Tax Savvy

Pakistan has reportedly provided assurances to the International Monetary Fund (IMF) regarding an augmentation of the petroleum levy in the fiscal year 2024–25, aligning with its intentions to embark on a new loan programme.

FBR has sent notifications to 8 Lack non-filers. In first step mobile Sims of non-filers will be blocked.

FBR has declared that Utility connections of non-filers will no longer be entertained.

Although deadline for filing Income Tax Return for Salaried, Sole Proprietors, Practitioners, Freelancers and Partnership Firms was extended till 31st October, 2023. But many individuals and businesses remained unable to file their returns.

For those who have not filed their Income Tax Returns may not be able to enjoy their Utility and Mobile SIM connections.

We are helping businesses and individuals to maintain their utility connections.

آئی ایم ایف کے غلام عوام دشمن نگران حکومت نے بجلی کی قیمتوں میں 3 روپے فی یونٹ سے زائد اضافہ کیا اور دوسری طرف تقسیم کار کمپنیاں دونوں ہاتھوں سے عوام کو لوٹ رہے ہیں۔سینیٹ آف پاکستان میں اس ایشو کو اٹھاونگا،ان شاء اللہ۔
نپرا کی انکوائری نے پاکستان کے تمام ڈسکوز کا بجلی کے بلوں میں عوام کے ساتھ روارکھے جانے والے ظلم کو بے نقاب کردیا۔ انکوئری رپورٹ میں کہا گیا ہے کہ پاکستان کے تمام تقسیم کار کمپنیاں(DISCOS) کی طرف سے ارسال کیے گئے سو فیصد بلوں میں عوام کے ساتھ گڑبڑ کی گئی ہے۔
انکوائری کے مطابق صرف MEPCO نے جولائی اگست میں 80لاکھ صارفین کو اضافی بل بھیجے ہیں۔ جبکہ GEPCO نے 15لاکھ، FESCO نے 1لاکھ20ہزار، LESCO نے 1لاکھ17 ہزار ، HESCO نے 7 لاکھ 30ہزار ، SEPCO نے 3 لاکھ 26 ہزار، PESCO نے 3 لاکھ 13ہزار، KESCO نے 1لاکھ 64ہزار اور IESCO نے 45ہزار سے زائد کے صارفین کو بجلی کے اضافی بل ارسال کیے۔
انکوئری رپورٹ میں کہا گیا ہے کہ بجلی کی تقسیم کار کمپنیاں بلنگ دورانیہ 30دنوں سے بڑھا کر سلیب میں گڑبڑ سمیت بہت سے دیگر طریقوں سے عوام کو لوٹ رہے ہیں۔
انکوئری رپورٹ میں یہ بھی کہا گیا ہے کہ 5لاکھ سے زائد میٹر خراب ہیں اور اس کو تقسیم کار کمپنیوں نے ذمہ داری کے باوجود درست نہیں کیا۔جس کا نقصان عوام کو اووربلنگ کی صورت میں ہورہاہے.

In a startling revelation, official documents have unveiled that a substantial number of Federal Board of Revenue (FBR) employees are chronic non-filers, putting themselves at risk of severe penalties and testing the tax administration's commitment to expanding the national tax base.

Tax authorities revealed that many FBR employees have neglected to file their tax returns for the years 2021, 2022, and 2023. Some have filed returns for one year but omitted their annual statutory income tax and wealth statements for two consecutive years, while others missed the extended deadline for the current tax year, which ended on October 30th.

Chairman FBR, Amjad Zubair Tiwana, has responded swiftly, stating that non-filing officers will receive notices by Saturday. He emphasized that despite extensions, a majority of non-filers failed to meet the Thursday deadline, placing them at risk of administrative measures, including utility connection disconnection.

While over 2,600 officers in pay scales 17 to 22 have submitted their tax statements, the revelation highlights a compliance gap among non-gazetted FBR employees, with implications for low-ranking officers and concerns about potential corrupt practices.

ایف بی آر نے تمام کمشنرز کو ہدایت جاری کی ہیں کہ وہ اپنے ماتحت گریڈ 17 اور اس سے زیادہ کے افسران سے انکم ٹیکس ریٹرن 2023 مورخہ 6 دسمبر 2023 تک جمع کروائیں.

Tax Alert: Islamabad High Court has suspended the SRO 1588 (1)/ 2023 issued by FBR imposing 40 percent additional tax on windfall income of banks i.e Forex trading and ordering to pay before November 30 2023.

Court has further ordered FBR to demonstrate not only a prima-facie case but also that the ingredients of balance of convenience and irreparable loss operate in favour of the petitioner bank. The SRO shall remain suspended till the next date of hearing.

The Islamabad High Court stayed windfall tax on banks today.

Banks across Pakistan took advantage of credit card users (charging them crazy exchange rates) and those opening LCs by charging extremely high margins on dollar rates. They made a profit of 110 Billion Rupees!!! 110 Billion! - highest ever due to speculative practices. The government imposed a 40% windfall tax on them - and rightly so!

Italy and Spain also imposed 40% windfall tax on banks and energy companies this year. No judge stayed that.

Our judiciary has been a consistent bane in economic reforms. From Reko Diq, to staying cases of non performing bureaucrates to issues of privatization etc.

God Help Us!

Tax Savvy As a tax advisor, I'm committed to helping my clients save money and achieve their financial goals.

The SRO. 1588 of 2023 has outlined a formula to determine the windfall income, profit and gains of banks. This formula uses the declared profits from the years 2015 to 2020 to calculate an average profit. This average profit is then subtracted from the bank profits for the years 2021 and 2022.
Any profits exceeding this average for the years 2021 and 2022 are deemed as windfall income, profit and gains.
The federal cabinet’s endorsement of the windfall tax was a response to intense criticism of banks, which reportedly made substantial profits of Rs110 billion in 2021 and 2022 through speculative rupee-dollar trading.

The Federal Board of Revenue (FBR) has announced disconnecting utility connections including electricity and gas connections and blocking of mobile sims, if tax return is not filed in response to notices issued.

The top tax authority in a statement that recently introduced section 114B in the Income Tax Ordinance, 2001, authorises it to take such action against those who fail to submit their returns.

As part of restructuring measures, FBR has established 145 District Tax Offices which will focus on bringing 1.5 to 2 million new taxpayers into the tax net till June, 2024. The Prime Minister has stressed the importance of revenue and increasing the existing number of tax filers during recent meetings.

It has notified the establishment of these offices, a new initiative that will help broadening the tax base and ultimately raising tax-to-GDP ratio to a desired level.​These offices would be headed by District Tax Officers entrusted with the responsibility of enforcing Income Tax Returns from non-filers and stop filers.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Wednesday signaled that a deal with Pakistan is imminent. In an exclusive interview with the renowned American publication Bloomberg, Georgieva acknowledged the formidable challenges Pakistani authorities are navigating while actively engaging in a program, expressing optimism about nearing a conclusive agreement.

Georgieva highlighted the critical issue of taxation in Pakistan, emphasizing that currently, only 12% of the Gross Domestic Product (GDP) is collected as taxes. The IMF has proposed an increase to 15%, addressing a crucial aspect of fiscal policy in the negotiations.

The ongoing negotiations between Pakistan and the IMF at the policy level indicate a significant development. The IMF has reportedly agreed to maintain the annual tax target of Rs. 9.415 trillion for Pakistan, ensuring stability even if there is an introduction of a mini-budget.

It is noteworthy that both Pakistan and the IMF have mutually agreed not to escalate the interest rate further after the completion of policy negotiations, signifying a collaborative effort to stabilize the economic landscape.

FBR has not extended the deadline for filing of tax return for TY23 which was 31-Oct.

Those who haven't filled their tax return will become Non-filer from 1-Mar-24.

To become a filer again you will have to pay ATL surcharge.

Tax Savvy As a tax advisor, I'm committed to helping my clients save money and achieve their financial goals.

Request to Chairman FBR for extension in filing tax returns for the Tax Year 2023 by Rawalpindi-Islamabad Tax Bar Association.

Pay attention pensioners.
Pension Rules Changed:
No. 1: The pension calculation formula has been changed, where the pension was calculated based on the formula of the last salary, now the pension will be calculated based on seventy percent of the average salary of the last three years.

No. 2: Person can retire after 25 years of service, but on such retirement there will be a deduction of three percent per annum for the number of years retired before the age of sixty years.

No. 3: The increase in pension will now be kept separately instead of being added to the pension.
It means that earlier if the pension was increased by ten percent on ten thousand then the basic pension would be eleven thousand and next year the increase would be on eleven thousand, now the basic pension will remain ten thousand.

Lastly, after 25 years of service, the pension will be reduced by three percent after every year of service. 🇵🇰

Peshawar High court has barred FBR from collecting tax under section 7e of the ITO.

How Pakistan's wealthy benefit

Inflation 30% - Interest : 22% - real rate= -8%

Government removed many taxes on private banks’ on public debt so they now lend maximum!

But people WITH saving account taxed annual "profit" /interest!

Their real return= -8% - TAX!

📢Alert📢
Education department of Punjab directed its employees who are are earning more than Rs.600,000 annually to get registered with FBR till 25th October 2023.

Your bank accounts are at FBR's radar.
So be careful while filing your taxes.

FBR know now your bank's Credits & Debits.
So be careful.

FBR has launched Track & Trace System (TTS) for To***co, Sugar, Cement and Fertilizer Sectors from 01-07-2022 to prevent counterfeiting, non-tax paid products and authentication of genuine product. Public is encouraged to buy products with FBR's tax stamp only.

FBR's Tax Stamps are affixed on these products which can be scanned by the general public. For this purpose, TransAct App has been developed to verify the tax paid authentic product. Please download TransAct FBR Pakistan App from Google Play Store/iOS.

The images of Tax Stamp and TransAct App logo are attached for guidance. Please report the non-verified tax stamp from the menu bar for further legal action by FBR.

Tax Relief: IT companies in Pakistan exempted from FBR notices, to ensure supportive environment for growth.

Game-Changing Decision: Federal government withdraws tax notice authority to curb potential blackmail, fostering trust in the IT sector.

Forward Momentum: Dr. Umar Saif hints at potential non-taxable status for IT, signaling a positive shift in policy to support the industry.

FBR unearthed a massive money laundering worth PKR 47B against 2 companies in Peshawar. Additionally, the companies caused financial loss to the national exchequer worth PKR 25B allegedly through under-invoicing in the name of solar panels.

Here we go again 😂😂😂 As expected, date of filing returns extended upto 31st October, 2023.

As per twitter handle of Federal Board of Revenue date for filling of annual Income tax returns 2023 will not be extended so taxpayers are advised to file extension applications on time to avoid penalties. Extension maybe granted on case by case basis.

FBR has started to issue arrest notices. Be careful while filing your returns & always try to get professional advice of experts.

ایف بی آر نے انکم ٹیکس ریٹرن 2023 جمع کروانے کی آخری تاریخ 30 ستمبر 2023 کو حتمی قرار دیا ہے اس ضمن میں ٹیکس پیئرز کو بذریعہ موبائل میسج اور ای میل اطلاع دی جا رہی ہے.

Notification regarding dis-continuance of Rs.5,000 note is fake. There is no need to panic and kindly, don't forward these fake notifications to others.

A total of RS 520 billion lost in last year over transmission and distribution losses of electricity: which is now being recovered in bills from those who are paying the bills.

Benefits of being a filer.
Non-filers pay atleast double tax than filers.
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