Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
July 17, 2019

FBR devises plan for field offices to meet Rs5,550 bn target

Top Story

July 17, 2019

ISLAMABAD: The Federal Board of Revenue (FBR) has devised an implementation plan for field offices in all over the country to achieve highly ambitious tax collection target of Rs5,550 billion for the current fiscal year, The News has learnt.

The implementation plan devised by the Board’s headquarters and shared with relevant wings states that the tax rates for properties, salaries and others have been increased, so the FBR would have to update its relevant wings by updating software and enabling withholding agents to collect taxes fully from the current fiscal year.

The simplified taxation regime for small traders will be introduced and simplified procedures will be issued and the IT Wing will issue forms or modules to make this scheme operational. The tax rates on dealers, commission agents (Artis) have been categorised into three categories and the rates for renewal of licences increased.

For category A, the rate has been increased from Rs10,000 to Rs100,000, for category B the rate increase from Rs7500 to Rs75000 and for category C the rate was jacked up from Rs5,000 to Rs50,000. The FBR has instructed its field offices to obtain lists of market committees and enforced new rates. For business registration scheme through Nadra’s e-Saulhat Centres, the forms will be designed and placed at FBR’s web portal.

For commutation of super tax, the FBR instructed its field formations that brought forward depreciation losses to be excluded while computing income except banking, insurance, oil and gas as well as mineral explorations. This provision will apply to the return for tax year 2019 so educative sessions are proposed to be held for the officers. The cases, units may be identified by the officers. Advance tax computation may also be done in the identified cases. The special legal framework for action against non-filers, a separate schedule with main features such as 100% more tax from non-filers, Withholding (WH) Agents to provide their CNICs or other identifications of such persons and provisional assessment with tax on imputed income after 45 days of provisional assessment, penalty proceedings will be initiated for concealment. In this regard, the FBR will issue an explanatory circular. The withholding statement design be modified to capture data of CNICs from every Withholding Agent.

For automated impersonal tax regime, the FBR has been empowered and authorised to design automated impersonal tax regime and administrative setup will be required to move ahead. Its rules and procedures will have to be issued by FBR’s Policy wing. For separation of audit from assessment, the FBR will have to revise jurisdiction orders. For payment of refunds through promissory note, Refund Payment Orders generation tab be enabled within this ongoing month.

The rate for power generation companies would also increased to 15 percent in the budget 2019-20. The rate of 25% for companies enjoying exempt income or where no tax payable due to tax credits, Withholding tax on dividend standard rate of 15% applicable now.

The taxation on profit on debt is enhanced to 15 percent from 10 percent and there is need to reach out to Withholding Agents to update their systems. The increase in taxation rates on reduced rate of services is being increased from 2 to 3 percent and transport services are also being increased from 2 to 4 percent tax in the budget so the officers have been instructed to collect taxes under newly placed rates.

The transition from final tax regime to minimum tax regime, the officers required identification of FTR cases and this provision will apply to the return for tax year 2020 so educative sessions are proposed to be held for the officers.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus