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Tag: FBR

  • 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.

  • Telecom companies block 9,000 SIMs of non-filers under FBR directive

    Telecom companies block 9,000 SIMs of non-filers under FBR directive

    Telecom operators have taken action by blocking the mobile SIMs of approximately 9,000 individuals who have not filed their taxes, following directives from the Federal Board of Revenue (FBR).

    According to a spokesperson from the FBR, this measure has been expedited, with telecom companies receiving updated data daily for the purpose of blocking SIMs.

    It has been revealed that the FBR has already provided data for around 30,000 individuals whose SIMs are earmarked for blocking.

    However, the spokesperson acknowledged that there is still a substantial number of approximately 506,671 individuals who have not filed their Income Tax Return for Tax Year 2023 but are obligated to do so.

    Initially, telecom operators were hesitant to execute this directive, citing various legal concerns. Nevertheless, they eventually consented to manually block SIMs in smaller batches.

    The FBR had issued an Income Tax General Order (ITGO) in late April, instructing the disabling of mobile phone SIMs belonging to over half a million individuals not appearing on the active taxpayer list.

    At the time of issuance, telecom companies were directed to furnish a compliance report by May 15 regarding this matter.

  • IHC stops government from blocking SIMs of non-filers

    IHC stops government from blocking SIMs of non-filers

    The Islamabad High Court (IHC) on Tuesday stopped the government from blocking phone SIMs of non-filers.

    IHC Chief Justice Aamer Farooq issued a stay order effective till May 27 as the court took up the petition today filed by a mobile phone company challenging the government’s decision to block SIMs of non-filers.

    Salman Akram Raja, Pakistan Tehreek-e-Insaf leader, was the petitioner’s counsel and gave forward the argument that the amendment in the law is at odds with Article 18 of the Constitution which guarantees freedom to do business.

    The High Court order came out after the Federal Board of Revenue (FBR) and telecom operators agreed on blocking of SIMs of tax non-filers in a bid to reduce tax evasion and improve revenue.

    FBR had announced that telecom companies have agreed to commence the manual blocking process of SIMs in small batches until their systems are fully equipped to automate it.

    It also announced initially 5,000 non-filers would be targeted and then further more batches would be sent to telecom operators.

  • Tax chor tyar hojaen; FBR, telecos agree to start blocking SIMs

    Tax chor tyar hojaen; FBR, telecos agree to start blocking SIMs

    The Federal Board of Revenue (FBR) and telecom operators have agreed on blocking SIMs of tax non-filers as part of the government’s strategy to punish tax evasion, The News reported on Saturday.

    In a statement, the FBR announced that telecom companies have agreed to start the manual blocking process of SIMs in small batches until their systems are fully equipped to automate it.

    The FBR said that the first batch comprising 5,000 non-filers has been communicated to telecom operators and further batches would be sent to telecom companies on a daily basis.

    Meanwhile, the operators have also commenced sending messages to non-filers regarding the blocking of their SIMs for intimation purposes.

    Earlier, a deadlock had been created when telecom operators refused to implement FBR’s decision to block 500,000 SIMs of tax evaders.

  • Mobile SIMs of over 500,000 tax evaders to be blocked under FBR directive

    Mobile SIMs of over 500,000 tax evaders to be blocked under FBR directive

    The Federal Board of Revenue (FBR) has identified 506,671 individuals who have not filed their income tax returns for the 2023 tax year and issued an order to block their mobile phone SIM cards.

    This directive, known as Income Tax General Order No. 01 of 2024, was released on Tuesday, mandating the Pakistan Telecommunication Authority (PTA) and all telecom operators to comply immediately.

    According to the FBR, these non-filers are required to file their income tax returns under the Income Tax Ordinance of 2001. The list of those affected is available on the FBR’s website. Those listed can check to confirm whether their mobile phone service will be disrupted.

    Under Section 114B of the Income Tax Ordinance, the FBR has the authority to take such measures to enforce compliance with tax regulations.

    The PTA and telecom operators must block the SIM cards of the individuals named in the order, and the SIM cards will remain deactivated until the FBR or the respective Commissioner of Inland Revenue restores them.

    The FBR has set a deadline of May 15, 2024, for telecom operators to report their compliance with the order. Failure to meet this deadline could result in further regulatory action.

    The FBR is taking this step to ensure that all those required to file income tax returns do so promptly, contributing to the country’s revenue base.

  • FBR seizes counterfeit cigarettes worth Rs96 million in nationwide crackdown

    FBR seizes counterfeit cigarettes worth Rs96 million in nationwide crackdown

    In a sweeping enforcement effort spanning the nation, the Federal Board of Revenue (FBR) has confiscated 1,235 packs of counterfeit cigarettes, valued at approximately Rs96 million.

    Under the guidance of FBR Chairman, Malik Amjed Zubair Tiwana, and the direct supervision of Mir Badshah Khan Wazir, Member Inland Revenue (Operations), IR Field Formations of FBR executed a comprehensive crackdown on counterfeit and non-stamped cigarettes.

    During the operation, which targeted evasion practices, a total of 4,652 retail outlets were inspected nationwide. Out of these, 33 establishments were found engaged in illicit tobacco trade and subsequently sealed.

    The enforcement drive involved a significant deployment of resources, with a total of 204 teams comprising 1,047 personnel dedicated to the mission of curbing the circulation of illicit cigarettes.

    Chairman FBR, Malik Amjed Zubair Tiwana, and Member Inland Revenue (Operations) Mir Badshah Khan Wazir commended the diligent efforts of the IR field formations involved in the operation.

    Despite facing constraints in human resources and logistics, the Inland Revenue Enforcement Network persistently strives to eliminate the menace of illicit tobacco trade.

    The successful outcome of this operation underscores the FBR’s commitment to combating illegal activities and safeguarding public health and revenue integrity.

  • Crackdown against $23 billion black market results in attacks on custom officials

    Crackdown against $23 billion black market results in attacks on custom officials

    On Saturday, three people, including two Customs officials, were murdered in an attack near Bannu Road when unknown gunmen opened fire targeting their vehicle at the Yarak toll plaza in Dera Ismail Khan district of Khyber Pakhtunkhwa.

    This is the second attack on Pakistan Customs officials in less than a week in Dera Ismail Khan.

    Previously on April 18, seven people, including a child, were slain in an attack out of which five were Custom officials. Federal Board of Revenue (FBR) released a statement on X, formerly Twitter, reiterating Pakistan’s resolve to fight terrorism.

    The Khorasan Diary had reported that “Customs had tightened the noose around smuggling around this area as it was frequented by militant networks who were involved in smuggling weapons and vehicles used in attack in urban centres,” a senior customs official said.

    The special situation report of the April 18 incident was released by the Deputy Commissioner

    Moreover, Tehreek-e-Taliban Pakistan (TTP) claimed responsibility for the heinous attack.

    It should be noted that Dera Ismail Khan is an infamous route for illicit trade and smuggling as there have been many instances when the authorities have foiled bids to smuggle goods including arms, Iranian fuel and more.

    (Image taken from APP report)

    As Pakistan navigates through tough economic waters, Prime Minister Shehbaz Sharif ordered strict action against smugglers and urged law enforcement agencies to expedite their campaigns.

    Illicit activities such as black market and smuggling cost Pakistan $23 billion per year, according to the report by ACE Money Transfer, a UK-based company.

    Previously, the caretaker administration started the anti-smuggling drive in the country to protect the feeble foreign exchange and stop the devaluation of local currency (PKR).

    The FBR released a statement offering condolences to the victims’ families.