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The government has allowed import of custom-duty free new car of engine capacity not exceeding 1350cc by a Pakistani disabled national for personal use, says a press release issued by FBR.

The decision announced vide Customs Notification No. SRO 277(1)2010 dated 27th April, 2010, of the Revenue Division, has been taken in pursuance of a government decision announced vide Notification No 16(1)/2006 – Import II, dated the 28th September, 2009, issued by the Ministry of Commerce, to allow import of duty free cars for personal use of disabled persons, to overcome the disability, subject to fulfillment of criteria and conditions laid down in the policy.

According to the conditions, at the time of import of car the disabled person must have import authorization certificate issued by the Ministry of Commerce in his favour. Moreover, only one car shall be allowed to be imported by a disabled person, and the car shall not be sold or otherwise transferred to any person before the expiry of five years from the date of its arrival in Pakistan.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Senior citizens over 60 years of age are entitled to claim 50 per cent rebate in the payment of tax outstanding against them.

In a press statement, the FBR has clarified that this facility is available to all senior citizens under section 53(1)c and clause 1A of Part-III of the Second Schedule of the Income Tax Ordinance, 2001 which clearly provides that “where the taxable income, in a tax year, of a taxpayer aged 60 years or more on the first day of that tax year does not exceed seven hundred fifty thousand rupees (Rs. 750,000/-), his tax liability on such income shall be reduced by 50%”.

The facility is also available in case a tax has already been paid at any stage by senior citizens who can claim the refund while filing their annual tax returns. For further guidance and facilitation, the taxpayers can visit FBR’s website or contact helpline staff on 051-111-227-227 and 0800-00227 during the working hours.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has made it clear that the differences on Value Added Tax (VAT) are not likely to jeopardize the IMF’s stand-by arrangements.

The spokesman of FBR on Monday pointed out that there have been reports recently in the media trying to link the debate on VAT to the IMF’s stand-by arrangements but there is no truth whatsoever in such speculative news items which appear to be stemming from an inadequate understanding of VAT’s introduction in the country.

The spokesman said the existing sales tax in Pakistan is fundamentally based upon VAT principles. However, unnecessary tax concessions and exemptions have distorted the overall VAT character of the sales tax system and seriously damaged the tax base. The new VAT laws have already been tabled in the National and Provincial Assemblies within the existing constitutional framework and the respective Standing Committees are considering the VAT bills before their enactment. Legislation of VAT is therefore progressing as scheduled.

The spokesman also noted that the FBR had already launched a nationwide campaign to brief all the Chambers of Commerce & Industry, including FPCC&I about the forthcoming VAT system. The existing sales tax system has 12 different tax rates ranging from 16 per cent to 25 per cent, while the proposed VAT scheme will introduce a single rate at 15 per cent. Similarly, registration threshold has also been increased from Rs 5 million to Rs 7.5 million per annum turnover.

The spokesman said the VAT regime will extend the scope of tax to hitherto untaxed sectors, especially services. Withdrawal of unnecessary exemptions on commodity sector and expansion of tax scope on services will broaden the tax base. Broad-based VAT on goods and services will not only progressively bring additional revenues to the exchequer but will also accelerate economic documentation, eventually leading to improvements in other tax regimes, especially income tax. The VAT regime will also increase the tax-to-GDP besides leading to economic equity in the country.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

The federal government has imposed regulatory duty at the rate of 25 per cent on export of waste and scrap of copper and aluminum, says an SRO issued by Federal Board of Revenue (FBR).
According to the SRO-(1)2010, a regulatory duty at the rate of 25 per cent has been imposed ad valorem on export of waste and scrap of copper and aluminum as well as on bars, rods, ingots, slabs, and billets made thereof from 13th March, 2010 to 30th June, 2010 on the basis of ECC’s decision. The position shall be reviewed at the time of budget formulation for financial year 2010-11.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Under the instructions of Chief Commissioner, Large Taxpayer Unit, Karachi (LTU) Ms. Yasmin Saud, a meeting was held with the representatives of banks, financial institutions and corporate taxpayers on 9th March, 2010 in order to discuss issues arising in connection with the levy of 16% Federal Excise Duty (FED) on services provided by banking and non-banking financial companies. Mr. Nasir Butt, Commissioner (Audit-II), LTU welcomed the participants.

From 1st July, 2009, the rate of FED on banking services has been enhanced from 10% to 16%, and it was converted to VAT mode. Thus, banks and financial institutions were allowed to adjust the FED and Sales Tax paid on their purchases of goods or services against their output tax liabilities. Likewise, registered clients of banks and financial companies also became entitled to adjust the amount of FED paid to banks or financial companies. However, to make such adjustment, registered persons need invoices issued by the banking companies, which is causing some problems. Presently banks are only issuing certificates on the specific request of their corporate clients, and these are not legally tax invoices. To bring this practice in line with the legal requirement, suggestions were taken from the stakeholders.

During the meeting, the representatives were encouraged to express their views and inform about the practical problems related to issuance of invoices. Officers of LTU discussed various options which could facilitate the taxpayers, and noted the proposals given by the participants. On the basis of this feedback, LTU will compile a report and make recommendations to FBR for formulating a uniform procedure for the issuance of invoices by banks and non-banking financial institutions for the facilitation of taxpayers.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

In order to educate and facilitate the Port and Terminal Operators about the recent levy of Federal Excise Duty in VAT mode on their services, an orientation seminar was conducted by the Large Taxpayer Unit, Karachi on Tuesday, 23rd February, 2010.

Organized by the Taxpayer Facilitation Division of LTU, the seminar aimed at providing information and assistance to the port and terminal operators about payment of 16% Federal Excise Duty in VAT mode on services rendered by them at or near any port area. In the Federal Budget 2009-2010, the Government levied FED on services provided by port and terminal operators at the rate of sixteen percent. However, it was found that many such units who were engaged in providing services like piloting and berthing of vessels, loading and unloading of cargo, storage, delivery, etc. at or near the port areas were not aware of the levy of FED on their services.

The seminar was attended by representatives of Karachi Port Trust as well as many prominent terminal operators. Addressing the audience the Chief Commissioner LTU, Mrs. Yasmin Saud emphasized on the need to improve compliance level of the taxpayers through education and awareness.

During the panel discussion, Mr. Ashfaq Tunio, Additional Commissioner answered wide-ranging questions raised by the audience on the scope of FED on services, payment structure and philosophy behind introducing FED in VAT mode. Mr. Mardan Abbasi from Karachi Port Trust provided some support information regarding stevedores and terminal operators.

During presentation, Ms.Farah Farooq, Deputy Commissioner TFD (Taxpayer Facilitation Division) covered the legal provisions and view point of tax authorities on this new levy.

The participants appreciated the initiative by LTU, Karachi which was aimed at better awareness among taxpayers, encouraging voluntary compliance and removing any practical difficulties being faced by them.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has vowed to achieve 100 per cent automation of its different organs, including customs, income tax and sales tax etc.

In a statement, the FBR spokesman has maintained that automation of FBR and its key organs like customs, income tax and sales tax, is in good progress and FBR is fully committed to achieving 100 per cent automation of work processes in key wings and departments.

However in some recent media reports it has been wrongly reported that Pakistan Customs Computerised System (PaCCS) is being closed down. These reports have mixed up PaCCS with the M/s. Agility which is a company providing software to run the system for PaCCS. It has been decided following the input received from the system audit of the software and some other related issues that the automation of Customs may not be rolled out through M/s. Agility and FBR will come up with a substitute for PaCCS for providing automated services and rolling it out to all the customs stations in the country.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Germany has pledged to help Pakistan in successfully implementing the reforms process currently under way in Federal Board of Revenue (FBR).

“Germany considers Pakistan a valued partner in business and trade and it would be happy to provide any technical support to Pakistan in modernising its tax administration,” said Dr. Birger Nerre during a meeting with Ms Riffat Shah Qazi, Member Facilitation & Taxpayers Education FBR. Dr Birger Nerre who heads the Public Finance, Administration Reforms and Anti-Corruption wing of the German Technical Cooperation is leading a four-member delegation on a visit to Pakistan to explore avenues for enhancing mutual cooperation and exchange technical expertise between the two countries.

Ms. Qazi briefed the visiting delegates on the various steps and measures taken by the FATE Wing to broaden tax base, raise tax-to-GDP ratio, and to promote a taxpayer-friendly image of FBR. She also explained the nature of work executed by FATE Wing with regard to organisation of seminars, workshops and promotion of friendly relations with the taxpayers and other stakeholders, including the print and electronic media.

Dr. Birger Nerre appreciated the reforms process being pursued by FBR with a view to modernising the tax machinery and introducing VAT from the next financial year. He said Germany was keen to work with Pakistan in different areas of the economy, including taxation, and their ongoing visit to Pakistan was aimed at working out modalities of a framework that would allow the two countries to forge ahead in their bilateral trade and economic relations. Senior FBR officials, including FATE Chief Sajjad Ahmad Khan, Secretary Dr Akthar Hussain and others also attended the meeting.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has vowed to broaden the tax base without putting additional burden on the existing taxpayers.

This was stated by Mr. Shahid Anwar Khan, Chief Commissioner Inland Revenue, RTO Rawalpindi, while chairing the 8th meeting of Regional Tax Advisory Committee at the RTO.

The meeting was attended by representatives of Rawalpindi Chamber of Commerce & Industry (RCC&I), Rawalpindi Islamabad Tax Bar Association (RITBA) and a number of Trade Bodies and Associations from Rawalpindi as well as from Mufassil Areas (Jhelum, Chakwal, and Gujar Khan).

Mr. Anwar said the government wanted to take on broad the traders and business community before launching an exercise for broadening of tax base. The exercise to bring more people in the tax net would be facilitated by the FBR through distribution of a simple form amongst the traders of new commercial areas which have emerged during the last few years.

The form will require individuals to provide information about the name and nature of business, name of proprietor, CNIC number along with a copy, NTN (if existing taxpayer), along with proof of filing of return for tax year 2009. No further information will be obtained from these taxpayers.

The traders and businessmen attending the meeting appreciated the efforts of the Inland Revenue Department with regard to identification of new taxpayers in specified areas of Rawalpindi and Mufassil and to bring them into tax net, so that the tax burden was distributed amongst the existing taxpayers and the new ones. They also offered valuable suggestions to make this exercise successful.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Afghanistan has shown keen interest in the reforms process under way in Federal Board of Revenue (FBR) with a view to using the reforms as a model to revamp its own taxation system.
The interest was shown by Dr Ahmad Shah Zamanzai, Director General of Afghanistan Revenue Department, who led a delegation of senior Afghan tax officials during a visit to the Regional Tax Office (RTO) Lahore.

The visiting delegates said the Pakistani experience of tax reforms was interesting enough for them to look at it and see how it could be helpful in undertaking similar reforms in their country.
During the visit, Khawaja Shaukat Ali, Chief Commissioner Inland Revenue Regional Tax Office Lahore, briefed the delegation about the reform process and the milestones achieved in this regard. He also explained the working of Regional Tax Office on functional basis with reference to Audit, Enforcement with support functions of Legal, Tax Facilitation & Information processing. The steps taken by the Federal Board of Revenue and Regional Tax Office to facilitate the taxpayer through setting-up of facilitation desk, online facilities available, and establishment of kiosks in commercial areas were also explained. The delegates showed keen interest in the achievements of Regional Tax Office, Lahore, asking pertinent questions about the Pakistani tax experience and how it could be replicated in Afghanistan.

Later on the delegation visited various floors of Tax House and viewed ongoing work. The delegation also visited data entry centre (DEC), record room and saw demonstration by the officer in this regard. The delegates appreciated the facilities of e-filing, NTN, STRN, Refund Receipt Counters and Reception Counters available for the taxpayers and visitors.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Ms. Riffat Shaheen Qazi, a BS-21 officer, has assumed charge of the office of Member Facilitation and Taxpayer Education (FATE) in the FBR Headquarters.

Ms. Qazi, a senior officer of Income Tax Group from the 7th Common, has already served in various key positions serving across the country in her illustrious career spanning over 31 years. Her last posting was in the Regional Tax Office Rawalpindi where she led a series of tax recovery drives as the Chief Commissioner Inland Revenue Service.

Ms. Qazi brings with her a rich professional and academic experience. She holds a Master’s degree and an MPhil in Economics from the University of Peshawar. Later she completed Masters in Business Administration from John F. Kennedy University USA. Her last academic pursuit was at the prestigious Harvard University, where she attended an extensive Senior Executive Management training course.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Chairman Mr. Sohail Ahmad has called for concerted efforts to improve the collection of revenue.

“Meeting the revenue collection target is a huge responsibility and we must pool and use all our resources to meet this challenge,” he said in his address to a seminar organised by the HRM Wing of the FBR on ‘IP framework for effective business processes’ here in the capital.

The Chairman emphasized the importance of IP and its contribution towards the performance of various FBR wings such as audit and enforcement. He announced similar seminars would be held in the coming days to gather feedback and break the disconnect between the Headquarters and the Field Formations.

The seminar attended by the concerned FBR Members, all Chief Commissioners from the Field Formations as well as Commissioners IP, DG (IMS), CEO (PRAL) and GM (PRAL) discussed a broad range of issues related with IP to identify a clear roadmap for better cross verification of information and broadening of tax base in the wake of functional and structural integration of domestic taxes within the FBR.

CEO PRAL, DG (IMS) and Member Sales Tax and Federal Excise also briefed the participants about the ongoing activities in the field and the actions required to be performed. The participants proposed removal of dormant NTNs, integration of all applications of Sales Tax and Income Tax, more training in Mahasil, STARR & their different modules as well as specific software
relevant to job descriptions.

At the end, the DG (HRM) thanked the participants for their valuable input and suggestions and assured that these suggestions would be sent to the concerned authorities for devising the future strategy.

 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Saturday denied the government was considering increasing Withholding Tax on electricity bills of commercial consumers by 100 per cent as reported in a section of the press.

A spokesman of the FBR has clarified that the government after looking at the revenue collection performance of Federal Board of Revenue during the second quarter (Oct-Dec 2009) has decided not to take any additional taxation measure.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Wednesday said the status of cases involving Sales Tax evasion that are pending for adjudication, had not been affected by the omission of section 45 of the Sales Tax Act, 1990, following the promulgation of Finance (Amendment) Ordinance, 2009, as claimed in the reports appearing in a section of the press in recent days.

In an official statement, the FBR spokesman has dispelled the wrong impression regarding the matters pertaining to section 45 of the Sales Tax Act, 1990, to the effect that section 45 provides no legal sanction for the process of adjudication. This section which is neither charging nor adjudicating in scope, only prescribes pecuniary limits for adjudication by various authorities. Orders of adjudication/assessment are not made under section 45 but under section 11 or section 36 of the Sales Tax Act, 1990.

The spokesman recalled that the Finance (Amendment) Ordinance, 2009, in an attempt to harmonize the domestic tax laws, abolished the separate tier of adjudicating authorities. Through insertion of sub-section 4(A) in section 25, the officer conducting audit, has been authorized to determine the tax liability by passing an order under section 11 or 36 of the Sales Tax Act, 1990.

Press reports had pointed out about pending adjudication proceedings, which had not been saved whereas the fact is that saving of pending adjudication proceedings was not required in view of section 6 of the General Clauses Act, 1897. Section 6 relates to consequences of repeal of Central Acts or Regulations and is equally applicable to amendments in Acts and Regulations.


Similarly, the process of adjudication by a separate authority was consciously discontinued for future cases. At present, final orders determining the tax liability in cases of registered persons are to be made by the same authority in harmony with the procedure under the Income Tax Ordinance, 2001. In the pending cases, adjudication will be continued and finalized under the un-amended provisions.

Moreover, reference to Additional Collector, Deputy Collector or Assistant Collector in the omitted Section 45 would mean reference to Additional Commissioner, Deputy Commissioner and Assistant Commissioner Inland Revenue, etc, as given in Section 72A of the Sales Tax Act, 1990, inserted through Finance (Amendment) Ordinance, 2009.

The spokesman further maintained that issuance of fresh show cause notices is not required and pending proceedings can be continued and finalized. Even otherwise, fresh show cause notices, if required, can be issued within the periphery of limitation of five years prescribed under section 11 and five and three years respectively under sub-section (1) and (2) of section 36. In case, where there is time limit for adjudication, the same can be extended by FBR as provided under section 74 of the Sales Act, 1990.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 

Federal Board of Revenue (FBR) has extended the date for filing, e-filing of income tax returns and statements up to January 25, 2010 to facilitate taxpayers in view of the prevailing situation in the country, says an official statement released Wednesday.

The extended time period shall be available only for those corporate cases where due tax to be paid is deposited by December 31, 2009 while the corresponding return may be filed by the extended date. Income tax returns/statements in cases of non-filers/short-filers individuals/association of persons (AOPs) may also be filed by depositing the tax payable along with the returns/statements by January 25, 2010.

According to the statement, penalties, additional tax and prosecution shall, therefore, not be attracted in cases where income tax returns/statements are filed/e-filed accordingly by the extended date 1.e., January 25, 2010, if the conditions mentioned above are fulfilled.

Relevant branches of State Bank of Pakistan and National Bank of Pakistan will remain open to receive tax payments up to 08:00pm, and all Inland Revenue Regional Tax Offices and Large Taxpayers Units will remain open till 9:00pm on December 31, 2009.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) will conduct *Computer-based random balloting to select units/persons for tax audit* at an open ceremony to be held at FBR House tomorrow (Friday). The schedule of the event is as under.

Venue: Lobby, 2nd Floor, FBR House, Islamabad

Date: December 11, 2009 (Friday)

Time: 2:45pm

2. You are requested to depute a team of reporter/camera man for the coverage of the said event at the given venue, date and time.**
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A spokesman of the Federal Board of Revenue has denied the contents of a news item captioned “we shall make an example of 300 big tax evaders: FBR” and attributing to Chairman FBR a reference to corruption of certain magnitude in the revenue collection machinery, particularly in the Customs department.

The spokesperson has clarified that the stated perception is based on some misunderstanding and has been reported in the press out of context. In fact, customs revenue collection of Rs. 56.7 billion is ahead of the target of Rs. 56.1 billion for first five months of the financial year. In the press conference, it was highlighted that the revenue performance of FBR, particularly of Customs, can further be improved through the ongoing reform process by effectively plugging the revenue leakages. Therefore the said impression of the magnitude of corruption in Customs created through the said news report is ill founded and is incorrect.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A spokesman of the Federal Board of Revenue (FBR) has clarified press reports published in a section of the press claiming the cultivation of beet crop in NWFP has been given up by farmers due to excess taxes.

The spokesman has described as misleading and irrelevant claims made by Anjuman-e-Kashtakaran NWFP officer-bearers who have been reported by the press as having complained that the cultivation of the beet crop in NWFP has creased due to imposition of central excise duty in 1995 and other levies in recent times.

The spokesman has maintained that the issue pertaining to year 1995 has no relevance after a lapse of 14 years in the last quarter of 2009 as currently the sugar made from cane or beet crop is chargeable to 8 per cent of sales tax and 1 per cent special excise duty. Hence, the reports blaming the present sugar crisis on the levy of excise duty on beet sugar in 1995 are
without logic and merit.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Pakistan and Morocco have concluded a treaty for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income of residents of the two countries.

The two sides exchanged Thursday an instrument of ratification at a ceremony held at the FBR House in the presence of FBR Chairman Mr. Sohail Ahmad who led the Pakistan side and Moroccan Ambassador to Pakistan, Mr. Mohammed Rida El-Fassi who represented the Kingdom of Morocco. FBR's Member Direct Policy Mr. Asrar Raouf and Chief International Taxes, Mr Saeedur Rahman were also present.

The negotiations for conclusion of the Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income between the Islamic Republic of Pakistan and the Kingdom of Morocco held a couple of years ago before the Convention was signed in Rabat, Morocco on May 18, 2006.

Highlighting the salient features of the convention, Mr. Sohail Ahmad, Chairman FBR, said the treaty had done away with the double taxation of income between the two countries to promote bilateral trade and commerce. Under the convention, principles had also been laid down for taxation of all sources of income as well as residential status of individuals and corporate
entities. Funds received by the students for the purpose of education have been exempted from tax under the convention which also provides comprehensively for cooperation in all important areas of international taxation, including exchange of information.

The FBR Chairman believed the new arrangement would not only provide safeguards against double taxation but it would also lay the ground for promoting economic cooperation and furthering mutual trade and investment by ensuring certainty of tax treatment.

Speaking on the occasion, Moroccan Ambassador Mr. Mohammed Rida El-Fassi appreciated the warm welcome and expressed the hope “the convention would serve as a significant step in enhancing economic ties between the two brotherly countries”.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 259.24 billion of revenues during the first quarter of the current fiscal year, according to provisional figures released by FBR on Monday.
According to the figures, the FBR has collected Rs 98.37 billion during the month of September 2009. Aggregate collection during the first quarter of the ongoing fiscal year thus works out to Rs 259.24 billion. The final revenue collection figures for the month of September 2009 are likely to increase further following the receipt of taxes, including taxes deducted at source, collected from different parts of the country.
The break-up of the tax collection figures for the month of September 2009 is attached for further details.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Mujeeb-ur-Rehman Talpur
Second Secretary (PR)
FBR

Federal Board of Revenue (FBR) has set up facilitation desks/kiosks all across Pakistan to help taxpayers filing their income tax returns before the September 30 deadline.
The kiosks and tax facilitation centres (TFCs) have been established in all major urban centres to provide technical support to taxpayers. A formal ceremony to mark the opening of the TFCs will be held in Lahore tomorrow (Saturday) where FBR Chairman Mr. Sohail Ahmad will speak as chief guest at the inauguration of a facilitation desk/kiosk in Liberty area.
The board has further clarified that e-filing mode for the submission of income tax returns is required only for individuals and companies with whose declared income is Rs 500,000 or more per annum and not for ordinary traders and individuals whose income falls below the specific threshold.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Finance Minister Shaukat Tarin Thursday said self-reliance was the only way forward for Pakistan to achieve economic stability and lessen dependence on revenue streams flowing in from donor agencies.

“As long as these revenue streams flow, things work well but once these streams go away, problems re-surface and economic independence becomes a distant dream,” he said in a keynote address to a two-day ‘Conference on Value Added Tax (VAT)’ that started in the capital here under the auspices of Federal Board of Revenue (FBR).

The minister said Pakistan heavily relied on taxes as a major source for government revenues required for socio-economic uplift of the people. Optimum revenues are achieved when an efficient taxation system is in place. Our Government’s vision and strategy of a better Pakistan also rests on a taxation régime which is based on equity and fairness, convenience of payment, economy in collection, and simplicity of procedures, he added.

He said reducing poverty through generating additional revenues is an important step towards achieving our government’s vision and that can only be achieved through an efficient taxation system which conforms to the best international practices in revenue collection.

Shaukat Tarin said these best practices were being adopted by countries all over the world and like others Pakistan had also set about modernising its taxation structure through the Tax Administrative Reforms Program (TARP) aimed at achieving greater efficiency and productivity in the tax collecting business processes and tapping new tax resources.

He admitted there were challenges in the way of generating additional indigenous revenues and exercise of discretionary powers by the government, lack of professionalism due to an inadequate capacity building and existence of certain exemptions in our tax regime were issues which needed to be addressed before the introduction of Value Added Tax.

Tarin said the tax managers alone could not do all this and “a lot depends on the policy, planning, vision and commitment of the political and economic managers”. “It is therefore a common responsibility of all the stakeholders to contribute towards achieving an efficient taxation system which can generate additional revenues for the country,” he added.

He also called for collective efforts to achieve a broader and larger goal of better standards of living for the people through better tax collection. This in turn requires increase in tax base by incorporating maximum categories of services into the tax net. While our tax base includes a wide range of goods, services sector, which is a major source of revenue around the world, is largely out of the tax net and it is time we revisited our exemptions, zero-rated items, rate variations and major sources of irritants to business, he added.

The finance minister said Pakistan could also draw on the experiences of other countries for developing a viable model best suited to our economy. He said the Value Added Tax could be considered as an effective tool for proper documentation of economy, widening of tax base and equitable taxation mechanism.

Later talking to media men, Shaukat Tarin highlighted the importance of value addition for taxation purposes on the retail stage as widening of taxation base. At the retail stage it is basically the issue of understanding and tapping the whole supply chain of goods and services. However, enforcement of any such tax on such a stage cannot be adequately done if the tax collecting machinery is not properly aware of the facts and figures regarding the different social segments, documentation of small to medium businesses, their supply chains and financial capacity of the retailers themselves. All this needs to be thoroughly researched, properly documented and comprehensively digitized by the tax machinery.

To another question, he underscored the VAT service delivery and its impact on the lives of our taxpaying community which is the backbone of our economy. FBR should keep in mind that VAT in today’s world is considered as a powerful tool in harnessing funds in domestic markets. These funds can then be used by the developing countries like Pakistan to meet the challenges like increasing mass education, poverty eradication and provision of socio-physical infrastructure.

The minister cited the example of Sri Lanka which at a 15 per cent VAT had been able to increase its tax-to-GDP ratio by seven per cent and if Pakistan could increase its tax-to-GDP ratio by four per cent through the implementation of VAT, it would be able to raise an additional Rs 600 billion, taking us close to bridging the Rs 722 billion fiscal deficit.

Earlier FBR Chairman Mr Sohail Ahmad in his address to the inaugural technical session of the conference highlighted the steps taken by FBR for generating more revenue through massive reforms, re-structuring and business process re-engineering which he said could also serve in the implementation of VAT from July 2010.

He said the government believed the impact of taxes generated through VAT would be significant in covering all those sectors which earlier enjoyed exemptions in one way or the other. He welcomed the participants of the conference which he hoped would be able to come up with a way forward for the implementation of value added tax in an incentive-based, transparent and harassment-free environment.

 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has launched a project for the automation of various work  processes involving financial and material management in the organisation.

Under the project expected to be completed within 15 months, various work processes, including budget management system, accounts expenditure management system and material management, would be configured and customized to meet the FBR requirements. The system after its completion at the FBR Headquarters would also be replicated in the field offices and
formations.

Speaking at a ceremony to mark the launch of the project at the FBR House Monday, FBR Chairman Sohail Ahmad hoped the project would enable FBR to execute real-time internal financial controls and ensure transparency, efficiency and enhanced decision support.

The system under which supported procurements will have electronic linkages with Ministry of Finance and AGPR Office will also go a long way in extending FBR’s visibility beyond the bounds of the organization through an interface with PIFRA system and future expansion. Besides, it will ensure end-to-end automated business processes, real-time integration, flexible, real-time reporting, interfacing and best practices that are the hallmark of efficient organisations.

The kick-off ceremony organised at the FBR Headquarters Islamabad was also attended by senior FBR Members and officials. Later, FBR Chairman Mr Sohail Ahmad and board members visited the newly-developed SAP Competency Center and appreciated the modern setup.

The project is coordinated by Sheikh Hafeez and Mr Shahbaz from Siemens while the FBR side is represented by Ch Muhammad Azam, Member (Admn), Mr Abdul Jaleel, Chief (Admn)/ Project Director(SAP), Mr Bakhtiar Muhammad, Director (Coord-SAP), Mr Sarwar Jang, Director SAP, Mr Ali Raza, Director MM and Mr M. Sauood ur Rauf, Director FI.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has started preparing an organizational framework for the proposed Inland Revenue Service (IRS) and the Customs group to be set up as part of the reforms process under way in the board.

The task for preparation of the organogram for the proposed service to be established on functional lines has been handed to the newly-furbished Human Resource Source Wing which has already put in place a host of measures aimed at accelerating the pace of reforms process with a focus on re-organisation and capacity building of the human resource.

As part of these measures, a special presentation was given to Finance Minister Mr. Shaukat Tareen who visited the FBR Headquarters recently to attend the DGs Conference. The minister appreciated the work done so far and called for its early completion to achieve the desired targets of the reforms programme.

The new service to be set up through an Act of the Parliament will replace the existing set-up, paving the way for a fully integrated tax administration of sales tax, excise and income tax in line with recommendations and aspirations of the stakeholders.

The renewed focus on the human resource management is also reflected in the appointment of a director general to head the all-important HRM Wing which was previously overseen by a chief. The move has resulted in various measures to reform and restructure the existing work processes with a view to enhancing the quality of skill sets and creating a performance-based reward system.

Some of the measures that have been taken in recent days include constitution of various teams to oversee progress of work on issues related to integration, preparation of new job descriptions, new performance evaluation reports, new performance-based bonus/reward scheme and the market-based salaries for which a survey is already under way to determine the extent of wages on offer in the private and public sector organisations.

Similarly, the HRM Wing has also started conducting various orientation/training workshops for the officers of both Income Tax and Customs & Excise groups. Such workshops are already under way at the Directorates of Training in Lahore, Karachi and Islamabad respectively.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has made it binding on all imported cargo entered in the customs area for clearance to be accompanied by a copy of packing list and invoice.

Earlier, Federal Board of Revenue had temporarily relaxed the provision added vide SRO No.198(I)/2005, dated 28.02.2005 to the Customs Rules, 2001, whereby all imported cargo entered in the customs area for clearance was to be accompanied with a copy of packing list and invoice. The relaxation had been granted through a board letter No.3(1)L&P/05 dated 20.05.2006. However, the issue has been re-examined recently in consultation with the Chamber of Commerce & Industry and Clearing Agents Associations and it has been decided to withdraw the above said letter of the board.

As a result, provision of Sub-chapter-I of Chapter XVIII of Customs Rules, 2001 shall become operational for all categories of goods except the old and used motor vehicles imported under various schemes; iron, steel and aluminum scrap; unpack bulk cargo like coal and raw cotton; goods imported under DTRE scheme; imports under section 22 of the Customs Act, 1969; old and used machinery; bulk imports of petrochemical; and defence cargo. The provision of sub-chapter-I of Chapter XVIII shall apply w.e.f. 05.10.2009. The importers have been advised to make arrangements with their foreign exporters to make sure that invoice and packing list are kept inside the containers of import.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has constituted a nine-member team of officials to oversee progress on the reforms programme with a focus on integration of domestic tax administration and preparation of a revenue-specific performance-appraisal system and job descriptions.

The reform project team headed by the Director General Human Resource Management Wing FBR and assisted by Chief (Management) comprises senior officers drawn from both Income Tax and Customs & Excise groups. Besides serving as a focal point driving an organised and focus effort to address the HR issues, the team will also assist and advise the FBR on the ongoing tax administration reforms strategy. The officers included in the team are Abdul Hameed Memon (BS-19), Ayesha Bashir Wani (BS-18) and Saeed Akram (BS-18) from Customs & Excise Group and Ayesha Khalid (BS-19), Bashirullah Khan (BS-19), Riaz Hussain Shah (BS-18), Masood Ahmed (BS-18), Reema Masood (BS-18) and Dr Irfan Abbas Shah (BS-18) from Income Tax Group. Besides this team, Shahid Zaman (BS-19) of Income Tax Group and Ali Abbas Gardezi (BS-18) of Customs & Excise Group have also been associated with the team to work as assigned to them by the team leader.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click to View SRO

The government has announced to charge sales tax at the rate of eight per cent on local supplies of sugar, says a press release issued by FBR Sunday.

The announcement has been made following issuance on Sunday of SRO(I)/2009 whereby “sales tax on local supplies of sugar shall be charged at the rate of eight per cent with immediate effect and until further orders”. A copy of the SRO is attached for reference.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Sugar producers have agreed to sell 200,000 tonnes of sugar at ex-mill price of Rs 45 per kilogram during the next three months, says an official press release issued by FBR Saturday.

The major cut in sugar prices has been made possible following an understanding reached between the government of Pakistan and sugar producers during a meeting at the Prime Minister’s House.

According to the understanding, sugar producers will sell 200,000 tonnes of sugar at ex-mill price of Rs 45 per kg for the next three months while the government in return will provide 50 per cent exemption on taxes levied on sugar.

It is hoped this arrangement will help in stabilising sugar prices in the local market besides easing the pressure on the common man till the next sugarcane crushing season in November 2009.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

We have no other option but to enhance revenue in order to support our government and economy during the difficult times. Addressing FBR Members, Chief Collectors and DGs of Large Tax Payers Units and Regional Tax Offices, Shaukat Tarin, Minister for Finance, Revenue, Economic Affairs & Statistics stressed upon FBR for determined efforts towards increasing the revenue. He was presiding over a Conference of Chief Collectors and DGs of Large Tax Payers Units and Regional Tax Offices here in Islamabad on 21st August 2009. Secretary Finance/Revenue Division, Salman Siddique was also present at the occasion among other FBR officials.

Members of Advisory Council on Revenues, S. Shabbar Zaidi, Bashir Ali Mohommad, Saqib Sherani and Shahid Hussain attended the said conference and offered proposals and suggestions towards developing a tax compliant culture.

Talking about revenue contribution made by different sectors, the Minister said, we have to enhance Tax to GDP ratio from 7% to 15- 20 percent by the year 2010. He was of the view that if we look at the contributions of Agriculture Sector towards the GDP, it is 22 percent but zero in the revenues, similarly Services Sector contributes 52 percent in the GDP but their contribution in revenues is only 17%. Whereas, Capital gains of Stock Exchange and Real Estate Sectors has much more potential. He showed his confidence in tax machinery and said that with realization of the situation and commitment we can achieve the desired results.

The Minister urged FBR to conduct a Third Party Audit, which would be carried with the help of ICAP. Strategy to improve collection, review and update on the revenue targets assigned to field formations, uniformity of practices in examination, valuation, assessment and trade facilitation and strategy to check smuggling also came under discussions.

Chairman FBR, Sohail Ahmad, in his concluding remarks assured that through the ongoing re-organisation of tax machinery, a definite improvement is expected. He was optimistic towards better performance of all the field formations. He stated that the main purpose of the Conference is to close the gap between policy making and implementation besides sharing of experience.
 

-Sd-
(Ehsanul Haq)
Member FATE / Official Spokesman, FBR
 

Federal Board of Revenue (FBR) has set up kiosks and work stations at offices of Large Taxpayers Units (LTUs), Regional Tax Offices (RTOs) Tax Facilitation Centres (TFCs) to streamline electronic filing of income tax returns and withholding tax statements by the taxpayers.

The setting up of work stations comes as part of a broad range of measures being taken on the instruction of FBR Chairman Mr. Sohail Ahmad to promote voluntary compliance as well as to facilitate associations of persons (AOPs) seeking to file their tax returns through e-filing process.

Under the programme, work stations (kiosks) have been established at each LTU/RTO along with provision of two sets of computers with internet connectivity. The stations are being manned by professional and technical staff to extend help to AOPs in e-filing. The computers will also be
available for self service for the AOPs.

Similar work stations have also been set up at all FBR TFCs to serve the AOPs seeking to e-file returns at remote and smaller towns. Besides, FBR has also started organising workshops at all LTUs/RTOs to explain e-filing procedures to the AOPs. Workshops for explaining procedures involving e-filing of withholding tax statements will continue until August 20 while workshops for explaining procedures for e-filing of income tax returns for the tax year 2009 will be held during August 15-17, 2009. As another facilitation measure, the timings of FBR helpline dealing with tax-related queries have also been extended from the existing 9:00am-4:00pm to 9:00am-9:00pm.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 74.07 billion of revenues during the first month of the 2009-10 fiscal year showing increase of 2.4 per cent over corresponding period of the last year.
According to the provisional figures, the FBR has collected Rs 74.07 billion during the month of July 2009 as against Rs 72.36 billion collected during the corresponding month last year. The break-up of the tax collection figures is attached for further details.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click here to see Urdu Version

Federal Board of Revenue (FBR) has constituted a team of senior officials to draw up a plan for the enforcement of VAT (value added tax) at retail stage from the next fiscal year.
The five-member committee comprising senior Customs officials, including Strategic Planning & Statistics Member Mr. Zafar-ul-Majeed and ST&FE Chief Mr. Abrar Ahmad Khan, has been directed by FBR Chairman Mr. Sohail Ahmad to “come up with a comprehensive plan to fully enforce the VAT at retail stage by July 2010,” says a press release issued Monday.
The decision to constitute the process re-engineering team that also includes Collector Sales Tax RTO Lahore, Additional Collector LTU Islamabad and Deputy Director Customs Evaluation Karachi has been taken in view of the importance of extending VAT to the entire retail stage, allowing adjustment of tax paid at earlier stages.
The decision comes in the wake of a growing realization of the fact that a large number of transactions in the economy take place at retail place. While existing legislation provides for levy of VAT at retail stage, its practical enforcement and collection has faced enormous problems for more than a decade and currently only retailers with threshold of Rs 5 million are required to be registered.
It may be added that the 3rd Schedule of the Sales Tax Act, 1990 provides for levy of VAT on the retail process of certain specified supplies, including e.g., cigarettes. Sales Tax Act, 1990 that was enforced in November 1996, is designed for a classical VAT Model. At present, VAT is being collected on imports and supplies by manufacturers, wholesalers, distributors and big retailers.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of revenue (FBR) has collected over Rs 1150 billion revenue for the financial year 2008-9 so far with a substantial amount of revenues collected for the month of June still in the pipeline.

According to an official statement issued Thursday, several misleading reports have currently been published in some sections of the press depicting an unrealistic picture of the latest revenue collection for the current financial year.

The statement clarifies that a substantial amount of the revenues collected for the month of June 2009 is still in the pipeline and the final figures are likely to be settled by this weekend. Nevertheless, the provincial figures of total revenues worked out so far are over Rs 1150 billion as against Rs 1007-50 billion collected during the last financial year. The present provincial figures thus show an increase of over 14 per cent vis-ŕ-vis the last year’s collection. However, the final figures are expected to be on the higher side.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Banks, FBR offices to remain open on 29th, 30th for tax collection

Authorised bank branches and income tax offices of Federal Board of Revenue (FBR) will remain open on June 29-30, 2009 to facilitate taxpayers and receive tax collections for the ongoing fiscal year, says a press release issued by FBR Saturday.

It says the authorised branches of State Bank of Pakistan and National Bank of Pakistan will remain open until 8:00pm on Monday and until 10:00pm the following day to facilitate taxpayers and receive tax collection. Similarly, income tax offices of the FBR have also been instructed to remain open till 10:00pm on Monday and till 12:00 midnight on Tuesday to facilitate taxpayers and receive tax collections. Steps have also been taken by the concerned bank branches and income tax offices to liaise with each other to ensure that all payments made in the month of June 2009 are effectively accounted for in the current fiscal year ending 30th June, 2009.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) and Institute of Chartered Accountants of Pakistan (ICAP) have signed a memorandum of understanding (MoU) for the development of a tax audit framework for the FBR.

The MoU was signed Friday at a ceremony attended by Federal Revenue Secretary Mr. Salman Siddique, Member (Direct Taxes) FBR, Mr. Irfan Nadeem, ICAP President Mr. Asad Ali Shah and Syed Shabbar Zaidi, Council Member & Chairman Taxation Committee.

According to the MoU to be effective from July 1, 2009, the ICAP will prepare a comprehensive tax audit framework for the conduct of ‘tax audit’ function by the FBR. The institute will also advise FBR regularly on technical matters relating to tax audit and allied subject.

The MoU, to be applied for the time being to company cases only, also calls upon ICAP to work with its members and firms to participate and collaborate in conducting the audit function. Besides, ICAP will extend all possible help in devising audit strategy and mechanism for ‘non-company cases’ for the FBR.

The MoU also allows FBR to implement the tax audit framework in consultation with the Institute in a manner fitting the national interest and in line with policies and procedures as laid down by ICAP.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 989.09 billion of revenues during the first 11 months of the current fiscal year showing increase of 15.5 per cent over corresponding period of the last year.

According to the provisional figures, the FBR has collected Rs 89.88 billion during the month of May 2009. Aggregate collection up to May 2009 thus works out to Rs 989.09 billion as against Rs 856.20 billion collected during the corresponding period of the last year.

The break-up of the tax collection figures is attached for further details.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

The Federal Board of Revenue (FBR) has extended the warehousing period and waived off surcharge on overstayed goods lying un-cleared in the warehouses.
According to press statement issued Tuesday, the measure has been taken to facilitate the trade and industry and commercial importers who have not been able to clear their goods in time on payment of duty and taxes.
FBR has also issued notification No SRO 404(I)/2009 dated 25.05.2009 whereby penal surcharge on goods not cleared for more than prescribed period has been fully waived off. The facility will remain available until June 30, 2009.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A meeting of senior officials of Federal Board of Revenue (FBR) was held Sunday to discuss strategies for achieving the budgetary targets for the current financial year ending in June.

The meeting was chaired jointly by Mr Irfan Nadeem, Member Direct Taxes, and Mr Mumtaz Haider Rizvi, Member FR&S, and attended by director generals of the Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs).

The Member Direct Taxes reviewed the performance of field formations vis-a-viz the assigned targets and discussed the potential heads of income tax collection which needed to the explored forcefully by focusing all out efforts and resources. Instructions with regard to broadening of tax base, audit and implementation of new rules were also issued. The director generals vowed to make all out efforts to achieve the budgetary targets.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A senior officer of Federal Board of Revenue (FBR) has been appointed member of the UN’s Committee of Experts on International Cooperation in Tax Matters.

Ms Farida Amjad, a BS-20 officer currently posted as chief International Taxes in the FBR House, has been appointed as member of the prestigious UN body by the Secretary General of the United Nations for a period of four years. Among other functions, the UN body also regularly reviews and updates the United Nations Model Tax Convention on Income and Capital.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click here to see Urdu Version

Federal Board of Revenue (FBR) collected Rs 898.64 billion of revenues during the first 10 months of the current fiscal year showing increase of 17.7 per cent over corresponding period of the last year.

According to the provisional figures, the FBR has collected Rs 83.53 billion during the month of April 2009. Aggregate collection up to April 2009 thus works out to Rs 898.64 billion as against Rs 763.59 billion collected during the corresponding period of the last year.

The break-up of the tax collection figures is attached for further details, Please Click Here
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of revenue (FBR) has denied reports appearing in a section of the press regarding alleged misplacement of duty drawback cheques at Customs offices in Karachi.

In an official statement issued Friday, FBR has maintained that no duty drawback cheques pertaining to members of the Pakistan Tanners Association were ever stolen or misplaced as reported at the offices of the Customs Administrative Reforms (CARE) Directorate or Pakistan Customs Computerised System Collectorate (PACCS) and consequently there was no question of
issuing duplicate cheques.

The statement further said that a key reason behind non-receipt of duty drawback cheques by the exporters was their submission of non-operational/outdated account numbers. However the system was being streamlined to ensure a smooth issuance of duty drawback cheques to the exporters and as a facilitation measure the board had decided to issue fresh cheques to reputed manufacturers-cum-exporters on undertaking the amount involved in the fresh cheques would be deducted from their future duty drawback claims in case old cheques were found encashed. The cases of duty drawback pertaining to members of Pakistan Tanners Association were also being scrutinized on these lines and they would be issued fresh cheques soon upon fulfillment of the requisite precautions.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has told the country’s steel industry withholding tax on electricity, gas and telephone bills and imports is  imposed through the Act of Parliament and the industry’s claim that it is being coerced to pay 3.5 per cent tax on their purchases is wrong.

In a press release issued on Tuesday, FBR has maintained that steel mills managed by Association of Persons (AOPs) have to withhold 3 per cent tax from payments owed to their suppliers and such withholding tax has nothing to do with the steel mills’ own liability. Steel industry has to discharge its obligations including withholding of tax from payments owed to their
suppliers, under the Income Tax Ordinance, 2001 like all other sectors. No other sector has agitated the withholding of tax on payments owed to suppliers so far.

FBR has also contended that tax withheld under section 235 of the Income Tax Ordinance 2001 constitutes discharge of final tax liability in the cases of suppliers doing business in the status of individuals and AOPs and is a measure to ensure that all supplies are brought into the tax net. Steel sector has agitated the withholding tax on suppliers without proper appreciation of legal provisions.

The FBR has further added that such issues have been discussed time and again with the representatives of steel industry and as such their demands are inadmissible under the law and cannot be accepted.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Chairman Mr Ahmad Waqar has said FBR is striving to provide a greater fiscal space to the government by improving the tax-to-GDP ratio and broadening the tax base.

Mr Waqar was addressing participants of the 90th National Management Course during their visit to the FBR House on Thursday. He said FBR had taken various steps in recent years as part of a reform process to change the image and perception of FBR, broaden tax base, rationalize tax/tariff rates, improve resource mobilization efforts, encourage voluntary compliance ,
simplify tax laws and procedures, facilitate businesses and improve efficiency, integrity and transparency.

Speaking on the occasion, Mr Irfan Nadeem, member Inland Revenue Service, said FBR was committed to enhancing the capability of the tax system to collect due taxes through application of modern techniques, providing taxpayer assistance and by creating a motivated, satisfied, dedicated and professional workforce.

He also briefed the participants on the functioning of FBR and highlighted the success of the ongoing reforms programme in achieving a greater autonomy and reorganization of FBR and its field offices on functional lines, integration of domestic taxes management, separate handling of large taxpayers, introduction of one-stop shop operation, improvement in physical infrastructure and compensation to employees.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click here to see Comparison

Federal Board of Revenue (FBR) collected Rs 810.32 billion of revenues during first nine months of the current fiscal year.

According to the provisional figures, the FBR has collected Rs 103.82 billion during the month of March 2009. Aggregate collection up to March 2009 thus works out to Rs 810.32 billion as against Rs 679.9 billion as were collected during the corresponding period of the last year.

The break-up of the tax collection figures is attached for further details.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click here to see Urdu Version

Federal Board of Revenue (FBR) has decided to launch a countrywide campaign to ensure filing of Income Tax returns in non-salary cases, says an official press statement issued here.

The decision made in the wake of a high priority being attached to the enforcement of Income Tax returns in the non-salary cases, has been conveyed to director generals of all Regional Tax Offices (RTOs) which have been directed to constitute dedicated team of officers to spearhead the campaign for persuading the non-filers to file Income Tax returns for the Tax Year
2008. Permission letters to the teams will be issued by the concerned commissioners holding charge of the broadening of tax base. The commissioners will also be responsible for the supervision and monitoring of the campaign.

The FBR has also directed the RTOs to assign the teams running the campaign specific geographical areas of their operation within the respective RTOs.

The officials have also been advised to ensure transparency and commitment during the campaign while those showing excellent results have been promised rewards under the Unified Reward Rules. The results of the campaign will be intimated by the RTOs to the Board on the last working day of every week.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has directed all its Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) to remain open on March 29, 2009 for the purpose of clearance of pending official work of the third quarter, says an official statement issued on Saturday.

According to the statement, the field formations will remain open on Sunday (tomorrow) during the routine office hours to attend to necessary official matters.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Click here to see Urdu Version

The Directorate General of Intelligence and Investigation of the Federal Board of Revenue (FBR) has foiled an attempt of smuggling a massive quantity of counterfeit cigarettes and cosmetics.

The contraband goods were confiscated by Customs officials during a raid at the Attock Check Post where a truck was intercepted following a tip-off. The raiding team led by deputy director Hasan Ali searched the vehicle and found a massive quantity of smuggled cigarettes and cosmetics stashed in different parts of the truck. Driver of the truck and others were also arrested.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has granted 100 per cent concession on payment of customs duty to goods imported from Sri Lanka under Pak-Sri Lanka Free Trade Area (PSFTA), says a press release issued here Friday.

The FBR has issued notification SRO 248 (I)/2009 whereby all goods imported under Pak-Sri Lanka Free Trade Area (PSFTA) agreement barring those mentioned in SRO 570(I)/2005 would enjoy hundred per cent reduction in custom duty.

Under the PSFTA, Pakistan was required to reduce custom duty by 100 per cent in three phases. With the issuance of the latest SRO, the third and final reduction amounting to 100 per cent has been granted to Sri Lankan goods. The concession is subject to fulfillment of rules of origin as provided under the relevant SROs and PSFTA.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 706.46 billion of revenues during the first eight months of the current fiscal year showing increase of 20.7 per cent over corresponding period of the last year.

According to the provisional figures, the FBR has collected Rs 75.98 billion during the month of February 2009. Aggregate collection up to February 2009 thus works out to Rs 706.46 billion as against Rs 585.3 billion as were collected during the corresponding period of the last year.

The break-up of the tax collection figures is attached for further details.

(Urdu version) FBR collects Rs 706.4 billion up to February 2009

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

A spokesman of the Federal Board of Revenue (FBR) has denied the contents of a news item captioned 'Rs 75bn fund in offing to bail out PSO' and appearing in a section of the press on February 15, 2009.

In a statement, the spokesman has clarified that the report has wrongly attributed the setting up of the bailout package for Pakistan State Oil to the FBR chairman Ahmad Waqar who has been quoted in the reports as having made this during a visit to Korangi Association of Trade and Industry last week. The fact is that the visit was meant to have an interactive session with the business community and the FBR chairman made no statement whatsoever with regard to setting up of a fund for PSO.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Chairman Ahmad Waqar has called for better organizational communication and an effective feedback from the employees to successfully complete the reform process under way in the FBR.

He said the FBR as an organization was at a critical juncture of the reforms process that was started five years ago and was to by the end of 2009. "We must not allow the momentum of the reforms to be lost and work as a team to end the reforms process on a successful note," he said while addressing a workshop on 'Change Management', organised by the Human Resource Wing of the FBR at a local hotel Wednesday.

Mr. Waqar called for organization of more workshops and interactive sessions for the FBR officials to better understand and review the process and benefits of effective change management and seek ways to further improve management to maximize the organizational potential.

The workshop was moderated by Mr. Alan Gilmour, a London-based HR consultant, who also spoke at length on the concept of change management. The workshop was attended by FBR members and director generals of various
Large Taxpayers' Units.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) Chairman Ahmad Waqar has vowed to move ahead with the reforms process under way in the FBR but has assuaged any apprehensions resulting out of the ongoing integration of various functions to modernize the tax administration.

"I can't take sides but I would definitely take sides with the reform process which is the key to improving revenue generation and modernizing FBR to prepare it for future challenges," he said while addressing officers of the Customs & Excise Group at Karachi.

Mr. Waqar told the officers that he understood their concerns with regard to the new administrative arrangement that had been put in place in FBR but their concerns were largely based on mere apprehensions. "The introduction of new administrative changes is an operational-cum- management step which would not jeopardize the promotion prospects, allocation of seats and career paths or discriminate officers of one group in favour of the other," he added.

However, he said the Board was committed to implementing the reforms agenda and the integration was a consistent theme that had been recommended over the years by various agencies/international bodies. The essential objective was to create a fully integrated tax administration of sales tax, excise and income tax mechanism for improving tax facilitation, removing distortions, preventing revenue leakage, broadening and widening of tax net and enhancing tax to GDP ratio.

The chairman said the setting up of Inland Revenue mechanism was just the start of a process that reflected a futuristic approach and would be completed over a period of time and inputs from all the stakeholders would be obtained for attaining the goals and achieving the objects in an effective manner.

He urged officers and staff of the FBR to stand fully behind the reforms and dedicate their energies to meet the revenue collection targets. "Put in your best and the system is ready to support you," he concluded.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has exempted from payment of withholding tax goods imported by contractors engaged in the execution of power project by the HUB Power Company Limited.

The exemption was granted through SRO 129(1)2009 issued under sub-section (2) of section 53 of the Incoem Tax Ordinance 2001 (XLIX of 2001). Previously, goods or class of goods imported by contractors or sub-contractors engaged in the execution of power project under the agreement between the government of Pakistan with HUB Power Company Limited, were exempt from the provisions of section 148 on import of such goods etc under sub-clause (i) of clause (56) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001. However, the clause (56) of Part IV of the Second Schedule was substituted vide the Finance Act, 2008, and in the substituted clause, the exemption available from WHT u/s 148 to the company was discontinued. The exemption granted to the company would continue until completion of the project as per international commitments and the agreement signed with the government.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) collected Rs 628.22 billion of revenues during first seven months of the current fiscal year showing increase of 22.6 per cent over corresponding period of the last year.
According to the provisional figures, the FBR has collected Rs 74.39 billion during the month of January 2009. Aggregate collection up to January 2009 thus works out to Rs 628.22 billion as against Rs 512.6 billion as were collected during the corresponding period of the last year. The break-up of the tax collection figures is attached for further details.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue Chairman Ahmad Waqar has called for concerted
efforts to improve revenue collection to meet targets.

"The FBR officials and staff must apply themselves to the task with professional commitment and dedication," he said in a keynote address to the 3rd meeting of the director generals of Large Taxpayers' Units (LTU)/regional tax offices (RTOs) held at Federal Board of Revenue (FBR)
here Wednesday.

The meeting was inaugurated by Chairman, FBR and attended by Mr. Irfan Nadeem, Member (Inland Revenue).

Mr. Abrar Ahmad Khan, Member (Audit), Mr. Nau Bahar Kiyani, Member (Tax Policy & Reforms) and Muhammad Anees Member (Enforcement & Accounting) also attended alongwith DG from 16 reformed units and all Chiefs/Secretaries of Income Tax Wing.

Mr. Waqar told the participants a composite audit plan of selected corporate cases would be conducted through chartered accountants and modalities in this regard are being worked out in collaboration with the Institute of Chartered Accountants of Pakistan (ICAP). He asked the director generals, LTUs/RTOs to vigorously pursue cases involving big tax evaders and
non-filers to ensure compliance with tax laws.

Earlier Member (Inland Revenue) Mr. Irfan Nadeem presented a review of the  six-monthly performance of direct taxes and urged the director generals to overcome shortfall in their targets. He also exhorted them to ensure that the audit was conducted in a fair and transparent manner without harassment of the taxpayers. He apprised the participants of the new changes made in the administrative set up of top hierarchy of FBR, which he said was aimed at achieving the desired objectives of the reform process. He informed the audience of various policy decisions including reward policy for officers and staff.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

    Government of Pakistan is committed to enhance domestic resource mobilization as part of its stabilization and reform strategy to meet the targets of sustainable growth. A key element in this regard is the establishment of a fair and efficient tax administration.

  2. FBR has been undergoing a comprehensive Program of Tax Administration Reforms. The Program aimed at restructuring of FBR on the pattern of leading modern tax administration. The Tax Reform Program envisaged a functionally integrated tax administration of sales tax, federal excises and direct taxes. The key element was to facilitate the taxpayers by providing universal self-assessment across all taxes. It would not be possible to implement the system effectively without having a functionally designed tax administration. The FBR continued to operate in separate domains of Direct Taxes and Sales Tax / Federal Excises with partial design adjustments at Headquarters and field formations.

   3. Accordingly, the tax administrations of direct tax, sales tax and federal excise have been integrated into a single position of Inland Revenue headed by a single Member. He is responsible for all field operations at the Regional Tax Offices and Large Taxpayers Units across the country. This step is intended to facilitate taxpayers by creating a single window access and aligning all business processes to promote a tax compliant culture.

   4. In addition, a new support function of enforcement & accounting has been introduced in the functional design which is to be administered by a separate Member. At the same time the taxpayers’ audit has also been entrusted to an independent Member separating it from the internal audit function.

Related Notifications:

1. The post of Member (Direct Taxes) is re-designated asMember (Inland Revenue).

2. Re-designation of Member (ST/FE) &Member (HRM)

3. Re-designation of Member (IMS), Member(Audit) and Chief (ST&FE-I)

4. Member (Inland Revenue)
    

- Signed-
(Mahmood Alam)
Member. FATE / Official Spokesman, FBR
 

FBR collects Rs 543.3b for July-December 2008 period; tax collections for December 2008 touch Rs 114.2b

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

FBR issues notices to corporate bodies on failure to file returns

Federal Board of Revenue (FBR) has issued notices to those corporate entities that have failed to file income tax returns, says a press release issued Friday.

According to the statement, the FBR has also decided to issue in the next phase similar notices to non-corporate entities which have not filed their income tax returns.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

FBR nets Rs 1.54b from tax investment scheme

Federal Board of Revenue (FBR) has collected Rs 1.54 billion from the tax investment scheme announced in July this year, says a press statement issued Thursday.

According to details, some 10,828 cases seeking to benefit from the scheme were received by FBR until December 31, 2008, the last day of the scheme, and were settled after netting Rs 1,542 million as tax equaling two per cent of the fair market value of their assets.

The scheme was run by the 16 regional tax offices and large tax payers units of the FBR and received a record 4,114 cases from the RTO Lahore followed by 1,861 cases received in RTO Karachi. The break-up of the collection is also attached for further details.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

No plans to slash tax exemptions on food, medicines, says FBR

Federal Board of Revenue (FBR) while clarifying a news item appearing in a section of the press attributing a statement to Chairman FBR in the context of tax exemptions has stated that what the Chairman had mentioned six days earlier has been quoted totally out of context.

In an official statement, FBR has clarified that the news item is essentially based on an earlier news report published in a section of the press on 26th December, 2008 on the issue in which the Chairman FBR has been quoted as having said, “Exemptions as policy are not good for the economy. Wherever exemptions are in vogue, the economy does not show healthy trends in progress, administration and policy-enforcement.”

The Chairman’s statement even though quoted not accurately nowhere implies that the Government intends to remove tax exemptions on food items and medicines. Similarly, the fact that “as food and medicines” has been bracketed in the latest news report clearly shows reporter’s own inference and interpretation which cannot be attributed to the FBR Chairman.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

No further extension of tax investment scheme after 31st, says FBR

Federal Board of Revenue (FBR) has announced there will be no extension of period already given up to December 31, 2008 for the filing of returns for investment tax scheme announced in July this year.

In a statement issued on Friday, FBR's member Direct Taxes said the board had decided not to extend the last date of December 31, 2008 for those wanting to apply for the tax investment scheme whereby individuals can declare their undeclared assets by paying only two per cent of the fair market value of their assets.

Similarly, there would be no extension of date for the e-filing of income tax returns for the corporate sector. He said the taxpayers seeking to file their income tax returns in the corporate sector must use e-filing mode and the last date for them to do so will not be extended beyond December 31, 2008.

The member called for an early e-filing of returns by taxpayers to avoid any punitive measures the board might consider taking against those failing to benefit from the scheme. He said the FBR was in possession of sufficient information and relevant data to trace up those who would not avail of the tax amnesty facility offered by the FBR.

 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Federal Board of Revenue (FBR) has refuted a news item appearing in a section of the press claiming the board has held up duty drawback and sales tax refunds payable to the exporters.

In an official statement issued on Wednesday, FBR has clarified that the contents of the news item are not based on facts and there is no truth in the suspension as reported by the press, of the processing or payment of admissible drawback and refund claims.

The statement adds that in the first five months of the current financial year, an amount of Rs 15.45 billion has already been paid to the exporters as duty drawback and sales tax refunds, as against Rs 14.36 billion during the corresponding period of the previous year. Similarly, inputs used in five major export oriented sectors have already been zero rated for sales tax purpose. Sales Tax refunds relating to exporters of these sectors have also declined accordingly.

The statement also adds that FBR's measure of universal e-filing of sales tax returns will lead to further acceleration of processing of refund claims. Furthermore, the board is already in the process of devising automated system for expeditious disposal of refund claims pertaining to packing material used in exports by zero rated sectors. For boosting exports, FBR has often directed its field formations to extend maximum facilitation to exporters, including a quick and expeditious processing and payment of pending duty drawback and refund claims.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

Customs houses to remain open on 25th, 28th for clearance of imports, exports

Federal Board of Revenue (FBR) has directed all its customs houses and field formations to remain open on December 25th and December 28th, 2008 for the purpose of clearance of imports and exports, says an official statement issued on Tuesday.

According to the statement, chief collector (customs) North Lahore and chief collector (customs) south Karachi have also been directed to coordinate with the National Bank of Pakistan management and the port authorities to ensure the clearance of imports and exports.

Meanwhile, Irfan Nadeem, member Direct Taxes, has made it clear there would be no extension of date for the e-filing of income tax returns for the corporate sector. He said the taxpayers seeking to file their income tax returns in the corporate sector must use e-filing mode and the last date for them to do so will not be extended beyond December 31, 2008.

Similarly, the board has decided not to extend the last date of December 31, 2008 for those wanting to apply for the tax investment scheme whereby individuals can declare their undeclared assets by paying only two per cent of the fair market value of their assets, added Mr. Nadeem. He said already sufficient length of time had been given to people wanting to benefit from
the tax investment scheme which would expire by the end of the current month.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

FBR extends date for filing of ST, FE returns

Federal Board of Revenue (FBR) has extended the due date for the filing of sales tax and federal excise return by the registered persons, for the period of Novemeber 2008.

According to an official statement released on Tuesday, the board has extended until December 25, 2008 the due date for filing of sales tax and federal excise return of the tax period November 2008 for the registered persons who had not been able to deposit payment by the stipulated date.

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) is holding an international 'Conference on Tax Policy Options for Pakistan' starting in Lahore tomorrow (Wednesday) to identify and generate concrete implementable tax policy options for achieving the broad micro and macroeconomic objectives.

The three-day conference being organised at a local hotel in the Punjab metropolis will focus on various issues, including the overall macroeconomic constraints, current revenue administration, assessment of main taxes, sub-national taxation and political economy of inter-governmental reforms.

The opening session of the conference will be chaired by Advisor to the Prime Minister on Finance, Mr. Shaukat Tareen who will also deliver a keynote address on the government's efforts to enhance domestic resource mobilization as part of its stabilization and reform strategy to meet the targets of sustainable growth in the medium term.

The morning session will also be addressed by FBR Chairman Mr. Ahmad Waqar who is likely to speak on FBR's endeavours for the establishment of a fair and efficient tax administration promoting investment and production incentives and raising sufficient revenues for the development and poverty reduction programmes of the government.

According to an official statement of the FBR, the conference to be attended by leading national and international experts, aims at engaging technical input and participation of the business community and stakeholders in the policymaking process.
 

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407

LTU Islamabad to hold workshop on withholding taxes

For Urdu Version Please Click Here

The Large Taxpayers Unit (LTU) Islamabad of the Federal Board of Revenue (FBR) will organise a one-day workshop on 'Withholding taxes (WHT)' on Wednesday (tomorrow) at the Institute of Chartered Accountants of Pakistan (ICAP).

The workshop to be attended by senior officers of the FBR, LTU Islamabad as well as regional tax offices of the twin cities, will start at 2:00pm at the ICAP located at Plot No 2, Mauve Area, G-10/4 Islamabad, and discuss issues pertaining to the monitoring of withholding taxes.

The main feature of the workshop will be a keynote address to be delivered by Muhammad Anwar Goraya, director general of Withholding Taxes FBR, on 'collection and deduction of withholding tax at source'. Khawar Khurshid Butt, director general of the LTU Islamabad, will chair the workshop.

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) has collected Rs 423 billion revenue during the first five months of the current fiscal year, showing a corresponding increase of 24.4 per cent, says a press release issued by the FBR on Tuesday.

According to the provisional figures, the FBR has collected Rs 68.73 billion for the month of November 2008, taking the overall collection figures to Rs 423 billion as against Rs 340 billion collected during the corresponding period last year.

Click here to see break-up of the tax collection figures.

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) has assured the large taxpayers against any punitive measures for delays caused by a systemic failure.
“Clear instructions have been passed on to officers concerned to consider genuine grievances of taxpayers and give them all possible help and relief,” said Mr. Khawar Khurshid Butt, director general of Large Taxpayers Unit Islamabad, in a keynote address to a one-day workshop organized by the LTU to discuss issues pertaining to electronic filing of various documents for efficient disposal of tax matters.
The DG said bigger players in the national economy had critical role to play in setting examples of excellence in the business ethics. He said FBR understood the value and benefits of interaction and sharing of information to deepen the confidence level and evoke voluntary compliance to promote corporate social responsibility.
Mr. Butt assured his sustained support to taxpayers in the process of transformation from manual to electronic mode for the purpose of tax matters. He said the workshop has been organized to provide on-hand guidance to the representatives of various companies facing problems in e-filing their annual or monthly withholding statements, copies of audited accounts and other such annexure that under law are required by the tax authorities.
Earlier, Mr. Imtiaz Ahmad Khan, general manager of Pakistan Revenue Automation Limited (PRAL), gave a detailed presentation on the technical aspects of e-filing and pointed out the causes of possible interruptions during the processing of data uploading. He also answered the queries of the representatives and consultants of large tax payers.
A large number of companies attended the event and appreciated the initiative of LTU to facilitate the tax payers. Mr. Hafiz Idress of Rawalpindi Tax Bar said such interfacing and guidance from the FBR is of paramount importance for improving the compliance of tax payers under the modernized system and to keep pace with the technological advancement across the globe.
Mrs. Riffat Shaheen Qazi, commissioner Enforcement Division of LTU, commended her team for organizing the workshop. Sardar Ali Khawja, additional commissioner Enforcement, while moderating the workshop gave an overview of FBR’s efforts to facilitate taxpayers by transforming the system from manual to electronic.
During the question answer session, various representatives of companies gave their valuable input that was noted down by the PRAL to improvise the soft ware for better results and efficient delivery.
 

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407
 

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) has denied contents of a news item appearing in a section of the press claiming the FBR has plans to arrest, jail and take similar stern steps against those guilty of holding black money even after the expiry of the tax investment scheme launched by the FBR.

A spokesman of the FBR has clarified that sections of the report as it has appeared in the media are misleading and contain attributions out of context. "There is no truth in such reports and the FBR has yet to decide about the measures to be taken against those failing to benefit from the ongoing tax investment scheme," says the statement.

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407

For Urdu Version Please Click Here

Customs officials have seized charas and opium weighing 372 kgs and taken possession of a truck being used to smuggle the drugs from Peshawar into Punjab, says a press statement issued on Wednesday.

The raid was conducted by officials of the Directorate General Intelligence and Investigation of the FBR following a tip-off about an attempt to smuggle a massive quantity of drugs from Peshawar to Punjab by truck No RIH-1396.

The officials set up a picket close to Ring Road Peshawar and tried to intercept the truck when it approached them. However, the driver of the truck sped away. The officials chased the truck and found it abandoned on the GT Road with the driver having escaped. The officials searched the truck and recovered 350 kgs of foreign origin charas and 22 kgs of foreign origin opium.
 

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) will organize tomorrow (Thursday) a workshop to provide assistance and guidance to large taxpayers on filing their IT returns and withholding statements through e-filing.
The one-day workshop is being organized by Large Taxpayers Unit (LTU) Islamabad at the Directorate of Training (Direct Taxes) Huzaifa Centre, I-8 Markaz, Islamabad. Noted IT experts from FBR and other organisations will address the workshop on issues regarding different benefits and processes of e-filing.
FBR has invited large taxpayers, especially those facing problems and constraints with regard to e-filing of their returns and statements, to attend the workshop to share their experiences with the IT experts with a view to seeking their guidance. Those interested in attending the workshop can give their suggestions and input on e-filing in advance to Mr. Sardar Ali Khawaja, Additional Commissioner Enforcement, LTU, Huzaifa Centre, I-8 Markaz, Islamabad on phone 051-9258562, fax 051-9258560 and email ltuisbenf@gmail.com.
 

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407

For Urdu Version Please Click Here

Pakistan and the Swiss Confederation have signed a treaty for the avoidance of double taxation previously payable on the income of residents and businessmen of the countries. Tax officials of both the countries Monday met here in Islamabad to exchange the necessary Instrument of Intent to bring into force the revised Convention for Avoidance of Double Taxation. The two sides were led by Swiss Ambassador to Pakistan, Mr. Markus Peter, from the Swiss Confederation and
Mr. Ahmad Waqar, Secretary Revenue Division and Chairman FBR, from Pakistan.

Addressing a ceremony held at the FBR Headquarters for the exchange of Instrument of Intent, Mr. Irfan Nadeem, Member Direct Taxes FBR, welcomed the Swiss ambassador and explained the main features of the revised Convention.

According to the revised Convention, dividend in case of companies having 20 per cent share will be taxed at 10 per cent, and all other cases will be taxed at 20 per cent in the source country. Similarly, interest income may also be taxed in the contracting state in which it arises at 10 per cent of the gross amount.

The Convention further stipulates royalty in the source country to be taxed at 10 per cent; fee for technical services to be taxable at 10 per cent in the source country; and grant of exemption to students on remuneration from the employment which does not exceed 18,000 Swiss francs or the equivalent thereof in Pakistan currency at the official rate of exchange.
   
Speaking on the occasion, Mr. Ahmad Waqar, Secretary Revenue Division, hailed the revised Convention as the necessary step towards providing safeguards against double taxation on the income of the residents of both the countries as well as promoting economic cooperation, investment and bilateral economic relations between the contracting States.

He said the Convention will also provide adequate certainty in respect of taxation rules applicable to cross-border business transactions, dividends, interests, royalties and fee for technical services etc. Taxpayers of both the countries will get relief from double taxation resulting in boosting up the trading activities.

Swiss Ambassador Mr. Markus Peter thanked FBR officials for the warm welcome and expressed hope that the new Convention will be a significant step in improving the bilateral taxation relations between the two countries.

Hamid Raza Wattoo
Secretary (PR)
Ph: 051-920 8407
Fax: 051-920 8407

FBR has surpassed the revenue target of Rs 134.8 billion, fixed for July -August 2008-09. The provisional tax collection indicates a cumulative growth of 25.7%. The net collection during the period has been Rs 139.7 billion as against Rs 111.1 billion during the same period of last year. The revenue on account of direct taxes has shown a healthy increase of 29.1% by collecting Rs 37.6 billion against Rs 29.1 billion. The sales tax collection has reached to Rs. 65.4 billion against Rs 55.1 billion, indicating a growth of 18.8%. The tax receipts on account of federal excise have registered a growth of 74.4%, during the period under review. The collection has reached to Rs 14.7 billion as against Rs 8.4 billion in the corresponding period of last year. Finally revenue from Customs duties has increased by 19.0% over the corresponding period of last year. The net collection has been Rs. 22 billion against Rs 18.5 billion last year.

Provisional collection during the month of August 2008 indicates that an amount of Rs 66.9 billion has been collected. Of the total taxes, direct taxes has collected Rs 18.9 billion, sales tax Rs 31.9 billion, federal excise Rs 6.5 billion and Customs duty Rs 9.6 billion.

It may be added that the figures are provisional and likely to increase further at the time of finalization.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

 Federal Board of Revenue has further extended the date for online submission of Sales Tax and Federal Excise Return for the tax period July, 2008 up to 5th September, 2008, by issuing Sales Tax Circular No. 07/2008 dated 30th August 2008. However, the last date for payment of due taxes shall remain unchanged at 20th August, 2008 as extended vide Sales Tax Circular no. 05/2008 dated 16.08.2008.

It is also clarified that no further extension for the aforesaid tax period shall be allowed. Therefore, the taxpayers are requested to avail this last extension and file the returns by the 5th September, 2008.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Federal Board of Revenue has issued a Notification (Income Tax) / SRO 895 (1)/2008, on 27th August, 2008. Following are its explanatory notes:

This SRO is being issued in consequent to the introduction of a new provision in the Income Tax Ordinance, 2001 through Finance Act, 2008 which has given powers to the Commissioner to require any person to install and use an electronic tax register of such type and description as may be prescribed for the purpose of storing and accessing information regarding any transaction that has a bearing on the tax liability of such person. This provision of law is an importance step towards the documentation our economy and now the sale transactions of big retailers and whole sellers may be audited for the taxation of their income. This provision will not only help to assess the real tax liability of a person but will also reduce the discretion of the department which may be used for assessing such sale transactions by bald estimation.

For the above purpose operational legal provisions were also required which have been incorporated in the income Tax Rules, 2002 through the above SRO prescribing the modus operandi of installation, use, identification number, maintenance, and inspection by the tax authority of the Electronic Tax Register (ETR).
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Federal Government has exempted 5% customs duty on import of mineral oil by persons registered with Plant Protection Department as importer, formulator or manufacturer of pesticides, if imported by October, 2008, by issuing Notification (Customs) / SRO 892(I)/2008 dated 27th August, 2008 amending SRO 567(I)/2006 dated 05-06-2006 for its use as an adjuvant for the effective control of attack of Mealy Bug on cotton crop.

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Federal Board of Revenue has issued two Notifications (Sales Tax) / SROs 894 & 897 (1)/2008, first on 25th and second on 27th August, 2008, respectively.

Explanatory notes for SRO 894 (1)/2008 dated 25th August, 2008, are as under:

Acrylic polymer in primary form was zero-rated vide SRO 509(I)/2007 dated 09.06.2007. However, its PCT heading was mentioned as 3906.9080 instead of 3906.9090. The mistake was rectified vide SRO 538(I)/2008 dated 11.06.2008. Now this correction has been given retrospective effect vide SRO 894(I)/2008 dated 25.08.2008 for the benefit of general public.

Explanatory notes for SRO 897(I)/2008 dated 27th August, 2008, are as follows:

In order to reduce input cost of agriculture products, the ECC recommended removal of customs, sales tax and income tax on mineral oil in its meeting dated 15.07.2008. Accordingly, sales tax exemption has been granted to importers of mineral oil not exceeding 250 tons for manufacture of pesticides subject to a certification by Plant Protection Department.

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Response of business community to FBR’s landmark decision of mandatory electronic filing of Sales Tax Returns has been excellent. The measure aims at requiring the registered persons to file their declarations electronically at FBR’s website, without going through the hassle of making long queues in front of banks for paying sales tax and submitting the returns. For creating awareness about the smooth implementation of the e-filing, FBR conducted seminars in all the major cities, in coordination with representative trade bodies. Alive to the fact that initial phase of such a remarkable step towards automation would entail problems of comprehension and awareness, FBR adopted a proactive approach at the highest level for redressal of problems and removal of difficulties. For this purpose, Member (Sales Tax & FE) Mr. Abdul Wadood Khan visited the offices of FPCCI Karachi, LCCI, Faisalabad Textile Export Association, tax bodies and different RTOs at Lahore last week to ascertain from the taxpayers the problems being faced by them with a view to taking corrective action. The salient features of the scheme were explained and the leaders of the business community were asked to provide list of registered persons facing hardship in e-filing so that difficulties, if any, are removed forthwith.

The business community and the e-Intermediaries have shown an overwhelming response and so far 44,309 taxpayers have obtained e-Enrollment at FBR Portal and 32,296 taxpayers have filed their Sales Tax Returns electronically from their offices/ homes using internet. All remaining taxpayers are either in the process of e-enrollment or preparation of electronic returns.

For providing telephonic help in using the system a contact centre, which operates round the clock (24 Hrs), is also established at (051) 111-772-772. The taxpayers are also provided assistance through e-Mails which are received at eSupport@pral.com.pk. For those taxpayers who have difficulty in working on the eFBR Portal due to internet or power problem, FBR has established self service Kiosks and operator assisted help desks in the Regional Tax Offices. In addition to the arrangements described above, a data centre with high speed bandwidth of internet has been established with an adequate setup of computer equipment to handle the e-filing. The high speed band width arranged by is expanded automatically on need basis; where as the maximum bandwidth utilized by the taxpayers during this month is 40 Mbps.

Keeping in view the learning curve of taxpayers and large scale change management from paper based filing of returns to e-Filing, FBR has extended the last date of e-Filing of sales Tax returns to 31st August 2008.
 

(Muhammad Hafeez Mughal)
Secretary (PR)

The Federal Board of Revenue has extended the date for online submission of Sales Tax and Federal Excise Return for the tax period July, 2008 up to 31st August, 2008, by issuing Sales Tax Circular no. 06/2008 dated 25th August 2008. However, the last date for payment of due taxes shall remain unchanged at 20th August, 2008 as extended vide Sales Tax Circular no. 05/2008 dated 16.08.2008.

-Sd-
(Abdul Hameed Memon)
Secretary (ST&FE-L&P)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

The Board has extended the due date for the payment of Sales Tax and Federal Excise Duty for the tax period July, 2008 upto 20th August, 2008 in order to facilitate taxpayers who faced difficulties in e-filling their Sales Tax and Federal Excise Returns.
 

(AFTAB AHMAD BHATTI)
Second Secretary (STM)

FBR CHAIRMAN EMPHAISES CLEARANCE OF PENDING REFUND CASES ON PRIORITY BASIS
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-

(Muhammad Hafeez Mughal)

Secretary (PR)

It has been made mandatory for all Sales Tax and Federal Excise registered persons to file all their returns electronically. A series of workshops/ seminars were planned to educate the taxpayers and consultants about the process of e-filing and these were also advertised in newspapers. The schedule of one such workshop, which was earlier planned to be held on Tuesday, 12th August, 2008, at Karachi Chamber of Commerce and Industry, has been changed. This workshop shall now be held on Monday, 11th August 2008, at 3.00 pm at Karachi Chamber of Commerce and Industry. All taxpayers/ consultants are requested to attend.
 

-Sd-
(Mujeeb-ur-Rehman Talpur)
Second Secretary (PR)

-Sd-

(Muhammad Irshad)

Chief (FATE) FBR.
 

 Sd-
(Khawar Khurshid Butt)
Member FATE / Official Spokesman, FBR

 Sd-
(Khawar Khurshid Butt)
Member FATE / Official Spokesman, FBR

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Chairman, Federal Board of Revenue and Secretary, Revenue Division, Mr. Ahmed Waqar called upon the tax machinery to gear up its efforts to improve tax-to-GDP ratio which at present was not upto the reasonable level and low even in the region.

He was addressing the senior officers of the Board at the FBR Headquarters here today.

In this regard, the Chairman directed the technical wings of FBR to study and identify the grey areas which need to be tackled effectively. "We have to improve our tax-to-GDP ratio and broaden the tax base to enable FBR to play its due role in economic development of the country", he added.

On public perception of FBR and its field offices, the Chairman stated that every possible step including improvement in the existing automated systems will be taken to root out corruption. "No compromise will be made on this issue. We have to improve our image in public," he categorically told the officials. Mr. Ahmed Waqar said that he was in favour of enforcement of tax laws but without harassment of the taxpayers.

Underlining the improvement in Board's performance, the Chairman emphasised the need to adhere to strict discipline among the FBR workforce to considerably enhance its performance and improve the image of the department amongst the stakeholders.

Chairman said that although revenue collection target of Rs. 1250 billion for current fiscal year was challenging but it will, Inshallah, be achieved with the team spirit. He told the officials that he was a pro-reforms person and played his due role in this regard wherever he served. He said that he was a strong believer of change as he believes that status-quo was not good for any institution and reforms were necessary for betterment.

Earlier, Member (FATE) & Official Spokesman of FBR, Mr. Khawar Khurshid Butt, welcomed Mr. Ahmed Waqar, on behalf of the officers of FBR & on his own behalf, on assuming the office of the Chairman and assured him all cooperation in discharging of his official duties. He also lauded the services of the out-going Chairman, Mr. M. Abdullah Yusuf during his four and a half year stay and especially for initiating the difficult task of tax administration reforms. He expressed the hope that under the able guidance of the new Chairman, FBR reforms will be completed successfully within the stipulated time.

Member (DT), Member (Customs) & Member (ST) also briefly explained to the new Chairman about their respective Wings. It was decided that detailed representations will be made by each Member separately in the next two days.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Pakistan source income of International Finance Corporation (IFC) was exempt from tax in accordance with the provisions of proviso to section 54 of the Income Tax Ordinance, 2001. The said proviso was omitted wide the Finance Act, 2008. IFC, accordingly approached the Federal Government and claimed that in view of the agreement of 1955 and the IFC Act, 1956, the Pakistan source income of IFC is exempt from tax. The claim has been considered and found correct, accordingly, Part I of the Second Schedule to the Income Tax Ordinance, 2001 has been amended and a new sub-clause (xxi) in clause (66) has been inserted therein which exempts, any Pakistan source income of the IFC. Like-wise, a new clause i.e. (67) has been inserted in Part IV of the Second Schedule to the Ordinance which provides that IFC would not be required to withhold tax while making any payment under the different sections of the Ordinance.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Secretary General, Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf has called for efficient use of modern technology for more revenue generation, enhancing tax-to-GDP ratio and expanding the tax base.

He was addressing the Workshop on Management Automation Projects held at the FBR Headquarters today. Among others, officers dealing with the automation work at field offices of FBR attended the Workshop.

Chairman stressed upon the officers to equip themselves with latest techniques and technologies. "This organisation has great potential. Once you are fully equipped with modern knowledge, techniques and technology, then it would not be difficult to achieve the desired results", he added. He was of the opinion that as an institution or country, we have to go for a better change. No country or organisation can grow and progress if it remains stagnant. We have to change ourselves with this rapid changing world to face the challenges of modern times, he opined.

Chairman said that although we were happy to cross the psychological barrier of Rs. One trillion in revenue collection in last fiscal year (2007-08) but, according to his judgement, still there was a gap of Rs. 400 bn to Rs. 500 billion exists today. This gap cannot be bridged until and unless we enhance our tax-to-GDP ratio from existing 11% to 15 / 16%. Its not impossible provided we have the will, commitment and tools to do it, Mr. Abdullah Yusuf observed. He, however, said that despite all constraints, handicaps and non-availability of necessary tools we have been able to expand our tax base in last four years form one million to 2.2 million taxpayers at the growth rate of 20% per annum.

Similarly, we have been able to enhance the revenue collection at an average of about 18% per annum. "This is good & fine but, we have to plug the existing gap". In next seven years, we have to achieve the target of 15 /16% tax-to-GDP ratio with an annual growth of atleast 0.5 %, the Secretary General added.

Commenting on the on-going automation projects, Mr. Abdullah Yusuf said that we have to realise the dream of making FBR a totally paperless organisation.

He asked the relevant officers and officials to make all possible efforts to achieve this goal.

On the occasion, the Chairman reminded FBR employees of their responsibilities towards making FBR a most progressive and efficient organisation. He added that the special treatment being given to FBR employees, in perks and privileges, by the Government was not for all times to come " We have to prove through our actions and achievements that we fully deserve for this treatment," he remarked.

Earlier, in his welcome address, Director (Projects), FBR, Mr. Muhammad Asghar Chaudhry informed that currently four pilot automation projects were in the process of development and implementation. They are; "Human Resource Management Solution (HRMS)" "Electronic Correspondence Management System (e-Dox),' "Budget & Accounts/Inventory Management System- SAP" and "e-Archiving." All these projects are at different stages of implementation at FBR Headquarters. After their completion, they will be replicated in the field offices of the Board, Mr. Chaudhry added. He said that these systems will bring transparency and efficiency in the overall administration and management system of the Board.

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

 
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.
 

-Sd-

(Muhammad Hafeez Mughal)

Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

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.
 

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:

• 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.

• 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.

• 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:

       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.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

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.

- Signed-
(Khawar Khurshid Butt)
Member. FATE / Official Spokesman, FBR

-Sd-
Usman Khalid Mirza
Member (Direct Taxes)

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.

-Sd-
(Khawar Khurshid Butt)
Member (FATE)
Official Spokesman of Federal Board of Revenue
Dated: 02-06-2008

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

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 15^th May to 20^th May, 2008, for registered persons falling in the jurisdiction of Large Taxpayers Unit, Karachi.

-Sd-
(Hameed Memon)
Secretary ST-L&P FBR

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.

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-sd-
Mehmood Alam
Additional Secretary

-sd-
Mehmood Alam
Additional Secretary

-Sd-
( Khawar Khurshid Butt )
Member (FATE)
Official Spokesman of
Federal Board of Revenue

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

 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)

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

-Sd-
Rizwan Salabat
Second Secretary Tariff
(ST 7 FE)

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)

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)

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)

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.

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)

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

sd-
Usman Khalid Mirza
Additional Secretary

sd-
Asif Abbas
Second Secretary (ST-Budget)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

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

Sd-
( Khawar Khurshid Butt )
Member (FATE)

SD-
(Asif Abbas)
Second Secretary (ST-Budget)

-Sd-
(Kahlid Mahmood)
Second Secretary (Export Policy)

Sd-
(Kahlid Mahmood)
Second Secretary (Export Policy)

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.

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Hameed Memon)
Secretary

-Sd-
(Hameed Memon)
Secretary

-Sd-
(Hameed Memon)
Secretary

PRESS RELEASE

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

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:

• Online Leave requests receiving from field, its approvals in FBR management and electronic notification on web.

• Online NOC for trainings/visits abroad, processing and its communication through e-mail

• Online access to Charge assumption and automatic data updation in the system

• Updation of employees records and their profiles by field offices including discipline and other issues,

• Online access to employees to register their grievances against the Board

• 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.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Sd-
(Mehmood Alam)
Additional Secretary

Sd-
(Abdul Hameed Memon)
Secretary

Sd-
(Ahmad Rauf)
Secretary

Sd-
(Khawar Khurshid Butt))
Member (FATE)

Sd-
(Usman Khalid Mirza)
Additional Secretary

Sd-
(Usman Khalid Mirza)
Additional Secretary

Sd-
(Asif Abbas)
Second Secretary

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:

• Online Leave requests receiving from field, its approvals in FBR management and electronic notification on web.

• Online NOC for trainings/visits abroad, processing and its communication through e-mail

• Online access to Charge assumption and automatic data updation in the system

• Updation of employees records and their profiles by field offices including discipline and other issues,

• Online access to employees to register their grievances against the Board

• All employees' related notification are placed on FBR website

Speaking on the occasion, Mr. Abdullah Yusuf told that FBR is a leading public sector organisation, 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 tem 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.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Sd-
(Mehmood Alam)
Additional Secretary

Sd-
(Abdul Hameed Memon)
Secretary

Sd-
(Ahmad Rauf)
Secretary

Sd-
(Khawar Khurshid Butt))
Member (FATE)

Sd-
(Usman Khalid Mirza)
Additional Secretary

Sd-
(Usman Khalid Mirza)
Additional Secretary

Sd-
(Asif Abbas)
Second Secretary

Sd-
(Abdul Hameed Memon)
Secretary

Sd-
(Abdul Hameed Memon)
Secretary

-Sd-
(Abdul Hameed Memon)
Secretary

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Secretary General, Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf has said that the total involvement and commitment of FBR employees were required to execute the on-going Tax Administration Reforms Programme (TARP) and Tax Policy Programme with a complete success.

He was addressing at the first-ever "Employees Workshop" arranged by the Board here today. All officers/officials of FBR Headquarters attended the Workshop. Similar employees workshops are also planned at Lahore, Karachi and Rawalpindi.

Chairman said that all officers/officials have to make determined efforts to make FBR an institution of international standard that could facilitate the taxpayers and deliver to the needs of the Government. Besides facilitation and education of taxpayers, the major focus of the programme was on training & re-training of the employees, end-to-end solution of the problems through automation and infrastructural development. A considerable progress has already been made in this regard, Mr. Yusuf said and added, we have to make the things easy for the taxpayers and improve the efficiency, capability and working environment of our employees to enable them to give better results. He said that the infrastructural facilities and working environment provided at Regional Tax Offices (RTOs) were comparable to any of the tax institution in the developed countries. To incentives the FBR employees, Government has increased their wages. Now, the concept of living wages exists in FBR. But, the Chairman said, we now have to prove and justify this special treatment through our efficiency, performance and results.
Chairman informed that out of 25,000 employees of FBR and its field offices, 16,500 have already been granted special pay position (double salary). The Chairman also underlined various on-going projects of infrastructural development which include building of an additional block of FBR with a total cost of Rs. 230 million.
The Chairman apprised that FBR is in the process of acquiring a piece of land measures 200/300 areas for employees residential accommodation to alleviate their housing problems.
On establishment of FBR Foundation, Mr. Abdullah Yusuf said that the primary objective of this Foundation was the welfare of employees and to look-after their housing, educational and health needs. He said, the Foundation will be fully operative by the end of the current calendar year. He termed the setting up of Foundation as a major achievement. He also mentioned various other steps taken by the Board for the welfare of its employees and streamling their office duties.
Speaking on the prevailing security environment, the Secretary General told that the security of the employees and the office buildings was being ensured through a system. For disposal of disciplinary cases, a Committee has been constituted which has been assigned the task to settle all the cases as early as possible.
Talking about the transformation of CBR into FBR, the Chairman said that it was not simply change of the nomenclature but much more than that. "It now gives us much greater autonomy which would help us to grow at a faster pace and become an institution capable to deliver as a prime revenue generating agency of the country", he added. He said, the autonomy which FBR enjoys today was never available before in the history of the Board.
Regarding his decision to set up Complaint/Suggestion Cell, the Chairman said the objective of its establishment was to personally have knowledge of the problems of the employees. Any aggrieved staff member of FBR may avail this facility, the Chairman said. He assured the employees that all of their genuine problems will be addressed.
Later, an open question-answer session was held in which the employees of FBR apprised the Chairman of their service/promotional issues, distribution of official work and the training needs.

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)

Sd-
(Khalid Mahmood)
Second Secretary

Sd-
(Abdul Hameed Memon)
Secretary

Sd-
(Muhammad Hafeez Mughal)
Secretary (PR)