BAFL 38.47 Increased By ▲ 0.02 (0.05%)
BIPL 17.49 Increased By ▲ 0.24 (1.39%)
BOP 3.97 Decreased By ▼ -0.10 (-2.46%)
CNERGY 3.04 Decreased By ▼ -0.04 (-1.3%)
DFML 16.26 Decreased By ▼ -0.29 (-1.75%)
DGKC 43.42 Decreased By ▼ -0.38 (-0.87%)
FABL 22.30 No Change ▼ 0.00 (0%)
FCCL 11.31 No Change ▼ 0.00 (0%)
FFL 6.44 Increased By ▲ 0.07 (1.1%)
GGL 9.27 Decreased By ▼ -0.22 (-2.32%)
HBL 90.44 Decreased By ▼ -0.06 (-0.07%)
HUBC 88.33 Increased By ▲ 0.63 (0.72%)
HUMNL 5.50 Increased By ▲ 0.01 (0.18%)
KEL 1.96 Decreased By ▼ -0.05 (-2.49%)
LOTCHEM 28.49 Decreased By ▼ -0.01 (-0.04%)
MLCF 29.94 Decreased By ▼ -0.26 (-0.86%)
OGDC 96.46 Decreased By ▼ -1.74 (-1.77%)
PAEL 9.94 Decreased By ▼ -0.05 (-0.5%)
PIBTL 3.86 Decreased By ▼ -0.03 (-0.77%)
PIOC 85.10 Decreased By ▼ -0.15 (-0.18%)
PPL 74.07 Decreased By ▼ -0.53 (-0.71%)
PRL 15.22 Decreased By ▼ -0.10 (-0.65%)
SILK 0.95 Decreased By ▼ -0.02 (-2.06%)
SNGP 46.98 Increased By ▲ 0.18 (0.38%)
SSGC 9.19 Decreased By ▼ -0.17 (-1.82%)
TELE 6.70 Decreased By ▼ -0.26 (-3.74%)
TPLP 12.24 Decreased By ▼ -0.09 (-0.73%)
TRG 88.02 Decreased By ▼ -2.13 (-2.36%)
UNITY 25.17 Decreased By ▼ -0.22 (-0.87%)
WTL 1.14 No Change ▼ 0.00 (0%)
BR100 4,626 Decreased By -30.1 (-0.65%)
BR30 16,569 Decreased By -93.8 (-0.56%)
KSE100 46,233 Decreased By -132.5 (-0.29%)
KSE30 15,989 Decreased By -183.2 (-1.13%)

Govt depts, hospitals, LG and defence institutions: Updated list of FTN recipients issued by FBR

  • FBR to take policy decision on the issuance of the FTNs to the govt authorities including local govt departments and Tehsil municipal authorities seeking tax exemptions
Published September 17, 2023

ISLAMABAD: The Federal Board of Revenue (FBR) has issued an updated list of 9,190 government departments, hospitals/educational/health institutions local government departments, Tehsil municipal authorities, and defence institutions that have obtained Free Tax Numbers (FTNs) for availing tax exemptions.

The FBR’s updated list of FTNs contains taxpayer’s name, jurisdiction of the relevant tax office, and the registration date of the taxpayer for obtaining the FTNs.

A tax expert told Business Recorder that the FBR needs to review the list because exemption has also been granted to some institutions who are liable to pay taxes but obtained FTNs.

The holder of FTN is not exempted from deduction of due taxes being withholding agent, if any.

Govt entities: FBR to take policy decision on FTNs

The income of the FTN holder may be exempted from tax but the holder has to deduct tax where required. The genuine FTN holder may not be required to pay tax, has to fulfil other obligations under the law. Therefore, a review of the FTN list is necessary at the board’s level, tax expert added.

Last year, Appellate Tribunal Inland Revenue (ATIR), Islamabad, in the matter of M/s Wah Industries Limited, Wah Cantt (appellant), directed the the Federal Board of Revenue to take a policy decision on the issuance of FTNs to the government authorities/departments seeking tax exemptions on the basis of allocated FTNs.

According to judgment of the ATIR, the FBR will take a policy decision on the issuance of the FTNs to the government authorities including local government departments and Tehsil municipal authorities seeking tax exemptions on the basis of FTNs.

Therefore, under the circumstance, the appellant was not required to deduct tax under Section 150 of the Income Tax Ordinance, while making payments to its board. Accordingly, the orders passed by the lower tax authorities are vacated.

The ATIR had declared that the POF Board is the department of the federal government and any payment received by the federal government, a provincial government, or a local government shall not be liable to any collection or deduction of advance tax. Further, the revenue department itself issued the FTNs to the POF Board.

Copyright Business Recorder, 2023


Comments are closed.

Abdullah Sep 17, 2023 03:08pm
@XY, same way as Imran khan couldn't answer tosha Khana and 190 million pounds and made issue of cipher when there was nothing in it and was still being a puppet and running the country
thumb_up Recommended (0)
Maqbool Sep 17, 2023 03:49pm
Over 9,000 organizations are exempt from tax, and not a comment from IMF .
thumb_up Recommended (0)

Govt depts, hospitals, LG and defence institutions: Updated list of FTN recipients issued by FBR

Cut in rates of petroleum products

Meeting with Dr Shamshad: Banks, DFIs agree to set up private equity, venture funds

Moscow Format Consultations: Afghan govt asked to eliminate terrorist groups

Income Tax return filing deadline extended to Oct 31

President dismisses FBR’s appeal against expats

Afghan embassy in India suspends operations

Five new cargo vessels heading for Ukrainian Black Sea ports

Rs63bn more than the target: Q1 tax collection stands at Rs2.041trn

Elections on Oct 21-22: PTBA issues provisional list of candidates

Q1 SRB collection up 44pc to Rs52.12bn YoY