Press Release:

 

Federal Board of Revenue (FBR) has extended the last date for filing of returns of income/statements for the year 2010 up to September 30, 2010, says an official statement issued Tuesday.

According to a notification issued on 31st August 2010 - previously the last date for submission of IT returns, FBR has extended until September 30, 2010 the deadlines for filing of annual statement of deduction of income tax from salary to be filed by the employer of an organisation as well as the returns of income required to be filed through e-portal for salaried individuals and statement required under section 115(4) of the Income Tax Ordinance, 2001. The decision to extend the deadline has been taken to facilitate the taxpayers in view of the floods situation in the country.

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

Federal Board of Revenue FBR has decided to extend the date for the payment of taxes/duty for the tax period July, 2010, and filing of Sales Tax/Federal Excise Duty returns, up to 25th August 2010 in view of the flood situation, says an official statement released here Friday.

The decision to extend the date for payment of taxes and filing of ST/FED returns has been taken by the Board in exercise of power conferred under section 74 of Sales Tax Act 1990, and section 43 of the Federal Excise Act 2005.

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

Federal Board of Revenue FBR has decided to extend the date for the payment of taxes/duty for the tax period July, 2010, and filing of Sales Tax/Federal Excise Duty returns, up to 25th August 2010 in view of the flood situation, says an official statement released here Friday.
The decision to extend the date for payment of taxes and filing of ST/FED returns has been taken by the Board in exercise of power conferred under section 74 of Sales Tax Act 1990, and section 43 of the Federal Excise Act 2005.

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

FBR launches drive to inform taxpayers of discrepancy in returns

Federal Board of Revenue FBR has launched a campaign to intimate the taxpayers electronically regarding the discrepancies found in their declarations and non-filing of tax returns and statements.

According to a press statement released to the media on Monday, the FBR has taken the step to facilitate the taxpayers and help them ensure a voluntary compliance before initiation of some legal action against them. The response to these e-intimations launched recently has been quite encouraging and FBR hopes the exercise would lead further to a voluntary compliance in this regard.

The FBR has further added that during the process of testing the e-Notification module to be used for issuing legal notices electronically, some of the taxpayers of LTU Islamabad were issued e-notices inadvertently for the tax year 2010 and those have been withdrawn. Inconvenience caused due to these e-notices is regretted.

Upon receipt of credible information by Mrs. Sarwat Tahira Habib, Collector, Model Customs Collectorate, Islamabad to the effect that some smugglers would make attempt to smuggle huge quantity of Heroin Powder duly concealed in flour kneading machines to UK through BBI Airport, Islamabad. Mr. Muhammad Akram Choudhary, Additional Collector, MCC, Islamabad constituted a team comprising of the Customs Preventive staff headed by Mr. Jehan Bahadar, Deputy Collector (Preventive), Islamabad. The team so constituted carried out a raid at premises near AFU Unit, Islamabad and took into custody 49 flour kneading machines. The machines, when opened, led to the recovery of Heroin Powder of fine quality weighing 10.5 Kgs, which was artfully concealed in the inner most cavities (rotators) of the machines. The approximate value of the recovered Heroin Powder in the International Market is Rupees 60 million. Further investigations in the case are under process. Member (Customs) Mr. Munir Qureshi has appreciated the officers and staff of the MCC, Islamabad on biggest seizure by Customs during the current year in Rawalpindi / Islamabad station and stressed the need for continuous vigil on narcotics smuggling attempts in future.
 

April 30, 2010

Govt allows import of cars to disabled persons

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

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

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

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

April 23, 2010

Senior citizens can avail 50pc tax rebate in payable income, says FBR

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

In a press statement, the FBR has clarified that this facility is available to all senior citizens under section 53(1)c and clause 1A of Part-III of the Second Schedule of the Income Tax Ordinance, 2001 which clearly provides that “where the taxable income, in a tax year, of a taxpayer aged 60 years or more …., his tax liability on such income shall be reduced by 50%”.

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

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

Renewal of Web Hosting Agreement with XiberSoft for further one year

We are pleased to announce that we again choose M/S XiberSoft Pakistan for renewal of our Domain pakcustoms.org and renewal of its web hosting services for further one year. We have acquired web hosting services from XiberSoft since year 2004.

March 29, 2010 VAT debate not to risk IMF’s stand-by arrangement, says FBR

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

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

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

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

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

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

March 10, 2010	25pc duty levied on export of waste of copper, aluminum
	The federal government has imposed regulatory duty at the rate of 25 per cent on export of waste and scrap of copper and aluminum, says an SRO issued by Federal Board of Revenue (FBR). According to the SRO-(1)2010, a regulatory duty at the rate of 25 per cent has been imposed ad valorem on export of waste and scrap of copper and aluminum as well as on bars, rods, ingots, slabs, and billets made thereof from 13th March, 2010 to 30th June, 2010 on the basis of ECC’s decision. The position shall be reviewed at the time of budget formulation for financial year 2010-11.
	Hamid Raza Wattoo Secretary PR Ph: 051-920 8407 Fax: 051-920 8407
March 10, 2010	FATE Wing briefs media on FBR’s facilitation measures
	Facilitation and Taxpayer Education (FATE) Wing of the Federal Board of Revenue (FBR) arranged an interactive meeting with a select group of journalists from the Daily Business Recorder, Islamabad, on Wednesday (the 10th March, 2010) to apprise them of the latest FBR measures for facilitating the taxpayers. The informal interaction that continued for more than an hour was attended by Chief (FATE) Mr. Sajjad Haider Khan, Chief (DT Policy) Mr. Aftab Ahmad, Chief (Legal) Mr. Majid Qureshi and Chief (Direct Taxes) Mr. Mohammad Iqbal. Secretary (FATE-DT) Mr. Sajid Hussain Shah, Secretary (FATE-Customs) Mr. Akhtar Hussain, Secretary (PR) Mr. Hamid Raza Wattoo, Second Secretary (FATE-Helpline) Mr. Mazhar Iqbal and Second Secretary (PR) Mr. Mujeebur Rahman Talpur were also present. During the interaction, the FBR officials briefed the journalists on different measures taken and being planned by FBR for broadening the tax net and enhancing the tax-to-GDP ratio. The media persons were also apprised of the latest status of activities and measures for introducing the Value Added Tax (VAT) from the next fiscal year. Chief (FATE) Mr. Sajjad Haider Khan said the FBR considered the facilitation and education of taxpayers as a key component of the reforms programme and efforts were afoot to promote a tax-compliance culture with a view to persuading the affluent sections of the society to contribute progressively towards national development. He said the FATE Wing had planned to regularly interact with the media as part of the facilitation efforts which would be continued on a regular basis to provide necessary information to the stakeholders. It was also felt that input on different aspects of VAT regime was imperative to educate the general public on a fast-track basis.
	Hamid Raza Wattoo Secretary PR Ph: 051-920 8407 Fax: 051-920 8407

February 25, 2010 LTU Karachi and Bankers discuss options for issuing Excise Invoices to registered clients

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

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

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

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

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

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

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

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

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

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

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

March 3, 2010 FBR striving to increase tax-to-GDP ratio

Federal Board of Revenue (FBR) is striving to broaden the tax net and enhance the tax-to-GDP ratio to lessen the country’s dependence on external capital flows to fund the much-needed development projects.

This was stated by Mrs. Riffat Shaheen Qazi, Member FATE, FBR, while speaking to a group of some 30 college students from Talagang, district Chakwal, who visited the Facilitation and Taxpayers Education (FATE) Wing of the FBR for an academic briefing.

Mrs. Qazi welcomed the students and apprised them of the role and importance of FBR in the national economy. She also briefed the students on structure, working, functions and significance of FBR and its line departments like Inland Revenue (Income Tax, Sales Tax, and Federal Excise Duty) and Customs department. The presentation highlighted the reforms process, new image and approach of FBR.

The students were informed about the FBR’s efforts for promoting Taxpayers Facilitation and motivation for voluntary compliance of fiscal laws. They were further briefed on the developments of Inland Revenue Service and integration of tax matters.
 
In the end a session of questions and answers was also conducted. The students and the faculty members felt enlightened about new face of FBR.
 

March 3, 2010 No closing down of PaCCS, says FBR

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

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

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

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

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

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

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

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

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

February 20, 2010 No additional burden on existing taxpayers, says FBR

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

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

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

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

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

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

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

February 20, 2010 Afghanistan evinces interest in Pak tax reforms

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

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

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


 

February 03, 2010 Riffat Shaheen appointed new Member FATE

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

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

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

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

February 03, 2010 FBR chief urges greater effort for revenue collection

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

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

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

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

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

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

January 13, 2010

Adjudication of ST evasion cases under amended law intact: FBR
 

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

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

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

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

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

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

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

December 30, 2009

FBR extends date for filing of IT returns up to Jan 25, 2010

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

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

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

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

Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Cell: 0333- 5023333
 

December 10, 2009
Request for media coverage

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

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

Date: December 11, 2009 (Friday)

Time: 2:45pm

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


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

December 3, 2009
FBR denies reported corruption in Customs department

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

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

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

October 23, 2009
Excise duty no cause of less cultivation of beet crop

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

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

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

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

October 8, 2009
Pakistan, Morocco ink treaty to avoid double taxation

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

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

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

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

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

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

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

October 5, 2009
FBR nets Rs 259 billion revenues in first quarter

Federal Board of Revenue (FBR) collected Rs 259.24 billion of revenues during the first quarter of the current fiscal year, according to provisional figures released by FBR on Monday.
 

According to the figures, the FBR has collected Rs 98.37 billion during the month of September 2009. Aggregate collection during the first quarter of the ongoing fiscal year thus works out to Rs 259.24 billion. The final revenue collection figures for the month of September 2009 are likely to increase further following the receipt of taxes, including taxes deducted at source, collected from different parts of the country.

The break-up of the tax collection figures for the month of September 2009 is attached for further details.

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

October 5, 2009
Asrar Raouf appointed FBR’s official spokesman

Mr. Israr Raouf, Member (Direct Taxes Policy) has been appointed as official spokesman of the Federal Board of Revenue (FBR), according to a press release issued Monday.

Mr Raouf, a BS-21 officer of the Income Tax Group, has previously served at various key positions with DG Regional Tax Office Karachi as being his last assignment.

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

September 30, 2009
Extension in Date for Filing of Income Tax Returns
 

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

 

September 19, 2009
FBR sets up tax facilitation centres across country

Federal Board of Revenue (FBR) has set up facilitation desks/kiosks all across Pakistan to help taxpayers filing their income tax returns before the September 30 deadline.

The kiosks and tax facilitation centres (TFCs) have been established in all major urban centres to provide technical support to taxpayers. A formal ceremony to mark the opening of the TFCs will be held in Lahore tomorrow (Saturday) where FBR Chairman Mr. Sohail Ahmad will speak as chief guest at the inauguration of a facilitation desk/kiosk in Liberty area.

The board has further clarified that e-filing mode for the submission of income tax returns is required only for individuals and companies with whose declared income is Rs 500,000 or more per annum and not for ordinary traders and individuals whose income falls below the specific threshold.

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

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