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Taxation: Pakistan

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The Directorate General of Post-Clearance Audit (PCA), Federal Board of Revenue (FBR), has deleted a tax fraud case tax fraud case, which shows involvement of appraisement staff of Model Customs Collectorate (MCC) Pakistan Customs Computerised Clearance System (PaCCS) Karachi and a Karachi-based contractor who wrongly obtained exemption of customs duty and sales tax on import of seamless steel pipes/tubes, causing massive loss to the national kitty.

The Federal Board of Revenue (FBR) has selected certain cases for income tax and sales tax audit through computer balloting and the details of registered persons have been communicated to field formations.
The Directorate General of Intelligence and Investigation Federal Board of Revenue (FBR) has provided a list of 25 customs officials including senior officers to the FBR for obtaining reward equivalent to two years salaries along with cash reward for detecting a mega tax scam involving M/s H Sheikh Noor-ud-Din & Sons, (Pvt) Ltd, Lahore.
Over 96 percent of taxpayers including business and trade are unaware of the overall sales tax reforms particularly automated sales tax refund systems ie Sales Tax Automated Refund Repository System (Starrs) and Sales Tax Risk Evaluation and Management System (Streams).
Pakistan Economy Forum has stressed improvements in tax to GDP ratio, which is not increasing significantly, fiscal crisis is deepening; taxes are insufficient for debt service and defence. The reform of tax administration is the single important economic task for the government, but it is in the doldrums since 2001.
The World Bank has proposed to the Federal Board of Revenue to rationalise the number of staff and employees to improve efficiency of the tax administration under reforms. Sources told Business Recorder here on Friday that the WB mission has submitted a report to the FBR on the ''lessons learned from the Tax Administration Reform Project of the FBR''.
Dual tax rates at import stage for manufacturers and other importers are hindering the import process, causing delay in production activity. In a letter issued by Karachi Tax Bar Association (KTBA) to the chairman of Federal Board of Revenue (FBR) and Member Inland Revenue, FBR, has highlighted that the taxpayers are facing serious hardship in import process as the rate prescribed in the Income Tax Ordinance 2001 for manufacturers at import stage was 3 percent of the import value and other importer are liable for 5 percent withholding tax of the import value.

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Banking Review 2011


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The Rupee

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Rates keep coming down

Annual2010/11
Foreign Debt $59.53bn
Per Cap Income $1254
GDP Growth 2.4%
Average CPI 14.10%
MonthlyDecember
Trade Balance $-2.41 bln
Exports $1.85 bln
Imports $1.26 bln
WeeklyJanuary 26, 2012
Reserves $16.802 bln
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