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Clarifications and Exemptions Issued under Section 7E of the Income Tax Ordinance, 2001

2023-08-16T21:26:00.003+05:00

Clarifications and Exemptions Issued under Section 7E of the Income Tax Ordinance, 2001

The Federal Board of Revenue (FBR) has announced a relaxation in the conditions under Section 7E of the Income Tax Ordinance of 2001 that specifically concerns those who sell immovable property.

This modification was communicated via Circular No. 3 of Income Tax, issued on August 15th, 2023. The circular eases certain requirements for sellers of immovable property mentioned in Section 7E of the Income Tax Ordinance.

The provisions under Section 7E of the Income Tax Ordinance of 2001 only apply to resident persons as defined in Section 82. Non-resident individuals, including non-resident Pakistanis, are not required to pay tax under Section 78.

Therefore, the conditions notified through Circular No. C.No.1 of 2023-24 regarding furnishing evidence to the transferring authority for immovable property sales do not apply to non-residents.

Here are some key exemptions under Section 7E:

- Non-resident Individual Exemption:However, non-resident individuals selling or transferring immovable property will need to submit a duly filled Form-B along with a scanned copy of their valid passport to the transferring authority. For non-resident Pakistanis, in addition to Form-B and passport copy, they must also provide a copy of their CNIC, NICOP or POC. The transferring authority will complete the property sale/transfer only after verifying the details in Form-B and ensuring the non-resident's stay in Pakistan was less than 183 days for the applicable tax year (July 1, 2021 - June 30, 2022 or July 1, 2022 - June 30, 2023 on wards) for which they are claiming non-resident status.

- First-Year Property Acquisition Exemption: Properties acquired during the first year where tax under section 236K has been paid by the purchaser are exempt. The seller must provide a CPR to the transferring authority.

- Agriculture Property Exemption: Immovable property used for agriculture, excluding farmhouses, does not fall under Section 7E. However, farmhouses are subject to Circular No. 1 conditions.

- Registered Local Authorities and Developers Exemption: Immovable property owned by local authorities, development authorities, builders, or developers registered with the DNFBP directorate are also exempt. These entities need to furnish proper certificates to the transferring authority.

Here are two additional points mentioned in the circular:

- Other existing contents or provisions outlined in previous circulars remain unchanged, unless they are subsequently substituted or amended.

- This explanatory circular is being issued in the interim period to facilitate property sale/transfer transactions. It will be valid only until an automated system is developed for handling these purposes.

The circular provides relaxations and clarifications to existing rules under Section 7E on a temporary basis until a more permanent digital solution is implemented to automate the process of property transactions and tax compliance.

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FBR Announces Increased Tax Rates for Non-ATL Individuals Registering Vehicles

2023-08-11T06:33:00.002+05:00

FBR Announces Increased Tax Rates for Non-ATL Individuals Registering Vehicles

Key points:

FBR has announced a 200% increase in tax rates for individuals not on the Active Taxpayers List (ATL) at the time of motor vehicle registration in FY 2023-24.

Higher tax rates will be imposed under section 231B of the Income Tax Ordinance 2001.

For imported vehicles, tax will be based on import value including customs duty, FED, sales tax.

For locally made vehicles, tax will be based on invoice value including all duties and taxes.

For auctioned vehicles, tax will be based on auction value including all duties and taxes.

For vehicles valued over 5 million rupees, tax rate is 3% of value including duties and taxes.

Rationale is to encourage tax compliance and bring more individuals into the tax net.

It aims to penalize those not declaring income/assets and boost revenue collection.

This move provides a strong incentive for taxpayers to ensure they are on ATL and comply with tax laws in FY 2023-24.

The Federal Board of Revenue has announced a significant increase in tax rates for individuals who are not on the Active Taxpayers List at the time they register a motor vehicle in the upcoming fiscal year 2023-2024. Specifically, tax rates will be doubled under Section 231B of the Income Tax Ordinance.

The value used to calculate taxes will depend on whether the vehicle is imported, locally manufactured, or auctioned. For imported vehicles it will include import costs, duties and taxes. For locally made vehicles it will include the invoice amount plus all costs. And for auction purchases it will include the auction price plus associated fees.

S. No.	Engine Capacity	Filer	Non-Filer
1	Upto 850CC	Rs 10,000	Rs 30,000
2	851CC to 1000CC	Rs 20,000	Rs 60,000
3	1001CC to 1300CC	Rs 25,000	Rs 75,000
4	1301CC to 1600CC	Rs 50,000	Rs 150,000
5	1601CC to 1800CC	Rs 150,000	Rs450,000
6	1801CC to 2000CC	Rs 200,000	Rs 600,000
7	2001CC to 2500CC	6% of the value	18% of the value
8	2501CC to 3000CC	8% of the value	24% of the value
9	Above 3000CC	10% of the value	30% of the value

There is also a 3% tax rate floor for vehicles valued over 5 million rupees that takes into account import/production costs and duties/taxes.

The FBR hopes this will encourage more people to properly file and pay their taxes to avoid the penalties. The goal is to bring non-compliant taxpayers into the system and generate more revenue through penalizing those who do not report income or assets.

With these higher tax rates for non-ATL individuals, there is a strong incentive for taxpayers to ensure they are on the Active Taxpayers List and in compliance for the upcoming fiscal year to avoid extra costs when registering a vehicle.

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Revised Electricity Tax Rates Announced by FBR for Fiscal Year 2023-24

2023-08-09T08:34:00.002+05:00

Revised Electricity Tax Rates Announced by FBR for Fiscal Year 2023-24

The Federal Board of Revenue (FBR) has announced updated withholding tax rates for electricity consumption effective from July 1, 2023.

These new rates have been introduced in accordance with changes made under the Finance Act, 2023 to the Income Tax Ordinance, 2001. FBR collects withholding income tax under Section 235 of the Income Tax Ordinance from electricity consumers.

The revised rates aim to differentiate tax based on the amount of electricity consumed to promote energy conservation and improve tax collection.

For commercial and industrial consumers:

- Bills up to Rs 500 will now be exempt from withholding tax, compared to the previous rate of 10%. This is aimed at providing relief to smaller businesses.

- Bills from Rs 500 to Rs 20,000 will continue to have 10% tax, same as the previous rate.

- Bills above Rs 20,000 will have a fixed tax of Rs 1950 plus 12% for commercial consumers and 5% for industrial consumers. The previous rate for bills above Rs 20,000 was 10% for both.

For domestic consumers not listed on the Active Taxpayers List:

- Bills below Rs 25,000 will now be exempt from tax, compared to the previous rate of 10%. This aims to provide relief to lower income households.

- Bills of Rs 25,000 or more will have 7.5% tax. The previous rate for these households was 10%.

Consumers should review their July electricity bills and ensure correct tax deductions as per the new rates. Any short deduction of tax may result in penalties issued by FBR.

If consumers have any queries or clarifications regarding the new rates, they can contact FBR directly or consult with tax advisors to ensure compliance and avoid complications.

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Income Tax of 15% Imposed on Prepaid Phone Cards by FBR for FY 2023-24

2023-08-09T08:29:00.001+05:00

Income Tax of 15% Imposed on Prepaid Phone Cards by FBR for FY 2023-24

The Federal Board of Revenue (FBR) has imposed an income tax of 15% on the sales prices of prepaid phone cards as part of its revised withholding tax rates for the upcoming 2023-24 fiscal year.

Under Section 236 of the Income Tax Ordinance 2001, the FBR is responsible for collecting taxes on telephone and internet services. The new 15% income tax will apply to subscribers of internet, mobile phones, and prepaid phone or internet cards.

Specifically, the tax will be calculated as 15% of the amount of the bill or the sales price of the prepaid internet or phone card, regardless of how it was sold - online or offline.

For regular telephone subscribers whose monthly bills exceed Rs. 1000, the tax rate will be 10% of the amount exceeding Rs. 1000.

The purpose of this move is to expand the tax net and ensure telecom service users pay their fair share of taxes. By taxing prepaid cards and charging higher tax on higher bills, the FBR aims to boost revenue collection and promote compliance in the telecom sector.

Both consumers and businesses should be aware of these new tax rates to avoid penalties for non-compliance. Taxpayers are advised to carefully review their phone bills and prepaid card purchases to accurately deduct the correct taxes.

Those with questions or concerns about the income tax on prepaid cards can contact the FBR directly or seek guidance from tax professionals for clarification and guidance. Staying informed about these tax changes will help ensure compliance with the law while also contributing to Pakistan's economic development.

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FBR Introduces Revised Withholding Tax Rates For Purchase And Sale Of Immovable Properties In FY 2023-24

2023-08-08T23:34:00.002+05:00

FBR Introduces Revised Withholding Tax Rates For Purchase And Sale Of Immovable Properties In FY 2023-24

The Federal Board of Revenue (FBR) has introduced higher withholding tax rates on individuals buying or selling immovable property in fiscal year 2023-2024. This move aims to improve tax compliance and broaden the tax base.

The amendments specify that individuals not on the Active Taxpayers List (ATL) must pay a much higher income tax rate of 10.5% when acquiring property. Those on the ATL will pay only 3%.

The Finance Act of 2023, which amended the 2001 Income Tax Ordinance, incorporated these changes. The updated tax withholding card for 2023-2024 outlines the new rates and regulations.

Individuals on the ATL will pay a withholding tax of 3% when buying property. But those not on the ATL must pay 10.5%, significantly more. This difference incentivizes taxpayers to join the ATL and contribute to national revenue.

These changes align with government efforts to boost tax revenue and curb evasion. The FBR has been modernizing and streamlining tax collection.

Withholding tax rates have also changed for property sales. Those on the ATL will pay 3% of the sale amount, while those not on the ATL must pay 6%.

Income Tax Circular No. 2 of July 26, 2023 provides guidelines for the new withholding tax rates and procedures for taxpayers and withholding agents.

Any entity registering or transferring property must now collect the appropriate withholding tax, based on the buyer or seller's ATL status.

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FBR Revises Income Tax Rates on Prize Bonds & Lottery Winnings for 2023-24

2023-08-06T11:28:00.001+05:00

FBR Revises Income Tax Rates on Prize Bonds & Lottery Winnings for 2023-24

The Federal Board of Revenue (FBR), Pakistan's main tax collection authority, recently announced revised income tax rates applicable to winnings from prize bonds, lotteries, and promotional prizes for the upcoming fiscal year 2023-24.

The new tax rates represent an effort by the FBR to enhance tax compliance and generate additional revenue for the government. According to section 156 of the Income Tax Ordinance 2001, the FBR has the mandate to determine income tax rates on such types of income.

Individuals registered on the Active Taxpayers List (ATL), which signifies that they file their tax returns regularly, will be subject to lower withholding tax rates. Those on the ATL will pay only 15% tax on prize bond winnings and 20% tax on winnings from raffles, lotteries, and promotional prizes.

In contrast, individuals not registered on the ATL, implying that they do not file regular tax returns or underreport their income, will pay significantly higher withholding tax rates of 30% on prize bond winnings and 40% on other types of winnings.

The withholding taxes will be deducted from the prize money at the time of payment, leaving the winners with the remaining net amount after taxes.

The aim of providing preferential tax rates to individuals on the ATL is to encourage more taxpayers to honestly disclose their income and assets. This could help broaden the tax base by bringing more taxpayers into the tax net, ultimately enabling the FBR to collect more revenue for government expenditures and development projects.

Overall, the revised tax rates signify the FBR's efforts to improve tax compliance and revenue collection, which are crucial for Pakistan's economy. For Pakistan to progress economically, citizens must responsibly fulfill their tax duties by paying appropriate taxes and filing complete tax returns. This would enable the government to generate sufficient funds to invest in social services, infrastructure, and other initiatives for the nation's development and prosperity.

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Pakistan Sets High Tax Rates of Up to 70% on Dividend Income for Taxpayers Not on Active Taxpayers List

2023-08-04T08:18:00.002+05:00

Pakistan Sets High Tax Rates of Up to 70% on Dividend Income for Taxpayers Not on Active Taxpayers List

Pakistan's tax authority, the FBR, has implemented new tax rates for the 2023-24 fiscal year. These new rates significantly change the taxation of dividend income.

Companies and individuals listed on the Active Taxpayers List (ATL) will benefit from lower tax rates, while non-ATLs will face much higher taxes.

Dividend income received by a REIT scheme from a Special Purpose Vehicle will be taxed at 0% for both ATLs and non-ATLs. However, the tax rates differ greatly for other sources of dividends.

For non-ATL individuals receiving dividends from Special Purpose Vehicles, the tax rate is an exorbitant 70%. In contrast, ATL individuals paying only 35% for the same income.

For dividends from IPPs, ATLs will pay 7.5% while non-ATLs will pay 15%.

For cash from mutual funds, REITs and unrelated to IPPs or SPVs, the tax is 15% for ATLs and 30% for non-ATLs.

For companies paying no tax due to losses or credits, ATLs face a 25% rate while non-ATLs pay 50%.

These measures aim to incentivize taxpayers to register as ATLs, boosting compliance and revenue. However, critics warn of the burden on non-ATLs, potentially impacting investments and economic activity.

Businesses and individuals are advised to review the new rates with tax experts to understand the implications for their finances and investments. The FBR’s changes are expected to significantly impact Pakistan's fiscal situation.

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FBR Pakistan Announces 15% to 50% Tax Rates on Bank Accounts, Debt Instruments

2023-08-03T23:11:00.001+05:00

FBR Pakistan Announces 15% to 50% Tax Rates on Bank Accounts, Debt Instruments

The Federal Board of Revenue (FBR) in Pakistan has specified different tax rates under Section 151 of the Income Tax Ordinance, 2001 for various deposit schemes and debt instruments.

Separate tax rates of 15% and 30% have been set for individuals and entities listed on the Active Taxpayers List (ATL) versus those not listed.

For individuals on the ATL:

- The tax rate on profit from debt (e.g. bank accounts, post office accounts, government securities) is 15%.

For individuals not on the ATL:

- The higher tax rate of 30% applies to profit from the same sources.

The 15% and 30% tax rates specifically apply to:

- National savings schemes and post office accounts managed by the government

- Profit on accounts and deposits with banks and financial institutions

- Profit on securities issued by the federal, provincial or local governments

- Profit from bonds, debentures and other debt instruments issued by banks and financial firms to non-financial entities.

For corporate entities:

- Companies on the ATL face a 25% tax on profit from Sukuk issued by special purpose vehicles.

- However, companies not on the ATL are subject to a higher 50% tax on such income.

For individuals and associations of persons:

- Those earning over PKR 1 million annually face a 12.5% tax if listed on the ATL, and 25% otherwise.

- Those earning under PKR 1 million annually pay 10% tax if listed on the ATL, and 20% otherwise.

These new tax rates will likely influence how individuals and businesses invest in Pakistan. However, taxpayers are advised to consult tax experts to fully understand their tax obligations and liabilities under the new rates.

The FBR notification states that the tax rates comply with Section 151 of the Income Tax Ordinance, 2001.

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Section 7E Income Tax Provision Reduces Pakistan Property Registrations by 95%

2023-08-03T21:59:00.004+05:00

Section 7E Income Tax Provision Reduces Pakistan Property Registrations by 95%

The real estate sector is facing significant challenges due to the implementation of Section 7E of the Income Tax Ordinance 2001. Section 7E considers 5% of the fair market value of a property as deemed rental income, which is taxed at 20%.

According to representatives from the real estate sector, property registrations across Pakistan have declined by as much as 95% and all property transfers have come to a halt. They attribute this to the increased taxes and compliance requirements under Section 7E.

The difficulties in completing property transfers are negatively impacting both local and foreign investors, with some foreign investors seeking to transfer their capital abroad. Overseas investors have expressed concerns about their existing property investments in Pakistan.

The real estate sector representatives made two recommendations to the National Assembly Standing Committee on Finance:

1. Either eliminate Section 7E deemed rental income completely or restrict it to only vacant plots.

2. Allow filer buyers to proceed with property transfers after submitting an affidavit, while requiring non-filers to comply with Section 7E before completing the transfers.

Recent Finance Act 2023 amendments prohibit registering any property transfer unless the seller has complied with Section 7E tax obligations and provided proof of compliance to the registering authority.

The Standing Committee on Finance postponed further discussion on the matter until a future meeting since no officials from the Federal Board of Revenue (FBR) attended the current meeting to respond to the real estate sector's concerns.

The Federation of Realtors Pakistan (FORP) informed the committee that the problems caused by Section 7E have resulted in capital outflows, as both local and foreign investors seek to transfer their funds abroad due to the difficulties in completing property transactions in Pakistan. This has raised concerns among overseas investors regarding their existing property investments.

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Urgent Action Needed: KTBA Exposes Crucial Errors in 2023 Income Tax Return Forms

2023-08-01T22:04:00.001+05:00

Urgent Action Needed:
KTBA Exposes Crucial Errors in 2023 Income Tax Return Forms

The Karachi Tax Bar Association (KTBA) has raised concerns about significant errors and oversights in the income tax return forms for the tax year 2023. These issues are creating difficulties for taxpayers in meeting their tax obligations on time. To address the problems urgently, the KTBA has formally written to the high-ranking officials of the Federal Board of Revenue (FBR).

In the letter, KTBA President Syed Zafar Ahmed pointed out various flaws in the return forms, expressing serious worries about the negative impact these errors are having on timely tax compliance. Taxpayers and their consultants are facing adverse consequences as they waste valuable time trying to navigate through these problems.

The main technical glitches and errors highlighted by the KTBA include:

1. Lack of Highlighted Changes in the Return: The Draft Return for Tax Year 2023 was issued with only a brief 7-day consultation period during the Eid-ul-Adha holidays. As a result, stakeholders find it challenging to identify irregularities, and changes made in the return form have not been adequately highlighted. This makes it difficult to track and compare current and previous year returns.

2. Missing Column for Adjustment of Brought Forward Capital Losses: The absence of a column for adjusting brought forward capital losses under the head of capital gains is leading to inaccurate tax calculations for capital gains.

3. Incorrect Tax Calculation on Profit on Debt: The IRIS portal is incorrectly calculating tax on profit/yield on certain financial instruments, which goes against the relevant clauses of the Income Tax Ordinance, 2001.

4. Erroneous Calculation of Depreciation: Despite the omission of the Proviso to sub-section 2 of section 22 of the Income Tax Ordinance, 2001 through the Finance Act, 2022, the Return of Income still restricts depreciation to 50%.

To tackle these issues, the KTBA has put forward essential amendments, including:

1. Adjustment in Wealth Reconciliation Statement: To prevent unnecessary show cause notices, the Wealth Reconciliation Statement should allow explanations and additional line items for adjustments.

2. Primary Information of Bank Account on the Face of Wealth Statement: To avoid confusion and unwarranted show cause notices, mandatory information such as Bank Account Numbers should be included in the Wealth Statement.

3. Primary Information of Tax Deduction at Source Not Appearing on the Face of the Return: Similar to the Wealth Statement, the return should display essential information regarding tax deducted or collected at source to prevent confusion and show cause notices.

4. Auto Generated PSID for Capital Value Tax on Foreign Assets: An option for the automatic generation of PSID for the payment of Capital Value Tax on Foreign Assets should be made available on the IRIS platform.

5. Auto Import of Wealth Reconciliation Statement: To streamline the filing process, the Wealth Reconciliation Statements from the previous year's return should be automatically imported.

6. Inclusion of Attributes in Printed PDF: To avoid omissions and discrepancies, the printed version of the PDF should contain all sections and attributes.

The KTBA urges the FBR to promptly address these issues, ensuring that taxpayers can file their returns and wealth statements without any hindrance. They emphasize that taxpayers should be given adequate legal time for compliance after resolving these anomalies, and the return forms should be reissued with all necessary corrections.

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Today's PKR Foreign Exchange Rates - August 01, 2023

2023-08-01T10:08:00.003+05:00

Today's PKR Foreign Exchange Rates - August 01, 2023

On August 01, 2023, the following are the open market exchange rates for foreign currencies in Pakistani Rupees (PKR).

CURRENCY NAME	BUYING	SELLING
US DOLLAR $ (USD)	288.00	291.00
EURO (EUR)	317.00	320.20
UK POUND (GBP)	370.00	373.00
SAUDI RIYAL (SAR)	76.70	77.50
UAE DIRHAM (AED)	78.70	79.50
CHINESE YUAN (CNY)	42.00	44.00
SWISS FRANC (CHF)	333.43	335.93
DANISH KRONE (DKK)	42.34	42.74
NORWEGIAN KRONE (NOK)	27.95	28.25
SWEDISH KRONA (SEK)	27.50	27.80
AUSTRALIAN DOLLAR (AUD)	194.00	198.00
CANADIAN DOLLAR (CAD)	218.00	222.00
JAPANESE YEN (JPY)	1.95	2.00

These rates are subject to change based on market conditions and foreign currency demand. As a result, it is always prudent to verify current exchange rates before engaging in any financial transactions using foreign currency.

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Today's PKR Foreign Exchange Rates - July 31, 2023

2023-07-31T10:19:00.001+05:00

Today's PKR Foreign Exchange Rates - July 31, 2023

On July 31, 2023, the following are the open market exchange rates for foreign currencies in Pakistani Rupees (PKR).

CURRENCY NAME	BUYING	SELLING
US DOLLAR $ (USD)	288.00	291.00
EURO (EUR)	319.00	323.00
UK POUND (GBP)	372.00	376.00
SAUDI RIYAL (SAR)	76.20	77.00
UAE DIRHAM (AED)	79.20	80.00
CHINESE YUAN (CNY)	42.00	44.00
SWISS FRANC (CHF)	330.24	332.70
DANISH KRONE (DKK)	42.34	42.74
NORWEGIAN KRONE (NOK)	27.95	28.25
SWEDISH KRONA (SEK)	27.50	27.80
AUSTRALIAN DOLLAR (AUD)	198.00	200.00
CANADIAN DOLLAR (CAD)	218.00	222.00
JAPANESE YEN (JPY)	1.95	2.00

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Revolutionizing Tax Returns: FBR Unveils IRIS 2.0 for Effortless Filing

2023-07-29T09:43:00.004+05:00

Taxs Info

Revolutionizing Tax Returns:
FBR Unveils IRIS 2.0 for Effortless Filing

The Federal Board of Revenue (FBR) has taken a significant step forward in tax administration by introducing IRIS 2.0, an upgraded version of the tax return filing system. The new system was unveiled by FBR Chairman Asim Ahmad at the FBR Headquarters, developed by Pakistan Revenue Automation Limited (PRAL).

Prominent figures from the FBR Chairman Asim Ahmad, including Member IR Operations, Member IT, CEO PRAL, and Chiefs/Secretaries of IR & IT wings, attended the launch event. IRIS 2.0 brings several improvements aimed at enhancing user experience, increasing efficiency, and reducing costs for the FBR.

Previous versions of the tax filing system, namely IRIS 1.0 and IRIS 1.1, were instrumental in transforming tax return procedures. However, they faced challenges that affected performance and user satisfaction, especially during peak loads, and required expensive hardware to meet processing demands.

With IRIS 2.0, the FBR has tackled these challenges head-on and undergone a major transformation. The focus has been on strengthening the backend and designing an intuitive frontend to ensure a seamless experience for users and the FBR.

This significant upgrade was made possible due to the leadership and direction of Chairman FBR, Member IR Operations, and Member IT. Their efforts included technological transformations, updating PRAL culture, and optimizing PRAL teams.

By adopting IRIS 2.0, the FBR aims to elevate its tax filing operations, achieving greater efficiency while significantly reducing hardware expenditures. The improved user experience is expected to enhance overall user satisfaction, making IRIS 2.0 a valuable asset for the FBR.

The launch of IRIS 2.0 aligns with Chairman FBR Asim Ahmad's vision of a modern, technology-driven, and efficient organization dedicated to serving the nation at its best.

It demonstrates the FBR and PRAL's commitment to leveraging cutting-edge technology for improved service delivery and greater efficiency in tax administration.

Taxpayers and stakeholders can anticipate a more seamless and user-friendly experience as the upgraded system sets a new benchmark for tax return filing in the country. IRIS 2.0 represents a significant stride towards the FBR's mission of promoting transparency, compliance, and financial accountability in Pakistan's revenue collection system.

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Streamlined Taxation: FBR's New Withholding Tax Regime for Motor Vehicles Explained

2023-07-27T23:10:00.002+05:00

Streamlined Taxation:
FBR's New Withholding Tax Regime for Motor Vehicles Explained

The Federal Board of Revenue (FBR) has introduced a revamped withholding tax system for motor vehicles, with the aim of simplifying taxation processes and increasing government revenue.

In Circular No. 2 of Income Tax issued on July 26, 2023, the FBR outlined the recent amendments made to the Income Tax Ordinance, 2001 through the Finance Act, 2023.

Previously, a fixed withholding tax was imposed under section 231B of the Income Tax Ordinance, 2001 on the purchase or registration of motor vehicles with an engine capacity of 2001 cc and above.

However, under the Finance Act, 2023, significant changes have been made to this tax structure. Instead of a fixed amount, the FBR will now levy taxes based on a percentage of the vehicle's value, categorized according to engine capacity as follows:

- Motor vehicles with engine capacity between 2001cc to 2500cc will be taxed at a rate of 6% of the vehicle's value.

- Motor vehicles with engine capacity between 2501cc to 3000cc will be taxed at a rate of 8% of the vehicle's value.

- Motor vehicles with engine capacity above 3000cc will be taxed at a rate of 10% of the vehicle's value.

It's important to note that these tax rates apply to individuals listed on the Active Taxpayer List (ATL). Non-ATL individuals will face higher rates of withholding tax, with an increase of two hundred percent. The revised rates for non-ATL persons are 18%, 24%, and 30% respectively, according to the second proviso to rule 1 of the Tenth Schedule to the Income Tax Ordinance, 2001.

To determine the vehicle's value for tax collection purposes, the following criteria will be used:

- Imported vehicles: The value assessed by Customs authorities at the time of import, increased by customs duty, federal excise duty, and sales tax payable during the import stage.

- Locally manufactured or assembled vehicles in Pakistan: The invoice value, including all applicable duties and taxes.

- Auctioned vehicles: The auction value, inclusive of all duties and taxes.

Furthermore, in cases where the engine capacity is not applicable, and the vehicle's value exceeds Rupees five million, the applicable tax rate will be 3% of the import value (including customs duty, sales tax, and federal excise duty for imported vehicles) or the invoice value (for locally manufactured or assembled vehicles).

This new withholding tax system aims to facilitate tax collection, promote transparency, and establish a fair taxation system for motor vehicles in Pakistan. The FBR's implementation of these changes through the Finance Act, 2023, is expected to enhance government revenues and support the country's economic growth.

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Demystifying FBR's Latest Tax Changes: A Comprehensive Guide to Cash Withdrawal Tax

2023-07-27T21:50:00.006+05:00

Demystifying FBR's Latest Tax Changes:
A Comprehensive Guide to Cash Withdrawal Tax

In a significant step aimed at boosting tax revenues, the Federal Board of Revenue (FBR) has made an important announcement regarding tax collection on cash withdrawals from individuals who are not listed in the Active Taxpayer List (ATL) by banks.

According to Circular No. 2 of Income Tax, dated July 26, 2023, the Finance Act, 2023 has introduced changes to the Income Tax Ordinance, 2001. The newly added Section 231AB of the Income Tax Ordinance, 2001 now requires every banking company to deduct an advance adjustable tax of 0.6% from any individual who is not listed in the ATL at the time of making cash withdrawals exceeding Rs. 50,000/- in a single day. This measure is aimed at encouraging tax compliance and expanding the tax base.

The tax provision covers cash withdrawals made through credit cards or ATMs, ensuring that significant cash transactions are subject to the withholding tax.

To understand how the tax is calculated, the FBR provided the following examples:

1. Cash withdrawal of Rs. 50,000 or less in a single day: No tax deduction.

2. Cash withdrawal of Rs. 50,500 in a single day: Tax deduction of Rs. 303.

3. Cash withdrawal of Rs. 55,000 in a single day: Tax deduction of Rs. 330.

4. Cash withdrawal of Rs. 75,000 in a single day: Tax deduction of Rs. 450.

It's important to note that the withholding tax on cash withdrawals is considered an adjustable tax against the individual's tax liability for a given tax year. This means that the deducted tax will be taken into account while calculating the final tax payable for the year.

However, there are certain exemptions to this new rule. The tax will not be deducted in the case of cash withdrawals made by:

(a) The Federal Government or a Provincial Government;

(b) Foreign diplomats or diplomatic missions in Pakistan;

(c) Individuals who can provide a certificate from the Commissioner stating that their income during the tax year is exempt.

Snapshot is as follows regarding Cash Withdrawal from Bank (portion)
Circular No. 2 of Income Tax, dated July 26, 2023

This move is part of the government's efforts to increase tax revenue and reduce the tax gap by ensuring that all eligible taxpayers fulfill their tax obligations. Additionally, it aims to promote a more transparent and efficient tax collection process in the country.

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Today's PKR Foreign Exchange Rates - July 26, 2023

2023-07-26T06:21:00.000+05:00

Today's PKR Foreign Exchange Rates - July 26, 2023

On July 26, 2023, the following are the open market exchange rates for foreign currencies in Pakistani Rupees (PKR).

CURRENCY NAME	BUYING	SELLING
US DOLLAR $ (USD)	290.00	293.00
EURO (EUR)	320.00	324.00
UK POUND (GBP)	372.00	376.00
SAUDI RIYAL (SAR)	77.00	78.00
UAE DIRHAM (AED)	79.50	80.50
CHINESE YUAN (CNY)	42.00	44.00
SWISS FRANC (CHF)	330.24	332.70
DANISH KRONE (DKK)	42.34	42.74
NORWEGIAN KRONE (NOK)	27.95	28.25
SWEDISH KRONA (SEK)	27.50	27.80
AUSTRALIAN DOLLAR (AUD)	198.00	200.00
CANADIAN DOLLAR (CAD)	221.00	224.00
JAPANESE YEN (JPY)	2.01	2.08

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Updated Definition of Tier-1 Retailers in Pakistan for Tax Year 2023-24

2023-07-25T09:26:00.002+05:00

Streamlined Taxation for Retailers:
Updated Definition of Tier-1 Retailers in Pakistan for Tax Year 2023-24

The tax authorities (FBR) in Pakistan have recently released a new and updated definition of Tier-1 retailers for the Tax Year 2023-24. These changes, which took effect on July 1, 2023, are part of the Federal Board of Revenue's (FBR) efforts to create a fair and effective taxation system for retailers operating in the country.

The updated definition of Tier-1 retailers includes the following categories:

1. Retailer Operating as a Unit of a National or International Chain of Stores: This category comprises retailers that are part of larger retail conglomerates operating nationally or internationally.

2. Retailer Operating in an Air-Conditioned Shopping Mall, Plaza, or Center (Excluding Kiosks): Tier-1 retailers include those operating within air-conditioned shopping malls, plazas, or centers, except for kiosks.

3. Retailer Whose Cumulative Electricity Bill Exceeds Rupees Twelve Hundred Thousand in the Preceding Twelve Consecutive Months: This criterion applies to retailers whose cumulative electricity bill for the past twelve months surpasses Rupees twelve hundred thousand, aiming to include larger retailers with significant energy consumption.

4. Wholesaler-cum-Retailer Engaged in Bulk Import and Supply of Consumer Goods: Tier-1 retailers also encompass wholesalers actively involved in bulk import and supply of consumer goods on a wholesale basis to other retailers and on a retail basis to the general public.

5. Retailer Accepting Payment Through Debit/Credit Cards or Digital Payment Services: Any retailer equipped with a point of sale system for accepting payment through debit/credit cards or digital payment services authorized by the State Bank of Pakistan is considered a Tier-1 retailer.

6. Retailer Meeting Specified Deductible Withholding Tax Threshold: Retailers classified as Tier-1 must have exceeded the specified threshold for deductible withholding tax under sections 236G or 236H of the Income Tax Ordinance, 2001, during the preceding twelve consecutive months.

7. Any Other Person or Class of Persons as Prescribed by the FBR: The FBR has the discretion to classify any other person or class of persons as Tier-1 retailers as needed.

The FBR's aim with these updates is to simplify the taxation process for retailers in Pakistan and ensure that larger retailers and those with significant financial transactions are appropriately identified and taxed according to their business operations. By promoting transparency and compliance within the retail sector, these efforts will contribute to a more equitable tax system, generating revenue for the country's economic growth and development. Retailers falling under the Tier-1 category must now comply with the relevant tax regulations to avoid penalties or legal consequences.

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Today's PKR Foreign Exchange Rates - July 25, 2023

2023-07-25T08:59:00.002+05:00

Today's PKR Foreign Exchange Rates - July 25, 2023

On July 25, 2023, the following are the open market exchange rates for foreign currencies in Pakistani Rupees (PKR).

CURRENCY NAME	BUYING	SELLING
US DOLLAR $ (USD)	290.00	293.00
EURO (EUR)	322.00	326.00
UK POUND (GBP)	373.00	377.00
SAUDI RIYAL (SAR)	77.20	78.00
UAE DIRHAM (AED)	79.50	80.50
CHINESE YUAN (CNY)	43.00	46.00
SWISS FRANC (CHF)	330.24	332.70
DANISH KRONE (DKK)	42.34	42.74
NORWEGIAN KRONE (NOK)	27.95	28.25
SWEDISH KRONA (SEK)	27.50	27.80
AUSTRALIAN DOLLAR (AUD)	192.00	196.00
CANADIAN DOLLAR (CAD)	219.00	223.00
JAPANESE YEN (JPY)	1.98	2.04

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Today's PKR Foreign Exchange Rates - July 24, 2023

2023-07-24T08:04:00.002+05:00

Today's PKR Foreign Exchange Rates - July 24, 2023

On July 24, 2023, the following are the open market exchange rates for foreign currencies in Pakistani Rupees (PKR).

CURRENCY NAME	BUYING	SELLING
US DOLLAR $ (USD)	288.00	291.00
EURO (EUR)	320.00	324.00
UK POUND (GBP)	370.00	374.50
SAUDI RIYAL (SAR)	76.50	77.30
UAE DIRHAM (AED)	78.80	79.50
CHINESE YUAN (CNY)	42.00	45.00
SWISS FRANC (CHF)	327.40	329.90
DANISH KRONE (DKK)	42.34	42.74
NORWEGIAN KRONE (NOK)	27.95	28.25
SWEDISH KRONA (SEK)	27.50	27.80
AUSTRALIAN DOLLAR (AUD)	192.00	196.00
CANADIAN DOLLAR (CAD)	217.00	221.00
JAPANESE YEN (JPY)	1.98	2.04

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FBR's Guide to Paying Section 7E Tax on Property Sale and Transfer

2023-07-23T15:08:00.014+05:00

Streamlined Tax Payment Method
FBR's Guide to Paying Section 7E Tax on
Property Sale and Transfer

The Federal Board of Revenue (FBR) has unveiled the process for tax payments on deemed income related to the sale or transfer of immovable property, as outlined in Section 7E of the Income Tax Ordinance, 2001.

As per Income Tax CIRCULAR NO. 01 OF 2023-24, the FBR identifies any entity responsible for registering, recording, or attesting the transfer of immovable property as the "transferring authority." This authority is now entrusted with the task of collecting advance adjustable income tax from the seller or transferor, in accordance with section 236C of the Income Tax Ordinance 2001.

The tax rate stands at 3% of the gross consideration received by the seller or transferor if they are listed in the Active Taxpayers' List (ATL). For non-ATL sellers or transferors, the tax rate is elevated to 6%.

The Finance Act, 2022 introduced Section 7E, which considers every resident person to have derived income equal to 5% of the fair market value of capital assets in Pakistan, with certain exceptions. This deemed income is subject to a tax rate of 20% (effectively 1% of the fair market value of immovable property).

With the Finance Act, 2023, a new sub-section (2A) was incorporated into Section 236C of the Ordinance, placing a condition on the transferring authority. The authority cannot register, record, or attest the transfer of any immovable property unless the seller or transferor has settled their tax liability under Section 7E and provided evidence of such payment in the prescribed mode, form, and manner.

To accommodate these legislative changes, the FBR issued instructions regarding the mode, form, and manner of tax collection under Section 7E:

For ATL Sellers/Transferors:

- The seller/transferor can present evidence of tax payment under Section 7E through the FBR online payment system, with a dedicated payment challan (CPR) provided for this purpose.

- If the seller/transferor has already declared the property in their tax return for Tax Year 2022 or if they are exempt from paying tax under Section 7E due to a court order or authority's stay, they must furnish a certificate (Form 'A') issued by the relevant Commissioner Inland Revenue.

For Non-ATL Sellers/Transferors:

- Non-ATL sellers/transferors must pay the applicable tax under Section 7E and provide evidence of payment through the FBR online payment system using the CPR.

These instructions aim to ensure consistent tax payment procedures by all transferring authorities. The FBR will monitor the process and make necessary adjustments based on feedback and observations.

This new tax payment method seeks to facilitate smooth tax compliance and collection on deemed income during property transactions, thereby streamlining tax processes and boosting revenue collection.

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Tier-1 Retailers of Textile Products Face Sales Tax Rate Hike to 15%

2023-07-23T14:04:00.004+05:00

Important Update!

Tier-1 Retailers of Textile Products Face Sales Tax Rate Hike to 15%

In a move aimed at generating additional revenue and streamlining the tax structure, the Federal Board of Revenue (FBR) has announced an enhancement in the sales tax rate for Tier-1 retailers of finished fabrics and articles of textile leather, among other materials.

The sales tax rate has been raised from 12 percent to 15 percent for this category of retailers.

Prior to the implementation of the Finance Act, 2023, retail outlets integrated with the FBR’s real-time reporting system, dealing in finished fabrics and locally manufactured finished articles of textile leather and artificial leather (with a condition of maintaining 4 percent value addition during the last six months), were subject to a reduced sales tax rate of 12 percent.

However, with the recent amendment through the Finance Act, 2023, the reduced rate of 12 percent has been increased to 15 percent for these Tier-1 retailers of textile products.

The FBR has not provided further details on the rationale behind the increase, but it is likely part of the government’s broader efforts to boost revenue collection and promote fiscal stability. By revising the sales tax rate for Tier-1 retailers, the government aims to ensure a fair and consistent tax system while aligning with its fiscal objectives.

It is essential for Tier-1 retailers dealing with finished fabrics and textile articles to be aware of this updated tax rate change to avoid any non-compliance issues. With the sales tax rate now set at 15 percent, affected retailers must promptly adjust their tax collection and reporting mechanisms to adhere to the new regulations.

As the FBR continues its efforts to improve the tax collection process and ensure greater transparency, businesses are encouraged to maintain accurate records and comply with the updated tax rates. Adhering to the revised tax rate will contribute to the nation’s economic growth and overall fiscal stability.

Retailers falling under the Tier-1 category dealing in the specified textile products are advised to review their financial strategies and take necessary steps to comply with the enhanced sales tax rate of 15 percent effectively. The revision is set to come into effect immediately, and adherence to the new rate is crucial to avoid any penalties or legal repercussions.

This development is likely to have implications for businesses operating in the textile sector, and industry stakeholders should closely monitor the implementation and effects of the revised sales tax rate to make informed business decisions moving forward.

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Islamabad Restaurants Enjoy Reduced Sales Tax at Just 5%

2023-07-23T12:58:00.004+05:00

Boost Your Business!
Islamabad Restaurants Enjoy Reduced Sales Tax at Just 5%

In a move to promote digital transactions and bolster tax compliance, the Federal Board of Revenue (FBR) has announced a significant reduction in the sales tax rate for restaurants in Islamabad.

Effective immediately, restaurants in the capital city will be subject to a reduced sales tax rate of 5 percent on their services, but with one important condition.

According to the FBR’s notification, this reduced rate of sales tax will only apply if payments are made through debit or credit cards. The goal is to encourage the use of electronic payment methods, such as cards, mobile wallets, and QR scanning, while simultaneously discouraging the under-reporting of sales and revenue.

By providing a special provision for digital payments, the FBR hopes to incentivize restaurant owners to opt for transparent and documented transactions. As a result, those restaurants that comply and offer digital payment options will benefit from the reduced sales tax rate of 5 percent. This represents a significant decrease compared to the standard 15 percent sales tax that was previously applicable.

However, it’s essential to note that this reduced rate is applicable only to restaurants and similar establishments that offer digital payment options to their customers. For payments made through other modes, such as cash or other traditional methods, the standard 15 percent sales tax rate with input adjustment will continue to apply.

It’s important to mention that this reduced tax rate of 5 percent only pertains to standalone restaurants, cafes, ice-cream parlors, coffee houses, and coffee shops. In contrast, services provided or rendered by hotels, motels, guest houses, farmhouses, marriage halls, lawns, clubs, and caterers will still be subject to the standard 15 percent sales tax rate.

Even in cases where restaurants operate within hotels, motels, or clubs, the reduced tax rate of 5 percent will apply only if specific conditions outlined by the FBR are met.

The FBR’s decision to lower the sales tax rate on digital payments for restaurants aims to create a more favorable business environment, boost tax compliance, and foster the growth of the restaurant industry in Islamabad. It is anticipated that this measure will lead to increased transparency, revenue collection, and overall economic growth.

As this policy takes effect, restaurant owners and customers are urged to adapt to digital payment methods to take advantage of the reduced sales tax rate and contribute to the country’s economic development.

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Today's PKR Foreign Exchange Rates - July 22, 2023

2023-07-22T07:03:00.006+05:00

Today's PKR Foreign Exchange Rates - July 22, 2023

On July 22, 2023, the following are the open market exchange rates for foreign currencies in Pakistani Rupees (PKR).

CURRENCY NAME	BUYING	SELLING
US DOLLAR $ (USD)	288.00	291.00
EURO (EUR)	320.00	324.00
UK POUND (GBP)	371.00	375.00
SAUDI RIYAL (SAR)	76.20	77.00
UAE DIRHAM (AED)	78.20	79.00
CHINESE YUAN (CNY)	41.00	43.00
SWISS FRANC (CHF)	327.40	329.90
DANISH KRONE (DKK)	42.34	42.74
NORWEGIAN KRONE (NOK)	27.95	27.80
SWEDISH KRONA (SEK)	27.50	27.80
AUSTRALIAN DOLLAR (AUD)	193.00	196.00
CANADIAN DOLLAR (CAD)	216.00	220.00
JAPANESE YEN (JPY)	1.98	2.04

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PTBA expresses worries regarding unlawful limitations in the National Sales Tax Return process

2023-07-22T06:42:00.000+05:00

PTBA expresses worries regarding unlawful limitations in the
National Sales Tax Return process.

The Pakistan Tax Bar Association (PTBA) has brought to attention a series of illicit limitations in the national sales tax return process, causing significant hardships for taxpayers trying to fulfill their obligations.

In an official letter to the Chairman of the Federal Board of Revenue (FBR), the PTBA expressed concerns regarding the implementation of unauthorized automated restrictions within the National Sales Tax Return module, known as the IRIS e-portal. While the module was initially designed to assist taxpayers and streamline data automation, certain system-based checks and restrictions were introduced without proper authority, resulting in unwarranted complexities and difficulties for taxpayers.

The PTBA raised several issues that require immediate attention and resolution:

1. Automatic Disallowance of Input Tax Credit:

The PTBA argued that the automated disallowance of input tax credit, as per Section 7(2) read with Section 8(1) of the Sales Tax Act, 1990, is unlawful. This process involves coercive actions against taxpayers and should involve prior human deliberation, adhering to the principle of Audi Alteram Partem. It should not solely depend on an automated system but require the involvement of the concerned Commissioner Inland Revenue as the appropriate authority under the law.

2. Missing Export and Import Goods Declarations:

The system's failure to upload export and import goods declarations in the National Sales Tax Return causes serious issues for exporters and importers. It leads to delayed filing of returns and may cause discrepancies between sales tax and income tax declarations, potentially resulting in unnecessary legal disputes.

3. Issues with Annexure-H Filing:

Taxpayers have been unable to file Annexure-H for the last two months due to unnecessary and unlawful value addition checks. This hinders exporters and taxpayers from claiming legitimate refunds.

4. Repeated Disallowance of Input Tax Credit:

The system reportedly continues to disallow specific input tax credits in subsequent months even after they have been disallowed in a previous month. This is considered double jeopardy and emphasizes the need for more thoughtful and human-involved actions.

5. Restrictions on Tax Periods’ Order:

The National Sales Tax Return Module restricts the order in which tax periods can be filed, causing complications for taxpayers who are waiting for input taxes from their suppliers for a particular month but need to file subsequent months’ returns. The PTBA argues that each tax period should be treated independently for ease of compliance.

6. Inclusion of Irrelevant Data:

The module includes unnecessary data that taxpayers have no concern over, leading to inadvertent claims and potential coercive actions.

7. Lack of Explanation for Discrepancies:

The system often displays input tax credit disallowed without providing any report or reason, contrary to the principle of confronting the taxpayer with discrepancies for explanation.

8. Outdated Challan Generation System:

The current challan generation system for both income tax and sales tax is slow and time-consuming. The PTBA urges the implementation of challan generation within the IRIS e-portal to save precious time and enhance taxpayer facilitation.

9. Restrictions on Credit Notes by Sellers:

The system imposes restrictions on sellers from entering credit notes, affecting their sales tax liability for a particular month and potentially subjecting them to penalties due to delays caused by purchasers.

In light of these concerns, the PTBA has requested the Chairman of the Federal Board of Revenue to personally address these issues and take appropriate measures to remove all unlawful restrictions and checks from the National Sales Tax Return module of the IRIS e-portal. The objective is to restore the intended purpose of the system and ensure smooth and fair taxation procedures for all taxpayers.

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FBR's New Sales Tax: Bulk Goods under Brand Names and Trademarks Now Taxed

2023-07-21T22:37:00.001+05:00

FBR's New Sales Tax: Bulk Goods under Brand Names and Trademarks Now Taxed

The Federal Board of Revenue (FBR) has made a decision to impose sales tax on goods sold under specific brand names and trademarks. This decision is part of the significant changes introduced to the Sales Tax Act, 1990, through the Finance Act, 2023.

In a recent circular (Circular No. 02 of 2023-24 dated 21^st July, 2023) issued on Friday, the FBR clarified that before the Finance Act, 2023, sales tax applied to imports and local supplies of certain edible goods that were sold in retail packaging and carried brand names and trademarks. However, there was confusion regarding whether these goods, when supplied in "bulk" packaging, qualified for a sales tax exemption, despite still being associated with a brand name or trademark.

To eliminate ambiguity and address this issue, the FBR has amended the relevant entries in Table-1 and Table-2 of the Sixth Schedule. The distinction between "retail" and "bulk" packaging has been removed, making all supplies of the specified goods under brand names or trademarks subject to sales tax.

The goods affected by this new tax regulation include red chilies, ginger, turmeric, yogurt, butter, desi ghee, cheese, processed cheese (excluding grated or powdered), products of meat or meat offal, meat of bovine animals, sheep, goat, uncooked poultry meat, fish, and crustaceans.

The FBR's objective in implementing this change is to ensure a more transparent and consistent approach to taxing goods sold under brand names and trademarks. These revised tax regulations will have implications for businesses and consumers involved in the production and distribution of the mentioned specified goods.

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Tax's Info

Clarifications and Exemptions Issued under Section 7E of the Income Tax Ordinance, 2001

Clarifications and Exemptions Issued under Section 7E of the Income Tax Ordinance, 2001

FBR Announces Increased Tax Rates for Non-ATL Individuals Registering Vehicles

FBR Announces Increased Tax Rates for Non-ATL Individuals Registering Vehicles

Key points:

Revised Electricity Tax Rates Announced by FBR for Fiscal Year 2023-24

Revised Electricity Tax Rates Announced by FBR for Fiscal Year 2023-24

For commercial and industrial consumers:

For domestic consumers not listed on the Active Taxpayers List:

Income Tax of 15% Imposed on Prepaid Phone Cards by FBR for FY 2023-24

Income Tax of 15% Imposed on Prepaid Phone Cards by FBR for FY 2023-24

FBR Introduces Revised Withholding Tax Rates For Purchase And Sale Of Immovable Properties In FY 2023-24

FBR Introduces Revised Withholding Tax Rates For Purchase And Sale Of Immovable Properties In FY 2023-24

FBR Revises Income Tax Rates on Prize Bonds & Lottery Winnings for 2023-24

FBR Revises Income Tax Rates on Prize Bonds & Lottery Winnings for 2023-24

Pakistan Sets High Tax Rates of Up to 70% on Dividend Income for Taxpayers Not on Active Taxpayers List

Pakistan Sets High Tax Rates of Up to 70% on Dividend Income for Taxpayers Not on Active Taxpayers List

FBR Pakistan Announces 15% to 50% Tax Rates on Bank Accounts, Debt Instruments

FBR Pakistan Announces 15% to 50% Tax Rates on Bank Accounts, Debt Instruments

For individuals on the ATL:

For individuals not on the ATL:

For corporate entities:

For individuals and associations of persons:

Section 7E Income Tax Provision Reduces Pakistan Property Registrations by 95%

Section 7E Income Tax Provision Reduces Pakistan Property Registrations by 95%

Urgent Action Needed: KTBA Exposes Crucial Errors in 2023 Income Tax Return Forms

Urgent Action Needed: KTBA Exposes Crucial Errors in 2023 Income Tax Return Forms

The main technical glitches and errors highlighted by the KTBA include:

To tackle these issues, the KTBA has put forward essential amendments, including:

Today's PKR Foreign Exchange Rates - August 01, 2023

Today's PKR Foreign Exchange Rates - August 01, 2023

Today's PKR Foreign Exchange Rates - July 31, 2023

Today's PKR Foreign Exchange Rates - July 31, 2023

Revolutionizing Tax Returns: FBR Unveils IRIS 2.0 for Effortless Filing

Revolutionizing Tax Returns:FBR Unveils IRIS 2.0 for Effortless Filing

Revolutionizing Tax Returns:FBR Unveils IRIS 2.0 for Effortless Filing

Streamlined Taxation: FBR's New Withholding Tax Regime for Motor Vehicles Explained

Streamlined Taxation: FBR's New Withholding Tax Regime for Motor Vehicles Explained

Demystifying FBR's Latest Tax Changes: A Comprehensive Guide to Cash Withdrawal Tax

Demystifying FBR's Latest Tax Changes: A Comprehensive Guide to Cash Withdrawal Tax

Snapshot is as follows regarding Cash Withdrawal from Bank (portion) Circular No. 2 of Income Tax, dated July 26, 2023

Today's PKR Foreign Exchange Rates - July 26, 2023

Today's PKR Foreign Exchange Rates - July 26, 2023

Updated Definition of Tier-1 Retailers in Pakistan for Tax Year 2023-24

Streamlined Taxation for Retailers: Updated Definition of Tier-1 Retailers in Pakistan for Tax Year 2023-24

The updated definition of Tier-1 retailers includes the following categories:

Today's PKR Foreign Exchange Rates - July 25, 2023

Today's PKR Foreign Exchange Rates - July 25, 2023

Today's PKR Foreign Exchange Rates - July 24, 2023

Today's PKR Foreign Exchange Rates - July 24, 2023

FBR's Guide to Paying Section 7E Tax on Property Sale and Transfer

Streamlined Tax Payment Method FBR's Guide to Paying Section 7E Tax on Property Sale and Transfer

Tier-1 Retailers of Textile Products Face Sales Tax Rate Hike to 15%

Important Update!

Tier-1 Retailers of Textile Products Face Sales Tax Rate Hike to 15%

Islamabad Restaurants Enjoy Reduced Sales Tax at Just 5%

Boost Your Business!Islamabad Restaurants Enjoy Reduced Sales Tax at Just 5%

Today's PKR Foreign Exchange Rates - July 22, 2023

Today's PKR Foreign Exchange Rates - July 22, 2023

PTBA expresses worries regarding unlawful limitations in the National Sales Tax Return process

PTBA expresses worries regarding unlawful limitations in the National Sales Tax Return process.

1. Automatic Disallowance of Input Tax Credit:

2. Missing Export and Import Goods Declarations:

3. Issues with Annexure-H Filing:

4. Repeated Disallowance of Input Tax Credit:

5. Restrictions on Tax Periods’ Order:

6. Inclusion of Irrelevant Data:

7. Lack of Explanation for Discrepancies:

8. Outdated Challan Generation System:

9. Restrictions on Credit Notes by Sellers:

FBR's New Sales Tax: Bulk Goods under Brand Names and Trademarks Now Taxed

FBR's New Sales Tax: Bulk Goods under Brand Names and Trademarks Now Taxed

Urgent Action Needed:
KTBA Exposes Crucial Errors in 2023 Income Tax Return Forms

Revolutionizing Tax Returns:
FBR Unveils IRIS 2.0 for Effortless Filing

Revolutionizing Tax Returns:
FBR Unveils IRIS 2.0 for Effortless Filing

Streamlined Taxation:
FBR's New Withholding Tax Regime for Motor Vehicles Explained

Demystifying FBR's Latest Tax Changes:
A Comprehensive Guide to Cash Withdrawal Tax

Snapshot is as follows regarding Cash Withdrawal from Bank (portion)
Circular No. 2 of Income Tax, dated July 26, 2023

Streamlined Taxation for Retailers:
Updated Definition of Tier-1 Retailers in Pakistan for Tax Year 2023-24

Streamlined Tax Payment Method
FBR's Guide to Paying Section 7E Tax on
Property Sale and Transfer

Boost Your Business!
Islamabad Restaurants Enjoy Reduced Sales Tax at Just 5%

PTBA expresses worries regarding unlawful limitations in the
National Sales Tax Return process.