01162017Mon
Last update: Mon, 16 Jan 2017 05pm

Taxation: Pakistan

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The Federal Board of Revenue (FBR) has increased sales tax on motor spirit and high speed diesel oil from January 16, 2017. Explaining the SRO 21(I)/2016 issued by the FBR here on Sunday, sources said that the sales tax on motor spirit has been increased from 14.5 percent to standard rate of 17 percent. The motor spirit has been excluded from the table of petroleum products specified in the SRO 21(I)/2016. The exclusion of motor spirit from SRO 21(I)/2016 has brought this POL product under the standard rate of sales tax ie 17 percent.
A taxpayer's bank account attachment orders have been withdrawn voluntarily by the Federal Board of Revenue (FBR) officials, following timely intervention by the Federal Tax Ombudsman (FTO), before start of the first hearing of the case of mal-administration.
The government is formulating a targeted incentive package to attract relocation of appropriate industries into Pakistan with special tax incentives to encourage transfer of efficient technology and concessions for industrial set-ups which are being given incentives for relocation. Sources told Business Recorder here on Friday that an inter-ministerial meeting was recently convened in Board of Investment (BoI) which was chaired by the Secretary BoI.
The Federal Board of Revenue (FBR) Friday launched a national drive against manufacturers and suppliers of non-duty paid smuggled cigarettes and other tobacco products taking serious notice of dip in sales tax/Federal Excise Duty (FED) collection from the industry during July-December (2016-17) and raise in supplies of such items without payment of duties and taxes.
The Economic Co-ordination Committee (ECC) of the Cabinet has reportedly readjusted financial impact of Prime Minister''s package of incentives for exporter prepared after months of consultative process. Well-informed sources in Finance Ministry told Business Recorder that the ministry had estimated Rs 38.7 billion for garments sector at 7 percent duty drawback but after discussion the amount was slashed to Rs 37.6 billion. Likewise, financial impact on made-ups was slashed from Rs 30.3 billion to Rs 29 billion at 6 percent duty drawback.
The Federal Board of Revenue (FBR) has decided to verify exemption certificates (section 148 of the Income Tax Ordinance 2001) issued by the field formations by constituting teams of senior tax officials in large taxpayer units (LTUs) and regional tax offices (RTOs) to conduct field visits for verification exercise across the country. In this regard, the FBR issued instructions to the chief commissioners of LTUs/RTOs here on Thursday to verify each exemption certificates issued by the field formations.
With the approval of the Government of Sindh, Sindh Revenue Board has issued two notifications on Thursday, in relation to exemption of Sindh sales tax on the services of life insurance and health insurance.