Federal Board of Revenue-News Room

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FBR collects Rs 543.3b for July-December 2008 period; tax collections for December 2008 touch Rs 114.2b

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

FBR issues notices to corporate bodies on failure to file returns

Federal Board of Revenue (FBR) has issued notices to those corporate entities that have failed to file income tax returns, says a press release issued Friday.

According to the statement, the FBR has also decided to issue in the next phase similar notices to non-corporate entities which have not filed their income tax returns.
 

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

FBR nets Rs 1.54b from tax investment scheme

Federal Board of Revenue (FBR) has collected Rs 1.54 billion from the tax investment scheme announced in July this year, says a press statement issued Thursday.

According to details, some 10,828 cases seeking to benefit from the scheme were received by FBR until December 31, 2008, the last day of the scheme, and were settled after netting Rs 1,542 million as tax equaling two per cent of the fair market value of their assets.

The scheme was run by the 16 regional tax offices and large tax payers units of the FBR and received a record 4,114 cases from the RTO Lahore followed by 1,861 cases received in RTO Karachi. The break-up of the collection is also attached for further details.
 

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

No plans to slash tax exemptions on food, medicines, says FBR

Federal Board of Revenue (FBR) while clarifying a news item appearing in a section of the press attributing a statement to Chairman FBR in the context of tax exemptions has stated that what the Chairman had mentioned six days earlier has been quoted totally out of context.

In an official statement, FBR has clarified that the news item is essentially based on an earlier news report published in a section of the press on 26th December, 2008 on the issue in which the Chairman FBR has been quoted as having said, “Exemptions as policy are not good for the economy. Wherever exemptions are in vogue, the economy does not show healthy trends in progress, administration and policy-enforcement.”

The Chairman’s statement even though quoted not accurately nowhere implies that the Government intends to remove tax exemptions on food items and medicines. Similarly, the fact that “as food and medicines” has been bracketed in the latest news report clearly shows reporter’s own inference and interpretation which cannot be attributed to the FBR Chairman.
 

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

No further extension of tax investment scheme after 31st, says FBR

Federal Board of Revenue (FBR) has announced there will be no extension of period already given up to December 31, 2008 for the filing of returns for investment tax scheme announced in July this year.

In a statement issued on Friday, FBR's member Direct Taxes said the board had decided not to extend the last date of December 31, 2008 for those wanting to apply for the tax investment scheme whereby individuals can declare their undeclared assets by paying only two per cent of the fair market value of their assets.

Similarly, there would be no extension of date for the e-filing of income tax returns for the corporate sector. He said the taxpayers seeking to file their income tax returns in the corporate sector must use e-filing mode and the last date for them to do so will not be extended beyond December 31, 2008.

The member called for an early e-filing of returns by taxpayers to avoid any punitive measures the board might consider taking against those failing to benefit from the scheme. He said the FBR was in possession of sufficient information and relevant data to trace up those who would not avail of the tax amnesty facility offered by the FBR.

 

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

Federal Board of Revenue (FBR) has refuted a news item appearing in a section of the press claiming the board has held up duty drawback and sales tax refunds payable to the exporters.

In an official statement issued on Wednesday, FBR has clarified that the contents of the news item are not based on facts and there is no truth in the suspension as reported by the press, of the processing or payment of admissible drawback and refund claims.

The statement adds that in the first five months of the current financial year, an amount of Rs 15.45 billion has already been paid to the exporters as duty drawback and sales tax refunds, as against Rs 14.36 billion during the corresponding period of the previous year. Similarly, inputs used in five major export oriented sectors have already been zero rated for sales tax purpose. Sales Tax refunds relating to exporters of these sectors have also declined accordingly.

The statement also adds that FBR's measure of universal e-filing of sales tax returns will lead to further acceleration of processing of refund claims. Furthermore, the board is already in the process of devising automated system for expeditious disposal of refund claims pertaining to packing material used in exports by zero rated sectors. For boosting exports, FBR has often directed its field formations to extend maximum facilitation to exporters, including a quick and expeditious processing and payment of pending duty drawback and refund claims.
 

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

Customs houses to remain open on 25th, 28th for clearance of imports, exports

Federal Board of Revenue (FBR) has directed all its customs houses and field formations to remain open on December 25th and December 28th, 2008 for the purpose of clearance of imports and exports, says an official statement issued on Tuesday.

According to the statement, chief collector (customs) North Lahore and chief collector (customs) south Karachi have also been directed to coordinate with the National Bank of Pakistan management and the port authorities to ensure the clearance of imports and exports.

Meanwhile, Irfan Nadeem, member Direct Taxes, has made it clear there would be no extension of date for the e-filing of income tax returns for the corporate sector. He said the taxpayers seeking to file their income tax returns in the corporate sector must use e-filing mode and the last date for them to do so will not be extended beyond December 31, 2008.

Similarly, the board has decided not to extend the last date of December 31, 2008 for those wanting to apply for the tax investment scheme whereby individuals can declare their undeclared assets by paying only two per cent of the fair market value of their assets, added Mr. Nadeem. He said already sufficient length of time had been given to people wanting to benefit from
the tax investment scheme which would expire by the end of the current month.
 

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

FBR extends date for filing of ST, FE returns

Federal Board of Revenue (FBR) has extended the due date for the filing of sales tax and federal excise return by the registered persons, for the period of Novemeber 2008.

According to an official statement released on Tuesday, the board has extended until December 25, 2008 the due date for filing of sales tax and federal excise return of the tax period November 2008 for the registered persons who had not been able to deposit payment by the stipulated date.

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

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) is holding an international 'Conference on Tax Policy Options for Pakistan' starting in Lahore tomorrow (Wednesday) to identify and generate concrete implementable tax policy options for achieving the broad micro and macroeconomic objectives.

The three-day conference being organised at a local hotel in the Punjab metropolis will focus on various issues, including the overall macroeconomic constraints, current revenue administration, assessment of main taxes, sub-national taxation and political economy of inter-governmental reforms.

The opening session of the conference will be chaired by Advisor to the Prime Minister on Finance, Mr. Shaukat Tareen who will also deliver a keynote address on the government's efforts to enhance domestic resource mobilization as part of its stabilization and reform strategy to meet the targets of sustainable growth in the medium term.

The morning session will also be addressed by FBR Chairman Mr. Ahmad Waqar who is likely to speak on FBR's endeavours for the establishment of a fair and efficient tax administration promoting investment and production incentives and raising sufficient revenues for the development and poverty reduction programmes of the government.

According to an official statement of the FBR, the conference to be attended by leading national and international experts, aims at engaging technical input and participation of the business community and stakeholders in the policymaking process.
 

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

LTU Islamabad to hold workshop on withholding taxes

For Urdu Version Please Click Here

The Large Taxpayers Unit (LTU) Islamabad of the Federal Board of Revenue (FBR) will organise a one-day workshop on 'Withholding taxes (WHT)' on Wednesday (tomorrow) at the Institute of Chartered Accountants of Pakistan (ICAP).

The workshop to be attended by senior officers of the FBR, LTU Islamabad as well as regional tax offices of the twin cities, will start at 2:00pm at the ICAP located at Plot No 2, Mauve Area, G-10/4 Islamabad, and discuss issues pertaining to the monitoring of withholding taxes.

The main feature of the workshop will be a keynote address to be delivered by Muhammad Anwar Goraya, director general of Withholding Taxes FBR, on 'collection and deduction of withholding tax at source'. Khawar Khurshid Butt, director general of the LTU Islamabad, will chair the workshop.

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

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) has collected Rs 423 billion revenue during the first five months of the current fiscal year, showing a corresponding increase of 24.4 per cent, says a press release issued by the FBR on Tuesday.

According to the provisional figures, the FBR has collected Rs 68.73 billion for the month of November 2008, taking the overall collection figures to Rs 423 billion as against Rs 340 billion collected during the corresponding period last year.

Click here to see break-up of the tax collection figures.

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

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) has assured the large taxpayers against any punitive measures for delays caused by a systemic failure.
“Clear instructions have been passed on to officers concerned to consider genuine grievances of taxpayers and give them all possible help and relief,” said Mr. Khawar Khurshid Butt, director general of Large Taxpayers Unit Islamabad, in a keynote address to a one-day workshop organized by the LTU to discuss issues pertaining to electronic filing of various documents for efficient disposal of tax matters.
The DG said bigger players in the national economy had critical role to play in setting examples of excellence in the business ethics. He said FBR understood the value and benefits of interaction and sharing of information to deepen the confidence level and evoke voluntary compliance to promote corporate social responsibility.
Mr. Butt assured his sustained support to taxpayers in the process of transformation from manual to electronic mode for the purpose of tax matters. He said the workshop has been organized to provide on-hand guidance to the representatives of various companies facing problems in e-filing their annual or monthly withholding statements, copies of audited accounts and other such annexure that under law are required by the tax authorities.
Earlier, Mr. Imtiaz Ahmad Khan, general manager of Pakistan Revenue Automation Limited (PRAL), gave a detailed presentation on the technical aspects of e-filing and pointed out the causes of possible interruptions during the processing of data uploading. He also answered the queries of the representatives and consultants of large tax payers.
A large number of companies attended the event and appreciated the initiative of LTU to facilitate the tax payers. Mr. Hafiz Idress of Rawalpindi Tax Bar said such interfacing and guidance from the FBR is of paramount importance for improving the compliance of tax payers under the modernized system and to keep pace with the technological advancement across the globe.
Mrs. Riffat Shaheen Qazi, commissioner Enforcement Division of LTU, commended her team for organizing the workshop. Sardar Ali Khawja, additional commissioner Enforcement, while moderating the workshop gave an overview of FBR’s efforts to facilitate taxpayers by transforming the system from manual to electronic.
During the question answer session, various representatives of companies gave their valuable input that was noted down by the PRAL to improvise the soft ware for better results and efficient delivery.
 

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

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) has denied contents of a news item appearing in a section of the press claiming the FBR has plans to arrest, jail and take similar stern steps against those guilty of holding black money even after the expiry of the tax investment scheme launched by the FBR.

A spokesman of the FBR has clarified that sections of the report as it has appeared in the media are misleading and contain attributions out of context. "There is no truth in such reports and the FBR has yet to decide about the measures to be taken against those failing to benefit from the ongoing tax investment scheme," says the statement.

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

For Urdu Version Please Click Here

Customs officials have seized charas and opium weighing 372 kgs and taken possession of a truck being used to smuggle the drugs from Peshawar into Punjab, says a press statement issued on Wednesday.

The raid was conducted by officials of the Directorate General Intelligence and Investigation of the FBR following a tip-off about an attempt to smuggle a massive quantity of drugs from Peshawar to Punjab by truck No RIH-1396.

The officials set up a picket close to Ring Road Peshawar and tried to intercept the truck when it approached them. However, the driver of the truck sped away. The officials chased the truck and found it abandoned on the GT Road with the driver having escaped. The officials searched the truck and recovered 350 kgs of foreign origin charas and 22 kgs of foreign origin opium.
 

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

For Urdu Version Please Click Here

Federal Board of Revenue (FBR) will organize tomorrow (Thursday) a workshop to provide assistance and guidance to large taxpayers on filing their IT returns and withholding statements through e-filing.
The one-day workshop is being organized by Large Taxpayers Unit (LTU) Islamabad at the Directorate of Training (Direct Taxes) Huzaifa Centre, I-8 Markaz, Islamabad. Noted IT experts from FBR and other organisations will address the workshop on issues regarding different benefits and processes of e-filing.
FBR has invited large taxpayers, especially those facing problems and constraints with regard to e-filing of their returns and statements, to attend the workshop to share their experiences with the IT experts with a view to seeking their guidance. Those interested in attending the workshop can give their suggestions and input on e-filing in advance to Mr. Sardar Ali Khawaja, Additional Commissioner Enforcement, LTU, Huzaifa Centre, I-8 Markaz, Islamabad on phone 051-9258562, fax 051-9258560 and email ltuisbenf@gmail.com.
 

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

For Urdu Version Please Click Here

Pakistan and the Swiss Confederation have signed a treaty for the avoidance of double taxation previously payable on the income of residents and businessmen of the countries. Tax officials of both the countries Monday met here in Islamabad to exchange the necessary Instrument of Intent to bring into force the revised Convention for Avoidance of Double Taxation. The two sides were led by Swiss Ambassador to Pakistan, Mr. Markus Peter, from the Swiss Confederation and
Mr. Ahmad Waqar, Secretary Revenue Division and Chairman FBR, from Pakistan.

Addressing a ceremony held at the FBR Headquarters for the exchange of Instrument of Intent, Mr. Irfan Nadeem, Member Direct Taxes FBR, welcomed the Swiss ambassador and explained the main features of the revised Convention.

According to the revised Convention, dividend in case of companies having 20 per cent share will be taxed at 10 per cent, and all other cases will be taxed at 20 per cent in the source country. Similarly, interest income may also be taxed in the contracting state in which it arises at 10 per cent of the gross amount.

The Convention further stipulates royalty in the source country to be taxed at 10 per cent; fee for technical services to be taxable at 10 per cent in the source country; and grant of exemption to students on remuneration from the employment which does not exceed 18,000 Swiss francs or the equivalent thereof in Pakistan currency at the official rate of exchange.
   
Speaking on the occasion, Mr. Ahmad Waqar, Secretary Revenue Division, hailed the revised Convention as the necessary step towards providing safeguards against double taxation on the income of the residents of both the countries as well as promoting economic cooperation, investment and bilateral economic relations between the contracting States.

He said the Convention will also provide adequate certainty in respect of taxation rules applicable to cross-border business transactions, dividends, interests, royalties and fee for technical services etc. Taxpayers of both the countries will get relief from double taxation resulting in boosting up the trading activities.

Swiss Ambassador Mr. Markus Peter thanked FBR officials for the warm welcome and expressed hope that the new Convention will be a significant step in improving the bilateral taxation relations between the two countries.

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