05252016Wed
Last update: Wed, 25 May 2016 02am

Taxation: Pakistan

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The Directorate General of Intelligence & Investigation (I&I) Inland Revenue has proposed changes in tax laws in budget (2016-17) to remove legal lacuna in proper collection of the Federal Excise Duty (FED) on franchise fee/technical fee/royalty from bottlers of beverage sector and exercise powers to enter and search premises to access actual records of tax evaders.
The Federal Board of Revenue (FBR) will take measures in the budget (2016-17) to remove deficiencies in tax laws and plug in loopholes that are exploited to make investments in offshore companies aboard with a view to avoiding taxes at home.
Model Customs Collectorate (MCC), Islamabad, generated a handsome amount of approximately Rs 55 million from grand public auction of confiscated vehicles, bikes and other consignments.
Pervez Khattak, Chief Minister of Khyber-Pukhtunkhwa (KP) has suggested duty free import of vehicles to do-away with the menace of non-custom paid vehicles in Malakand division.
Finance Minister Ishaq Dar Saturday said that the ruling PML-N government will continue with the ''expand the tax net'' initiative and there will be no room for any segment to avoid taxes. Addressing a pre-budget seminar, Ishaq Dar said the country''s economy was put on positive trajectory as a result of reforms introduced by the PML-N government in different sectors.
Directorate General of Intelligence and Investigation Inland Revenue (IR) has proposed that the Green Leaf Threshing (GLT) units engaged in processing/redrying of un-manufactured tobacco may be bound to make supply of processed tobacco only to registered cigarette manufacturers in budget (2016-17). According to the budget proposals of the directorate submitted to the FBR for consideration in coming budget (2016-17), Federal Excise Duty which is chargeable on processed/un-manufactured tobacco @ Rs 10 per Kg may be enhanced to the same amount of duty involved in 1000 cigarette sticks that could be manufactured from one kilogram of tobacco.
The Federal Board of Revenue (FBR) is planning to charge maximum retail price on finished or made-up articles of textile and leather, including garments, footwear, and bed ware, sold in retail packing under a brand name to collect sales tax on the basis of printed retail price in budget (2016-17). According to sources, franchisee networks of finished or made-up articles of textile and leather, including garments, footwear, and bedwear would also be brought into the tax regime.