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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: Directorate General of Transit Trade has been authorized to track cargo movement of Afghan transit, NATO/ISAF and transshipment in order to avoid incidence of en-route goods slippage. Federal Board of Revenue (FBR) on Wednesday issued SRO 609(I)/2020 for reorganization of the Directorate General of Transit Trade. The FBR said that the directorate shall be based at Custom House, Karachi, assisted by Director, Directorate of transit Trade (HQ), Karachi. The directorate general shall have its regional offices at Karachi, Gwadar, Quetta, Peshawar, Gilgit-Baltistan and Lahore. The director general shall report to the Member (Customs), FBR. The directorate general of transit trade shall be responsible for enforcement of all the international agreements, treaties, conventions, domestic laws, rules and procedures relating to transit trade with reference to cross border movement of bonded cargo and domestic laws, rules and procedures relating to transshipment with reference ...

KARACHI: The Finance Bill 2020 has proposed changes to taxability on payments made for goods, services and contracts. According to explanation to amendments made to Section 153 of Income Tax Ordinance, 2001 through Finance Bill 2020 by BDO Pakistan Audit Consultancy and Tax Advisory Firm: (1a): The bill seeks to include toll manufacturing to be treated as sale of good for the purpose of withholding under this subsection. This inclusion clarifies the taxability of this segment and it will be minimum tax. (3): The bill seeks to treat taxes withheld at source as minimum tax on payment of goods, services and execution of contracts. (4): The tax deducted at source is adjustable for the Company being manufacturer and the Public Listed Company registered on stock exchange. This inclusion will result in expansion of tax collection by the board. The Bill seeks that the Commissioner shall respond to application for the issuance of exemption certificate related to withholding of taxes ...

KARACHI: Federal Board of Revenue (FBR) has been suggested to reduce customs duty to five percent on import of steel products in order to reduce cost of doing business for industries. Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2020/2021 submitted to the FBR, urged to reduce the customs duty to five percent under various HS codes on import of steel products. The chamber said that these steels are basic raw materials for any developing or under developed countries, since Pakistan is not self sufficient in steel productions and relies on imports, it is imperative for the government to lower the rate of duty so the country’s industry can flourish as these steels are required in all industries i.e. in machines, manufacturing, infrastructure or any other industrial works. The KCCI further said that all of the steels imported goes into industry for further processing, if the duty / tariff is reduced, the industry’s cost will lower down, thus benefiting ...

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Wednesday said it will oppose any move to grant powers to tax officials regarding opening cases of past 10 years. KCCI President Agha Shahab Ahmed Khan in a statement expressed serious concern on reports that officials of Inland Revenue are seeking more powers to probe and reopen cases of taxpayers for as long as past 10 years. President KCCI pointed out that KCCI has contested for years to curtail discretionary powers of tax officials, which are a source of harassment to the taxpayers and have prevented a majority of business persons to register in the tax regime. Such powers are a deterrent to broadening of tax base which remains around 1 percent despite all kinds of coercive tactics. He said that contrary to stated goal of reforms in Federal Board of Revenue (FBR) and taxation regime, the government is being misled into taking measures in the Budget 2020-2021 which will further discourage documentation and result...

ISLAMABAD: The tax authorities have received above 120,000 income tax returns since launch of new Active Taxpayers List (ATL) on March 01, 2020 and during ongoing lockdown to prevent spread of coronavirus, according to updated list issued June 01, 2020. The updated ATL for tax, around 120,000 taxpayers filed their annual returns for tax year 2019 since March 01, 2020. The number of active taxpayers increased to over 2.65 million as of May 31, 2020 from 2.53 million returns as shown in new ATL for tax year 2019. The FBR updates ATL every week and on an average the revenue body receives around 20,000 returns per week. However, due to lockdown in the country after the outbreak of coronavirus the number of financial transactions had fallen drastically. It is worth mentioning that additional 120,000 income tax returns have been filed after the due date. The due date for filing income tax returns for tax year 2019 was February 28, 2020. As per law it was mandatory for individual...

"The FBR is considering options to reduce the WHT rate by 50 percent to bring it down from 50 to 25 percent in the coming budget," senior FBR officials confirmed to The News here on Wednesday. The official data indicate that there are withholding taxes when the FBR collects an undisclosed amount as the tax equipment has collected the maximum amount of pre-minerals tax under Section 236 V, Rs1.23 million in tax collection by Pakistan Mercantile Exchange Limited under Section 236 T and a minimum amount of Rs0. 24 million from TV shows produced on other systems under Section 236 E of the Income tax Ordinance 2001 in the forthcoming financial year. The FBR found that approximately 7 to 10 withholding taxes contributed to the collection of 85 percent under this head with a total tax rate of 50 percent. The FBR has so far collected Rs800 billion in tax withholding this fiscal year and the Board is considering eliminating about half of the total WHT in a bid to ensure ease of doing ...

Pakistan is another low tax rate. Thus, the government often creates policies and laws to help and support taxpayers as taxpayers. To create the position value and encourage citizens, the government creates two groups. One group is called filer and the other one is called non filer. Filers get more mentioned benefits as compared to non-filers. With additional tax benefits, the government tends to move more people to bracket tax filers and enable them to submit their taxes. filers that won't get any bad taxes installed live on it. In addition, the government is now working with companies to further simplify tax filers. So you can get even better services at public places. 2018 is the year when projects are new. For 2019 and beyond tax filers will see more and benefits coming to them. 2020 is challenging. Read More Check FBR filer status How to check NTN number How to become Filer How to pay income tax What is withholding tax 

The IMF's Chief Citizens, Teresa Daban Sanchez, said that Pakistan's tax collection is 62 per cent below its power but this level of FBR collection was comparable to the regional economy of its peers. "Tax collection in Pakistan is 60 per cent higher than what is supposed to be collected at present but comparable to regional economies," Rev. Teresa said during a one-day conference entitled "Better Taxes: Changing the Tax and Administration Policy Paradig" organized by PIDE here in P Paint in the hall at the Pak Secretariat on Wednesday. He said Pakistan's tax efforts are relatively low as they stand at 62 percent compared to the peer economies. The IMF official said the General Sales tax (GST) in its current form was creating competition, as it was a major challenge to increase exports. The lack of a co-ordination result is a huge burden for many companies and they are becoming disorganized, he added. The GST crackdown, he said, exacerbated problems f...

As per the 2018-19 financial law approved by the Government of Pakistan, this web-based tax calculator uses Pakistani tax rates on taxable personal income and taxable category. Class class slabs are effective when the income earned exceeds 50% of the income. An old Pakistani citizen, being a taxpayer, age 60 or older on the first day of the relevant tax year, is allowed a discount of 50% of taxable income if his taxable income for that tax year is Rs. 1,000,000 / - or less. Recommended: Penalties of being non-filer Consequences of missing tax deadline How to become filer

When a person: You make a statement to the tax authority that is false or misleading something or omits a statement made to tax authorities or any other thing or thing other than a false or misleading statement; and tax debt (including pre-section 147 tax debt) calculated on the basis of the statement is less than what would have been if the statement was false or misleading (a difference to what is called - a tax deficiency would be a penalty for equal penalty where the statement or omission was deliberate or negligent, two hundred percent tax; or anywhere else (except where section 2 (2) applies), a twenty-five percent tax deficit. In the case of an assessment order under section 120, no penalty shall be imposed under subsection (1) until the tax arises when the taxpayer has taken a position contrary to the operation of this Ordinance to the taxpayer. position. The references in this section to the statement made to the income tax authorities are an indication of the written or ...

·          Low rates of tax deduction at source by banks on all profits and withdrawals ·       Withholding tax deduction (tax deducted from your income and benefits) when you register and transfer vehicles ·          Lower tax rate on buying and selling goods ·          Low withholding tax rate on profits from security transactions ·          The tax expense on the dividend will decrease ·          Low rate of tax avoidance on tax bond winnings ·          It allows you to recover the overpayment tax deductible For more information, please v isit website . Recommended blogs for you: How to become filer How to check FBR Filer Status How to Check NTN number Cost of being Non-filer