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KARACHI: The collection of income tax from salaried persons registered 68 percent growth during July – March 2019/2020 due to upward revision in tax rates on various salary slabs, State Bank of Pakistan (SBP) reported in its Third Quarterly Report on Pakistan Economy issued on Thursday. The collection under this head increased to Rs89.7 billion during July – March 2019/2020 as compared with Rs53.5 billion in the corresponding period of the preceding fiscal year. The SBP attributed the rise in tax collection from salary to upward revision in tax rates on various salary slabs. The central bank said that the Federal Board of Revenue (FBR) collected Rs41.3 billion as advance tax on telephone/mobile phones during July – March 2019/2020 showing around 7-time higher than the collection of Rs5.3 billion in the corresponding period of the preceding fiscal year. The advance tax collection was remained suspended in 2018/2019 which resulted in nominal collection in the same year. However, after th...

ISLAMABAD: Federal Board of Revenue (FBR) has directed inquiry officers to complete their reports on an urgent basis against officials allegedly involved in misconduct. In a notification issued on Wednesday stated that inquiry officers were not complying to instructions in completing their reports after lapse of time and with inordinate delay. The FBR said: “Whereas it is understood that Government Servants Efficiency & Disciplinary (E&D) Rules, 1973, themselves do not unequivocally provide a time frame within which an inquiry has to be completed, however, the urgency in completing the inquiries is implicit in procedure provided under Rule 6 of the E&D Rules, whereby it has been instructed that an ‘inquiry officer or committee, as the case may be, shall hear the case from day to day basis and no adjournment shall be given except for reasons to be recorded in writing.” The FBR further said that the Prime Minister’s Officer, through the Cabinet Division, had directed that all...

ISLAMABAD: A registered person, who is not an active taxpayer, may not avail benefit of reduced rate of withholding sales tax after amendment made through Finance Act, 2020. Sources in Federal Board of Revenue (FBR) said that amendments have been made to Eleventh Schedule of Sales Tax Act, 1990 through Finance Act, 2020 under which the active taxpayers would be eligible to avail reduced rate of withholding sales tax at the time of supplies. Prior to this amendment registered persons were enjoying the reduced rate at the time of supply but now the registered persons, if not active taxpayers, shall pay full amount of sales tax. According to the amendment the withholding agents including federal and provincial government departments; autonomous bodies; and public sector organizations; companies as defined in the Income Tax Ordinance, 2001 shall collect/deduct 1/5 th  of sales tax as shown on invoice from those persons, who are active taxpayers. Similarly, person registered, but no act...

ISLAMABAD: Federal Board of Revenue (FBR) has awarded ‘dismissal from service’ to three officials for Regional Tax Office (RTO) Faisalabad, a statement said on Monday. The FBR sacked the officials following their admission of wrong doing after thorough inquiry. The revenue body said that all the three officials were found guilty of misconduct. Besides, FIRs were also lodged against them. The officials who were granted dismissal from service, included: Abid Iqbal, UDC Jhang Zone, Javed Masih, Notice Server and Manzoor Qadir, Watchman. While another official Aslam Pervez, watchman was suspended for three months. Through another notification, the FBR suspended Syed Muhamamd Salman Bukhari, Appraising Officer, MCC Gwadar and Maqbool Ahmed, IRO, RTO Faisalabad for three months. Source:  https://pkrevenue.com/three-fbr-officials-awarded-dismissal-from-service-for-misconduct/ Read More: Check FBR filer status Income Tax Calculator  Income tax rates in Pakistan

KARACHI: Federal Board of Revenue (FBR) has been authorized to serve electronic notice and decision as legal document to sales tax registered persons. In this regard an amendment has been made to Section 56 of Sales Tax Act, 1990 through Finance Act, 2020. Prior to amendment the FBR was empowered to send electronically through email or to the e-folder maintained for the purpose of e-filing of sales tax-cum-Federal Excise returns by the limited companies, both public and private. However, through the amendment the FBR has been empowered to send electronic notice or decision to all registered persons. The serving of electronic notices by the FBR was legalized through Finance Act, 2017. The section 56 after the amendment shall be: “Section 56: Service of orders; decisions etc. – (1) subject to this Act , any notice, order or requisition required to be served on a resident individual, other than in a representative capacity for the purposes of this Act shall be treated as p...

KARACHI: Following is the rate of capital gains tax on disposal of securities after the amendment made through Finance Act, 2020. Officials at the Federal Board of Revenue (FBR) said that the rate of capital gains tax had been kept unchanged for tax year 2021 and subsequent years. Provided that the rate of tax on cash settled derivatives traded on the stock exchange shall be 5 percent for the tax years 2018 to 2020. Provided that the rate for companies shall be as specified in Division II of Part I of First Schedule, in respective of debt securities; Provided further that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely:— Category Rate Individual and association of persons 10 percent for stock funds 10 percent for other funds Company 10 percent for stock funds 25 percent for other funds Provided further that in case of a stock fund if dividen...

ISLAMABAD: Big retail units shall be sealed till their integration with the online system of the Federal Board of Revenue (FBR) for sharing sales and purchases. Sources in the Federal Board of Revenue (FBR) said that the big retail units are required to integrate their outlets with the FBR under Sales Tax Act, 1990. However, those retailers who failed to integrate their outlets with the FBR would face punitive action as defined in the statute. The sources said that through Finance Act, 2020 amendment has been made related to penalty for non-compliance for linkage of sales and purchase data with the FBR. According to amendment made to Sales Tax Act, 1990, any person, who is required to integrate his business for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the board or its computerized system, fails to get himself registered under the Act, and if registered, fails to integrate in the manner as required under law. “...

ISLAMABAD: The government has abolished advance tax on cable operators and other electronic media that was collected under Income Tax Ordinance, 2001. Through Finance Act, 2020 the Section 236F of the Income Tax Ordinance, 2001 has been deleted. The Section 236F was related to advance tax on cable operators and other electronic media, officials at Federal Board of Revenue (FBR) said on Thursday. After the deletion of the section the advance tax under this has no more required to be collected from July 01, 2020. The omitted section was as: 236F. Advance tax on cable operators and other electronic media.— (1) Pakistan Electronic Media Regulatory Authority, at the time of issuance of licence for distribution services or renewal of the licence to a licencee, shall collect advance tax at the rates specified in Division XIII of Part IV of the First Schedule. (2) The tax collected under sub-section (1) shall be adjustable. (3) For the purpose of this section, “cable television ...