07012016Fri
Last update: Fri, 01 Jul 2016 02pm

Taxation: Pakistan

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Sindh Revenue Board (SRB) achieved yet another milestone by collecting Sindh Sales Tax (SST) amount of Rs 6.403 billion during the month of June, 2016, which represents the highest ever amount of SST collected in any one single month SRB started collecting SST in July, 2011. With the aforesaid collection during June, 2016, SRB also surpassed the target of SST collection of Rs 61 billion assigned for the financial year 2015-16.
Federal Board of Revenue (FBR) has started deliberations with State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) to make suitable amendments in the existing laws with a view to curbing or eliminating the activities of operators of offshore companies in Pakistan. FBR is of the view that the existing laws are not sufficient and effective to deal with the operators of offshore companies and the lacunae in the law provide a safe passage to the tax dodgers to run illicit business.
The Federal Board of Revenue (FBR) has fixed minimum value of Rs 56 per kg on domestically produced sugar and US $725 per metric ton (PMT) of the commodity at import stage from July 1, 2016. According to SRO 492(I)/2016 issued here on Thursday, the FBR has notified fixation of minimum value of imported and domestically produced sugar for sales tax.
The Federal Board of Revenue (FBR) has achieved the assigned revenue collection target of Rs 3,103.7 billion for 2015-16, official sources said on Thursday. A senior FBR official said that the FBR has exceeded the assigned target for the entire fiscal year, but figures would be announced by Finance Minister Ishaq Dar on Friday (July 1). The official did not shared exact figures of revenue collection late Thursday night, but insisted that we have crossed the figure of 3,103.7 billion.
The Federal Board of Revenue (FBR) is likely to charge 17 percent sales tax plus 3 percent value addition tax on the import of finished goods ready for use by the general public and 17 percent sales tax has been proposed to be charged on local supply of the said goods.
The Federal Board of Revenue (FBR) has fixed sales tax rates on the different Petroleum products including Motor Spirit on which sales tax has been fixed at 17 percent, reflecting new mechanism of charging sales tax on percentage basis. According to an SRO.490(I)/2016 issued here on Thursday, fixed sales tax rate of 17 percent would be collected on HOBC; 7 percent sales tax on Kerosene; High speed diesel oil 28 percent and fixed sales tax rate of 5 percent would be collected on Light diesel oil. The new rates would be applicable from July 1, 2016.
The Federal Board of Revenue (FBR) should immediately remove a major lacuna in the income tax law to restrict all three stakeholders of a trust (local and foreign), ie, settlers, beneficiary and the trustee to declare assets and other information relating to trust funds in their tax returns and wealth statements under the tax laws.