Press Release:

 

May 10, 2013

24/7 taxpayers’ grievance redressal cell established in FBR

For redressal of taxpayers’ grievances and to facilitate them, a Cell under Section 7 of the FBR, Act, 2007 is already functioning under Member (FATE).   On the instructions of Dr. Shahid Amjad Chaudhry, Advisor to Prime Minister on Finance, Revenue, Economic Affairs, Statistics and Planning & Development, the Competent Authority has decided that the said Cell will also receive all kinds of grievances pertaining to the working of FBR. Member (FATE) will refer the grievances so received to the concerned wing of FBR for redressal.   This grievance Redressal Cell has started operating round the clock in Room No. 208 in FBR House in accordance with the duty roster issued for this purpose. Telephone numbers of the Emergency Duty Cell are as under:-   Phone:          +92-51-9215645, +92-51-9207540 extension 342 Fax No.          +92-51-9207172

Mohammad Shahzad Secretary PR

 

May 07, 2013

Chairman FBR discusses revenue collection with NMC participants

A group of sixty-nine senior civil servants participating in the 98th National Management Course (NMC) and faculty of National School of Public Policy (NSPP) visited FBR House, here today. The group was welcomed by Member Facilitation & Taxpayers’ Education (FATE) Mrs. Riffat Shaheen Qazi. She briefed the visiting officers and faculty of NMC about the organizational structure, working and revenue collection performance of FBR. She highlighted the challenges faced by FBR and proposed way forward to tackle and resolve these issues. The briefing was followed by a detailed Questions & Answers session. The NMC participants freely asked questions which were candidly and frankly responded to by the Chairman FBR Mr. Ansar Javed himself. He talked in detail about various initiatives launched by FBR to enhance revenue collection and to expand the tax base. At the end of the Q&A session, the Rector National School of Public Policy Mr. Muhammad Ismail Qureshi thanked FBR for providing the participants of NMC with an opportunity to interact with FBR’s top management and to understand the grass-root issues facing the country’s economy and the revenue collection system. Chairman FBR Mr. Ansar Javed and Rector NSPP Mr. Muhammad Ismail Qureshi exchanged institutional mementos.

Mohammad Shahzad Secretary PR

April 30, 2013

FBR bids farewell to its two retiring Deputy Chairmen

Officers and staff of Federal Board of Revenue held a farewell ceremony at the FBR House Islamabad for the two Deputy Chairmen of FBR Mr. Malik Abdul Samad and Mr. Shahid Rahim Sheikh who are retiring today. Addressing the ceremony held in the auditorium of FBR House, Member (FATE) Mrs. Riffat Shaheen Qazi lauded the services of the deputy chairmen. She said that it is a matter of pride for FBR that its officers have reached the highest level of civil service in Pakistan. “We would always look towards them for inspiration and guidance”, she added. Dy. Chairman Malik Abdul Samad, in his comments, thanked the seniors, juniors and colleagues for their support during his career. Thanking the officers and staff of FBR, the Dy. Chairman Shahid Rahim Sheikh said that he thoroughly enjoyed his career and learnt a lot from his seniors as well as juniors. He said that learning process should always continue, at every stage of life. Speaking on the occasion, Chairman FBR, Mr. Ansar Javed praised the dedication, commitment and professionalism of both the Deputy Chairmen, who happened to be his batch mates, and said that they will always be remembered for their meritorious services. He said that they would always remain a part of FBR’s family and expressed his best wishes for their future. The Chairman FBR also presented mementos to the two retiring officers.

Mohammad Shahzad Secretary PR

April 22, 2013

Mid-Career civil servants briefed on working of FBR

A group of Twenty-two participants of 15th Mid-Career Management Course (MCMC) and faculty of National Institute of Management (NIM) Karachi visited FBR House today, as part of their country study tour. Member Facilitation & Taxpayers’ Education (FATE) Mrs. Riffat Shaheen Qazi welcomed the participants on behalf of Chairman FBR, followed by a presentation on FBR and a Questions and Answers session which was answered by the Chairman and relevant members of the Board. They were briefed in detail about the various initiatives launched by FBR to enhance revenue collection and to expand the tax base. The Director General National Institute of Management Karachi Mr. Tauqeer Ahmad thanked FBR for providing the participants an opportunity to interact with FBR’s top management, at a time when the budget meetings are in progress. The DG NIM and Chairman FBR exchanged mementos.

Mohammad Shahzad Secretary PR

April 15, 2013

Chairman FBR takes serious notice of the revenue shortfall

The Chairman FBR Mr. Ansar Javed, after assuming charge, has started hectic consultation with stakeholders. The first meeting was held with the Lahore Chamber of Commerce & Industry over the weekend.

The Chairman has taken serious note of the fall in revenue and started marathon meetings within FBR. The performance of each LTU and RTO is examined, and the Chief Commissioners are directed to devolve strategies to achieve the freshly assigned budget targets. He has directed Member (IR-Ops) to immediately issue letters to all the RTOs and LTUs highlighting their performance and achievements / shortfalls, and has directed that remedial strategies be made to ensure collection of the assigned targets for the last quarter ending 30th June, 2013.

Mohammad Shahzad
Secretary PR


April 07, 2013

No new tax has been imposed on Cell Phones: FBR

FBR has clarified that no new tax has been imposed on cell phones as is wrongly being portrayed by some quarters. The fixed amount of sales tax on activation stage was first introduced through SRO 390(I)/2001 dated 18th June, 2001, with a rate of Rs. 2000 per cell phone. However, on the request of cellular company operators to encourage the sector, the rate was reduced from time to time. Under SRO 542(I)/2008 dated 11th June, 2008 the fixed rate was Rs. 500 per mobile phone, which was subsequently reduced Rs. 250 per mobile phone. The collection mechanism in all these notifications was based on the old CDMA technology, which required activation/energization of mobile phones by the cellular company operators before they could be operated. However, CDMA technology is no longer prevalent on any mobile network in Pakistan as all mobile networks in the country are presently operating on GSM technology. Under GSM technology only a SIM Card is inserted in mobile phones which are ready for usage. These GSM technology-based mobile phones do not require activation/energization by the cellular mobile network. Due to this technology change from CDMA to GSM, SRO 542(I)/2008 dated 11th June, 2008 had become redundant and the Government exchequer was not getting the proper revenue from this sector as pre-activated cell phones were being imported resulting in a steep fall in revenue despite tremendous increase in volume of import. SRO 280(I)/2013 dated 04-04-2013 recently issued by the Government does not impose any new tax. It only aligns the law with the latest technology. This notification was necessitated to remove the anomalies occurring due to change in technology. It has shifted the time and mode of payment of tax from activation stage to import stage.The standard rate of sales tax under the Sales Tax Act, 1990 is 16% and prices of new mobile phones go as high as around Rs. 80,000/- or more. At the standard rate of sales tax, the amount of sales tax payable on a mobile phone costing Rs. 50,000/- would be Rs. 8,000/-, but under SRO 280(I)/2013 the fixed sales tax is only Rs. 1000/- which comes to around 2%. Thus the fixed rate of sales tax under SRO 280(I)/2013 dated 04-04-2013 is still much lower than the standard rate of 16% chargeable on all other goods. This reduced fixed rate of Sales Tax has been retained on the request of cell phone operating companies to help and encourage the sector. The impression being created by certain vested interests that the Government has levied a new tax on cell phone is baseless and devoid of fact. The views being presented that imposition of sales tax under SRO 280(I)/2013 will ruin the businesses or lead to smuggling of mobile phones is also not correct as the present notification only brings the tax structure in line with the current cellular technology and it is aimed at safeguarding the interests of the exchequer which were being hurt due to the existence of a notification based on an obsolete technology. Even under the new notification fixed tax rate at a minimal level has been retained on mobile phones to save the industry from any possibility of smuggling. The rate of Rs. 1000/- is only for smart phones and satellite phones (which are admittedly costly phones). The fixed rate of sales tax on ordinary cellular mobile phones (other than Smart Phones and Satellite Phones) is only Rs. 500/- per mobile phone. This minimal rate of fixed tax shows the pro-industry policy of the Federal Government. It also shows that all tax policy changes are well-thought out by the Federal Government and no such policy is implemented which would create problems for the industry.

Mohammad Shahzad
Secretary PR

 

April 02, 2013

Vehicles Amnesty Scheme update

Federal Government’s Amnesty Scheme for smuggled and non duty paid vehicles has received phenomenal response. Till March 31, 2013, over 34,000 vehicles have been assessed to import duty and taxes at various custom offices all over the country. The total revenue collected on such vehicles is approximately Rs. 10 billion.

The success is unprecedented compared to the identical facilities allowed in the past. Customs offices have been working over the weekend, beyond the normal call of duty for this to happen.

Considering the wide response and the demand, the Government has extended the last date for availing the Amnesty to 6th April, 2013. The persons in possession of non duty paid and smuggled vehicles can now surrender such vehicles to customs and get them legalized through payment of duty and taxes till 6th April, 2013.

Meanwhile, all Customs offices, in response to the queries received from the Office of Federal Tax Ombudsman, will cooperate with them and provide the data and record of the vehicles assessed so far.

Mohammad Shahzad
Secretary PR

 

March 29, 2013

FBR launches Taxpayers’ Facilitation Portal

Keeping in view the facilitation of taxpayers, FBR officially launched today its Taxpayers’ Facilitation Portal accessible at FBR’s web address http://www.fbr.gov.pk

This major paradigm shift from an official website towards a Taxpayers’ Facilitation Web Portal is the initiative of FBR’s Chairman Ali Arshad Hakeem with a view towards maximum online facilitation, guidance and help for the taxpayers, in line with best international practices.

All the information required by a taxpayer is minimally presented on the portal with the objective of making it more user-friendly. The new interface is designed with the principle of categorization of information and its presentation in a simple but graceful manner with the sole objective of maximum taxpayer facilitation and easy access to required information.

For the facilitation of taxpayers, all the links of online services provided by FBR are placed in a separate but easily visible section on the portal. All the information and links provided earlier on the website are also accessible with more ease.

For the ease of taxpayers, and if someone is more comfortable with the earlier layout of information, FBR’s previous website is also accessible from the same portal.
Taxpayers, stakeholders and general public are encouraged to give online feedback and suggestions through the same portal.

Mohammad Shahzad
Secretary PR


March 29, 2013

Designated branches of SBP and NBP to remain open on 30th and 31st March, 2013 to facilitate taxpayers

In order to facilitate taxpayers in timely payment of tax liabilities, all designated branches of State Bank of Pakistan and National Bank of Pakistan shall remain open on 30th and 31st March, 2013 (Saturday and Sunday) for receipt of duties / taxes.

For facilitation of the taxpayers, all Inland Revenue Offices will also remain open on 30th March, 2013.

Mohammad Shahzad
Secretary PR


March 28, 2013

10,000 SMUGGLED VEHICLES LEGITIMIZED THROUGH AMNESTY SCHEME SO FAR

The smuggled vehicles’ amnesty scheme notified by the Federal Government, for legitimizing smuggled vehicles upon payment of duty and taxes, has fetched Rs. 3 billion approximately to date, through legitimizing around 10,000 (ten thousand) vehicles across the country.

It is reiterated here again today, that the last date to avail this facility of the amnesty scheme will not be extended beyond 31st March, 2013.

It is further clarified that all Customs’ field formations will remain open on Saturday the 30th and Sunday the 31st March, 2013 as a special arrangement to facilitate persons availing this amnesty scheme. Moreover, designated branches of National Bank of Pakistan will also remain open on aforementioned days.

Mohammad Shahzad
Secretary PR


March 26, 2013

SMUGGLED VEHICLES’ AMNESTY SCHEME NOT TO BE EXTENDED BEYOND 31ST MARCH

The amnesty scheme notified by the Federal Government, for legitimizing the smuggled and non-duty paid vehicles upon payment of duty and taxes, will expire on 31st March, 2013. The scheme will not be extended beyond 31st March, 2013. The rumors suggesting possible extension in the deadline are absolutely unfounded.

2. Those seeking to avail of this facility of the amnesty scheme must therefore present their smuggled / non-duty paid vehicles to Customs, latest by 31st March, 2013.

3. It is further clarified that the Federal Board of Revenue is determined to redouble its drive against such vehicles after the expiry of the amnesty scheme on 31st March, 2013. Instructions have been issued to the Customs field formations to impound such vehicles, besides lodging FIRs against the persons found in the ownership or possession of these vehicles, provided they are not got legitimized under the amnesty scheme, upto 31st March, 2013.

Mujeeb-ur-Rehman Talpur
Second Secretary (Public Relations)



Feb. 25, 2013

FBR HOLDS COMPUTER BALLOT FOR PARAMETRIC SELECTION OF CASES FOR AUDIT OF INCOME TAX, SALES TAX AND FED FOR TAX YEAR 2011

Federal Board of Revenue has conducted computer ballot for selection of cases for audit pertaining to tax year 2011. The selection has been made on the basis of three separate risk parameters for Income Tax, Sales Tax and Federal Excise Duty laws for corporate and non-corporate cases. The business community representatives, who pressed the button for selection of cases, were:- ·  Agha Mujeeb Ahmad Khan, President Rawalpindi Tax Bar. ·  Raja Amer Iqbal, Executive Member Rawalpindi Chamber of Commerce & Industry. ·  Naeem Siddique, President Islamabad Chamber of Commerce & Industry. Other representatives present on the occasion of All Pakistan Tax Bar Association, Islamabad / Rawalpindi and Federation of Pakistan Chamber of Commerce and Industry, were Mr. M. Aslam Anwar, Mr. Faraz Fazal and Mr. Abrar Ahmad Qazi. Member (Taxpayer Audit), while welcoming the participants, stated that payment of tax is national duty of all citizens, particularly those who are earning higher incomes. She informed the audience that FBR, through Universal Self Assessment Scheme, has reposed full confidence in the taxpayers’ community. Selection of 12609 cases out of 1.677 million (0.75%), filers of returns indicates that the audit selection is not for revenue generation, it is rather being used as a deterrence. Therefore, the selection of approximately 15% of returns filed in LTUs, 5% of returns filed by corporate cases and 2% of returns filed by non-corporate taxpayers in RTOs have been selected for audit only to promote voluntary compliance and taxpayers’ education. The selection is based on the parameters devised after consultation with all stakeholders. She informed that FBR has ensured transparency in the process of selection of cases for audit. The list of cases selected for audit has been placed on FBR’s website showing taxpayer’s National Tax Number.

Mohammad Shahzad Secretary PR

Feb. 14, 2013

FBR has extended the Sales Tax Withholding Regime through its notification SRO 98(1)/2013

Federal Board of Revenue (FBR) has extended the Sales Tax Withholding Regime through its notification SRO 98(1)/2013, dated 14-02-2013. The said SRO says that all companies as defined in Income Tax Ordinance, 2001 as are registered for sales tax, FED or Income Tax, shall be subjected to Withholding tax at one-fifth (l/5th) of the applicable rate of sales tax on all purchases.

Furthermore, the persons registered as exporters are also now to be subjected to withholding tax of one-fifth (l/5th) of the applicable rate of sales tax on all purchases from registered persons.

Earlier, from corporate sector only LTU registered person was required to withhold 1% Sales Tax of the value of taxable supplies from persons registered outside LTU (this has now been amended) and all companies are required to withhold sales tax. This amendment is effective from 14, February 2013.

The relevant SRO (number 98(1)/2013) is available on the FBR website.

Mohammad Shahzad
Secretary PR


Jan. 24, 2013

FBR holds training on Litigation Management Software

FBR’s Legal Wing completed a 3-day, training activity on Litigation Management System (LMS) at Directorate General of Training & Research (DOT- IR), Islamabad to build the capacity of 40 officers and officials of FBR as Master Trainers.

Additional Commissioners, Deputy Commissioners, and Assistant Commissioner of Inland Revenue from Islamabad, Rawalpindi, Abbotabad, and Peshawar participated in the training.

Member Legal Mr. Muhammad Aqil Usman, while inaugurating the training, highlighted the importance of the Litigation Management Software (LMS) system. He emphasized the senior management of LTUs and RTOs to get the system implemented.

This system aims at streamlining data entry and its updation of information on Supreme Court and High Court cases (References, Appeals, Writ Petitions, CPLAs etc.) into the Litigation Management software.

FBR plans to extend this training to its entire field staff as this will enable senior management with instant access to position on litigated cases and bring improvement in the tax-legal system at FBR (HQ) and the field formations.

Mohammad Shahzad
Secretary PR


Jan. 23, 2013

Finance Minister chairs Tax Reforms Coordination Group (TRCG) meeting

A meeting of Tax Reforms Coordination Group (TRCG) was held under the Chairmanship of Federal Minister for Finance Dr. Abdul Hafeez Sheikh at the FBR House here today to discuss proposals for upcoming Federal Budget 2013.

Chairman FBR Mr. Ali Arshad Hakeem, in his opening remarks, as host, briefed the Minister about the various proposals prepared by FBR for the upcoming budget.
Federal Minister for finance Dr. Hafeez Sheikh, while chairing the meeting, advised members of the group to structure their proposals in line with objectives of practicality, expansion of business and economy, reduction of trade barriers and curbing of smuggling. The Minister also stressed the need for increasing momentum of revenue collection to achieve the revenue target. He expressed confidence that FBR will achieve assigned budget target.

Following a presentation by FBR’s Sr. Member (IR-Policy) Mr. Asrar Raouf, discussions were held on strategy to improve tax policy to increase revenues. The Tax Reforms Coordination Group also deliberated proposals regarding Tax Registration Scheme, Alternate Dispute Resolution Committee (ADRC), Input Tax scheme, Zero Rating Facility, Sales Tax input adjustment pertaining to unregistered persons and review of Withholding Tax (WHT) and FED rates to facilitate business, reduce cost of doing business, avoid economic burden, harmonize tax laws and promote industry while also improving tax collection.

This was the first meeting of the TRCG for this year and it initiated the TRCG’s mechanism for public and private sector partnership in policy-formulation for considering proposals for the June 2013 upcoming annual budget.

The meeting was attended by Deputy Chairman Planning Commission Dr. Nadeem ul Haque and Members TRCG Mr. Abdullah Yousuf, Mr. Arshad Zuberi, Mr. Bashir Ali Mohammad, Mr. Shabbar Zaidi, Mr. Ali Habib, Mr. Arshad Chaudhary and Mr. Ali Jameel alongwith FBR’s other relevant members.


Mohammad Shahzad Secretary PR
Secretary PR
 

Jan. 11, 2013

	FBR’s drive against illicit tobacco / cigarette trade
	The Anti Illicit Tobacco/Cigarette Unit working under the Inland Revenue Wing of FBR has successfully launched its wide ranged operations covering almost all segments of this evasion prone sector. In addition to enforcement activities audits have also been conducted identifying recoverable Duty/taxes over RS 262 million. During the last 6 months (July-December, 2012) of the current fiscal year, the intelligence & Investigation arm of Inland Revenue at FBR unearthed tax evasion in the cigarette manufacturing and sales. Millions of untaxed cigarettes have been confiscated and the business concerns have been sealed. The confiscated cigarettes include both locally manufacturing and foreign brands. The last factory raided was M/s C.M Tobacco located in Mid Ranjha Sargodha, where 1,100,000 cigarettes were seized. The value of the cigarettes seized, on which duty has not been paid, is Rs, 11, 57,200. The machinery of M/s CM Tobacco has also been sealed. In addition to the local cigarettes, details of foreign brands of cigarettes, seized in the last 6 month is as under:     Name of Brand Seized Quantity of Cigarettes/Tobacco seized PINE 770,000 Cigarette Sticks HI-LITE 50,000 Cigarette Sticks MARLBRO 30,000 Cigarette Sticks STANFORD 20,000 Cigarette Sticks ORIS SLIM 10,000 Cigarette Sticks RED & WHITE(Counterfeit) 40,000 Cigarette Sticks Miscellaneous Foreign brands((Counterfeit) 180,000 Cigarette Sticks   Name of Brand Seized Quantity of Cigarettes/Tobacco seized PINE 770,000 Cigarette Sticks HI-LITE 50,000 Cigarette Sticks MARLBRO 30,000 Cigarette Sticks STANFORD 20,000 Cigarette Sticks ORIS SLIM 10,000 Cigarette Sticks RED & WHITE(Counterfeit) 40,000 Cigarette Sticks Miscellaneous Foreign brands((Counterfeit) 180,000 Cigarette Sticks In order to raise awareness-level of taxpayers in the cigarette industry, an awareness campaign was also organized by FBR’s Intelligence and Investigation Directorate. The campaign was focused towards provision of information to Retailers/ Dealers/ Wholesalers through FBR’s web portal. The campaign also used print and electronic media, and notices to wholesalers / retailers of cigarettes. FBR is actively pursuing tax evasion cases in cigarettes, batteries, real estate and other suspected sectors.
	Mohammad Shahzad Secretary PR

Jan. 04, 2013

Press Release

Employees of FBR have thanked the Prime Minister Raja Pervez Ashraf, Federal Minister for Finance Dr. Abdul Hafeez Shaikh, Minister of State for Finance Mr. Saleem H. Mandviwalla, Chairman FBR Mr. Ali Arshad Hakeem and the senior management of FBR for getting approval of upgradation of 4384 posts of FBR in BS-14 and 15 to BS-16 from the Prime Minister.

President Mian Abdul Qayyum and office bearers of Federal Revenue Alliance Employees Union (FRAEU) and Chief Organizer Mr. Aslam Pervaiz and Office bearers of All Pakistan Tax Employees Association (APTEA) expressed their heartfelt gratitude in a meeting with the Minister of State for Finance Mr. Saleem H. Mandviwalla, Chairman FBR Mr. Ali Arshad Hakeem and senior officials of FBR at the FBR Headquarters, here today.

The Minister congratulated the employees whose posts would be upgraded with this decision and urged them to work with more zeal towards achieving the revenue target. The Minister expressed satisfaction on this decision by the Prime Minister and said that the government is conscious of the need to strengthen the welfare of staff and extends effort to provide them with relief. The Minister was confident that FBR employees will exhibit more diligence to achieve the revenue collection target.

The Chairman FBR Mr. Ali Arshad Hakeem said that FBR’s officers and workers are committed to achieve their revenue targets and in-shaa-Allah they will achieve targets well in time. “We are working on various other initiatives for the welfare and benefit of our employees and will also expand into supporting quality housing, education and medical facilities for them”, he added.

The Minister of State also discussed the current revenue position with the chairman FBR and advised him to keep track of the coming-June-targets.

Mohammad Shahzad
Secretary PR

 

Jan 03, 2013

Prime Minister approves upgradation of 4384 posts of FBR in BS-14--BS-16

The Prime Minister of Pakistan Mr. Raja Pervez Ashraf has kindly approved the upgradation of FBR’s 4384 posts of BS-14 to Bs-16.

Chairman FBR Mr. Ali Arshad Hakeem had taken up this important but long outstanding issue with the Prime Minister, during his visit to the FBR Headquarters on 4th October, 2012. The Chairman had presented the facts of the issue and the negative effects it was causing to the morale of the workers. After getting the verbal approval from the Prime Minister, the Chairman Mr. Ali Arshad Hakeem personally pursued the summary and finally got it approved from the Prime Minister.

According to the details 4384 posts of BS-14 to BS-16 including 1596 Inspectors Customs/ Sales Tax, 1226 Inspectors Inland Revenue, 361 Preventive Officers, 119 Intelligence Officers, 185 Examiners, 263 Appraisers, 07 Valuation Officers, 44 Sr. Intelligence Officers, 50 Inspectors (Preventive Service) and 533 Deputy Superintendants in Customs and Sales Tax would be upgraded with this approval.

With this, a long outstanding demand of the employees of FBR has been accepted. The employees of FBR have thanked the Prime Minister Raja Pervez Ashraf and Chairman FBR Mr. Ali Arshad Hakeem for taking care of their welfare and accepting their demand for upgrading these posts.

Mohammad Shahzad
Secretary PR


Jan. 03, 2013

FBR has not contributed to the CIRP report

It is for the information of all that FBR has not contributed to the report of Center for Investigative Reporting in Pakistan’s (CIRP) titled “Representation without Taxation”.

FBR has not provided any information on declared annual incomes or tax paid by the parliamentarians to CIRP for any study. Section 216 of the Income Tax Ordinance 2001 specifically places restrictions on the release of such data. Recent news items appearing in the press over the last few weeks based on the information available in the report are therefore, apparently not in line with the actual facts on record. FBR, therefore, does not endorse the conclusions drawn in the CIRP’s report.

However, FBR has constituted a committee to probe into the likelihood of ‘data theft’ and any involvement of any FBR officer/official in the matter, if found shall be dealt with seriously.

It is further clarified that the salary income of the parliamentarians is subjected to deduction of tax at source, and non-filing of return does not lead to the conclusion that no tax has been paid.

Mohammad Shahzad
Secretary PR


Jan. 02, 2013

CREST—FBR’s software to facilitate taxpayers

FBR is capturing transactions by registered persons to identify where a registered person is denied benefit admissible under the Sales Tax Act. Accordingly, FBR has developed Computerised Risk-based Evaluation of Sales Tax (CREST) software that checks information in monthly returns, import / export data and cross matches for every registered person. Exceptions that emerge will be conveyed electronically to registered taxpayers who in turn can explain the position to FBR by using CREST and attaching their supporting documents.

The CREST system has in-built capacity to verify the veracity of reply received from the registered person. CREST system is designed for Sales Tax and is based on declarations and covers following areas:

1. Purchases including Input tax adjustment of buyers and suppliers.
2. Zero Rated Sales to registered person with non-active ATL or blacklisted or suspended Sales Tax Registration Numbers (STRNs).
3. Section 8B-exemption-claims against qualifying criteria per notification.
4. Exports claim in returns which do not match with Customs export data.
5. Commercial Imports by non-manufactures who also do not show value addition on imports.

Introductory workshops were held in Lahore and Karachi. The system is in test-stage and messages to 1,000 sales tax payers have already been sent by FBR alerting them to discrepancies detected in their cases. The features of this new system are:

• CREST allows faster and timely sending of discrepancy-alerts to taxpayers. CREST also provides taxpayers an IT system that they can use in order to reply to the CREST discrepancy-alerts without taxpayer needing to visit the tax offices.

• CREST use by taxpayers is an optional-facility and taxpayers can ignore it and make an in-person visit to tax office to explain his position regarding the discrepancy-alert.

Mohammad Shahzad
Secretary PR

 

Dec. 21, 2012

Training of risk-based electronic Whistle-blower system arranged in Lahore.

In order to protect compliant taxpayers of Sales Tax, they will be cautioned beforehand about attempts, if any, being made on their transactions for issuing fake invoices. Mr. Arshad Ali Hakeem, Chairman FBR with his IT background has developed and got in place a risk based electronic system which will be interacting with the taxpayers electronically in case where any person is trying to defraud the taxpayer. It is centrally based which will scrutinize all monthly returns. This system is multipurpose as on one hand, it would be serving as “blow whistler” and on the other hand would be plugging the loopholes causing leakage of sales tax due collection. A hand on training of the senior officers of the Board was held at Lahore today.

Welcoming the participants Mr. Asrar Raouf, IRS Senior Member advised the senior management to take advantage of this electronic system and manage the tax system transparently and efficiently. He, also, cautioned that the system would be maintaining performance folders of each officer indicating the cases where they could not act in time which will be made part of his Performance Report of that year. It is further pointed out that as part of CREST IT solution, Risk Management System has been developed to select sales tax returns of those persons which are claiming input tax credit on the basis of fake imports and as well as fake purchases. The system will, also, be showing any zero rated sectors where the sales are made to registered persons who otherwise are non-active, suspended or black-listed and in this way preempts their attempt to evade reduced tax of 5% on such sales. Other grey areas where this system is focusing are the non-payment of valuation addition tax @ 3% and fake exports. The system has estimated that tax gap is around 50 billion rupees in only 4 months of the current year. After having identified, the system will confront the persons who have apparently not paying the due tax in guise of fake purchases/sales in order to provide them a chance to explain their position. The fraudsters will be prosecuted who were found to be indulging in fraud as a result of the scrutiny of the data as well as the responses received from compliant taxpayers.
The centralized system shall be shortly sending the detail of the fake purchases/sales to the concerned taxpayers and to concerned tax officers and will be given a time of 15 days either to show the lawful evidence of their purchases or make the tax which they are evaded. It is learnt that this initiative of the new Member Reform Mr. Nisar Muhammad who has collected a team of domain experts as well as PRAL technologists under the supervision of Mr. Shafqat Mehmud, Team Leader to identify apparently such taxpayers who are totally non-compliant. In the system every efforts have been made not to focus compliant taxpayers except them warning where any other person is trying to commit fraud in their name. The system has connected the tax collected machinery electronically throughout the Pakistan with Centralized Monitoring System. The finding of the system will be utilized in stopping the illegal refunds as well as recovering the same where these have already been paid. The system is real-time, home-ground and discretion free. The Senior Member IR Policy also announced that the system developers and those responsible for its operation will be rewarded in accordance with their performance. The system is yet another IT attempt by the Chairman to make the performance of FBR transparent, efficient and professional.

Mohammad Shahzad
Secretary PR


Dec. 19, 2012

FBR's clarification about tax returns of Ch. Pervez Elahi, Ch. Shujaat and Ch. Wajahat

FBR’s spokesman has denied the news report by a section of media about tax figures of Deputy Prime Minister Chaudhry Pervaiz Elahi, MNA Chaudhry Shujaat Hussain and MNA Chaudhry Wajahat Hussain.

Quoting the income tax details provided by the lawmakers themselves today, the spokesman clarified that:

i. Deputy Prime Minister Chaudhry Pervaiz Elahi filed tax declarations for the Tax Year 2012 on 29th September 2012 and deposited Rs. 1,263,400 tax, while he paid Rs. 791,938/- tax in year 2011.

ii. MNA Chaudhry Shujaat Hussain filed tax declarations for the Tax Year 2012 on 29th September 2012 and deposited Rs. 647,553/- tax while he paid Rs. 914,917/- tax in year 2011.

iii. MNA Chaudhry Wajahat Hussain filed tax declarations for the Tax Year 2012 on 29th September 2012 and deposited Rs. 380,919/- tax while he paid Rs. 37,368/- tax in year 2011.

Mohammad Shahzad
Secretary PR

 

Dec 17, 2012

FBR clarifies report about NTN of Chairman PAC Nadeem Afzal Chan

FBRhas denied a news report by a section of media about tax figures of Chairman Public Accounts Committee, Mr. Nadeem Afzal Chan, MNA.

Denying the CIRP report, and terming its contents incorrect and malafide, FBR clarifies that Mr. Nadeem Afzal Chan holds NTN number 2680841-1and, according to FBR’s records, Mr. Nadeem Afzal Chan has been regularly paying his taxes as well as filing his tax returns.

Asrar Rauf
Member FATE

Dec 17, 2012

Clarification regarding NTN of Senator Ishaq Dar

FBR’s spokesman has denied a news report by a section of media about tax figures of Senator Muhammad Ishaq Dar Denying the CIRP report, and terming its contents incorrect and malafide, the spokesman clarified that Senator Muhammad Ishaq Dar holds NTN number 0657857-8 registered since 26 October 1995.

The spokesman further stated that according to FBR’s records, Senator Muhammad Ishaq Dar has paid Rs. 119,102 in year 2011 and Rs. 202,073 in the year 2012 and has been filing tax returns regularly.

Mohammad Shahzad
Secretary PR


Dec 12, 2012

Clarification

FBR’s spokesman has denied a news report by a section of media about tax figures of Ms. Farzana Raja, Chairperson BISP.

The spokesman clarified that Ms. Farzana Raja holds NTN number 2498237-7 and she, being a regular taxpayer, has been regularly filing her tax returns for the year 2012, 2011 and earlier years.

Mohammad Shahzad
Secretary PR


Dec 12, 2012

Revised Clarification from FBR NTN of MNA Anusha Rahman

FBR’s spokesman has denied a news report by a section of media about tax figures of MNA, Ms. Anusha Rahman Ahmad Khan.

Denying the CIRP report, and terming its contents incorrect and malafide, the spokesman clarified that Ms. Anusha Rahman Ahmad Khan MNA holds NTN number 2498174-5 registered since 08 September, 2005. The spokesman further stated that according to FBR’s records, Ms. Anusha Rehman Khan has regularly been paying her income tax dues since 2005 and has accordingly been filing yearly tax returns, regularly.

Mohammad Shahzad
Secretary PR


Dec 07, 2012

Clarification

It is hereby clarified that the data published in the news item of "Daily Express" on 5th December, 2012 associated with the Finance Minister Dr. Abdul Hafeez Shaikh in fact pertains to another taxpayer having the same name bearing NTN No. 0752459-5 belonging to District Sukkur and has no relevance with the data disclosed in the Income Tax Return and Personal Expense Form of the Finance Minister.

Mohammad Shahzad
Secretary PR

Nov 13, 2012

	Parametric Ballot to select Audit cases
	Federal Board of Revenue has conducted computer ballot for selection of cases for audit pertaining to tax year 2011. The selection has been made on the basis of various risk parameters developed after consultation with all stakeholders. Mr. Zulfiqar Khan, President Pakistan Tax Bar Association pressed the button for selection of cases. Representatives of All Pakistan Tax Bar Association, Islamabad / Rawalpindi Tax Bar Association, Federation of Pakistan Chambers of Commerce and Industry, Islamabad Chamber of Commerce and Industry, Rawalpindi chamber of Commerce and Industry, Members of Media and senior officials of FBR were present on the occasion. Mr. Mustafa Ashraf, Member (Taxpayers Audit) while welcoming the participants stated that payment of tax is national duty of all citizens, particularly those who are earning higher incomes. He informed the audience that FBR, through Universal Self Assessment Scheme, has reposed full confidence in the taxpayers’ community. However, there are certain people who shun their responsibility by either not paying taxes or paying less than their due share. The selection of approximately 15% of returns filed in LTUs, 5% of returns filed by corporate cases and 2% of returns filed by non-corporate taxpayers in RTOs is only to promote voluntary compliance. The selection is based on the parameters devised after consultation with all stakeholders. Mr. Ijaz Hussain, Member (Inland Revenue) while addressing the audience informed that FBR has ensured transparency in the process of selection of cases for audit. The list of cases selected for audit has been placed on FBR's website showing taxpayers' National Tax Number only without displaying their names.
	Mohammad Shahzad Secretary PR

 

Nov. 06, 2012

Senior Bureaucrats of 97th NMC Course Visit FBR

A delegation from Pakistan’s most premier training institution, the National School of Public Policy (NSPP), Lahore, visited FBR today. 58 senior bureaucrats undergoing the 97th National Management Course were amongst the delegates, led by very senior retired civil servant, Mr Ismail Qureshi Rector NMU, and Dean National Management College (NSPP) Mr. Naeem Aslam.

The visiting senior civil servants were welcomed by Mr. Asrar Raouf Senior Member FBR, Mr. Shahid Rahim sheikh (Revenue Division) and members of FBR including Mr. Muhammad Aqil Usman (Legal) Mr. Riaz khan (Customs), Hafiz Muhammad Anees (Enforcement), Mr. Mustafa Ashraf (Taxpayer Audit) and Ms. Raana Seerat (HRM). FBR Chiefs were also present during the briefing.

Renowned national scholar, Dr. Sikandar Hayat, Mirza Shams-ul- Hasan-PSP, and Dr.
Hashim Popalzai of the NMC directing staff accompanied the group.

Mr. Asrar Raouf who is also FBR’s spokesman, briefed the delegation and lead an hour long Q&A session, where Mr. Shahid Rahim Sheikh put forward the revenue division’s views on tax policy formation. Member customs appraised the delegation on FBR’s role in unearthing false sales tax-refund claims and effecting over Rs 8 billion recovery in a short time. The visiting senior civil servants were introduced to FBR’s revenue strategy in pursuit of this year’s target of Rs 2,381 billon (against last year’s revenues of Rs 1.883 billion) and Mr. Asrar Raouf also appraised the senior delegates on facets of policy proposal on voluntary registration scheme for taxpayers that is currently under deliberation (and is commonly misquoted in media as amnesty scheme).

He also appraised that while the economic scenario of Pakistan also impacts revenue
collection, but despite such constraints the FBR with less than1% cost, collects taxes exceeding 95% of MOF’s given targets, and that over 85% of governments ‘expenditure is fed from revenues raised by FBR.

The delegation’s visit ended with brief comments by rector NSPP Mr. Ismail Qureshi on perspectives of tax policy, followed by tea and a commemorative group photograph.


Asrar Raouf
Senior Member (IR-Policy)

 

Oct. 18, 2012

Life attempt on Superintendent Customs, Islamabad by Smugglers.

On the morning of 18th October, 2012 at around 9:00 am, Mr. Zarghem Dil, Superintendent Customs (Preventive), Model Customs Collectorate, Islamabad while on his way to office was shot by two unknown assailants. The two assailants opened fire on his car as he was leaving his house. The bullet pierced through his left arm. He was later on shifted to PIMs Hospital Islamabad where his condition is stated to be out of danger.

Chairman FBR accompanied by Member Customs and Chief Collector (North) visited PIMS hospital to enquire about the health of the wounded / injured official. Chairman assured the officials present on the occasion that they should perform their official duties without fear and that the Government will bring to book the culprits involved in the attack on the official. A case has been registered with the local police and all efforts are made to apprehend the culprits.

The recent attack appears to be the result of the recent intensive anti-smuggling campaign launched by the Collectorate against smuggled/contraband goods and vehicles. In view of the recent directions of the Honorable Apex Court to seize smuggled / non duty paid vehicles this Collectorate has launched a vigorous campaign. As a result, 42 non-duty paid vehicles and seizures worth Rs. 120 Million have been made during the last three months. 18 persons have also been arrested who were involved in smuggling cases.

Furthermore, the Collectorate has made 07 major seizures of Gold, Currency and Narcotics, which includes 15.6 Kg of Gold at BBI, Airport, and seizure of 20 Kg of heroin in different cases. The two seizures of foreign currency worth Rs. 165 million and Rs. 70 million are the record seizure ever made by Pakistan Customs at any International Airport of Pakistan.

Officers / officials working in the anti-smuggling formations have been continuously receiving threats since the launch of this campaign. Despite these odds the Collectorate continue to seize smuggled goods and Non-duty paid vehicles alongwith the criminals involved in smuggling of these contrabands.

Asrar Raouf
Senior Member FBR/ Member (FATE)

 

Sep. 30, 2012

EXTENSION IN THE DATE OF FILING OF INCOME TAX RETURNS/STATEMENTS FOR TAX YEAR 2012

In exercise of the powers conferred under section 214A of the Income Tax Ordinance, 2001, Federal Board of Revenue is pleased to extend the date of filing of Income Tax Returns/Statements for the Tax year 2012 upto 10th October, 2012.

(Muhammad Zaheer Qureshi)
Secretary (Income Tax Policy)

Sep. 28, 2012

Extended working hours of FBR field offices on 29th and 30th September, 2012

FBR has directed all Inland Revenue Offices to remain open till 08:00 PM on Saturday 29th September and till 10:00 PM on Sunday 30th September, 2012 to facilitate the taxpayers in filing their Income Tax returns.

As requested by the Federal Board of Revenue, the State Bank of Pakistan has issued necessary instructions to authorized branches of National Bank of Pakistan to remain open for extended hours till 08:00 PM on Saturday 29th September and till 10:00 PM on Sunday 30th September, 2012.

The Chief Commissioners have also been directed by FBR to establish liaison with State Bank of Pakistan and authorized branches of National Bank of Pakistan to ensure transfer of tax collection by these branches before or on 30.09.2012 to the respective offices of State Bank of Pakistan on the same date, so as to account for the same towards the collection for the month of September, 2012.

Mohammad Shahzad
Secretary PR

 

Sep. 17, 2012

Strategies Discussed to Curb Revenue Leakages – FBR Holds Conference of Intelligence & Investigation (IR)

The first Quarterly Conference of Intelligence & Investigation (Inland Revenue) was held here today on 17.09.2012 at FBR (HQs), Islamabad. The Chairman FBR, Mr. Ali Arshad Hakeem, while addressing the Conference stressed upon the participants to enhance tax compliance and curb revenue leakages and general non-compliance through concrete and timely information on all sorts of tax evasion. He emphasized the central role which an Intelligence Agency like the D.G I&I - IR could play in enhancing tax compliance in the country.

2. Later, detailed discussions were held on how to contribute effectively towards achievement of the targets. . Various strategies were discussed to curb revenue leakages through mis-declaration, tax frauds, fake refunds and general non-compliance. The need for effective information gathering to curb tax evasion through all these means, was strongly felt and strategy derived for geographic and sectoral mapping of various businesses to develop a database and use it as tool of checking non-compliance and evasion.

3. During his concluding remarks, the Director General, I&I (IR), Khawaja Tanveer Ahmad highlighted the role envisaged for the DG I&I – IR and called upon the participants to draw a roadmap for achieving the tasks assigned to the Directorate General. He appreciated the fact that despite numerous hardships and resource constraints, the nascent Directorate General I&I – IR has been able to establish itself as a worthwhile institution within the FBR hierarchy in a short span of one and a half year. Members of the Board, Senior Officers, Director General I&I – IR Karachi, Lahore and Faisalabad and Director (HQs) I&I – (IR) Islamabad, also attended the Conference.

Riffat Shaheen Qazi
Member (FATE)
 

Sep. 14, 2012

FBR Clarifies Admissibility of Performance Allowance

Federal Board of Revenue clarifies with reference to a news item published in a section of press on 14-09-2012 that the employees of the Board are allowed performance allowance equal to their running basic pay by the Federal Government.
2.This allowance is admissible irrespective of grades and status of employees. The payment of said allowance is subject to selection of employees against specific job positions as per the skills/qualification requirement as well as selected by a designated Selection Committee for various level of grades.

3.The Selection Committee accordingly recommended for notification of performance allowance for newly posted Chairman, FBR. However, when the notification was brought to the knowledge of the Secretary, Revenue Division/Chairman, FBR, he himself declined to receive the said allowance in the public interest and in view of the current economic scenario of the country. Hence, the notification of performance allowance for the Secretary, Revenue Division/Chairman, FBR was immediately withdrawn.

Riffat Shaheen Qazi
Member (FATE)


Sep. 04, 2012

Clarification regarding differences in the Export to Pakistan figures of China Viza-a-Viz Pakistan import figures.

The Additional Secretary Revenue Division, Shahid Rahim Sheikh has clarified here today that during meetings with the Federation and the various Chambers, the issue of under invoicing especially with regard to imports from China are repeatedly raised. While the undesirable fact of under invoicing cannot be denied and Pakistan Customs has in the past and at present also taken legal and administrative measures to address this problem, the complaint regarding huge gap in the trade figures of Pakistan and China has been examined at length.

2. It has been stated in different meetings and also in a section of national media that reportedly China exported goods worth US $ 12 billion to Pakistan during last year while the import figure of Pakistan indicate an import of US $ 4 billion. This stated gap is attributed entirely to under invoicing in the import from China. It is clarified for the information of all concerned that this assertion is incorrect. As per official trade figures of both the countries, available on the website of International Trade Centre (ITC) (www.trademap.org), the value of China’s exports to Pakistan during 2011 was US $ 8.4 billion. Pakistan imports were US $ 6.4 billion. The discrepancy was thus of only US $ 02 billion and not US $ 8 billion as reported in different trade meetings and a section of press.

3. The issue of disparity in the trade figures of the two countries in addition to the element of under invoicing is attributed to different accounting periods and methodologies. Pakistan Customs has taken up this matter with China Customs in the past also and the matter is being again attended to. It is further informed that disparity in trade figures of China is not unique to Pakistan and such variations also exist between trade figures of China and some of its other trading partners.

Riffat Shaheen Qazi
Member (FATE)


Aug. 31, 2012

Extension in the date of filing of Income Tax Return / Statements for Tax Year 2012.

Federal Board of Revenue has extended the date of filing of the Income Tax returns/Statements for the Tax year 2012 as under:

Date of filing of Returns of Total Income through e-portal in case of salaried persons (or a Statement required under sub-section (4) of section 115 of the Income Tax Ordinance, 2001) due on 31st August, 2012, is extended to 30th September, 2012.
Date of filing of Annual Statement of deduction of income tax from salary, to be filed by employer, as provided in sub section (3) of section 118 of Income Tax Ordinance, 2001, is extended to 10th September, 2012.

The decision has been taken by the FBR in exercise of the powers conferred under section 214A of the Income Tax Ordinance, 2001.

Riffat Shaheen Qazi
Member (FATE)

Aug. 30, 2012

Extension of the date for payment of Taxes/Duty and filing of Sales Tax / Federal Excise Duty Returns for the period July, 2012 for all Registered persons.

Federal Board of Revenue has extended the date of filing of Sales Tax/Federal Excise returns upto 5th September, 2012 for the tax period July 2012, for all registered persons vide its C. No. 3(9) ST-L&P/2010-115577-R dated 30.8.2012. The date of payment of tax shall, however, be 30th August, 2012.

The decision has been taken by the FBR in exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005.

Riffat Shaheen Qazi
Member (FATE)

Aug. 28, 2012

Extension of the date for payment of Taxes/Duty and filing of Sales Tax/Federal Excise return for the period July, 2012 for all registered persons.

Federal Board of Revenue has extended the date of payment of taxes/duty and filing of Sales Tax/Federal Excise returns to 30th August, 2012 for the tax period July 2012 for all registered persons vide its C. No. 3(9) ST-L&P/2010 dated 27.8.2012.

The decision has been taken by the FBR in exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005.

Riffat Shaheen Qazi
Official Spokesperson, FBR

Aug. 24, 2012

All Model Customs Collectorates to Remain Open on Saturday, 25th & Sunday 26th August, 2012

FBR has ordered that all the Model Customs Collectorates shall remain open on Saturday 25th and Sunday 26th August, 2012 as normal working days in order to facilitate the trade and industry in getting their cargo cleared for imports and exports.

The management of State Bank of Pakistan and National Bank of Pakistan has been requested to provide banking facility by the designated branches on the above mentioned dates to ensure the payment of duty and taxes. The port authorities/port operators have also been advised to synchronize their working, accordingly.

Riffat Shaheen Qazi
Member FATE

 

Aug. 10, 2012

EXPORTERS FACILITATED BY WITHDRAWING REGULATORY DUTY ON (LEAD) GOODS MANUFACTURED FROM IMPORTED RAW MATERIALS.

The Federal Government has amended Notification No. SRO-594(I)/2009 dated 25th June, 2009 as follows:

2. In aforesaid Notification, in the preamble, for the full stop, at the end, a colon shall substituted and thereafter the following proviso shall be added, namely,
“Provided that no regulatory duty shall be levied on export of goods produced from the material imported (except locally procured material) under the facility of DTRE as provided under sub-chapter 7 of chapter XII of the Customs Rules, 2001, or the scheme of manufacturing bonds as licensed under chapter XV of the said Rules”.

3.This Notification facilitates exporters by withdrawing regulatory duty on (lead) goods manufactured from imported raw materials.
 

Riffat Shaheen Qazi
Member (FATE) / Official Spokesperson, FBR

July 19, 2012

Extension of the date for payment of Taxes/Duty and Filing of Sales Tax/Federal Excise Duty Returns for the period June 2012 for all registered persons.

In order to facilitate all registered persons, Federal Board of Revenue has extended the date of payment of taxes/duty and filing of Sales Tax/Federal Excise returns upto 25th July, 2012 for the tax period June, 2012. The due date for such payment and filing of returns for the tax period of June, 2012 was 15th July, 2012.

June 29, 2012

ALL BANKS TO REMAIN OPEN ON 30.06.2012

The State Bank of Pakistan, vide its letter No.FD.GOVT/671/101-2012 dated 29^th June, 2012 has declared Saturday the 30^th June, 2012 as a working day.

2. Therefore, all banks of Pakistan shall remain open on Saturday the 30^th June, 2012. Further the clearing time on 30.6.2012 has been extended beyond 10:00 PM and the cash counter timings have also been extended till 12:00 midnight.

3. This would help taxpayers in payment of Taxes / Duties and fulfill their national obligations.

June 29, 2012

CLARIFICATION OF AVAILING LAST DAY FACILITY OF PENALTY WAIVER ETC

FBR has given sales taxpayers the one-time waiver of penalties and additional tax if principal amount of outstanding sales tax (including illegal adjustments) were paid by 30^th June. Further concession in this was given b y FBR on 27^th June in SRO 774(1)/2012 allowing only 25% of Sales tax to be paids now, and the balance in equal installments by 30.12.2012, with other conditionalities.

2. In response to public queries on whether the benefit of SRO 774(1)/20012 dated 27-06-2012 is also available to those who have already made payment of 25% or more of the principal amount prior to the issuance of the said notification, the FBR issues following clarification, as tomorrow (Saturday 30 June) is LAST DATE of this facility.

3. FBR clarifies that the benefit of SRO 774(1)/2012 dated 27-6-2012 shall only be available to those registered persons who pay during June 27-30, 2012 atleast 25% of the principal amount as outstanding against them on June 27, 2012. The conditions laid down in SRO 774(1)/2012 dated 27-6-2012 i.e. regarding payment of balance amount etc will continue to apply.

4. Thus, any amount deposited prior to June 27, 2012 shall not make the registered person eligible to claim benefit of the said notification unless he makes payment on or after June 27, 2012 of atleast 25% of the balance principal amount as outstanding on the said date.

June 27, 2012

FBR issues SRO 774(I)/2012: further eases conditions for waiver of default surcharge and penalties on account of illegally adjusted input sales tax

Federal Board of Revenue has taken yet another step to further facilitate tax payers. Today, SRO 774(I)/2012 dated 27.06.2012 is issued which supersedes the earlier SRO 606(I)/2012 dated 01.06.2012 which exempted the default surcharge and penalties on outstanding Sales Tax on account of illegally adjusted input tax. The condition for this earlier exemption was that the full principal amount (illegally adjusted) is paid by 30th June, 2012. The new SRO 774 further eases requirements for compliance.

According to the new SRO 774, default surcharge and penalties payable on outstanding illegally adjusted input tax shall be exempt if the tax payer pays twenty-five percent of the principal amount of illegally adjusted Sales tax by 30th June, 2012. The remaining seventy-five percent of the principal amount is to be paid in five equal monthly installments by 31st December, 2012 with the first installment payable on 31st August, 2012.

The condition of withdrawal of cases, complaints or proceedings filed by the tax payer before courts of law, FTO or any other authority has also been extended to 31st December, 2012. According to the new SRO the benefit so provided shall cease to exist ab initio in case of failure of payment in the government exchequer as per the conditions laid down in the SRO. The SRO is also available at FBR website www.fbr.gov.pk.

June 26, 2012

Payment of Taxes / Duty and filing of ST & FE Returns date extended up to 30th June 2012

In a bid to facilitate the trade and business community, FBR has decided here today to further extend the date for payment of Taxes / Duty and Filing of Sales Tax and Federal Excise Returns for the Tax Period May-2012, up to 30th June 2012, for all registered persons.

The decision was taken in exercise of the powers conferred under section 74 of the Sales Tax act, 1990 and section 43 of the Federal Excise Act, 2005.

Riffat Shaheen Qazi
Official Spokesperson, FBR

June 25, 2012

FBR strengthen its capabilities with new Data-Centre and Video Conferencing facility

The Chairman, FBR, Mumtaz Haider Rizvi today inaugurated two new facilities for FBR, a new state of the art (Tier 3) Data-Center and a new Video Conferencing facility for FBR.

The Data Centre is of a Tier-3 category which is said to be the most modern Data-Centre in the Government sector. The new FBR Data Centre can operate around the clock, and has capacity to monitor FBR’s IT systems across Pakistan on a 24/7 basis. FBR Spokesperson, Riffat Shaheen Qazi while highlighting facets of the new facility, said that it also allows FBR the capability to host its own e-mail services that can also be used for facilitating taxpayers.

Cutting the tape on the new video conferencing premises the Chairman, Mumtaz Haider Rizvi expressed the hope that this will not only improve communications but also reduce unnecessary tours of senior officers. After cutting the tape Chairman, Mumtaz Haider Rizvi talked to Chief Commissioners and Chief Collectors individually at different cities across Pakistan and also held a joint video conference with them simultaneously.
 
Incharge of the IT Project, Ardsher Tariq , informed that there are 29 video conferencing points at major tax offices across the country and the new facilities will increase the effectiveness of the FBR manifold and add to pace of revenue mobilization in Pakistan.

June 25, 2012

Last date to avail waiver of default surcharge, penalties and criminal proceedings on non-payment of income tax, ST, FED and Withholding tax extended up to 30th June, 2012

The waiver scheme announced by FBR vide SROs 547 (I)/2012, 548(I)/ 2012 and SRO 606 (I)/2012 has been further extended up to 30th June, 2012.

Earlier, the taxpayers who owed outstanding tax money were offered waiver of default surcharge, penalties and withdrawal of criminal proceedings if the Principal Amount of Income Tax, Sales Tax, Federal Excise Duty or Tax Withheld by the withholding agents were to be deposited by 25th June 2012.

Now, in a decision taken here today, the last date has been further extended till 30th June, 2012 to get benefit from the said scheme. The extension has been notified through 03 SROs issued here today i.e. SRO-768(I)/2012, SRO-769(I)/2012 and SRO-770(I)/2012 (Copies attached).
 

June 22, 2012

FBR ANNOUNCES WAIVER OF PENALTIES, FINE AND SURCHARGE AGAINST CUSTOMS DUTIES

In order to ensure deposit of the outstanding principal amount of Customs duty by 30th June, 2012, the Federal Government has remitted whole amount of penalties, fine and surcharge under section 202A, payable by a person against whom an amount of customs-duty is outstanding on account of any audit observation, audit report, demand notice or any adjudication order or who has failed to pay any amount of customs-duty or claimed inadmissible refund or drawback of customs-duty to any reason.

It has been further notified that in case where refund becomes due to any persons in consequence of a decision or judgment at a later stage after the issuance of this Notification, the customs duty deposited by that person under this notification shall be refunded to him.

This measure has been taken to facilitate the trade and industry and commercial importers who have not been able to clear their government dues till date. Copy of notification No. SRO-761(I)/2012 dated 21.06.2012 is attached.

Riffat Shaheen Qazi
Member (FATE) / Official Spokesperson, FBR


June 22, 2012

FBR ENSURES OPENING OF SBP, NBP AND NIFT DURING 28TH TO 30TH JUNE, 2012 FOR EXTENDED HOURS

FBR takes yet another taxpayer facilitation measure by ensuring the State Bank of Pakistan, National Bank of Pakistan and NIFT to remain open for extended hours as per following schedule: Thursday 28th June, till 06:00 P.M., Friday 29th June, till 08:00 P.M. and Saturday the 30th June, till 10:00 P.M. so that the taxpayers are facilitated in depositing their tax liability on time.

Riffat Shaheen Qazi
Member (FATE) / Official Spokesperson, FBR
 

June 22, 2012

FBR LAUNCHES FACILITATION E-MAIL SERVICE FOR TAXPAYERS

FBR sets yet another milestone in taxpayer facilitation by introducing automated information system for taxpayers to discharge their tax liabilities more conveniently. The initiative was taken by FBR’s Facilitation and Taxpayer Education Wing, headed by a Senior Member, Ms. Riffat Shaheen Qazi. The project was successfully launched today by Chairman, FBR, Mr. Mumtaz Haider Rizvi with a click of a computer button in a simple launching ceremony held at the office of Member FATE, FBR, here today.

 First batch of facilitation e-mails were sent to 1,028 taxpayers, which will be sent over the next 24 hours to about 200,000 taxpayers whose e-mails are registered with FBR. Following this first regular e-mail from FBR’s FATE Wing, FBR will now continue to send e-mail messages to taxpayers to remind them of upcoming deadlines on tax payments, changes in taxation law and procedures, and other useful information for helping them in their tax matters. These e-mails however, do not replace the statutory responsibility of paying taxes, that lies under statutes, with the taxpayer.

FBR has distinct e-mail addresses of about 281,241 taxpayers who will be sent these e-mails, and subsequently this facility will be extended to more taxpayers, the Chambers of Commerce and Industry across Pakistan were amongst the first recipients of this e-mail service, said Rifat Shaheen Qazi, Member-FATE / FBR’s Spokesperson, on the occasion of the launching ceremony.

Earlier, Chairman, FBR, Mumtaz Haider Rizvi, while talking on the occasion, stressed on the service delivery role of FBR and how this should facilitate the enforcement efforts of FBR.  More e-mails are expected to follow as FBR plans to educate and remind the taxpayers on tax deadlines and other new initiatives to join hands with FBR to contribute in a common goal of strengthening the national economy.

June 20, 2012

FBR Revises and Simplifies Income Tax Return Forms for Tax Year 2012.

FBR takes yet another taxpayer facilitation measure by simplifying income tax return forms which include; Return Form for Individuals and AOPs (IT-2 Form), Corporate Return Form for Companies (IT-1 Form), Wealth Statement Form (WS1/2 Form), and Wealth Reconciliation Form (WS 2/2 Form). Whereas, a new simplified Income Tax Return Form (IT-4) for Individual Retailers is also introduced. These Forms are effective for Tax Year 2012.

This measure will facilitate the taxpayers in filing of their returns. FBR has placed these revised and simplified Forms on its website for taxpayers’ convenience and has invited their suggestions in preparation of user friendly tax return forms
The decision was taken by making necessary amendments vide SRO-727(I)/2012 dated 12.06.2012 and SRO-752(I)/2012 dated 19.06.2012. These Notifications are also placed at FBR website for the information of general public.

Riffat Shaheen Qazi
Member (FATE) / Official Spokesperson, FBR


June 19, 2012

FBR extends date for filing of Sales Tax/Federal Excise Return and Payment of Taxes/Duty thereon for the period May, 2012

Federal Board of Revenue is pleased to extend the date for filing of Sales Tax/Federal Excise Return and payment of Taxes/Duty thereon up to 25th June, 2012, for the tax period May, 2012, for all registered persons.

The decision has been taken by the FBR in exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005.

Riffat Shaheen Qazi
Member (FATE),Official Spokesperson, FBR


June 19, 2012

FBR Waives off Penal Surcharge on Overstayed Goods by Extending the Warehousing Period up to 30th June 2012

In a bid to provide relief to the business community, FBR has decided here today to further extend warehousing period and waive off the penal surcharge on overstayed goods, lying un-cleared in the Customs Bonded warehouses up to 30th June, 2012.

This measure will facilitate the trade and industry and commercial importers who have not been able to clear their goods up to 15th June, 2012 on payment of duty and taxes. This facility is also available for ex-bonded clearances made during the period from 21.05.2012 to 30.06.2012.

The decision was taken by making necessary amendment vide SRO-751(I)/2012 dated 18.06.2012 in its earlier notification SRO-522(I)/2012 dated 21.05.2012. Copy of Notification No.SRO-751(I)/2012 is attached.

Riffat Shaheen Qazi
Member (FATE),Official Spokesperson, FBR
 

June 07, 2012

Default Surcharge and Penalty Waiver Scheme Extended up to 25th June, 2012

FBR has decided to extend the date for availing the “Default Surcharge and Penalty Waiver Scheme” under SRO-547(I)/2012 and SRO-548(I)/2012 upto 25th June 2012, in view of the positive response of the taxpayers for availing the said scheme.

FBR had earlier announced a “Default Surcharge and Penalty Waiver Scheme” through SRO-547(I)/2012 of Income Tax and SRO-548(I)/2012 of ST & FED dated 22.5.2012 for Withholding Agents and Persons against whom Income Tax, Sales Tax or Federal Excise Duty was due and they could not pay in time. The scheme offered waiver of default surcharge and penalties to such tax defaulters who would pay principal amount of due tax on or before 31st May, 2012.

For further details, taxpayers should consult SRO-547(I)/2012 of Income Tax and SRO-548(I)/2012 of ST & FED dated 22.5.2012 available at FBR website.
 

May 30, 2012

Extended working hours of SBP field offices, NIFT and NBP on 31st May, 2012

As requested by the Federal Board of Revenue, the State Bank of Pakistan has issued instructions to SBP BSC field offices, to NIFT and to NBP to remain open for extended hours till 8:00pm (2000 hrs) on 31st May 2012, to facilitate trade and industry in getting their cargo cleared for imports and exports and for receiving of returns and payments of duty and taxes.

In order to ensure that all receipts collected on 31st May 2012 are credited to the Government Account on the same date, a special clearing at 07:00 pm (1900 hrs) on 31st May 2012 has been arranged so that all the clearing instruments received up to 07:00 pm are cleared and credited to the Government Account in value date of 31st May 2012.

Mohammad Shahzad
Secretary PR


May 29, 2012

FBR attaches PTA Accounts in its ongoing Tax Recovery drive.

Recovery action on PTA

FBR in its ongoing campaign to recover outstanding tax liabilities against various companies, the Large Taxpayers Unit (LTU), Islamabad has attached all Bank Accounts of the Pakistan Telecommunication Authority (PTA) which owed Rs.3.6 billion to the exchequer on account of Income Tax.
The PTA was served with recovery notice under Section 138(10 of the Income Tax Ordinance 2001, to deposit the outstanding liabilities by 28th of May 2012 which it failed to do so. Accordingly, various teams were formed by Chief Commissioner, LTU, Islamabad to recover the amount from PTA through attachment of bank accounts and its receivables from mobile operators, wireless local loop (WLL) operators, Long Distance & International (LDI) operators, land line (LL) operators and Ministry of Information Technology.

Update on Mobilink

Pakistan Mobile Communications’ (Mobilink) agrees to pay outstanding tax amount of Rs. 2.5 billion by 30th May, 2012 by availing FBR’s Tax Surcharge and Penalty Waiver Scheme. The issue has been resolved amicably.

Riffat Shaheen Qazi
Member (FATE)

 

May 26, 2012

FBR Intensifies efforts to recover Withholding Tax

The Federal Board of Revenue has identified 119,870 non-filer salaried persons, drawing annual salary of more than 5 lacs. They were required to e-file their Returns of Income for tax year 2011 on e-portal of FBR but they did not discharge their legal obligation on this count. The information regarding these non filers has been disseminated by the Withholding Wing of FBR to its field formations for enforcing Returns from them. Such non-filers are liable to pay penalty that is equal to 0.1% of the tax payable for each day of default subject to a minimum penalty of Rs. 5000 and maximum penalty of Rs. 25% of tax payable and default surcharge under section 205 of the Income Tax Ordinance, 2001.

The FBR has also intensified its efforts to recover withholding tax under section 153 of the Income Tax Ordinance, 2001. The cotton ginners required to withhold tax on the sale of cotton bales defaulted in withholding tax amounting to Rs. 2597 million. Out of this Rs. 1881 million have been recovered upto April, 2012. Four field Units of FBR where majority of the cotton ginners are located, are involved in this monitoring exercise. RTO, Multan has made further recovery of Rs. 104 million in May, 2012 and Rs. 250 million on the account are expected to be recovered by 15th of June, 2012. Recovery of another 360 million is expected to be made by RTOs Hyderabad, Bahawalpur and Sukkur by 30th June 2012. Similar defaults have been un-earthed in certain other areas also that include the Banking sector. Hectic efforts are being made to realize the defaulted amount of Withholding Taxes during current financial year.

Riffat Shaheen Qazi
Member (FATE)


May 24, 2012

FBR ATTACHES MOBILINK ACCOUNTS

Pakistan Mobile Communication Ltd (Mobilink) owed Rs. 8.6 billion to the exchequer on account of mis-declaration of Sales Tax and FED. The Income Tax Appellate Tribunal recently upheld the decision of LTU, Islamabad and confirmed the payable tax amount of 8.6 billion rupees.

On receiving the decision of the Tribunal, Syed Ijaz Hussain, Chief Commissioner, LTU, Islamabad formed various teams of officers headed by Commissioner, LTU, Malik Muhammad Ashraf to recover the amount from the company through attachment of Bank accounts, blocking of imports and recovery through suppliers of the company, which include other telecom companies as well as the Pakistan Telecommunication Authority.

As of today, all Bank Accounts of the Company have been attached and imports blocked accordingly. Further action will be taken by the next working day.

Riffat Shaheen Qazi
Member (FATE)


May 24, 2012

FBR and all of its field offices to observe full working hours tomorrow on Friday the 25th May

Chairman, FBR has directed that FBR Headquarters as well as all of its field offices shall observe full working hours on Friday the 25th May, 2012 (i.e. from 08.30 am to 04:00 pm) with lunch and Juma Prayer break from 01:00 pm to 02:00 pm.

An Office Order in this regard has been issued to Chief Collector of Customs (North & South), all Chief Commissioners of LTUs and RTOs, all DGs of Customs and Inland Revenue and all Collectors of Customs (MCCs), here today.

The decision was taken in order to maximize efforts of revenue collection and in view of ongoing heavy work load of yearly Budget making exercise.

Riffat Shaheen Qazi
Member (FATE)


May 22, 2012

Extension in warehousing period and waiver of penal surcharge on overstayed warehoused goods

The Federal Board of Revenue has provided relief to the business community by extending the warehousing period and waiving off the penal surcharge on overstayed goods, lying un-cleared in the Customs Bonded warehouses.

This 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. A notification No. SRO 522(l)/2012 dated 21.05.2012 has been issued whereby penal surcharge on goods not cleared within the prescribed period has been fully waived off. This facility is for ex-bond clearances made during the period from 21.05.2012 to 15.06.2012.

Mohammad Shahzad
Secretary PR

April 27, 2012

Custom Houses and RTOs / LTUs to remain open till 18:00 on 27th and 28th April 2012 and till 22:00 hours on 30-4-2012

All Model Customs Collectorates / Large Tax payer Units/Regional Tax Officers/Tax Facilitation Centers shall remain open till 18:00 hours on 27-4-2012 and 28-4-2012 and till 22:00 hours on 30-4-2012 in order to facilitate the trade and industry in getting their cargo cleared for imports and exports and for receiving of returns and payment of duty and taxes, accordingly.

The Chief Collectors of Customs/Chief Commissioners of IR would coordinate with management of State Bank of Pakistan and National Bank of Pakistan to provide banking facility by all designated branches upto 18:00 hours on Friday 27-4-2012 and Saturday 28-4-2012, and upto 22:00 hours on Monday 30-4-2012 to ensure the payment of duty and taxes. The port authorities / port operators are advised to synchronize their working accordingly.

April 24, 2012

Officers of 96th National Management Course visit FBR Headquarters

Senior bureaucrats undergoing the 96th National Management Course visited FBR headquarters here today. The 61 officers and 11 faculty member group was led by Rector of National School of Public Policy (NSPP) Mr. Ismail Qureshi.

FBR’s Member (SP&S) Ms. Azra Mujtaba briefed the visiting officers on the history, structure, significance and working of FBR. The presentation was followed by an interactive question and answer session in which the visiting officers raised many questions.

Member (Inland Revenue) Mr. Shahid Hussain Asad Member (Taxpayers’ Audit) Hafiz Muhammad Anees, Member (HRM) Ms. Rana Seerat and Member (Administration) Mr. Muhammad Raza Baqir answered the group’s questions.

Addressing the visiting group, Mr. Shahid Hussain Asad highlighted the steps taken by FBR to enhance revenues and to maximize enforcement and implementation. He elaborated that the to-date revenue collection for the current financial year is higher than the corresponding period last year. He emphasized how taxes are crucial for development of any country and it is our duty to pay taxes for national development.

Member (IR) thanked the National Management Course’s participants for visiting FBR and for contributing to the interactive session and giving suggestive feedback. A memorial shield was presented to Mr. Ismail Quershi by Member (TPA) on behalf of FBR.

Rector (NSPP) Mr. Ismail Qureshi thanked the senior officers of FBR for providing this opportunity for exchange of ideas, suggesting that this be a continuous process. He added that we should continue working with zeal and keep on contributing towards nation building and appreciated the FBR’s increased cooperation with provinces on revenue matters. He also suggested setting up of a joint federal provincial Revenue organ like IRSA. The Rector Mr. Ismail Qureshi presented a commemorative shield to FBR which was received by Member (IR).

Mohammad Shahzad
Secretary PR

April 22, 2012

STAY IN REVENUE MATTERS CAN NOT GO BEYOND SIX MONTHS – REVENUE COLLECTING AUTHORITIES ARE WELL WITHIN THEIR RIGHT TO RECOVER TAXES – CHIEF JUSTICE OF PAKISTAN

The Honorable Chief Justice of Pakistan, Mr. Justice Iftikhar Muhammad Chaudhry, while addressing the concluding session of the International Judicial Conference, held a few days ago, said that “To streamline the expeditious disposal of cases pertaining to assessment or collection of public revenues, it is desirable that sufficient courts are established.”

The Honorable CJP said, “I would like to point out that under clause (4A) of Article 199 of the Constitution, an interim order passed by a High Court in a case relating to assessment or collection of public revenues ceases to have effect on the expiration of a period of six months and the High Court is required to finally decide such matters within the said period of six months from the date on which the interim order is made. However, it is observed that despite the aforesaid constitutional clog, such matters continue to linger on for longer periods of time on one pretext or the other without any extension having been granted by the competent court. As a matter of fact, in view of the above constitutional provision, no extension at all can be granted by any Court. Since the interim order ceases to have effect on expiration of a period of six months from the date of passing of the order, the concerned authorities are well within their right to seek enforcement of the judgment/order, against which any such interim order is passed after the expiry of the aforesaid period of six months. To streamline the expeditious disposal of cases pertaining to assessment or collection of public revenues, it is desirable that sufficient courts are established. To completely thrash out the issue, we will be further examining it in the next meeting of the National Judicial (Policymaking) Committee.”

Mujeeb-ur-Rehman Talpur
Second Secretary

 

April 20, 2012

Chairman FBR meets FPCCI / KCCI representatives

Chairman FBR Mr. Mumtaz Haider Rizvi today held a meeting in Karachi with FPCCI / KCCI committee for Recovery of unlawful / illegal Sales Tax Input Adjustment.

Extensive discussion was held between the Committee and the FBR team to resolve the pending tax related issues.

The Chairman on this occasion said that unlawful / illegal sales Tax Adjustment would not be allowed as this practice is causing loss to the national exchequer. He said that all the concerns of FPCCI / KCCI would be examined sympathetically but everything would be done within the ambit of law.

Chairman FBR was accompanied by Member (IR) Mr. Shahid Husain Asad and Chief Commissioners of LTU and RTOs Karachi.

Muhammad Shahzad
Secretary PR



April 20, 2012

Chairman holds meeting with TRCG to discuss budget proposals

Chairman FBR Mr. Mumtaz Haider Rizvi held a meeting with the Tax Reforms Core Group (TRCG) in Karachi today to discuss budget proposals for FY 2012-13.

Different budget proposals received from various stakeholders, as well as the budget proposals drafted by FBR, were discussed during the meeting.

The Chairman said that FBR is utilizing all resources to achieve the revenue target of Rs. 1952 billion and expressed optimism that the target would be achieved. He said that the government has announced that the next budget would be people’s friendly and FBR’s role becomes more crucial in this regard as the revenues collected by FBR enable the government to provide relief to the masses.

Member (IR) Mr. Shahid Hussain Asad and Chief Commissioners of LTU and RTOs Karachi accompanied the Chairman in the meeting.

Muhammad Shahzad
Secretary PR
 

Apr 20, 2012

Chairman FBR meets management of KESC to resolve tax issues

Chairman FBR Mr. Mumtaz Haider Rizvi held a meeting with Mr. Farrukh Junaidi and the management of Karachi Electric Supply Company (KESC) in Karachi today.

The meeting was held to discuss and resolve the issue of recovery of default surcharge from KESC for which notices were issued by LTU Karachi, and other tax related matters pertaining to the Company.

On this occasion, Chairman FBR was accompanied by Member (IR) Mr. Shahid Husain Asad and Chief Commissioners of LTU and RTOs Karachi.

Muhammad Shahzad
Secretary PR

April 18, 2012

FBR employees call off strike

The employees of FBR who were at strike for the last 10 days have called off their strike today after the assurances of Federal Minister for Religious Affairs Sayed Khurshid Shah. All officers and staff of RTOs and LTUs across the country will be working normally from tomorrow.

The Minister visited FBR Headquarters on his own initiative to take up the employees’ demands of upgradation of Inspectors from BS-14 to Bs-16 and de-freezing of allowances, as well as the demand of Grade III and IV officials with the government.

He said that FBR and its workforce are the backbone of Pakistan’s economy as they are solely responsible for collection of the revenues required for national development. The Minister emphasized upon FBR workforce to go the extra mile to compensate for the loss incurred due to the strike, during the last 10 days.

Chairman FBR Mr. Mumtaz Haider Rizvi thanked the Federal Minister for taking the initiative to resolve the issues at the government level. He said that the last quarter of the fiscal year has marked impact on revenue collection, and the last week’s strike was affecting tax collection. The Chairman said that all the demands of the Union have already been brought into the notice of the government and FBR has already moved the summaries to the relevant quarters for approval.

The President of the Union Mian Abdul Qayyum applauded the initiative of the Minister and called off the strike instantly. He assured the Federal Minister and the Chairman FBR for the employees’ all out efforts to achieve the FBR’s assigned annual revenue target of Rs. 1952 billion, well in time.

Chairman FBR Mr. Mumtaz Ahmed Rizvi was flanked by Member (IR) Mr. Shahid Hussain Asad, Member (FATE) / Official Spokesperson Ms. Riffat Shaheen Qazi and Member (Admin) Mr. Raza Baqir.

The office bearers from the Union present on the occasion included President Mian Abdul Qayyum, Chief Organizer Aamir Riaz malik, Chief Coordinator Rashid Shah, General Secretary Shahrez Qaiser, Vice Chairman Chaudhary Akram, Senior Vice President Rao Nusrat, Vice President Irshad Baghi, General Secretary Sukkur Ghulam Akbar Chandio, General Secretary Quetta Anwar Khamisani, General Secretary Sialkot Chaudhary Asif, General Secretary Islamabad Raja Khalid Zia, General Secretary Multan Munawwar Khurshid, President Rawalpindi Raja Ijaz Iqbal, President MCC Islamabad Rana Shakil, President Sargodha Javed Qureshi, President Faisalabad Mian Mujahid, President Bahawalpur jam Riaz Qadir and Senior Vice President Abbottabad Bacha Khan.

Riffat Shaheen Qazi
Member FATE

 

April 15, 2012

All Pakistan Tax Employees Association strike called off, agreement reached with FBR

The proposals submitted by the “All Pakistan Tax Employees Association FBR” have been considered by the Federal Board of Revenue at length. The issues have also been discussed with the Central and Lahore Office Bearer of the “APTEA”, namely Mr. Aslam Pervaiz, Mr. Asghar Ali Waryah and Mr. Akbar Hussain and the following decisions have been taken:-

1. That the 100% special allowance frozen in the Finance Bill 2011 has been agitated throughout the year with the observation that the said allowance is a performance based allowance. In this regard a summery for de-freezing the said allowance has been submitted to the Prime Minister of Pakistan through Ministry of Finance along with allocation of fund of Rs. one billion. It has been confirmed that the Finance Secretary has approved the Summary of FBR and transmitted to the Prime Minister Secretariat. The approval is expected within few days. All the FBR officers/officials will be awarded the special allowance equal to 100% basic pay accordingly. It will be notified after receiving approval from the Office of the Prime Minister.

2. The issue of upgradation of Senior Auditors has also been resolved by issuing notification of up-gradation of senior auditors. The SRO 1126 dated 27-11-2010, clearly specifies a special promotion path of senior auditors which would remove all doubts of Grade 16- 17 IRS Officer’s that up-gradation of senior auditors will adversely affect their promotion prospects.
3. The promotion of Inland Revenue Officials from Grade 14-16 is also under active consideration of the Government and a notification to this effect is expected soon. Furthermore, the notification No.0883-IR-III-2012, dated 14-04-2012 appearing on FBR Website is self explanatory.
4. The Board has decided to upgrade all Class IV employees of FBR in line with the policy of the Establishment division. The notification is being issued shortly.

5. The Board has further decided to address all the long standing issues raised by the “All Pakistan Tax Employees Association FBR” through representation. All the employees of FBR are directed to devote untiring efforts to achieve the budgetary targets Rs1952 (billions).

6. The Board assured that their services will be recognized subject to their hard work in achieving the assigned targets.

7. The employees have assured the Board that they will assume office work immediately and will ensure that the assigned target of Rs. 1952 billion is achieved, even if they have to work extra hours and even on Holidays.

Riffat Shaheen Qazi
Member Fate


April 15, 2012

FBR addresses employees’ grievences

The proposals submitted by the “All Pakistan Tax Employees Association FBR” has been considered by the Federal Board of Revenue at length. The issues have also been discussed with the Central and Lahore Office Bearer of the “APTEA” Mr. Aslam Pervaiz, Mr. Asghar Ali Waryah and Mr. Akbar Hussain and the following decisions have been taken:-

1. That the 100% special allowance freezed in the Finance Bill 2011 has been agitated throughout the year and observed that the said allowance is a performance based allowance. In this regard a summery for de-freezing the said allowance has been submitted to the Prime Minister of Pakistan through Ministry of Finance alongwith allocation of fund of 1-billion. It has been confirmed that the Finance Secretary has approved the Summary of FBR and transmitted to the Prime Minister Secretariat. The approval is expected within few days. All the FBR officers/officials will be awarded the special allowance equal to 100% basic pay accordingly.

2. The friction between the Income Tax and Sales Tax Auditor/Senior Auditor and Inspector has been resolved in the manner:-

a) All the Inspector Inland Revenue are being up-graded in Grade-16 as the Auditors have already been up-graded from BS-14 to 16. Subsequently the Senior Auditor has also been upgraded in BS-17 subject to the promotion path already approved under SRO.1126, dated 27-11-2010. It is also clarified by the Board that up-gradation of Senior Auditor/Auditor in BS-17 shall not effect the existing promotion policy of the Board for Inland Revenue Officers/Superintendent/Assistant Commissioner Inland Revenue. The notification No.0883-IR-III-2012, dated 14-04-2012 appeared on FBR Website is self explanatory.

b) The existing promotion/posting of Income Tax officers/officials will be observed quite in accordance with the prevailing with previous procedure and instructions contained of the Sales Tax Act 1990 and of the Income Tax Ordinance, 2001.

3. The Board has decided to up-grade all the Class-IV cadres in line with other Federal Ministries. The notification is being issued shortly.

4. The Board has further decided to address all the longstanding issues raised by the “All Pakistan Tax Employees Association FBR” through representation. All the employees of FBR are directed to devote entiring efforts to achieve the budgetary targets 1952 billions. The Board assured that their Services will be recognized by the Board and they will be rewarded accordingly. The measures such as strike and agitation has been viewed seriously as grievances of the employees have been addressed.

Riffat Shaheen Qazi
Member Fate

April 10, 2012

ICAP supports FBR on Broadening of Tax Base via SRO 191

Chairman FBR Mr. Mumtaz Haider Rizvi visited the Institute of Chartered Accountants of Pakistan (ICAP), Karachi today on a special invitation to meet ICAP’s President, officials and the Institute’s Committee on Taxation. President ICAP, Mr. Rashid Rahman Mir, welcomed the Chairman.

The Chairman Committee on Taxation, Mr. Saqib Masood, gave a presentation on the tax proposals submitted by the Institute to the FBR and the Government for consideration for the Federal Budget 2012-13. He said that focus should be to broaden the tax base, instead of increasing the tax rate. Amnesty schemes and fixed tax regime should be abolished, as these have proved to be counter-productive. Relevant laws should be amended to enable FBR to relate CNIC numbers when people buy and sell property and vehicle, make air travel, pay utility bills, schools fee and club subscriptions. These CNIC number may then be matched with NTN numbers by the department. Appropriate check and balances should be introduced for foreign remittances, so that these may not be used to whiten money. Mr. Saqib Masood emphasized the need to reduce the corporate tax rate to inculcate corporatization culture in the country. He also suggested that export of goods and services should be equated.

The Chairman FBR apprised the participants of the various measures taken by the tax department to reduce taxpayers’ difficulties and to ease tax compliances. He lauded the role of ICAP in enhancing taxpayers’ awareness and thanked the President ICAP and his team for the tax proposals furnished by the Institute. He further appreciated the recommendations made by the Institute and assured that due consideration will be given to the proposals submitted by ICAP.

During the discussion ICAP supported FBR over Broadening of Tax Base, documentation of economy through SRO 191, reduction of duties and taxes on manufacturing and industrial sectors and addressing anomalies in direct and indirect tax laws.

The Chairman FBR was accompanied by FBR’s Member (IR) Mr. Shahid Hussain Asad and Chief Commissioners of LTU and RTOs Karachi.

Mohammad Shahzad
Secretary PR


April 09, 2012

Chairman FBR holds meetings with OICCI, FPCCI and tax officials in Karachi

FBR keeps a busy schedule these past weeks in meeting stakeholders, the Finance Minister and pressure groups in preparation of annual fiscal budget. The Chairman FBR Mr. Mumtaz Haider Rizvi visited Karachi today to meet business and commerce entities. The Chairman also met with tax collection authorities to review progress of revenue collection, thus balancing both sides of the Revenue equation: taxpayers and tax collectors.

The Chairman FBR visited the Overseas Investors Chamber of Commerce & Industry (OICCI) to discuss Taxation Proposals for the National Budget 2012-2013. The Chairman acknowledged the efforts of foreign investors in Pakistan towards taxes and assured his full support for early resolution of tax issues. He pointed out that level of proposed investment of US$ 3 billion in next 5 years by the OICCI members is low which he added could have been better. He assured the OICCI that FBR will closely consider their proposals and, analyzing all aspects, will decide on appropriate action on the recommendations of the OICCI.

The Chairman FBR also met a delegation of the Federation of Pakistan Chambers Of Commerce & Industry (FPCCI) in Karachi and discussed their recommendations for the upcoming budget. The Chairman assured the FPCCI delegation of every possible help from FBR on tax matters. He said that the taxation system is being simplified and the FATE Wing of the Board has conducted interaction seminars with the taxpayers all over the country on FBR’s initiatives for taxpayers. The Chairman said that the government’s budget is being designed to ease people’s problems. He also assured them that their reservations about the SRO 119 would be discussed with the stakeholders, to ease taxpayers’ burden.

The Chairman also visited the Large Taxpayers Unit Karachi to observe revenue collection on the frontline and the new Broadening of Tax Base initiative. He iterated that Karachi contributes an important chunk of Federal Revenue therefore LTU and RTOs need to work on war footing to achieve the tax collection target and, as the revenue collection process enters its last phase of the year, tax officers should maintain the momentum till the objective is achieved.

Mohammad Shahzad
Secretary PR

April 05, 2012

FBR’s FATE wing launches series of Procedures Standardization Workshop

FATE Wing FBR launched workshop for standardizing of Operational Procedures pertaining to Taxpayers’ Facilitation Centers throughout the country.
This initiative launched by Member FATE Wing FBR Mrs. Riffat Shaheen Qazi is strategically aimed at bringing uniformity in the Existing Processes in order to further strengthen Taxpayers’ Facilitation and Education.
First Workshop conducted at Regional Tax Office, Rawalpindi on 05-04-2012 which was lead by Chief FATE Wing FBR Mr. Nadeem Dar and participants included Commissioner TFD, Additional Commissioner TFD and Tax Facilitation Officers from Rawalpindi, Chakwal, Jehlum, Attock and Wah.

Mr. Shahid Anwar Khan, Chief Commissioner Inland Revenue, RTO, Rawalpindi inaugurated the workshop and remarked that extensive facilitation and education of Taxpayers is the key to achieve National Revenue Targets and applying Standard Procedures throughout the Country will go a long way in strengthening of TFCs in this regard.
The workshop identified procedural irritants to Taxpayers and discussed strategy on how to remove them. The Chairman FBR, Mr. Mumtaz Haider Rizvi has given directions to improve Taxpayers’ Facilitation while also improving revenue collection.

Mohammad Shahzad
Secretary PR


Apr 02, 2012

FBR and field offices to remain open on Saturdays

Chairman FBR Mr. Mumtaz Haider Rizvi has directed that, for the convenience of the taxpayers and to ensure that the budgetary targets are achieved, the Federal Board of Revenue and the field offices will remain open on Saturdays with immediate effect, till 30th June of 2012.

Mohammad Shahzad
Secretary PR

March 30, 2012

Custom Houses and Regional Tax Offices/LTUs to remain open on 31st March, 2012 till 2200 hrs.

The Federal Board of Revenue has announced that the FBR Headquarters and all Model Customs Collectorates/Regional Tax Offices/Large Tax Payers Units/Tax Facilitation Centres shall remain open on 31st March, 2012, upto 2200 hours, in order to facilitate the trade and industry in getting their cargo cleared for imports and exports and for receiving of tax returns and payment of duty and taxes, accordingly.

2. The management of State Bank of Pakistan, National Bank of Pakistan and National Institutional Facilitation Technologies (NIFT) will also provide banking facilities through all of its designated branches on the above mentioned date upto 2200 hours to ensure the timely payment of duty and taxes.

3. The port authorities/port operators have also been advised to synchronize their working, accordingly.
 

Mar 25, 2012

Chairman FBR reviews revenue collection progress of Chief Commissioners Lahore

The Chairman FBR Mr. Mumtaz Haider Rizvi met Chief Commissioners of the LTU, RTO-1 and RTO-2 Lahore today (25-03-2012)
During the lengthy meeting, the Chief Commissioner LTU Lahore, Chief Commissioner RTO-I Lahore and Chief Commissioner RTO-II Lahore briefed the chairman about the progress of their respective offices regarding revenue collection.

The Chairman reviewed the revenue collection progress of each Chief Commissioner separately in detail and made important remarks to improve the collection and to remove the hurdles, if any, in achieving the target. He pointed out the weak areas with instructions to remove the shortcomings to achieve the revenue collection target of Rs. 1952 billion before time. The Chairman stressed the need to broaden the tax base to include more people in the tax net and thus expand revenue collection.

FBR’s Member (IR), Member (FATE), Member (Admin) and Additional Secretary (Revenue Division) were also present during the meeting.

Mohammad Shahzad
Secretary PR


Mar 25, 2012

Chairman FBR holds hectic meetings over the weekend, for achieveing revenue target

The Chairman FBR, Mr. Mumtaz Haider Rizvi held a series of meetings in Lahore this weekend to strengthen this effort and to remove the hurdles, if any, to achieve the revenue collection target well in time.

The Chairman FBR was invited to hold a meeting with the newly established think-tank S-Cubed on Saturday to discuss the way forward for of enhancing revenue generation in Pakistan. FBR’s Member (FATE) Ms. Riffat Shaheen Qazi, Member (IR) Mr. Shahid Hussain Asad and Member (Admin) Mr. Raza Baqir also participated in the highly interactive session. S-Cubed was represented by Mr. Zubair Habib, CEO, NIP Southern, Mr. Shahid Hussain, CEO, Servis Sales Corporation, Mr. Aamer Mohsin, COO, Servis Sales Corporation, Mr. Ahsan A Qayoom, Division Head, Descon Integrated Projects Ltd., Mr. Arif M Khosa, COO, Expo Centre Lahore, Mr. Hassan N Ansari, Head Strategic Planning, Descon, Mr. Jahanzeb Q. Khan, Operations Director, Pepsi-Cola Pakistan, Mr. Jawwad Faisal, CCO, Servis Industries, Mr. Mian Asim Aziz, Head Management Development, Descon, Mr. Mohsin M Syed, Regional Director, National Industrial Parks, Mr. M Yousuf Jamshed, Country HR & Comm. Manager, ABB Pakistan, Mr. S M Irfan Aqueel, CEO, Millat Tractors Limited, Mr. Taimur Dawood, Managing Director, Descon Chemicals, Mr. Usman A Ghani, CEO, ConfluentC United States, Ms. Kehkashan Awan, General Manager HR, Panasian Group, Mr. Taimur Saeed, CEO, Descon Chemicals, Mr. K. Iqbal Talib, Executive Director, Noon Sugar and Mr. Mudassar Aqil, CEO, Kashf Microfinance Bank.
S-Cubed has been established to provide the necessary input from the stakeholders as part of Chairman FBR’s Collective Wisdom initiative. The Chairman believes in better policy formulation and fine-tuning through constant feedback and input from stakeholders, to enhance revenue collection. This newly created think tank, comprising of more than 25 CEOs of major companies has been established to provide the background input for policy formulation and feedback.

Mohammad Shahzad
Secretary PR


Mar 25, 2012

Chairman FBR inaugurates TREKKER– Workflow & MIS/ Hands-on-training

Chairman FBR Mr. Mumtaz Haider Rizvi inaugurated the Trekker system launched by Intelligence & Investigation wing of the FBR at a ceremony titled “‘Inauguration of Trekker – Work Flow & MIS/Hands on Training” held at Directorate of Training Lahore.

The Directorate General of Intelligence & Investigation (Inland Revenue) had organized this training for BTB officers from all RTOs. The newly developed software has been launched to provide technical support for Broadening of the Tax Base and enhancing revenue collection.
Mr. Ansar Javed, Director General, Intelligence & Investigation (IR) highlighted the key performance areas relating to BTB campaign and emphasized that the development of work flow and MIS module of Trekker would help in smooth and effective functioning of BTB units all over Pakistan.

The chairman, FBR in his address stressed upon the field formations to work hard and come up to the expectations of the nation by achieving the budgetary target of Rs.1952 billion. He reiterated his support in every possible way for facilitation of field formations to reach the desired goal. He lauded the efforts of Directorate General of Intelligence & Investigation (IR) in streamlining the processing of new unregistered cases through work flow module of Trekker.

The inaugural session was followed by the ‘Demonstration and Hands on Training of Work Flow Module of Trekker’ for around 70 BTB officers from all over Pakistan.
FBR’s Additional Secretary (Revenue Division), Member FATE, Member IR, Member Administration, Chief Commissioner RTO Lahore/Lahore II/LTU also attended the session.

Mohammad Shahzad
Secretary PR

 

Jan 26, 2012

Negotiations held between Pakistan and Senegal on Avoidance of Double Taxation
 

First round of four-day negotiations concluded here today at Islamabad between the delegations of Pakistan and Senegal on the draft Convention for Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income. Pakistan’s delegation was headed by Mr. Shahid Hussain Asad, Member (Inland Revenue), Federal Board of Revenue, while the Senegalese delegation was headed by Mr. El Hadji Ibrahima DIOP, Director of Legislation, Studies and Litigation.

The Senegalese delegation was briefed about the tax system of Pakistan, its economy and the 61 Conventions/Agreements for Avoidance of Double Taxation that Pakistan has signed with other countries so far. The negotiations were conducted in a cordial and friendly atmosphere at FBR Headquarters, Islamabad. Both sides presented and appreciated each other’s respective positions. The negotiations will continue in its second round to reach an agreement between the two countries in near future.

Mohammad Shahzad
Secretary (PR)

 

Jan 24, 2012

Customs Collectorates to remain open on Saturday 28th January, 2012

FBR has ordered that all the Model Customs Collectorates shall remain open on Saturday 28th January, 2012, as normal working days in order to facilitate the trade and industry in getting their cargo cleared for imports and exports.

The management of State Bank of Pakistan and National Bank of Pakistan has been requested to provide banking facility by the designated branches on the above mentioned dates to ensure the payment of duty and taxes. The port authorities/port operators have also been advised to synchronize their working, accordingly.

Mohammad Shahzad
Secretary PR

 

Jan 20, 2012

Taxpayers’ Interaction Seminar held at RTO Hyderabad

Facilitation and Taxpayers Education (FATE) Wing of the FBR arranged a Taxpayers interaction seminar at Regional Tax Office (RTO) Hyderabad today. The seminar was arranged by FATE Wing, in coordination with RTO Hyderabad, as part of a series of seminars currently being arranged under Taxpayers Awareness Initiative and was attended by members of Hyderabad Tax Bar Association, Central Sindh Tax bar, representatives of major withholding agents, Chambers of Commerce & Industry of Hyderabad, Mirpurkhas and Thatta; Sindh-Balochistan Rice Millers Association, representatives of Pakistan Tax Bar Association and FBR officials. During the interactive seminar, detailed presentations were made on working of the Facilitation and Taxpayers Education (FATE) Wing, “Documentation of Economy & Tax Evasion” and “e-services for Taxpayers” followed by a detailed Questions and Answers session.

During the Questions and Answers session, the participants voiced their concerns over the topics covered in the presentations and highlighted their general and specific issues. The FBR officials present in the seminar addressed those concerns and noted down the suggestions for further perusal. The participants also appreciated the initiative of Taxpayers’ interaction, awareness and facilitation undertaken by the FATE Wing of the FBR and said that this should be made a regular feature. The Chief Commissioner RTO Hyderabad Mr. Misri Ladhani, thanked the participants for attending the seminar and making it a success. He also appreciated the efforts of FBR officials of RTO Hyderabad for arranging the event and thanked the FATE Wing for providing an avenue for interaction between the taxpayers and the Federal Board of Revenue. Additional Commissioner Mr. Farooque Azam Memon and DC (HQ) Mr. Peer Khalid also addressed the seminar. During the Questions and Answers session, the participants voiced their concerns over the topics covered in the presentations and highlighted their general and specific issues. The FBR officials present in the seminar addressed those concerns and noted down the suggestions for further perusal. The participants also appreciated the initiative of Taxpayers’ interaction, awareness and facilitation undertaken by the FATE Wing of the FBR and said that this should be made a regular feature. The Chief Commissioner RTO Hyderabad Mr. Misri Ladhani, thanked the participants for attending the seminar and making it a success. He also appreciated the efforts of FBR officials of RTO Hyderabad for arranging the event and thanked the FATE Wing for providing an avenue for interaction between the taxpayers and the Federal Board of Revenue. Additional Commissioner Mr. Farooque Azam Memon and DC (HQ) Mr. Peer Khalid also addressed the seminar.

 

Mohammad Shahzad
Secretary (PR) 

 

Jan 06, 2012

FBR promotes officers of IRS to BS-20 & 21 on the basis of FST, Islamabad decision

The Federal Board of Revenue (FBR) strongly contradicts the false impression created through a section of the press on 29.12.2011 regarding promotion of IRS officers from BS-19 to BS-20 and BS-20 to 21, alleging that the promotions were made in gross violation of the verdict of Federal Services Tribunal (FST), Islamabad.

2. Promotions in Inland Revenue Service were made on the recommendations of Central Selection Board (CSB) and with the approval of the competent authority. Federal Service Tribunal in its decision dated 02.12.2011 had inter-alia observed that "Promotion and seniority are definitely not vested rights. Sections-8 and 9 of the Civil Servants Act, 1973 read together with section 4(1) proviso (b) of the Service Tribunals Act, 1973 are very clear on that However, to be considered for promotion and seniority is a vested right. A civil servant may not be able to file an appeal to get seniority or promotion but he can definitely file an appeal to get meaningful consideration for his seniority/promotion. In the present case the appellants could not claim safeguard of their right to seniority and promotion. However, they could definitely make a prayer that they should have been considered correctly for their seniority/promotion.

Recognizing the jurisdiction of FBR, the Honorable FST has further given observations as under:-

That the Government/FBR is fully competent to decide this assertion of the appellants and respondents that some promotions have already been made in violation of seniority rules and even the aggrieved parties can seek remedy in appropriate forum.
The Honorable FST vacated the stay order imposed on promotions with the following remarks: -

That the FBR/Government may make promotions on the principle of seniority discussed above and the embargo imposed by the FST in that regard is lifted."

3.  In light of the decision of FST, Islamabad Seniority List dated 14.12.2010 is now valid for all practical purposes. Promotions already made from BS-20 to BS-21 and BS-19 to BS-20 vide Notifications dated 02.12.2011 & 03.12.2011 have not been rejected/nullified by FST, Islamabad and the final promotions were made in compliance of the orders of FST, Islamabad.

4.  The cases of those officers which could not be presented to CSB and so not considered for promotion due to seniority dispute or being junior in seniority in the impugned seniority list would be presented in the next CSB according to their seniority based on the list upheld by the FST. The senior officers if recommended for promotion would be re-assigned seniority in next scales as per their seniority upheld by the Honorable FST, Islamabad.

Mohammad Shahzad
Secretary PR
 

Jan 01, 2012

FBR Collects Rs. 840.7 billion upto December 2011

According to the provisional figures, the FBR through cashreporting system has collected Rs 201.7 billion during the month of December 2011. Federal Board of Revenue (FBR) collected Rs 840.7 billion of revenue estimates up to December 2011, as compared to Rs 661.7 billion collected during the corresponding period of the last year i.e. upto December 2010, showing an increase of 27.05 per cent.

Riffat Shaheen Qazi
Member (FATE) Official Spokesperson, FBR

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