Tax Updates News & Views

The Federal Cabinet has decided that Finance Bill for the next fiscal year will include measures to prevent illicit trade of tobacco and impose 'Health Tax' on tobacco and carbonated drinks. Sources said that the decision to this effect was taken by a meeting of the federal cabinet on May 28, 2019.

The employees including salaried class must take tax adjustment from their employers instead of waiting for refunds from the Federal Board of Revenue (FBR). Imtiaz Ahmad Khan, IT Expert and former general manager of Pakistan Revenue Automation Limited (PRAL)-FBR explained that the employees should avail the benefits already available to them under Income Tax Ordinance 2001. The employees can easily get their adjustments from their employers and no need for waiting for refunds. The employees are entitled to tax adjustments from their employers under the law.

Finance Bill (2019-20) will introduce key tax reforms for facilitation of taxpayers and promote transparency within the tax machinery of the Federal Board of Revenue (FBR). Budget makers are seriously considering different facilitation proposals in coming budget and approved proposals would be made part of the Finance Bill 2019-20. This requires legal and procedural changes in the federal tax laws in the upcoming budget. Among other proposals, key tax reforms for facilitation of taxpayers and to promote transparency are:

Following immense pressure from various quarters, the Federal Board of Revenue (FBR) is planning to abolish advance tax on tobacco in the budget (2019-20) through Finance Bill 2019.

ISLAMABAD: Adviser to Prime Minister on Commerce, Textile, Industry and Production Abdul Razak Dawood has said that all possible resources would be utilized for revival of cotton crop.

KARACHI: The Sindh Revenue Board during the month of November collected revenue of Rs 7.986 billion as compared to the revenue of Rs 6.652 billion collected during November last year registering a growth of 20.06pc.

The Federal Board of Revenue (FBR) has recovered Rs. 5.2 billion from its ongoing crackdown against tax defaulters and non-compliant wealthy individuals.

The board has also taken action against 4,512 bank accounts, vehicles, and properties while arresting nine defaulters. The FBR has released official data regarding the outcome of the ongoing drive against tax evaders.

The revenue authority said that the crackdown on tax defaulters in all major cities of the country “would continue in coming months especially against the tax defaulters and the persons out-of-the-tax-net.”

Focus Areas

In a written statement, the FBR stated that the drive particularly focuses on three important areas.

“The areas are enforcement action under section 175 of Income Tax Ordinance 2001 as well as sections 38 and 40B of the Sales Tax Act 1990, which give tax officials the power to enter and search premises as well as post inspection officers on the premises to monitor sales and inventory position,” reads the statement.

Exercising these powers, the authority has taken action against 424 cases that concerned Rs. 8.27 billion in revenue out of which Rs. 3.282 billion was recovered.

Federal Board of Revenue (FBR) on Friday launched new Active Taxpayers List (ATL) for Tax Year 2018, which is showing around 1.6 million taxpayers filed their income tax returns by respective due dates.

SRO 107(I)/2019 withdrawal of Customs Duty of Cotton.

KARACHI: Government of Pakistan will implement a comprehensive import tariff next year under the National Tariff Policy, which would be announced by June 2019, Advisor of Prime Minister on Commerce and Industry Abdul Razzak Dawood said.

KARACHI: On persistent persuasion of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), the Federal Board of Revenue (FBR) has agreed to do away with the discrimination in taxes between industrial and commercial importers of raw material and to levy a uniform rate on raw material for both type of importers.

KARACHI: Prime Minister Imran Khan has assured stock brokers to rationalize taxation regime on stock market and equity trading.

KARACHI: The Directorate of Transit Trade Karachi has advised the management of South Asia Pakistan Terminals (SAPT) to provide equipment and facilities to the Customs staff at the hall of transit trade.

KARACHI: Overseas Pakistani workers remitted $9.028 billion in the first five months (July to November) of FY19, showing a growth of 12.56 percent compared with $8.021 billion received during the same period in the preceding year.

• KARACHI: As per the data released by All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches for the month of November 2018 arrived at 3.90mn tons versus 3.94mn tons registered during the same month last year, down by a meager 1.0 percent.

KARACHI: A bench of Sindh High Court on Monday reserved judgment in two separate but identical criminal revision applications after hearing arguments in detail.

KARACHI: The Federal Board of Revenue (FBR) plans to track and trace each cigarette pack, as the revenue body expects to increase its revenue from sale of cigarettes in Pakistan.

A sector specialist is required as technical assistance to FBR for Track and Trace Study for e-stamping of tobacco products.