Taxvisorz Accountants & Consultants

The State Bank of Pakistan has issued circular dated 08.11.2022 regarding revised foreign currency cash carrying limits for travel purposes.

Motorway Police has changed the speed limit on motorway for both LTV and HTV

Choose the best..
Choose Taxvisorz Accountants & Consultants

HURRY UP...!

SALES TAX 2022-23
((((((((((-RELIEF MEASURES-))))))))))
1.The condition of CNIC/NTN in case of supply to unregistered person have been removed.
2.Sales Tax exemption has been granted on import and supply of all types of seeds.
3.Sales Tax on Tractor is withdrawn.
4.Exemption has been granted on imports by UN diplomats/diplomatic missions and privileged persons.
5.Import and supply of solar panels (PV module) has been exempted from sales tax.
6.Goods imported by or donated to non-profit charitable hospitals has been exempted. Furthermore, good supplied to charitable hospitals of fifty beds or more have also been exempted from sales tax.
7.Temporary imports have been exempted from the levy of the sales tax.
8.Made up jewellery has been made chargeable to 3% fix tax on local supply and 4% fix tax on imports.
9.Plant and machinery imported by power generation projects that entered into implementation agreement with GoP has been exempted from sales tax.
10.Rs.90 per kg is reduce to Rs.60 per kg on potassium chlorate
11.Import by EPZ has been exempted from sales tax.
((((((((((((-REVENUE MEASURES-)))))))))))
12. The scope of further tax has been enhanced to include non-active taxpayers as well.
13. Regime of other then Tier-1 retailer has been streamlined.
14. VAT has been imposed on compressor scrap, motor scrap and copper cutting scrap even when imported by manufacturers.

Don't be late..

Press Release
***************
FBR to Upgrade IRIS System
****************************
Building further on its ongoing drive for digitalization, the Federal Board of Revenue (FBR) is all set to upgrade its key IRIS system in order to improve its operation, enhance its security, and add a new Graphic User Interface (GUI).
Changes in the underlying architecture of the system will greatly enhance its speed and functions, especially in the coming return filing season. The new graphical interface is more intuitive and functional, and will facilitate taxpayers in filing their returns. This upgradation will also augment the security of the system through certain digital interventions.
It is to inform that during this upgradation process, the services of IRIS System will be temporarily unavailable from 10 PM on 6th August to 10 AM on 7th August 2022. Therefore, the inconvenience is regretted.

خوشخبری！
حکومت نے تاجروں سے بجلی کے بلوں پر ٹیکس وصولی ختم کرنے کا فیصلہ کر لیا۔
ذرائع نے بتایا کہ بجلی کے بلوں کے ساتھ ٹیکس وصولی سے سالانہ 30ارب روپے کا ٹیکس حاصل ہونا تھا۔
تاہم اب 30 ارب روپے کا اضافی ٹیکس دوسرے شعبوں پر مزید ٹیکس لگا کر پورا کرنے کا فیصلہ کیا گیا ہے۔
دوسرے شعبوں پر ٹیکس صدارتی آ رڈینینس کے ذریعے لگایا جائے گا۔

ٹیکس وائزرز اکاؤ نٹینٹس اینڈ کنسلٹنٹس ملتان

EID MUBARAK...

Get ready Non-Filers, White FBR Vigo Coming for You

The FBR has issued a list of 101 retailers and directed them to integrate by July 10, 2022 otherwise action will be taken as per law.
The FBR issued Sales Tax General Order (STGO) No. 1 of 2023 related to Tier-1 retailers for integration with FBR’s POS system.
The Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailers who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.
In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 Retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No/ 1 of 2022 issued on 03.08.2021.
Vide the instant Sales Tax General Order, a list of 101 identified Tier-1 Retailers has been placed on FBR’s web portal allowing them to integrate with FBR’s system by 10.07.2022 an the procedure of exclusion from this list of 101 identified Tier-1 Retailers shall apply as laid down in STGO 17 of 2022 dated 13.05.2022.
Upon filing of Sales Tax Return for the month of June, 2022 for all hereby notified Tier-1 Retailers not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.

The FBR has opened the Form for Income Tax Return for Fiscal Year 2022. Contact us to submit your tax return for the year 2022 and become a filer so that you can join the FBR's filer list and reap the many benefits of being a filer. In case of non-submission of IT Return or late submission, heavy fine, FBR notice, audit by FBR and removal from filer list can be done. Do your duty and avail tax benefits as a filer. Contact us for more guidance. Thank you.

0300-0858734
0300-4128228
[email protected]

وفاقی کابینہ نے حکومتی کی تیسری ٹیکس ایمنسی اسکیم کا آرڈیننس جاری کرنے کی منظوری دے دی ۔

آرڈیننس کی سمری کے مطابق صرف 5 فیصد ٹیکس ریٹ پر اب کالا دھن سفید کیا جاسکتا ہے۔

ٹیکس ریٹ کی ادائیگی پر کالادھن سفید کرنے والوں سے اُن کے ذرائع آمدن نہیں پوچھے جائیں گے۔

سمری کے مطابق سرمایہ کار ایمنسٹی اسکیم سے فائدہ اٹھانے کے لیے نئی کمپنی بنائے گا، اس سے فائد اٹھانے کی کٹ آف ڈیٹ دسمبر 2022ء ہوگی۔

آرڈیننس سمری کی مطابق نئے یونٹ کے ذریعے جون 2024ء تک کمرشل پیداوار شروع کردی جائے، ایمنسٹی اسکیم میں بیمار صنعتی یونٹس کے لیے 3سال کی ٹیکس مراعات بھی شامل ہیں۔

سمری کے مطابق بیرون ملک پاکستانی غیرملکی اثاثے سرمایہ کاری کے لیے بھیجتے ہیں تو 5 سال کے لیے ٹیکس چھوٹ ہوگی۔

سمری کے مطابق گزشتہ 3 سال سے نقصان والی کمپنیوں کو صحت مند صنعتی یونٹ خرید سکتا ہے اور کمپنی کو منافع بخش بنانے پر کمپنی کو 3 سال کی ٹیکس چھوٹ ہوگی۔

Salient Features of Promotion Package for Industry 2022

1. Incentives for Industrial Promotion

 Investment in New Industrial Units and Expansion & Modernization of Existing Units

 5% across the board payment of tax for all amounts invested

 Minimum Investment threshold Rs. 50 million

 Industrial Unit to be set-up as a company

 Commercial Production to begin by 30th June 2024

 Previous Beneficiaries of Amnesty Schemes of 2018 and 2019 Not Eligible

 Bank Loan Defaulters in last three years Not Eligible

2. Incentive for Revival of Sick Units

 Applicable only to Companies

 Industrial Units having Accumulated Losses in continuous 3 years to be treated as sick units

 Acquiring Company allowed to adjust losses of the sick units against its Income for Three years

 Revival of the Sick Unit to be completed within three years of acquisition

3. Incentive for Foreign Investment in Industrial Sector

 Pakistan Citizens who are non-resident for five years and Resident Pakistani having declared Foreign Assets are Eligible to Invest

 One Time Tax Credit equal to 100% of PKR equivalent of Remittance to be availed in 5 years

 Investment to be made in a New Industrial Unit

 Commercial Production to start by 30th June, 2024

 New Industrial Unit to be a Company

GOVT SET TO OFFER THIRD TAX AMNESTY SCHEME...

* Finance Ministry Circulates Summary For Approval From Cabinet۔۔۔

The government has decided to promulgate an ordinance to offer a third tax amnesty scheme in as many years -- this time to industrialists -- by offering them to whiten their black money at 5% rate by investing in the manufacturing sector.

The amnesty is part of an industrial package that also includes tax benefits for three years on acquisition of sick industrial units, besides allowing overseas Pakistanis to invest in the country’s manufacturing sector and freely take back the profits earned and the capital investment.

The decision to give another tax amnesty scheme may put the just revived $6 billion International Monetary Fund (IMF) programme at stake, as the global lender bars giving any tax amnesty scheme. Sources said that the government had not taken the IMF into confidence.

The finance ministry circulated a summary among the federal cabinet members on Monday for their approval of the tax amnesty scheme through the Income Tax Amendment Ordinance 2022. Prime Minister Imran Khan will formally launch his third amnesty scheme in Lahore on Tuesday (today).

The official documents showed that the scheme had been prepared in haste and due to paucity of time, the approval of the Cabinet Committee for Legislative Cases (CCLC) had also not been obtained.

The prime minister dispensed with the condition of submission of a summary to the CCLC and approved the submission of the summary to the Cabinet through circulation, according to the summary.

The government had decided to waive 24% tax rate and another 29% penalties by allowing the people to invest their black money, giving 49% bonanza to the industrialists. An industrialist could avail the tax amnesty scheme by investing Rs50 million.

The arms and ammunition, explosives, sugar, ci******es, aerated beverages, flour mills, vegetable ghee and cooking oil industries could avail the new tax amnesty scheme. At least three new sections would be inserted in the Income Tax Ordinance of 2001 to allow the people to avail the third tax amnesty scheme.

These were the Sections 59C to carry forward of business losses of sick industrial units, the Section 65H for tax credit for the investment for industrial promotion and the Section 100F for investment in industrial units.

The government has also decided to waive the requirement of only clean and white money investment in order to incentivise the people to invest in new and existing industrial units. The government has waived the applicability of Section 111 of the income tax law to allow investment of dirty money in the industrial sector.

Concessions have also been offered for the revival of sick units and the incentives for investment in industries by non-resident Pakistanis and resident Pakistani individuals having declared foreign assets, according to the documents.

According to the Promotion Package for the Industry, the government has decided to offer a 5% across-the-board tax rate and immunity to the investors from the investigation about sources of investment. An investor will establish a new industrial unit through the creation of a new company to avail of the tax amnesty scheme.

Similarly, existing units can also avail the facility for balancing and modernisation. The cut-off date for availing of the amnesty scheme will be December 2022 with the condition of starting the commercial production by the new unit by June 2024, according to the decision.

According to another leg of the package, the government has decided that those companies returning a net loss in the last 3 years will be eligible to be acquired by healthy profit-making companies, which will be incentivised to adjust the sick company’s tax losses for the next 3 years.

The Industrial Package further provides that if eligible non-resident Pakistanis and the resident Pakistani individuals repatriate their declared foreign assets into Pakistan for investment into industry, they would be entitled to 100% tax credit for the next five years.

According to the ordinance, a non-resident Pakistani citizen, having continued non-residential status for more than five years; or a resident individual having foreign assets declared by December 31, 2021, will be entitled to avail the scheme.

A possible adverse reaction from the Financial Action Task Force (FATF) and the IMF remains a concern. The IMF’s Resident Representative Ashter Perez could not be contacted due to paucity of time, while Finance Minister Shaukat Tarin also did not reply whether he took the IMF’s permission before giving the amnesty scheme.

The IMF has barred Pakistan from giving further tax amnesty scheme during the currency of the IMF programme after the PTI government gave a tax amnesty scheme in May 2019 to allow people to declare their ill-gotten and black money.

Then again, the PTI gave second tax amnesty scheme to the construction sector in April 2020. But the second amnesty had been given with the IMF’s consent under the guise of providing relief to the people from the adverse Covid-19 impact.

However, according to the prime minister, Pakistan’s industrial sector required an immediate boost for economic growth as well as for “providing employment to our youth” besides increasing share of manufacturing sector in the gross domestic product (GDP).

No public office-holder, including his wife and children, are allowed to take part in this scheme. Similarly, people who filed declaration under the amnesty schemes of 2018 and 2019 are also debarred from availing his scheme and so are people who are habitual loan defaulters, according to the officials involved in discussions.

Taxvisorz Accountants & Consultants updated their business hours.

People Excited to Become Citizen Tax Ambassadors for FBR.

While addressing the participants present during the first computerized draw of POS Prize Scheme held at FBR (HQs) in the presence of national mainstream media on 15th January, 2022, Chairman FBR Dr. Muhammad Ashfaq Ahmed had appealed the Pakistani citizens to launch a national movement for the promotion of a culture of tax compliance in the country. He had suggested a three pronged strategy to ensure that Sales Tax collected from customers at the point of sale was actually being deposited in the state exchequer. He had proposed that people should shop only from those Tier-1 retail outlets which were integrated with FBR POS System, demand computerized invoice (Pakki Receipt), and finally verify the same through FBR Tax Asaan App.

It is so very reassuring to witness that citizens have started responding to his call and are demanding Pakki Receipt from the retail outlets. This morning, Chairman FBR received over half a dozen of invoices posted to him by Mr. Iqbal Khan, a resident of Sector G-13/3, Islamabad who was truly excited to have discharged his national responsibility. The Chairman FBR, immediately, rang him up in person to thank Mr. Khan for his responsible act and designated him as the first Citizen Tax Ambassador for FBR in its ongoing national drive for tax compliance. It is pertinent to mention that FBR has already distributed prizes worth Rs. 53 million among the lucky 1007 winners in the first computerized ballot held on 15th January, 2022. It is also heartening to see that people are showing a lot of interest in becoming part of next computerized draw, which will be held on 15th February, 2022.

It is further encouraging to witness that a huge number of customers are verifying their shopping receipts through FBR’s Tax Asaan Mobile App and SMS. People are also reaching out to the Field Formations as well as FBR (HQs) to seek necessary guidance about this innovative Prize Scheme. Some of the responsible citizens have started sharing their invoices directly to senior management not only to discharge their national duty but also to register their support for this digital intervention made by FBR. This rare zeal and exemplary commitment shown by huge number of people at large is a testimony to their trust in FBR and its innovative prize scheme. This spirit has already triggered an increased sense of responsibility in the people at large to become the watchmen of their tax collected by the retailers in order to ensure that the same is safely deposited in the national exchequer.

This initiative of engagement with customers is all set to pick momentum and thus accelerate the desired national drive to promote tax compliance and substantially increase revenues. It will also incentivize people to play their role as responsible citizens and compliant taxpayers. The POS Prize Scheme is providing an opportunity to people to win cash prizes after they shop from Tier-1 POS integrated retail outlets by verifying their receipts through Tax Asaan App or SMS.

Therefore, FBR has once again appealed to all the citizens across Pakistan to always ask for computerized invoice with a bar code (Pakki receipt) whenever they go for shopping so that they could participate in the upcoming computerized draw to be held on 15th February, 2022.