Tag: FBR

  • FBR may be forced to announce extension of tax return deadline amid technical issues

    FBR may be forced to announce extension of tax return deadline amid technical issues

    Despite repeated warnings from the tax authority that the deadline for the submission of tax returns will not be extended, latest reports suggest that the Federal Board of Revenue (FBR) may be forced to extend the deadline for some filers due to an issue in the IRIS system.

    IRIS is an online portal from the FBR used by taxpayers to submit returns.

    Recently, the business community has also complained that they are facing issues with the IRIS website and demanded the deadline should be pushed further, however, the FBR ruled out the possibility’ and stated that the last date for filing tax returns will not be extended.

    According to sources within the FBR, the last date for filing returns is now expected to be extended by two weeks for individuals, associations of persons, businessmen, and companies.

    Those who are facing issues may be able to get an extension owing to their specific reasons, however, the official deadline will not be pushed beyond September 30 for the entire country.

    This means the two weeks’ extension, if announced, may not be for everyone.

    The tax authority is considering extending the deadline after the business community, during their meeting with the army chief, suggested that the FBR should create convenience for businessmen rather than difficulties.

    Earlier, filers and business owners demanded that the last date for filing annual tax returns be extended to at least October 15 so that maximum tax returns could be filed and difficulties faced by taxpayers could be eased.

  • Pakistan can no longer afford non-filers: Finance Minister

    Pakistan can no longer afford non-filers: Finance Minister

    Finance Minister Muhammad Aurangzeb has confirmed that the government is preparing to eliminate the category of non-filers, aiming to reduce the burden on those who actively file taxes.

    “It’s time to remove the non-filers category,” he stated in an interview with Voice of America during his visit to New York, USA.

    “Pakistan is probably the only country in the world with this concept. Either you are a filer, or you’re simply not paying taxes,” Aurangzeb explained. “The government is set to abolish this category.”

    He further added, “The government cannot afford this anymore.”

    This announcement follows remarks by Federal Board of Revenue (FBR) Chairman Rashid Mahmood, who said that the government had decided to do away with the non-filers category.

    For the 2023 tax year, 6 million returns have already been filed, and the government expects more following strict measures introduced against non-filers.

  • Retailers dodging the tax system could face Rs500,000 fine per ‘non-certified receipt’

    Retailers dodging the tax system could face Rs500,000 fine per ‘non-certified receipt’

    The Federal Board of Revenue (FBR) is considering slapping heavy fines on major retailers who are dodging the tax system by issuing “non-certified receipts” to customers.

    The tax authority is reportedly planning to fine Tier-1 retailers who are not reporting sales tax correctly to the FBR.

    According to details, the FBR will impose a heavy fine of Rs500,000 per incorrect receipt on the retailer. On the other hand, the FBR will reward consumers who report a non-certified electronic receipt, which does not meet FBR standards, to the tax authority.

    Earlier, the FBR had advised electronic integration of points of sales (POSs) of all Tier-1 retailers of textile and leather sectors to ensure correct reporting of sales by retailers and realisation of overall due tax.

    Retailers must install software provided by the FBR, which reports sales tax to the tax authorities instantly.

    The installation of this software is crucial, as this is how the FBR gets to know about the number of sales made by a retailer, the tax paid, and what they charge the consumer.

    Interestingly, a POS invoicing prize scheme was first introduced in 2022 to promote tax compliance and documentation of the economy. The scheme involved conducting monthly ballots and distributing cash prizes among winners.

    Read more: Petrol, diesel prices likely to be reduced by more than Rs10 per litre for next fortnight

  • FBR asks traders to pay advance tax of up to Rs60,000 by the 15th of every month

    FBR asks traders to pay advance tax of up to Rs60,000 by the 15th of every month

    The Federal Board of Revenue (FBR) has issued a notice to traders in Karachi, instructing them to pay an advance tax of up to Rs60,000 per month under the Tajir Dost Scheme.

    The notice, issued by the regional tax office in Karachi, specifies that the payment is due by the 15th of each month.

    The Tajir Dost Scheme, designed to simplify tax compliance for traders, has sparked concern among the business community, particularly in key markets such as Liaquatabad and the electronics market.

    Traders have expressed frustration over what they see as an additional financial burden imposed by the authorities.

    In response to the scheme, Karachi’s business community has decided not to comply with the advance tax payment. On Friday, traders announced a nationwide strike scheduled for August 28 to protest against the Tajir Dost Scheme.

    During a joint press conference, the All Pakistan Anjuman-e-Tajiran, along with other traders’ associations, demanded the immediate withdrawal of the scheme, labelling it as ‘unacceptable.’

    They also called for the reversal of the decision to impose heavy taxes on the export sector, as well as the withdrawal of the recent increase in income tax slabs for salaried individuals and business owners.

  • FBR registers 58000 traders against 3.2 million target

    The Federal Board of Revenue (FBR) has so far registered over 58,000 small traders or new shopkeepers under the Tajir Dost Scheme against the target of 3.2 million.

    Business Recorder has reported that monthly tax payments from traders will start from the ongoing month.
    Chief Coordinator of the Tajir Dost Scheme Naeem Mir said that the Board has projected total collection Rs 50 billion under this head in the current year.

    Mir said that it is an ambitious target and would require full cooperation of the traders to voluntarily deposit monthly tax payment installments.
    FBR has chalked out monthly advance income tax table for traders in 42 major cities of the country.
    Based on location of shops, the FBR has issued market or area wise indicative income, indicative income tax and Monthly Advance Tax to be paid by small traders.

    Under the monthly tax payment plan, the traders and shopkeepers in 78 percent of the markets would be required to pay monthly advance income tax of Rs 5,000.

    The monthly tax payment would be Rs 10,000 per month for traders covered in 14 percent markets of the country. The tax payment would be Rs 20,000 per month in five percent areas. Traders will pay Rs 30,000 per month as tax installment in two percent areas and Rs 45,000 monthly payment in 0.6 percent areas and traders would pay monthly advance income tax of Rs 60,000 per month in 0.40 percent markets of the country.

  • IMF wants FBR to bring over 20 million Pakistanis into tax net in five years

    IMF wants FBR to bring over 20 million Pakistanis into tax net in five years

    To broaden the tax base, the Federal Board of Revenue (FBR) has outlined its five-year objectives to the International Monetary Fund (IMF), sources reveal.

    The FBR aims to include over 20 million individuals in the tax net over the next five years, as per the IMF’s requirements.

    To meet this goal, the FBR plans to register 3.72 million people and 23,500 associations of persons within the current year. Additionally, more than 9,500 companies will be incorporated into the tax system during this financial year.

    For the following fiscal year, the FBR’s target is to add 3.91 million individuals, associations, and companies to its records. By FY27, the board aims to enrol 4.1 million non-filers, with a further increase to 4.31 million individuals by FY28.

    The goal for the 2028-29 financial year is to incorporate 4.525 million people into the tax net.

    Sources indicate that the IMF has insisted on the strict implementation of this plan, starting from the current financial year.

  • PM Shehbaz urges FBR to modernise tax system without burdening honest taxpayers

    PM Shehbaz urges FBR to modernise tax system without burdening honest taxpayers

    Prime Minister Muhammad Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to implement a strategy using the latest technology to expand the tax base without imposing additional burdens on honest taxpayers.

    During his visit to the FBR Headquarters, the Prime Minister underscored the government’s commitment to steering Pakistan towards economic progress and stability.

    Prime Minister Sharif highlighted the necessity of collective and individual efforts, sincerity, and sacrifices to prioritise national interests over personal gains.

    He described the recent staff-level agreement with the International Monetary Fund (IMF) as a positive development for the country’s economy and expressed optimism that the IMF board would endorse it.

    He urged the FBR to work diligently to ensure this IMF programme is the last one needed, paving the way for a prosperous future.

    Sharif emphasised the importance of taxing those who evade payments to alleviate the repeated financial strain on honest taxpayers, including government employees. He advocated for leveraging modern technologies, such as artificial intelligence, to digitise FBR operations, which he viewed as crucial for broadening revenue sources without unfairly burdening compliant taxpayers.

    The Prime Minister criticised the reliance on foreign debts, stressing that sustainable nation-building requires self-reliance and effective tax collection. He insisted that current FBR reforms be conducted objectively and transparently, prioritising national interests. Sharif also instructed FBR Chairman Malik Amjad Zubair Tiwana to bring any departmental issues to light promptly.

    Acknowledging FBR’s success in collecting 30% more revenue compared to the previous year, Sharif insisted that tax enforcement should focus on achieving set targets without causing undue difficulties for compliant businesses and industrialists.

    He recalled the introduction of agricultural tax in Punjab 27 years ago, which was subsequently adopted by other provinces, highlighting the need to address general sales tax collection issues.

    Upon his arrival at FBR Headquarters, Sharif was welcomed by key government officials, including Finance Minister Muhammad Aurangzeb and Minister of State for Finance Ali Pervaiz Malik. The Prime Minister paid homage to the FBR’s fallen heroes by laying a wreath and offering Fateha. He reiterated that the automation and digitisation of FBR are government priorities and authorised the immediate release of Rs2 billion to enhance the Web-Based One Customs System (WeBOC).

    The meeting, attended by several ministers and senior officials, included a briefing on ongoing FBR reforms and the progress of the digitisation strategy.

    The Prime Minister was informed of the completion of the first phase of the FBR Tajir Dost Mobile application, which simplifies tax return processes. Additionally, the use of advanced technology has identified approximately 4.9 million potential taxpayers.

    Sharif instructed the FBR to expand the tax net to include these identified individuals and to address the legitimate demands of flour mill owners through direct engagement.

  • FBR imposes 18% GST on packaged food items to boost revenue

    FBR imposes 18% GST on packaged food items to boost revenue

    The Federal Board of Revenue (FBR) has announced the imposition of an 18 per cent General Sales Tax (GST) on packaged food items, including formula milk.

    The announcement was made during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla. Amjad Zubair, Chairman of the FBR, informed the committee that the GST will be applied to all packaged items sold at departmental stores and large retail outlets, but will not affect unpackaged food items sold at general stores.

    In response to concerns raised during the meeting, the committee recommended a reduction in the GST rate on formula milk due to its critical importance for infant health. Chairman Zubair acknowledged the significant tax revenue generated from formula milk and expressed the government’s willingness to consider a reduction in tax rates if companies agree to lower their prices.

    The committee also addressed the issue of unregistered outlets selling formula milk, recommending that these outlets be blacklisted to ensure compliance with tax regulations.

    It is notable that this move aligns with a demand from the International Monetary Fund (IMF). During recent talks with Pakistani authorities for a new loan agreement, the IMF recommended increasing the general sales tax to 18 per cent.

    The IMF mission observed that Pakistan’s current sales tax collection system faces challenges, with the federal government collecting tax on commodities and the provinces on services. The IMF suggested that sales tax collection should be centralized under the federal government and that GST exemptions be eliminated.

    This development is part of broader efforts to streamline Pakistan’s tax system and enhance revenue collection as the country seeks financial assistance from international lenders.

  • More than 53,000 suspicious identity cards issued to foreigners

    More than 53,000 suspicious identity cards issued to foreigners

    More than 53,000 fake computerised national identity cards have been found during a crackdown against illegal aliens across the country.

    An investigation conducted by the Federal Ministry of Interior showed that 595 vehicles were registered in Khyber Pakhtunkhwa on suspected identity cards of illegal foreigners returning home from Pakistan.

    Cases have been prepared against 7,500 holders of fake identity cards and legal action has been directed against the suspects, including blocking of mobile phone SIM cards plus repatriating them after identifying their properties and businesses.

    Similarly, 349 undeclared properties and businesses in the name of foreigners also exist and are sent to the FBR for investigation.

    The Ministry of Interior has also decided to deport foreign illegal Tajik residents.

    The Ministry has also completed the investigation of 2,343 suspicious bank accounts in the name of Afghans in Khyber Pakhtunkhwa and Balochistan.

  • FBR surpasses May revenue target with Rs760 billion collection

    FBR surpasses May revenue target with Rs760 billion collection

    The Federal Board of Revenue (FBR) has exceeded its revenue target for May in the fiscal year 2023-24 by collecting Rs760 billion in tax revenues, surpassing the target of Rs745 billion.

    This achievement, announced in a statement by the FBR today, signifies a remarkable 33 per cent growth compared to May 2023.

    In addition to the overall revenue increase, domestic taxes also experienced a significant 33 per cent growth during May.

    “The FBR is poised to achieve the assigned target for the final month of the current financial year, June 2024,” the statement added.

    This positive trend has contributed to an overall revenue growth of 31 per cent for the first eleven months of the current fiscal year, compared to the same period last year.