitigate difficulties being faced by the
fertilizer manufacturers in the country. It will also help reduce the
cost of production of this sector which will in-turn help stabilize
prices of fertilizer in the country.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
3rd April, 2008 |
PRESS RELEASE |
|
|
Federal Minister for Finance Mr. Ishaq
Dar visited FBR Headquarters today and was given a detailed briefing by
Mr. M. Abdullah Yusuf, Secretary General Revenue Division / Chairman FBR
on the current revenue position and future scenario. A brief résumé of
Tax Administration Reforms Program (TARP) was also given. The briefing
was also attended by all Board Members and CEO Pakistan Revenue
Automation Limited (PRAL). Chairman, FBR apprised the Minister of the
plan to enhance Tax to GDP ratio by 5% over next 10 years. He focused on
the reform efforts being under-taken by FBR with particular emphasis on
improvement in systems and procedures through the help of technology in
order to ensure that FBR becomes an efficient and transparent
organization.
Mr. Ishaq Dar lauded the efforts of the Federal Board towards collection
of higher targets of revenue and emphasized the need to ensure
transparency in the system and to provide maximum facilitation to the
tax payers at all levels. He also stressed the need to provide adequate
incentives to the Agricultural Sector so as to achieve food security for
the country.
Mr. Dar emphasized the need for introduction of measures in the
forthcoming budget that would lead to introduction of an equitable
system of tax wherein relief is provided to the poorer classes. He
stressed the need for balancing the fiscal and monetary policy which,
due to mismanagement in the past, had resulted in distortions in the
economy. The Finance Minister also required of the Federal Board to
remove anomalies in taxation system.
The Federal Finance Minister also urged the Board Members to formulate
policies for the forthcoming budget in consonance with the aspirations
of the people and agenda of the popularly elected government.
|
|
|
(Khawar Khurshid Butt)
Member (FATE)
Spokesman of the Federal Board of Revenue.
3rd April, 2008 |
|
|
April 03,2008 |
FBR Revenue Collection during and up to March 2008 |
|
|
The July – March collection of FBR has reached Rs. 678.9 billion as
against Rs. 597 billion during the corresponding period of last year
showing a growth of 13.7%. With this achievement, the overall growth in
collection has improved by 1.2% points as July-February growth was
12.5%. The tax-wise three-quarter growth is as follows: Direct Taxes
8.4%, Sales Tax 17.8%, Federal Excise Duties 29.1%, and Customs Duties
9.9%.
2. The provisional tax collection for March 2008 has recorded an
overall growth of 13.1%. The net collection during March 2008 has been
Rs. 92.6 billion against Rs. 82 billion during March 2007. The revenue
on account of direct taxes has risen modestly by 3% going up from Rs.
38.9 billion last March to Rs. 40 billion in March 2008. The sales tax
collection has been Rs. 29.7 billion as against Rs. 24.1 billion of last
March showing a growth of 23.4%. While sales tax on import stage has
increased by 8.6%, the increase in the domestic component is 44.3%. The
collection of federal excise duties has increased by 26.7%, increasing
from Rs. 6 billion to Rs. 7.6 billion. Finally, a healthy growth of
17.5% has also been recorded in the collection of customs duties where
the net receipts have reached Rs. 15.3 billion against Rs. 13 billion of
last March.
3. The provisional figures of March are expected to increase
further during the next few days.
|
|
|
Sd-
( Khawar Khurshid Butt )
Member (FATE) |
|
|
April 03,2008 |
Achieving sustainable development-‘Change
Management’ in the FBR. |
|
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|
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|
31 March, 2008 |
Explanatory Notes of
SRO 329(I)/2008 |
|
|
The Notification has been issued to facilitate solvent extracting units
whereby they will be able to adjust 100% input tax paid on their
purchases. As per section 8B of the Sales Tax Act, 1990, a taxpayer can
adjust 90% of input tax paid on his purchases against his output tax. As
the value addition in solvent extraction units is not high enough such a
provision was resulting into refunds. To save solvent extraction units
from cash flow problems, they have been allowed to adjust 100% input tax
paid on their purchases. |
|
|
SD-
(Asif Abbas)
Second Secretary (ST-Budget) |
|
|
|
|
|
1st April, 2008 |
Explanatory Notes of
SRO 326(I)/2008 |
|
|
The Federal Government has issued a SRO 326(I)/2008 dated 29.03.2008
whereby exemption from the whole of customs duties, sales tax and
federal excise duty leviable on all the goods imported into and exported
from an Export Oriented Unit subject to the provisions of the Export
Oriented Units and Small and Medium Enterprises Rules, 2008 has been
granted. |
|
|
-Sd-
(Kahlid Mahmood)
Second Secretary (Export Policy) |
|
|
1st April, 2008 |
Explanatory Notes of
SRO 327(I)/2008 |
|
|
Federal Board of Revenue has announced a
Scheme of Export Oriented Units vide Notification No. 327(I)/08 dated
29.03.2008. Under the scheme raw materials and plant, machinery,
equipment and apparatus, including capital goods to be used solely
within the limits of an Export Oriented Units can be imported free of
customs duty, sales tax and federal excise duty. The scheme will
essentially have the same incentive as are available to units in EPZs.
Existing units exporting at least 80% of production to be registered
with FBR under the scheme. New units, so register, will be required to
export 100% of their production. Under this scheme time limit for
consumption of duty free locally purchased/imported raw materials is two
years.
|
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|
Sd-
(Kahlid Mahmood)
Second Secretary (Export Policy) |
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|
1st April, 2008 |
FBR EMPOWERS FC, RANGERS TO CARRY OUT ANTI-SMUGGLING FUNCTION TILL
15TH MAY |
|
|
Federal Board of Revenue vide a
Notification (Customs) dated 31-03-2008 has authorized the Frontier
Corps (NWFP and Balochistan) and Pakistan Rangers (Punjab and Sindh) to
carry out anti-smuggling functions within their respective
jurisdictions. The powers have been delegated under the Customs Act in
order to endure a greater vigilance on the possible smuggling of rice,
pulses of all sorts, wheat and wheat products into Afghanistan.
The powers will remain delegated to Frontier Corps (NWFP and Balochistan)
and Pakistan Rangers (Punjab and Sindh) till 15th May, 2008. |
|
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|
|
27th March, 2008 |
Explanatory notes for
SRO 315(I)/2008 dated 27.03.2008 |
|
|
The notification amends the Sales Tax Special Procedures Rules, 2007, to
provide as under:
(i) Previous exemption from registration for CNG stations has been
waived. Now, CNG stations shall obtain registration, if not already
registered, and shall also file return on quarterly basis. It may be
noted that tax on CNG on behalf of CNG stations is paid by gas
distribution companies i.e. SNGPL and SSGC. Their supplies to CNG
stations are charged at 24% of value instead of normal rate of 15%.
(ii) The scope of tax on advertisement has been clarified by providing
meaning of the expression “taxable services” of advertising. The scope
covers all advertisements which are:
(a) broadcast or telecast by TV or radio stations based in Pakistan;
(b) booked in Pakistan for broadcasting or telecasting on TV or radio
stations based abroad, whether or not possessing landing rights in
Pakistan; and
(c) transmitted on closed circuit T.V. or cable T.V. network.”
|
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|
-Sd-
(Hameed Memon)
Secretary |
|
|
25th March, 2008 |
Press Release |
|
|
A meeting of Departmental Development Working Party (DDWP) which held at
the Federal Board of Revenue today under the chairmanship of Member
(Administration) approved 32 development schemes at the total cost
outlay of Rs. 584 million.
Representatives of the Reformed Units from all the provinces alongwith
officers from Planning Commission, Ministry of Finance and Pak. PWD
attended the meeting.
Purpose of the meeting was to consider and approve various projects
relating to the offices and residential accommodation of the officers
and staff of FBR as a step forward towards 05 Years Infrastructure
Development Plan of the Admn Wing of FBR HQ.
The Admn Wing is carrying out comprehensive and concerted efforts to
improve offices of the field formations and also provide suitable
residential accommodation to the officers and staff of Income Tax,
Customs, Sales Tax & Federal Excise departments.
Out of 35 schemes presented before the DDWP, 32 were approved at the
total cost outlay of Rs.584 million. The schemes included construction
of various offices which are currently housed in rented premises and
construction of residential units for the officers and staff of FBR.
Another meeting of similar nature is being scheduled in the first week
of April, 2008. These steps are taken as a part of the Reform Process of
FBR in order to increase efficiency and dedication of its officers and
staff.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
25th March, 2008 |
Press Release |
|
|
Secretary General, Revenue Division/ Chairman Federal Board of Revenue,
Mr. M. Abdullah Yusuf said that the security of official buildings and
documents was a very critical and important issue today which needs to
be addressed through effective use of technology and modern security
equipments.
He was addressing the concluding session of one-day Workshop on Security
Systems held under the auspices of Admn. Wing of FBR. All Chief Security
Officers of FBR's field formations attended the Workshop.
The Chairman said that the Board's decision to improve the security of
its offices was mainly due to the prevailing situation which demands
fool-proof arrangements for the security of the Board and its units and
safety of their employees as well as the visitors.
Mr. M. Abdullah Yusuf said that all the security personals need to be
vigilant and properly trained. They must ensure that the visitor was
going to only that office/ floor where he was authorised to go. He
advised the participants to act in a professional manner so that the
taxpayers feel secure and comfortable while visiting Board's reformed
units. "We need to create and maintain the security of a high standard,"
he added.
Earlier, Member (Admn) Maj.Gen. (Retd) Muhammad Yasin, speaking on the
occasion, advised the security officers to ensure that all necessary
security equipments like walk-through gates, scanners, barriers etc.
made available at their offices were fully operational.
|
|
|
-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
|
|
25th March, 2008 |
Explanatory Notes for SRO
307(I)/2008
|
|
|
SRO amends the Sales Tax Rules, 2006, with following objectives:
(i) To provide for refund of excess input tax in cases other than those
of zero-rated supplies. The refund against zero-rated supplies has been
provided in section 10 of the Act. The procedure for refund in other
cases had not been prescribed. The same has been done through this
amendment.
(ii) To provide for single return, in cases where a registered person
operating in different sectors was required to file multiple returns
because of different due dates for filing of return for each of the
sectors. Now he shall file a single return for all such sectors by the
due date applicable to his major activity in terms of sales tax or
federal excise duty payable.
|
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|
-Sd-
(Hameed Memon)
Secretary |
|
|
25th March, 2008 |
Explanatory Notes for SRO
308(I)/2008
|
|
|
SRO prescribes rate of refund to steel melters and steel re-rollers
against exports. Since, steel melters and re-rollers operate under
special procedure whereby the tax on the basis of electricity
consumption is collected and deposited by WAPDA/KESC. The rates
prescribed in SRO include the tax collected by WAPDA/ KESC and other
taxes paid on inputs. |
|
|
-Sd-
(Hameed Memon)
Secretary |
|
|
25th March, 2008 |
Explanatory Notes for
SRO 309(I)/2008
|
|
|
Amends the Sales Tax Special Procedures Rules, 2007, to provide that
that in case of electric power supplied by WAPDA, the additional charge
of Rs. 0.10 per kwh, collected on account of Neelum Jehlum Hydro Power
Development Fund shall not be included in value for determination of
sales tax payable. |
|
|
-Sd-
(Hameed Memon)
Secretary |
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19th March, 2008 |
PRESS RELEASE |
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Secretary
General, Revenue Division/Chairman, Federal Board of Revenue, Mr. M.
Abdullah Yusuf has directed the Member (IMS)/CEO PRAL to coordinate with
technical wings of the Board to clearly identify problems being faced by
the taxpayers in e-filing of returns, Tax Management System and computerised system of payment of taxes and all possible efforts be made
in collaboration with NBP to resolve them at the earliest.
He was addressing the members of the Board-in-Council which met here
yesterday. FBR Chairman presided over the meeting which lasted for about
nine hours.
Referring to the revenue collection for the current financial
year, the Chairman observed that despite all odds FBR was still
in a position to cross Rs. One trillion mark by 30th June, 2008, provided we all work
hard and feel our national obligations. |
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While reviewing the progress of
various on-going reforms projects, the Chairman directed Member
(TARP) and the line members to observe time line and expedite
completion of refurbishment of the RTOs/MCCs. He also directed
the Member (TARP) & Member (IMS) to make necessary arrangements
to provide computer hardwares to field formations- LTUs & RTOs –
on priority basis.
Current exercise of sectoral examination of sugar/cement also
came under discussion. The Chairman desired for early completion
of the exercise. Responding Member (Audit) assured that it will
be completed in next three weeks. Sectoral study of telecom and
other major sectors also came under discussion, line members
assured the Chairman of their concerted efforts in this regard
and results of such sectoral studies will be presented to the
Board.
The Chairman directed the Sales Tax Wing to ask Collectors of
Sales Tax to conduct selective taxpayers’ audit wherever they
have any doubt. He also directed Member (Audit) to evaluate the
audits, conducted by LTU, Lahore, and inform the Council about
its results.
Expressing his displeasure over thousands of pending refund
claims at Export Collectorate and MCC, Karachi, the Chairman
directed Member (Customs) to take action against the officials
responsible for this huge pendency that has caused inconvenience
to the exporters/importers. The meeting, however, noted that 80%
of the refund claims were of very small amount which should be
paid immediately.
Board-in-Council also dilated upon the security arrangements
currently in place at FBR Headquarters and its field formations,
particularly in major cities of the country. The Council asked
Member (Admn.) to ensure fool-proof security arrangements at all
FBR buildings.
Shortage of staff at FATE/Audit Wings also came under review
and the Council decided to ask Member (Admn) to meet their staff
requirements.
Purchase of buses for pick and drop of staff from the offices
will be examined by Member (TP&R) and the issue will be
discussed in the next B.I.C. meeting.
BIC was informed by Member (FATE) that all representations u/s
7 of FBR, Act: 2008 to the Chairman FBR will be received in the
FATE Wing and then sent to respective members for their
comments. The meeting was informed that a window was being
opened in the FBR website where such representations could be
submitted on line for redressal of grievances which are simple
in nature. |
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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14th March, 2008 |
ABDULLAH YUSUF LAUNCHES ONLINE HRM SYSTEM OF FBR |
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Secretary General, Revenue
Division/Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf,
today formerly launched online modules of indigenously developed Human
Resource Management System of FBR.
All Members of the Board were present on this momentous occasion.
The Human Resource Management System (HRMS) has started providing
following online facilities to its field offices and the employees:
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Online Leave requests receiving from
field, its approvals in FBR management and electronic notification
on web.
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Online NOC for trainings/visits abroad,
processing and its communication through e-mail
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Online access to Charge assumption and
automatic data updation in the system
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Updation of employees records and their
profiles by field offices including discipline and other issues,
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Online access to employees to register
their grievances against the Board
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All employees' related notification are
placed on FBR website
Speaking on the occasion, Mr. Abdullah
Yusuf told that FBR is a leading public sector organization, which has
again taken the lead in development and implementation of paperless
online processing of employees' applications and other requests. eDoX
systems have also been implemented to completely track the mail and
files, incoming & outgoing both, in the Board. Member (Administration)
is efficiently leading his team towards introduction of such world class
systems, which has tremendously increased the performance of the
Administration.
The Project Director told that implementation of this system has
become possible only through persistent support and encouragement from
the Chairman. FBR intends to introduce a complete paperless solution for
its Management as well as other functions within shortest possible time.
FBR is now in a position that it can provide guidance and support to
other Ministries/Divisions to introduce and implement such system for
improving their performance and vigilance and also the monitoring
functions.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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14th March, 2008 |
IMPORT OF CNG BUSES OF INDIAN ORIGIN
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CNG
buses (15 units) were imported from Sharjah in CBU condition. These
buses were assembled/manufactured in UAE from the components/parts
imported from India. Therefore, a question arose regarding
determination of origin of these buses, since the import of such
buses is not allowed from India as per Import Policy Order in vogue.
The
Ministry of Commerce and the Ministry of Industries, Production and
Special Initiatives informed the Federal Board of Revenue to process
the cases of import of buses in consultaion with the local
stakeholders and after thorough scrutiny as local industry was
agitating that the vehicles were of Indian origin.
In order to mitigate the hardship faced by the importers and to
safeguard the interest of local manufactures/assemblers, it was
proposed by the FBR and the Ministry of Commerce, as a special
dispensation, to allow one time import authorization of the already
imported 15 buses subject to the condition that the importer
undertakes not to import such buses in future.
The
matter was taken up by the ECC of the Cabinet and the ECC finally
approved the release of 15 CNG buses on one time authorization of
the Ministry of Commerce on payment of the leviable duty and taxes
in addition to the redemption fine equal to 30% of their C &F value.
In
order give effect to the ECC’s above referred decision an amending
notification SRO---(1)2008 dated dated 12th March, 2008 has been
issued
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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13th March, 2008 |
TV/PICTORIAL COVERAGE |
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Secretary General, Revenue Division & Chairman, Federal Board of
Revenue, Mr. M. Abdullah Yusuf will visit Al-Ghurair Giga (Pakistan) and
attend a Briefing/Presentation on World Trade Centre, Islamabad at
Defence Housing Society, Phase-II , Islamabad on 14th March, 2008
(Friday) at 3.30 p.m.
All Economic Correspondents, TV channels and Press Photographers are
cordially invited to cover/ attend the Briefing.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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13th March, 2008 |
DUTY REDUCTION ON LCD PANELS, PLASMA DISPLAY PANELS IMPORT
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M/s Pakistan Electronics Manufacturers Association (PEMA) and
manufacturers/assemblers of Plasma Display Panel (PDP) and Liquid
Crystal Display Panel (LCD) represented the government that they are
facing tough competition because of smuggling of said items. They
claimed that smuggled television sets are available at prices 28% to 41%
cheaper than locally produced/assembled LCD/PDP. This price difference
rendered the local assembling/manufacturing of LCD/PDP uncompetitive in
the domestic market. They proposed to abolish customs duty on the SKD of
the LCD and Plasma TVs together with application of strict
administrative measures.
The Government examined the representations with a view that
administrative measures alone cannot address to curb the smuggling and
there is a need to revisit the existing tariff regime for this industry.
Accordingly, in order to boost up the competitiveness of the domestic
manufacturing/assembling of LCD/PDP, the matter was taken up by the
Economic Coordination Committee (ECC) of the Cabinet in its meeting held
on 22nd January, 2008 and the ECC decided to exempt whole of the duty on
CKD kits and reduce the duty on LCD/PDP in SKD kits and CBU from 5% and
20% from exiting 10% and 25%, respectively, for a period of one year and
during this period the National Tariff Commission (NTC) will carry out
examination of the concessionary tariff for LCD/PDP and will submit its
recommendations for continuance or otherwise of the tariff after one
year.
In order to give effect to the ECC's said decision two amending
Notifications No. SRO 267(1)/2008 dated 10th March, 2008 and SRO
268(1)2008 dated 10th March, 2008 have been issued. Thereby, the CKD
kits, SKD kits for LCD and PDP shall be importable at the rate of duty
at 0% and 5%, respectively, for the period from 10th March, 2008 to 9th
March, 2009 under SRO 565(1)/2006 dated 5-6-2006 and LCD/PDP in CBU from
shall be importable at the rate of duty at 20% under SRO 567(1)/2006
dated 5-6-2006 for the said period.
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-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR) |
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12th March, 2008 |
Explanatory notes for
SRO 275(I)/2008 dated 12.03.2008 |
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The Notification has been issued to exempt the import and supply of CKD
kits of single cylinder agriculture diesel engines of 3 to 36 HP from
sales tax. Previously, such CKD kits of 12 to 32 HP were exempt. The
scope of exemption has been enhanced from 3 to 36 HP as the local
industry has gained success in the manufacturing of agricultural diesel
engines of capacity 3 to 36 HP. This step would facilitate the farmers
who use agricultural diesel engines for farming activities. |
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Sd-
(Mehmood Alam)
Additional Secretary |
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6th March, 2008 |
Explanatory notes for
SRO 204(I)/2008 |
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SRO 204(I)/2008 dated 04.03.2008 amends SRO 1202(I)/2007 dated
11.12.2007. SRO 1202(I)/2008 provides for refund of excess input tax to
the Independent Power Producers (IPPs) for the tax period July 2007 to
December 2007. Through the amendment, the scope of SRO has been extended
to the tax period March 2008. Moreover, the date for filing the claim
has been extended from 31stJanaury 2008 to 30th April 200 | | |