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8th July, 2008 PRESS RELEASE

 
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)


4th July, 2008 EXPLANATORY NOTES FOR S.R.O. 713(I)/2008

Federal Board of Revenue has issued Notification (Sales Tax) / S.R.O. 713 (1)/2008 dated 3rd July, 2008. The said Notification has amended S.R.O. 647(I)/2007 dated 27th June 2007, which provides exclusions to certain sectors from the limitation as prescribed in section 8B of the Sales Tax Act, 1990. The sectors specified in the S.R.O. are not subject to limitation of input tax adjustment to the extent of 90% of output tax. Presently, following sectors are given this benefit under S.R.O. 647(I)/2007:

 

1.

Persons registered in electrical energy sector.

2.

Oil marketing companies and petroleum refineries.

3.

Fertilizers manufacturers.

4.

Manufacturers consuming raw materials chargeable to sales tax at the rate of 18.5% or 21% provided value of such raw materials exceeds 50% of value of all taxable purchases in a tax period.

5.

Wholesalers-cum-retailers operating in Chapter XII of the Sales Tax Special Procedures Rules, 2007.

6.

Commercial importers provided the value of imports subjected to 2% value addition tax under Chapter X of the Sales Tax Special Procedures Rules, 2007, exceeds 50% of value of all taxable purchases in a tax period.

7.

Person making zero-rated supplies provided value of such supplies exceeds 50% of value of all taxable supplies in a tax period.

 

Through amendment by S.R.O. 713(I)/2008, following sectors have been added to the existing list:

8.

   Distributors and wholesalers.

9.

   Gas distribution companies.

10.

   Solvent extracting units of edible oils.

 

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


1st July, 2008 Explanatory notes for SRO 695(1)/2008 dated 26-06-2008
1. This SRO has been issued to reduce the pressure from e-portal and also to provide reasonable time to the taxpayers to file their Income Tax withholding statements. Earlier to this there was a same date for e-filing of monthly return of Sales tax as well as Income Tax Withholding statement and it used to slow down the whole process on e-portal on the last dates. Through SRO No.353 dated 03-04-2008, the last date of filing of withholding statement was changed to 10th of each month. But it created problem for the taxpayers as the time available to file their Income Tax withholding statement was too short. Hence the present SRO has now prescribed the new date for filing withholding statement for Income Tax as 20th of each month. The change in date of Income Tax withholding statement will ease the pressure on e-portal facilitating the taxpayer.

2. A further change has been brought and now e-filing has been made mandatory for Non-Resident ship owner and air craft owner or Charterer thereof. Both these provisions will be applicable w.e.f 1st July, 2008.

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


1st July, 2008 VIDEO/PICTORIAL COVERAGE OF FBR CHAIRMAN'S PRESS CONFERENCE
Secretary General, Revenue Division/Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf addressing a Press Conference on 2nd July, 2008 (Wednesday) at Conference Room, 3rd Floor, FBR Headquarters, Constitution Avenue, Islamabad at 4.00 p.m.

The Chairman will apprise the media about revenue collection achievements of FBR during the financial year 2007-08, ended last mid-night. He will also respond to the queries, if any, about the taxation measures, announced by the Government, in the new Federal Budget.

All local & foreign economic correspondents, TV channels and Press Photographers are cordially invited to cover the Conference.

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

 
 28th June, 2008 COLLECTION OF TAX REVENUE ON 28TH, 29TH & 30TH JUNE SBP, NBP, INCOME TAX OFFICES TIMINGS EXTENDED


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.
 

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

22nd June, 2008
 
Major Amendments in Finance Bill

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:

ENGINE CAPACITY AMOUNT OF TAX
Upto 850cc Rs. 7, 500
851cc to 1000cc Rs. 10,500
1001cc to 1300cc Rs. 16,875
1301cc to 1600cc Rs. 16,875
1601cc to 1800 Rs. 22,500
1801cc to 2000cc Rs. 16,875
Above 2000cc Rs. 50,000

       4. Exemption form Withholding Tax (WHT) in respect of the following categories of exporters   
         has been allowed:

i) Direct & Indirect exporters covered, by DTRE scheme.

ii) Goods temporarily imported into Pakistan for the purpose of re-export.

iii) Manufacturing bonds.
Further, WHT on import of cotton lint, cotton yarn, and fabrics will be subjected to 1% WHT. The anomaly has been removed by bringing it at par with five (5) zero-rated sectors in Sales Tax.


5. Earlier, the senior citizens of age 60 and above were allowed a 50% rebate on tax liability if their total taxable income was upto Rs. 400,000. This limit has been increased to RS. 500, 000 to give relief to the senior citizens.

6. Earlier fixed tax was imposed on builders and developers. Now this tax has been withdrawn as income tax and the Federal Excise duty on services of property developers and builders has been levied.

Several other changes of editorial nature have also been made on the basis of the discussion in the Parliament on the Bill.
 

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


21st June, 2008 FBR, PNRA SIGN AGREEMENT TO COMBAT ILLICIT TRAFFICKING OF RADIOACTIVE & NUCLEAR MATERIALS

The Federal Board of Revenue and Pakistan Nuclear Regulatory Authority signed a Memorandum of Understanding today to promote cooperation and organize mutual assistance against illicit trafficking of radioactive and nuclear materials.

Member (Customs), FBR, Mr. Mahmood Alam and Member Executive, PNRA, Mr. Shakil-ur-Rehman singed the agreement on behalf of their respective organisations.

Secretary General, Revenue Division/Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf and Chairman PNRA, Mr. Jamshed Azim Hashmi were present on the occasion.

Speaking on the occasion, FBR Chairman said that Pakistan Customs was engaged in combating commercial fraud, counterfeiting drug trafficking, money laundering, electronic crime and smuggling of arms. In addition to these challenges, the growing threat of international terrorism has, now, emerged as a major concern for Customs Administrations which includes potential threat of smuggling of nuclear and radioactive materials, he added.


"This is a common threat to all countries including Pakistan which has grave implication to security," Mr. Abdullah Yusuf said and added, "Both, FBR and PNRA, recognize the need to formalize cooperation and mutual assistance to meet the possible threat of smuggling of nuclear and radioactive materials through Pakistan." As government department that controls and administers the international movement of goods, Pakistan Customs is in a unique position to contribute to the global trade supply chain security besides socio-economic development in Pakistan through revenue collection and trade facilitation. On the other hand, Mr. Yusuf said, PNRA has the technical expertise to equip and train Customs personnel for detection of radioactive and nuclear materials. Therefore, by signing this MOU, FBR and PNRA shall achieve cooperation to create an organizational framework which was needed to effectively combat the nuclear terrorism threat, he added.


FBR Chairman was the opinion that this MOU shall enhance enforcement capabilities of Pakistan Customs for preventing, detecting and responding to illicit trafficking in nuclear and other radioactive materials. It is intended to provide the framework to ensure that their illicit trafficking is prevented. He informed that Pakistan Customs has prepared an implementation plan including a Pilot Project for enforcing provisions of this MOU. Pakistan Customs is committed to achieve the objectives of this MOU as a national responsibility, the Chairman added.

Mr. Abdullah Yusuf assured that FBR shall undertake all necessary measures to provide adequate training to Customs personnel through PNRA for use of detection equipment so that all international entry and exit points are fully monitored at the earliest. He was confident that the MOU shall go a long way to bring security to this country and international community.

PNRA Chairman, Mr. Jamshed Azim Hashmi, in his speech, said that both FBR and PNRA will cooperate with each other to meet international obligations to combat illicit trafficking of radioactive and nuclear materials. He assured all support to FBR to make the borders secured.

The MOU, signed today, explains that the world today is facing a growing international threat of illicit trafficking of radioactive and nuclear materials which present a grave hazard to national and international security. The Government of Pakistan recognizes its international obligations to join global efforts to combat threat of illicit trafficking of radioactive and nuclear materials.

Pakistan Customs is the primary enforcement agency at international entry and exit stations including international airports, dry ports among other Customs stations while PNRA is the national statutory nuclear regulatory authority in Pakistan entrusted with the task to regulate all aspects of application of ionizing radiations and nuclear energy in Pakistan, Therefore, the two organizations have entered into agreement for cooperation in joint measures for detection, and subsequent management, of radioactive and nuclear materials at strategic points. The necessary detection equipment has been procured by PNRA which shall be handed over to Pakistan Customs after training of the Customs personnel. This equipment shall be used by Pakistan Customs at sea ports, dry ports, airports and at any other Customs station at international border or for goods in transit or in transshipment or the goods en route throughout territory of Pakistan.

Under this MOU, PNRA shall provide the Pakistan Customs training, technical assistance and maintenance facilities for radiation detection equipment and radiation protection, management of radioactive/contaminated consignments while both shall cooperate to manage radioactive sources/materials identified or seized/confiscated by the Pakistan Customs.


It has been agreed that Pakistan Customs in association with PNRA shall run a pilot project at Islamabad International Airport for comprehensive enforcement model for Customs controls including monitoring/detection of radioactive/nuclear materials. This model shall be applied to all other international airports by the Pakistan Customs for effective and modern enforcement controls after completion of the pilot project.
 

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


10th June, 2008
 
FBR HELPLINE TIMINGS EXTENDED

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


9th June, 2008 Explanatory notes for SRO 522(1)/2008 dated 09-06-2008
This SRO has been issued to reduce the pressure from e-portal and also to provide reasonable time to the taxpayers to file their Income Tax withholding statements. Earlier to this there was a same date for e-filing of monthly return of Sales tax as well as Income Tax Withholding statement and it used to slow down the whole process on e-portal on the last dates. There through SRO No.353 dated 03-04-2008, the last date of filing of withholding statement was changed to 10th of each month. But it created problem for the taxpayers as the time available to file their Income Tax withholding statement was too short. Hence the present SRO has now prescribed the new date for filing withholding statement for Income Tax as 20th of each month. The change in date of Income Tax withholding statement will ease the pressure on e-portal facilitating the taxpayer.

-Sd-
Usman Khalid Mirza
Member (Direct Taxes)


2nd June, 2008 SUBJECT: FBR HAS SURPASSED THE REVENUE TARGET SET FOR MAY 2008.

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


2nd June, 2008 FBR PROMOTES 111 CUSOTMS OFFICIALS AS DY. SUPERINTENDENT
 
Federal Board of revenue has approved the promotion of 111 Customs Inspectors/Stenotypists, working in BS 11/12, as Dy. Superintendent (BS-14).
A meeting held under the chairmanship of Member (Admn), Maj.Gen. (Retd.) Muhammad Yasin has given final approval to the recommendations of the Department Promotion Committee (DPC) which met earlier in this regard. The DPC was presided over by the Collector, Sales Tax, Lahore.
Earlier, FBR had promoted 63 Income Tax Inspectors as Income Tax Officers, about a month back.
 

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


17th MAY, 2008 EXTENSION IN DUE DATE FOR ELECTRONIC FILING OF SALES TAX-CUM-FEDERAL EXCISE RETURN FOR THE TAX PERIOD APRIL 2008 BY PERSONS REGISTERED IN LTU, Karachi.

The taxpayers registered with Large Taxpayers Unit, Karachi, are now required to file returns through FBR’s e-portal and the previous system of filing returns through Banxis has been discontinued. Because of difficulties anticipated in transition from e-filing on Banxis to e-filing on FBR’s e-portal, the Federal Board of Revenue, through ST Circular 03/2008 has extended the due date for electronic filing of sales tax-cum-federal excise return and invoice summary statements for the tax period April 2008 from 15th May to 20th May, 2008, for registered persons falling in the jurisdiction of Large Taxpayers Unit, Karachi.

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


11th MAY, 2008 New device more efficient Tax Management System Renamed as ‘Mahassal’
(BUSINESS RECORDER DATED 11th MAY, 2008)

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.


10th May, 2008 VISUAL/PICTORIAL COVERAGE OF PRE-BUDGET SEMINAR
Federal Board of Revenue, in collaboration with Federation of Pakistan Chambers of Commerce & Industry, is organising a Pre-Budget Seminar at National Library Auditorium (behind PM Secretariat), Islamabad on 12th May, 2008 (Monday) at 10.30 a.m.

Federal Minister for Finance, Revenue, Economic Affairs & Statistics Mr. Muhammad Ishaq Dar will be the Chief Guest while Chairman, FBR, Mr. M. Abdullah Yusuf will preside the Seminar.

All accredited Economic Correspondents, TV channels & Press Photographers are cordially invited to cover the Seminar.

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


7th May, 2008

 FBR ARRANGES PRE-BUDGET SEMINAR ON 12TH MAY  

Federal Board of Revenue, in collaboration with Federation of Pakistan Chambers of Commerce & Industy, is organising a Pre-Budget Seminar on 12th May, 2008 here at National Library Auditorium.

Federal Minister for Finance, Revenue, Economic Affairs & Statistics, Mr. Muhammad Ishaq Dar will be the Chief Guest. Secretary General, Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf will preside over the Seminar.

Seminar will be held two sessions. Inaugural Session will be addressed by the Chief Guest, Mr. Muhammad Ishaq Dar. Besides, President, FPCC&I, Mr. Tanvir Ahmed Sheikh and President, SAARC Chamber of Commerce & Industry, Mr. Tariq Saeed will also address the participants in the same session. Earlier, FBR Chairman Mr. M. Abdullah Yusuf, in his address of welcome, will outline the objectives of holding the Pre-Budget Seminar.

In working Session of the Seminar, representatives of industry & trade will present their budget proposals. Member (FR&S), FBR, Dr. Ather Maqsood, will also give his presentation. Secretary General, Revenue Division/Chairman, FBR, Mr. M. Abdullah Yusuf, will conclude the Seminar by his address to the participants.

Prominent businessmen, traders and industrialists across the country office-bearers and members of the FPCC&I and other chambers, high ranking officials and senior tax mangers are expected to largely attend the Seminar.
 

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


7th May, 2008 Explanatory Notes for SRO 410(I)/2008
To implement the ECC decision regarding revision of salaries of Airport security force (ASF), The proposed rates have been incorporated in FED rates on Air Travel vide SRO 410(I)/2008 dated 29th April, 2008.

-sd-
Mehmood Alam
Additional Secretary


2nd May, 2008 Explanatory Notes for SRO 406(I)/2008
The import and supply of CKD kits of single cylinder agriculture diesel engines of 3 to 36 HP are exempt from sales tax. In order to exempt the supply of finished product i.e. single cylinder agricultural diesel engines (3 to 36 HP) this notification has been issued so that the same is available to farmers on competitive prices. This step would facilitate the farmers who use agricultural diesel engines for farming activities.

-sd-
Mehmood Alam
Additional Secretary


30th April, 2008 FBR HAS SURPASSED THE REVENUE TARGET SET FOR APRIL 2008.
1. FBR has surpassed the revenue target of Rs. 74.3 billion assigned for April 2008.

2. The provisional tax collection for April 2008 has achieved an overall growth of 26.2%. The net collection during April 2008 has been Rs. 75.1 billion against Rs. 59.5 billion during April 2007. The revenue on account of direct taxes has risen sharply from Rs. 15.1 billion last April to Rs. 23.8 billion in April 2008 reflecting a growth of 57.7%. The sales tax collection has jumped to Rs. 31.4 billion as against Rs. 27 billion of last April showing a growth of 16.5%. While sales tax on import stage has decreased by 7.6% due to zero-rating of crude oil, the increase in the domestic component is 48.6%. The collection of federal excise duties has increased by 10.1%, increasing from Rs. 7 billion to Rs. 7.7 billion. Finally, a healthy growth of 16.8% has been recorded in the collection of customs duties where the net receipts have reached Rs. 12.2 billion against Rs. 10.4 billion of last April.

3. The July – April collection of FBR now stands at Rs. 755 billion as against Rs. 656.5 billion of corresponding period of last year showing a growth of 15%.

4. The provisional figures of April are expected to increase further during the next few days.
 

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


30th April, 2008 SRO 408(I)/2008 EXPLAINED
SRO 408(I)/2008 dated 29.04.2008 amends the Chapter X of Sales Tax Special Procedures Rules, 2007, which prescribes the procedure for payment of sales tax by steel melters and re-rollers. This chapter requires that sales tax from steel melters and re-rollers shall be collected on the basis of electricity consumption at Rs. 4.75/ KWH.

However, Pakistan Steel Mills and Peoples Steel Mills have been excluded from purview of payment on the basis of electricity consumption and have to pay sales tax in normal VAT mode. Similar exclusion was requested by M/s. Heavy Mechanical Complex (HMC) who also intend to supply ingots and billets besides other products manufactured by them.

Since, the tax at Rs. 4.75/KWH is meant for units exclusively manufacturing ingots, billets and other long re-rolled products, therefore, SRO 408(I)/2008 amends the rules to provide similar exclusion for HMC as is available to Pakistan Steel Mills and Peoples Steel Mills.

 

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


29th April, 2008 63 INSPECTORS PROMOTED AS INCOME TAX OFFICERS

 Federal Board of Revenue today approved the promotion of 63 Inspectors of Income Tax Department from BS-11 & 14 to BS-16 as Income Tax Officers.

The approval was given at a meeting of the Departmental Promotion Committee held under the chairmanship of the Member (Admn) of FBR, Maj. Gen. (Retd.) Muhammad Yasin.

This is after a long time that such a huge number of Inspectors have been promoted as Income Tax Officers.

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


25th April, 2008
 
ABDULLAH YUSUF URGES TAX MANAGERS TO GEAR UP EFFORTS TO MAXIMIZE REVENUE GENERATION RS. 257.6 BILLION DIRECT TAXES COLLECTED IN 9 MONTHS


Secretary General, Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf has called upon the tax managers to gear up their efforts to maximise revenue generation.

He was addressing the Directors General of Regional Tax Offices & Large Taxpayers Units, Commissioners of Income Tax & Commissioners (Appeals) at 17th National Tax Conference, held here today under the auspices of FBR.

Mr. Abdullah Yusuf identified various grey areas from which the full revenue potential is yet to be tapped. He also underlined the need of plugging the revenue leakages to improve direct taxes collection.

Earlier, Member (Direct Taxes), Mr. Usman Khalid Mirza, in his presentation, briefed the Conference about the overall performance of the Wing and its field formations. Collection upto March 08 was Rs. 257.6 billion as against Rs. 237.8 billion in the corresponding period of last year.

While discussing the performance, the Member (DT) pointed out the gaps in various areas. He stressed upon bridging these gaps. He exhorted the tax officers to pay attention on monitoring of withholding taxes, Creation and Collection out of Demand and other avenues to enhance revenue collection.
The Conference, during its deliberations, discussed and took decisions on strategy for achieving the revenue targets, disposal of pending refunds claims, recovery of arrears and the issue of tax exemptions. Conference also reviewed the progress in data entry of returns and annual employer’s statements and deliberated on achievements of targets in remaining period of the current financial year.
 

-Sd-
(Muhammad Hafeez Mughal)
Secretary (PR


26th April, 2008 Explanatory Notes for the SRO 371(I)/2008
Some amendments have been made in Federal Excise Rules, 2005 vide SRO (I)/2008 dated 14th April, 2008 to incorporate the provision of debit credit notes and harmonize return filing with that of sales tax return omitting special FED returns.

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


25th April, 2008 PRESS RELEASE

The sales of automobile industry (Local Car Manufacturers) had gone down considerably in the beginning of this year due to the power and political crises in the country and the exchequer was suffering huge losses on account of customs duty and sales tax. In order to safeguard, the revenue, the withholding tax @ 2.5% under section 231B (Advance and Adjustable) collected by the manufacturers or authorized dealers of motor car at the time of sale of motor car was suspended, initially for a period of two months i.e. February 21 to April 20, 2008. This temporary suspension of withholding tax gave good results in the shape of increase in sales of cars and consequently the Government revenue on account of collection of sales tax and customs duty also increased in March 2008 as compared to February 2008.

In view of increase in collection of customs duty and sales tax, the Government decided to extend the period of suspension of collection of advance withholding tax @ 2.5% collectable from the buyers of local motor cars upto June 30, 2008 through Notification S.R.O. No. 383(1)/2008 dated April 21, 2008.

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


24th April, 2008 LOCAL MANUFACTURE OF AGRICULTURAL DIESEL ENGINES (SINGLE CYLINDER OF 3-36HP)

The Agricultural Diesel Engines Manufacturers Group requested the Federal Board Revenue to enhance the existing range of Agriculture Diesel Engines (Single Cylinder) from “12-32 HP” to “3-36 HP” in terms of serial number 94 of SRO 565(1)/2006 dated 05.6.2006 on the basis that Single Cylinder Diesel Engines of 3HP to 36HP has been declared as manufactured locally vide CGO No. 18/2007 dated 29.12.2007.

The request was examined in consultation with the Ministry of Food, Agricultural and Live Stocks (MINFAL) and the Engineering Development Board (EDB). A consensus was evolved to accede the request of the Agricultural Diesel Engines Manufactures Group and thereby to allow the import of CKD Kits of Agriculture Diesel Engines (Single Cylinder 3-36 HP) at 10% concessionary rate of duty.

Accordingly, a notification SRO 384(1)/2008 dated 21st April, 2008 (Annex-I) has been issued enhancing the existing range of CKD Kits of Agriculture Diesel Engines (Single Cylinder) from 12-32 HP to 3-36 HP under SRO 565(1)/2006 dated 05.6.2006. Thereby, the CKD Kits will be importable at 10% concessionary rate of duty for manufacture of said engines. The notification dated 21st April, 2008 is effective from 29th December, 2007 i.e., the date on which the CGO No. 18/2007 had been issued.

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


24th April, 2008 E-FILING OF SALES TAX RETURNS MANDATORY FROM 1ST JULY

Quarterly Conference of Collectors of Sales Tax & Federal Excise & Collectors (Appeals), held here today under the chairmanship of the Secretary General, Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf, has decided to make e-filing of sales tax returns mandatory from 1st July, 2008.

During the Conference, it was informed that total sales tax collection in first nine month of current financial year (July-March) was Rs. 258.4 billion as compared to Rs. 218.4 bn in the corresponding period of the last financial year, showing an increase of Rs. 40 billion.

Major sectors which have shown positive growth as compared to last year were Telecom (24.6%), POL (48.9%), Natural Gas (4.3%), Sugar (1.3%), Cigarettes (18.4%), Services (20.3%), Aerated Waters/Concentrate of beverages (24.9%), Iron & Steel (112.2%) etc.
In federal excise, the total collection from July 2007 to March, 2008 (9 month) was Rs. 61.8 billion as compared to Rs.47.72 billion in the same period last year, indicating an increase of Rs. 14.08 billion. Major revenue spinners showing positive growth were Cigarettes (18.94%), Natural Gas (8%), Services (252%) etc.
Speaking on the occasion, the Chairman called upon the Collectors to intensify their efforts to enhance revenue collection. In this regard, he emphasised on conducting sectoral research to identify the gap between the revenue potential existing in various sectors of the country and the taxes they were actually paying. We have to narrow down this gap to enhance the sales tax and federal excise collection. To achieve this objective, we need to implement a comprehensive strategy, he added.

Talking on the issue of sales tax refund claims, the Chairman stressed the need of removing all the bottlenecks confronting the system to deal with the issue in an effective manner. “We must know what is actually to be paid”, he remarked.

He, however, underlined the need of clearly identifying the level & type of the refund problem. All genuine refund claims must be cleared after due verification by the system and all efforts must be directed towards narrowing down the issue, Mr. Yusuf emphasised.

Commenting on automation systems, currently operating in various FBR offices, the Chairman emphasised that all these systems must be effective, reliable and productive and give the desired results. “Incompleteness of the automated systems creates problems”, Mr. Abdullah Yusuf observed.
Revenue impact of new budgetary measures, taken in the last budget, was also reviewed during the Conference and termed it satisfactory. Budget proposals for the year 2008-09, measures for expeditious feeding of sales tax returns, recovery of arrears, audit performance of collectorates adjudication pendency etc. also came under discussion and necessary decisions were taken.

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


 24nd April, 2008 RTO KARACHI SHOWS ENCOURAGING FIGURES UP TO MARCH, 2008

The Regional Tax Office, Karachi has shown a remarkable performance as evidenced by the achievement of revenue targets up to the month of March, 2008. Collection out of current and arrear demand stands at Rs. 2126.859m as against Rs. 1202.463 m last year showing a 77% increase as against the collection up to march last year whereas collection of tax at source has also registered a 24% increase as compared to last year with the latest figures at Rs. 55596.061 m. Net Income Tax collection shows an encouraging 19% rise at Rs. 60111.211 m as opposed to last year figures for the month of March at Rs. 50531.917 m. On the whole the total collection including all heads plus CVT and WWF is also in the positive range depicting 17% increase compared to the previous year. The short fall being face under the heads of voluntary compliance i-e: Advance Tax and Payment with returns is being covered with a 5.631b amount to be remitted by the customs authorities under the head “Imports” during the third quarter.

-Sd-
Shazia Abid
DCIT/TO
RTO, Karachi


 22nd April, 2008 GEN. YASIN APPOINTED CHIEF CO-ORDINATOR FOR REVENUE BUDGET 2008

Federal Board of Revenue has appointed Maj.Gen. (Retd.) Muhammad Yasin, Member (Admn), FBR, as Chief Coordinator for the Revenue Budget-2008, according to an office order, issued by the Board.
Mr. Saeed-ur-Rehman, Chief (Management), FBR, has been appointed Coordinator and Mr. Saeed Iqbal, Chief (Admn.) & Mr. Mahmood Hussain, Secretary(S&M) have been appointed Chief Security Officer & Dy. Chief Security Officer respectively for the Revenue Budget 2008.
All these appointments have been made with the approval of the Acting Chairman, FBR, Mr. Usman Khalid Mirza.

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

19th April, 2008
 
PRESS RELEASE


A 46-member group comprising officers of the senior Management Course of National Management College, Lahore, currently on inland study tour, today visited Federal Board of Revenue and remained there for some time.

During the visit, the course participants were briefed by the Official Spokesman & Member, Facilitation & Taxpayers Education of FBR, Mr. Khawar Khurshid Butt on the on-going tax Administration Reforms Programme. He informed the participating senior officers that the total cost of the programme has been estimated as $ 149 million which was funded by the World Bank, DFID and Government of Pakistan. He said, three Large Taxpayers Units, 12 Regional Tax Offices, Model Customs Collectorates and 65 Tax Facilitation Centres have been established for the facilitation of the taxpayers under TARP.

The Spokesman said that the results of the Programme so far achieved were very encouraging in terms of increase in revenue collection, facilitation of the taxpayers, reducing cost of dong business, minimizing interaction between the tax collectors and taxpayers, reducing the level of corruption, attracting foreign investment etc. He said the revenue collection which was in the vicinity of Rs. 300 billion few years back was reached at Rs. 846 bn in 2006-07.

Later, the spokesman answered the questions of the course participants.
 

-Sd-

(Muhammad Hafeez Mughal)

Secretary (PR)


18th April, 2008 FBR AMENDS S.R.O. 330 (1)2008 TO CHECK SMUGGLING INTO ALL NEIGHBORING COUNTRIES
 

Federal Board of Revenue has amended its Notification S.R.O. 330(1)/2008, dated 31-03-2008 to improve the vigilance on the possible smuggling of rice, pulses of all sorts, wheat and wheat products into all neighboring countries. Previously, these powers were restricted to check smuggling into Afghanistan only.

The powers will remain delegated to Frontier Corps (NWFP and Balochistan) and Pakistan Rangers (Punjab and Singh) till 15.5.2008.

-Sd-

(Muhammad Hafeez Mughal)

Secretary (PR


10th April, 2008 Explanatory notes for SRO 353(I)/2008 dated 03.04.2008
This SRO has been issued to reduce the pressure from e-portal as there was a same date for e-filing of monthly return of Sales tax as well as Income Tax Withholding Statement and it used to slow down the whole process on last dates. The change in date of withholding statement will ease the pressure on e-portal facilitating the taxpayer.

sd-
Usman Khalid Mirza
Additional Secretary


5th April, 2008 Explanatory notes for SRO 337(I)/2008 dated 02.04.2008
This SRO has been issued to fix the assessable value of sugar for sales tax purposes from Rs. 21/- to Rs. 19/- per kg as the wholesale price of sugar has gone down from Rs. 25.40 to Rs. 23.40 per kg. In order to rationalize the tax burden, the assessable value of sugar has been decreased. This step would facilitate the consumers and ensure the availability of sugar on normal price.

sd-
Asif Abbas
Second Secretary (ST-Budget)


5th April, 2008 CUSTOMS DUTY ON PHOSPHATE ROCK EXEMPTED
The Federal Government has exempted 5% customs duty on phosphate rock, ground, PCT heading 2510.2000 by issuing SRO 333 dated 02-04-2008 amending SRO 567(1)/2006 dated 05-06-2006.

This measure has been taken to mitigate difficulties being faced by the fertilizer manufacturers in the country. It will also help reduce the cost of production of this sector which will in-turn help stabilize prices of fertilizer in the country.
 

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


3rd April, 2008 PRESS RELEASE

Federal Minister for Finance Mr. Ishaq Dar visited FBR Headquarters today and was given a detailed briefing by Mr. M. Abdullah Yusuf, Secretary General Revenue Division / Chairman FBR on the current revenue position and future scenario. A brief résumé of Tax Administration Reforms Program (TARP) was also given. The briefing was also attended by all Board Members and CEO Pakistan Revenue Automation Limited (PRAL). Chairman, FBR apprised the Minister of the plan to enhance Tax to GDP ratio by 5% over next 10 years. He focused on the reform efforts being under-taken by FBR with particular emphasis on improvement in systems and procedures through the help of technology in order to ensure that FBR becomes an efficient and transparent organization.

Mr. Ishaq Dar lauded the efforts of the Federal Board towards collection of higher targets of revenue and emphasized the need to ensure transparency in the system and to provide maximum facilitation to the tax payers at all levels. He also stressed the need to provide adequate incentives to the Agricultural Sector so as to achieve food security for the country.

Mr. Dar emphasized the need for introduction of measures in the forthcoming budget that would lead to introduction of an equitable system of tax wherein relief is provided to the poorer classes. He stressed the need for balancing the fiscal and monetary policy which, due to mismanagement in the past, had resulted in distortions in the economy. The Finance Minister also required of the Federal Board to remove anomalies in taxation system.

The Federal Finance Minister also urged the Board Members to formulate policies for the forthcoming budget in consonance with the aspirations of the people and agenda of the popularly elected government.
 

(Khawar Khurshid Butt)
Member (FATE)
Spokesman of the Federal Board of Revenue.
3rd April, 2008


April 03,2008 FBR Revenue Collection during and up to March 2008
The July – March collection of FBR has reached Rs. 678.9 billion as against Rs. 597 billion during the corresponding period of last year showing a growth of 13.7%. With this achievement, the overall growth in collection has improved by 1.2% points as July-February growth was 12.5%. The tax-wise three-quarter growth is as follows: Direct Taxes 8.4%, Sales Tax 17.8%, Federal Excise Duties 29.1%, and Customs Duties 9.9%.

2. The provisional tax collection for March 2008 has recorded an overall growth of 13.1%. The net collection during March 2008 has been Rs. 92.6 billion against Rs. 82 billion during March 2007. The revenue on account of direct taxes has risen modestly by 3% going up from Rs. 38.9 billion last March to Rs. 40 billion in March 2008. The sales tax collection has been Rs. 29.7 billion as against Rs. 24.1 billion of last March showing a growth of 23.4%. While sales tax on import stage has increased by 8.6%, the increase in the domestic component is 44.3%. The collection of federal excise duties has increased by 26.7%, increasing from Rs. 6 billion to Rs. 7.6 billion. Finally, a healthy growth of 17.5% has also been recorded in the collection of customs duties where the net receipts have reached Rs. 15.3 billion against Rs. 13 billion of last March.

3. The provisional figures of March are expected to increase further during the next few days.
 

Sd-
( Khawar Khurshid Butt )
Member (FATE)


April 03,2008 Achieving sustainable development-‘Change Management’ in the FBR.
 

31 March, 2008 Explanatory Notes of SRO 329(I)/2008
The Notification has been issued to facilitate solvent extracting units whereby they will be able to adjust 100% input tax paid on their purchases. As per section 8B of the Sales Tax Act, 1990, a taxpayer can adjust 90% of input tax paid on his purchases against his output tax. As the value addition in solvent extraction units is not high enough such a provision was resulting into refunds. To save solvent extraction units from cash flow problems, they have been allowed to adjust 100% input tax paid on their purchases.

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

 

1st April, 2008 Explanatory Notes of SRO 326(I)/2008
The Federal Government has issued a SRO 326(I)/2008 dated 29.03.2008 whereby exemption from the whole of customs duties, sales tax and federal excise duty leviable on all the goods imported into and exported from an Export Oriented Unit subject to the provisions of the Export Oriented Units and Small and Medium Enterprises Rules, 2008 has been granted.

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


1st April, 2008 Explanatory Notes of SRO 327(I)/2008

Federal Board of Revenue has announced a Scheme of Export Oriented Units vide Notification No. 327(I)/08 dated 29.03.2008. Under the scheme raw materials and plant, machinery, equipment and apparatus, including capital goods to be used solely within the limits of an Export Oriented Units can be imported free of customs duty, sales tax and federal excise duty. The scheme will essentially have the same incentive as are available to units in EPZs.  Existing units exporting at least 80% of production to be registered with FBR under the scheme. New units, so register, will be required to export 100% of their production. Under this scheme time limit for consumption of duty free locally purchased/imported raw materials is two years.

 

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


1st April, 2008 FBR EMPOWERS FC, RANGERS TO CARRY OUT ANTI-SMUGGLING FUNCTION TILL 15TH MAY

Federal Board of Revenue vide a Notification (Customs) dated 31-03-2008 has authorized the Frontier Corps (NWFP and Balochistan) and Pakistan Rangers (Punjab and Sindh) to carry out anti-smuggling functions within their respective jurisdictions. The powers have been delegated under the Customs Act in order to endure a greater vigilance on the possible smuggling of rice, pulses of all sorts, wheat and wheat products into Afghanistan.
The powers will remain delegated to Frontier Corps (NWFP and Balochistan) and Pakistan Rangers (Punjab and Sindh) till 15th May, 2008.

 
27th March, 2008 Explanatory notes for SRO 315(I)/2008 dated 27.03.2008
The notification amends the Sales Tax Special Procedures Rules, 2007, to provide as under:

(i) Previous exemption from registration for CNG stations has been waived. Now, CNG stations shall obtain registration, if not already registered, and shall also file return on quarterly basis. It may be noted that tax on CNG on behalf of CNG stations is paid by gas distribution companies i.e. SNGPL and SSGC. Their supplies to CNG stations are charged at 24% of value instead of normal rate of 15%.

(ii) The scope of tax on advertisement has been clarified by providing meaning of the expression “taxable services” of advertising. The scope covers all advertisements which are:

(a) broadcast or telecast by TV or radio stations based in Pakistan;
(b) booked in Pakistan for broadcasting or telecasting on TV or radio stations based abroad, whether or not possessing landing rights in Pakistan; and
(c) transmitted on closed circuit T.V. or cable T.V. network.”
 

-Sd-
(Hameed Memon)
Secretary


25th March, 2008 Press Release
A meeting of Departmental Development Working Party (DDWP) which held at the Federal Board of Revenue today under the chairmanship of Member (Administration) approved 32 development schemes at the total cost outlay of Rs. 584 million.

Representatives of the Reformed Units from all the provinces alongwith officers from Planning Commission, Ministry of Finance and Pak. PWD attended the meeting.

Purpose of the meeting was to consider and approve various projects relating to the offices and residential accommodation of the officers and staff of FBR as a step forward towards 05 Years Infrastructure Development Plan of the Admn Wing of FBR HQ.

The Admn Wing is carrying out comprehensive and concerted efforts to improve offices of the field formations and also provide suitable residential accommodation to the officers and staff of Income Tax, Customs, Sales Tax & Federal Excise departments.

Out of 35 schemes presented before the DDWP, 32 were approved at the total cost outlay of Rs.584 million. The schemes included construction of various offices which are currently housed in rented premises and construction of residential units for the officers and staff of FBR.

Another meeting of similar nature is being scheduled in the first week of April, 2008. These steps are taken as a part of the Reform Process of FBR in order to increase efficiency and dedication of its officers and staff.

 

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


25th March, 2008 Press Release
Secretary General, Revenue Division/ Chairman Federal Board of Revenue, Mr. M. Abdullah Yusuf said that the security of official buildings and documents was a very critical and important issue today which needs to be addressed through effective use of technology and modern security equipments.

He was addressing the concluding session of one-day Workshop on Security Systems held under the auspices of Admn. Wing of FBR. All Chief Security Officers of FBR's field formations attended the Workshop.

The Chairman said that the Board's decision to improve the security of its offices was mainly due to the prevailing situation which demands fool-proof arrangements for the security of the Board and its units and safety of their employees as well as the visitors.

Mr. M. Abdullah Yusuf said that all the security personals need to be vigilant and properly trained. They must ensure that the visitor was going to only that office/ floor where he was authorised to go. He advised the participants to act in a professional manner so that the taxpayers feel secure and comfortable while visiting Board's reformed units. "We need to create and maintain the security of a high standard," he added.

Earlier, Member (Admn) Maj.Gen. (Retd) Muhammad Yasin, speaking on the occasion, advised the security officers to ensure that all necessary security equipments like walk-through gates, scanners, barriers etc. made available at their offices were fully operational.
 

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


25th March, 2008 Explanatory Notes for SRO 307(I)/2008
 
  SRO amends the Sales Tax Rules, 2006, with following objectives:

(i) To provide for refund of excess input tax in cases other than those of zero-rated supplies. The refund against zero-rated supplies has been provided in section 10 of the Act. The procedure for refund in other cases had not been prescribed. The same has been done through this amendment.

(ii) To provide for single return, in cases where a registered person operating in different sectors was required to file multiple returns because of different due dates for filing of return for each of the sectors. Now he shall file a single return for all such sectors by the due date applicable to his major activity in terms of sales tax or federal excise duty payable.
 
 

-Sd-
(Hameed Memon)
Secretary


25th March, 2008 Explanatory Notes for SRO 308(I)/2008
 
SRO prescribes rate of refund to steel melters and steel re-rollers against exports. Since, steel melters and re-rollers operate under special procedure whereby the tax on the basis of electricity consumption is collected and deposited by WAPDA/KESC. The rates prescribed in SRO include the tax collected by WAPDA/ KESC and other taxes paid on inputs.

-Sd-
(Hameed Memon)
Secretary


25th March, 2008 Explanatory Notes for SRO 309(I)/2008
 
  Amends the Sales Tax Special Procedures Rules, 2007, to provide that that in case of electric power supplied by WAPDA, the additional charge of Rs. 0.10 per kwh, collected on account of Neelum Jehlum Hydro Power Development Fund shall not be included in value for determination of sales tax payable.

-Sd-
(Hameed Memon)
Secretary


19th March, 2008

PRESS RELEASE

Secretary General, Revenue Division/Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf has directed the Member (IMS)/CEO PRAL to coordinate with technical wings of the Board to clearly identify problems being faced by the taxpayers in e-filing of returns, Tax Management System and computerised system of payment of taxes and all possible efforts be made in collaboration with NBP to resolve them at the earliest.
 
 He was addressing the members of the Board-in-Council which met here yesterday. FBR Chairman presided over the meeting which lasted for about nine hours.

Referring to the revenue collection for the current financial year, the Chairman observed that despite all odds FBR was still in a position to cross Rs. One trillion mark by 30th June, 2008, provided we all work hard and feel our national obligations.

While reviewing the progress of various on-going reforms projects, the Chairman directed Member (TARP) and the line members to observe time line and expedite completion of refurbishment of the RTOs/MCCs. He also directed the Member (TARP) & Member (IMS) to make necessary arrangements to provide computer hardwares to field formations- LTUs & RTOs – on priority basis.
 
 Current exercise of sectoral examination of sugar/cement also came under discussion. The Chairman desired for early completion of the exercise. Responding Member (Audit) assured that it will be completed in next three weeks. Sectoral study of telecom and other major sectors also came under discussion, line members assured the Chairman of their concerted efforts in this regard and results of such sectoral studies will be presented to the Board.
 
 The Chairman directed the Sales Tax Wing to ask Collectors of Sales Tax to conduct selective taxpayers’ audit wherever they have any doubt. He also directed Member (Audit) to evaluate the audits, conducted by LTU, Lahore, and inform the Council about its results.
 
 Expressing his displeasure over thousands of pending refund claims at Export Collectorate and MCC, Karachi, the Chairman directed Member (Customs) to take action against the officials responsible for this huge pendency that has caused inconvenience to the exporters/importers. The meeting, however, noted that 80% of the refund claims were of very small amount which should be paid immediately.
 
 Board-in-Council also dilated upon the security arrangements currently in place at FBR Headquarters and its field formations, particularly in major cities of the country. The Council asked Member (Admn.) to ensure fool-proof security arrangements at all FBR buildings.
 
 Shortage of staff at FATE/Audit Wings also came under review and the Council decided to ask Member (Admn) to meet their staff requirements.
 
 Purchase of buses for pick and drop of staff from the offices will be examined by Member (TP&R) and the issue will be discussed in the next B.I.C. meeting.
 
 BIC was informed by Member (FATE) that all representations u/s 7 of FBR, Act: 2008 to the Chairman FBR will be received in the FATE Wing and then sent to respective members for their comments. The meeting was informed that a window was being opened in the FBR website where such representations could be submitted on line for redressal of grievances which are simple in nature.

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


14th March, 2008 ABDULLAH YUSUF LAUNCHES ONLINE HRM SYSTEM OF FBR

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)


14th March, 2008

 IMPORT OF CNG BUSES OF INDIAN ORIGIN

CNG buses (15 units) were imported from Sharjah in CBU condition. These buses were assembled/manufactured in UAE from the components/parts imported from India. Therefore, a question arose regarding determination of origin of these buses, since the import of such buses is not allowed from India as per Import Policy Order in vogue.
 

The Ministry of Commerce and the Ministry of Industries, Production and Special Initiatives informed the Federal Board of Revenue to process the cases of import of buses in consultaion with the local stakeholders and after thorough scrutiny as local industry was agitating that the vehicles were of Indian origin.


In order to mitigate the hardship faced by the importers and to safeguard the interest of local manufactures/assemblers, it was proposed by the FBR and the Ministry of Commerce, as a special dispensation, to allow one time import authorization of the already imported 15 buses subject to the condition that the importer undertakes not to import such buses in future.

 

The matter was taken up by the ECC of the Cabinet and the ECC finally approved the release of 15 CNG buses on one time authorization of the Ministry of Commerce on payment of the leviable duty and taxes in addition to the redemption fine equal to 30% of their C &F value.

 

 In order give effect to the ECC’s above referred decision an amending notification SRO---(1)2008 dated dated 12th March, 2008 has been issued

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


13th March, 2008 TV/PICTORIAL COVERAGE
Secretary General, Revenue Division & Chairman, Federal Board of Revenue, Mr. M. Abdullah Yusuf will visit Al-Ghurair Giga (Pakistan) and attend a Briefing/Presentation on World Trade Centre, Islamabad at Defence Housing Society, Phase-II , Islamabad on 14th March, 2008 (Friday) at 3.30 p.m.

All Economic Correspondents, TV channels and Press Photographers are cordially invited to cover/ attend the Briefing.
 

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


13th March, 2008 DUTY REDUCTION ON LCD PANELS, PLASMA DISPLAY PANELS IMPORT
 
M/s Pakistan Electronics Manufacturers Association (PEMA) and manufacturers/assemblers of Plasma Display Panel (PDP) and Liquid Crystal Display Panel (LCD) represented the government that they are facing tough competition because of smuggling of said items. They claimed that smuggled television sets are available at prices 28% to 41% cheaper than locally produced/assembled LCD/PDP. This price difference rendered the local assembling/manufacturing of LCD/PDP uncompetitive in the domestic market. They proposed to abolish customs duty on the SKD of the LCD and Plasma TVs together with application of strict administrative measures.

The Government examined the representations with a view that administrative measures alone cannot address to curb the smuggling and there is a need to revisit the existing tariff regime for this industry. Accordingly, in order to boost up the competitiveness of the domestic manufacturing/assembling of LCD/PDP, the matter was taken up by the Economic Coordination Committee (ECC) of the Cabinet in its meeting held on 22nd January, 2008 and the ECC decided to exempt whole of the duty on CKD kits and reduce the duty on LCD/PDP in SKD kits and CBU from 5% and 20% from exiting 10% and 25%, respectively, for a period of one year and during this period the National Tariff Commission (NTC) will carry out examination of the concessionary tariff for LCD/PDP and will submit its recommendations for continuance or otherwise of the tariff after one year.

In order to give effect to the ECC's said decision two amending Notifications No. SRO 267(1)/2008 dated 10th March, 2008 and SRO 268(1)2008 dated 10th March, 2008 have been issued. Thereby, the CKD kits, SKD kits for LCD and PDP shall be importable at the rate of duty at 0% and 5%, respectively, for the period from 10th March, 2008 to 9th March, 2009 under SRO 565(1)/2006 dated 5-6-2006 and LCD/PDP in CBU from shall be importable at the rate of duty at 20% under SRO 567(1)/2006 dated 5-6-2006 for the said period.
 

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


12th March, 2008 Explanatory notes for SRO 275(I)/2008 dated 12.03.2008
The Notification has been issued to exempt the import and supply of CKD kits of single cylinder agriculture diesel engines of 3 to 36 HP from sales tax. Previously, such CKD kits of 12 to 32 HP were exempt. The scope of exemption has been enhanced from 3 to 36 HP as the local industry has gained success in the manufacturing of agricultural diesel engines of capacity 3 to 36 HP. This step would facilitate the farmers who use agricultural diesel engines for farming activities.

Sd-
(Mehmood Alam)
Additional Secretary


6th March, 2008 Explanatory notes for SRO 204(I)/2008
SRO 204(I)/2008 dated 04.03.2008 amends SRO 1202(I)/2007 dated 11.12.2007. SRO 1202(I)/2008 provides for refund of excess input tax to the Independent Power Producers (IPPs) for the tax period July 2007 to December 2007. Through the amendment, the scope of SRO has been extended to the tax period March 2008. Moreover, the date for filing the claim has been extended from 31stJanaury 2008 to 30th April 200