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Federal Board of Revenue-Press Releases
(FATE Wing-FBR)
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View Archived News |
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March 10, 2010 |
25pc duty levied on export of waste of copper, aluminum |
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 25, 2010 |
LTU Karachi and Bankers discuss options for issuing Excise Invoices
to registered clients
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 23, 2010 |
Large Taxpayers Unit, Karachi hosts an Orientation Seminar for Port
and Terminal Operators
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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March 3, 2010 |
FBR striving to increase tax-to-GDP ratio |
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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.
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March 3, 2010 |
No closing down of PaCCS, says FBR |
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 24, 2010 |
Germany to help FBR is tax reforms |
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 20, 2010 |
No additional burden on existing taxpayers, says FBR |
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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. |
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 20, 2010 |
Afghanistan evinces interest in Pak tax reforms |
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 03, 2010 |
Riffat Shaheen appointed new Member FATE |
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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. |
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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February 03, 2010 |
FBR chief urges greater effort for revenue collection |
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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 organised 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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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January 23, 2010 |
No hike in WHT on commercial power bills, says FBR |
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Federal Board of Revenue (FBR) Saturday
denied the government was considering increasing Withholding Tax on
electricity bills of commercial consumers by 100 per cent as reported in
a section of the press.
A spokesman of the FBR has clarified that the government after looking
at the revenue collection performance of Federal Board of Revenue during
the second quarter (Oct-Dec 2009) has decided not to take any additional
taxation measure. |
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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January 13, 2010 |
Adjudication of ST evasion cases under amended law intact: FBR |
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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.
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Hamid Raza Wattoo
Secretary PR
Ph: 051-920 8407
Fax: 051-920 8407 |
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