Cabinet set to approve RGST today

The cabinet meeting will consider measures to generate new sources of revenue.—File photo

ISLAMABAD: The federal cabinet is set to approve a revised general sales tax framework on Wednesday. It seeks, among others, withdrawal of exemptions on textile and agriculture sectors. 

"This will be a tough decision for the cabinet because the RGST framework seeks withdrawal of exemptions on the textile and clothing sector, which contributes over 55 per cent in the country's total exports," a finance ministry official told Dawn on Tuesday.

According to him, the International Monetary Fund turned down a request by government for exempting the textile and clothing sector from GST, saying only exports could be exempted from the levy.

Corruption-free tax system primary objective: Shaikh

The Finance Minister instructed FBR to formalize the recommendations for their early approval by the government. - File Photo.

ISLAMABAD: Minister for Finance, Revenue and Economic Affairs Dr. Abdul Hafeez Shaikh said on Sunday that a fair, equitable and corruption-free tax system is a primary objective of the government  The minister said this while chairing a day-long meeting of the Tax Reform Coordination Group (RCG) here.

The meeting was attended by the Members of RCG, Deputy Chairman Planning Commission, Governor State Bank of Pakistan, Secretary Finance, Chairman FBR, FBR officers and Ministry of Finance officers.

Revenue body hopes to achieve tax-to-GDP ratio of 13-15pc in 5 years

The Federal Board of Revenue (FBR) hopes to achieve the tax-to-GDP ratio of 13-15 per cent during the next five years against the existing level of 8.0 per cent under the already initiated Tax Administration Reforms Programme (TARP), reveals the content of a letter written by the revenue body chairman to the finance secretary.

Despite Pakistanís exceedingly unfavorable macroeconomic situation, the revenue body is committed to meet the revenue collection target of Rs1,380 billion by achieving a growth of 19.3 per cent, as compared to the previous fiscal year.

FBR withdraws audit notices issued to 1,000 industrial units

KARACHI: Bowing to the pressure of the business community the Federal Board of Revenue (FBR) withdrew its notifications demanding audit of more than 1,000 industrial units, a senior FBR official said on Saturday.

“The purpose of issuing the annulled notification about conducting audit of 1,076 industrial units was to unveil a paperless fraud of Rs2 billion worth of sales tax refund,” said Muhammad Zahid Khokhar, Director, Intelligence & Investigation, FBR while addressing KCCI on Saturday.

Govt to study inflationary impact of VAT: FBR chief

 ISLAMABAD: Government will conduct a study, worth Rs6.0 million, regarding the impact of Value-Added Tax (VAT) on inflation, Federal Board of Revenue (FBR) chairman said on Thursday.

“After the study we will have reliable data about its impact on inflation, revenue and further documentation of the economy,” FBR Chairman Sohail Ahmed told a news briefing convened to erase confusion on VAT.

Although the FBR chairman insisted that VAT would have no inflationary impact, one of his subordinates differed, saying that it would create a price-hike.

Govt likely to replace all taxes on milk with VAT

LAHORE: The federal government is likely to withdraw all the taxes on milk in the forthcoming budget and impose Value Added Tax (VAT) on it, official sources said on Tuesday.

The Federal Board of Revenue (FBR) has been working to end tax regime on milk, dairy products and livestock to help enhance milk and meat productivity, sources said requesting not to be named as they were not authorised to speak with media.

All the taxes would be withdrawn to bring down the prices and VAT would be implemented as sole tax on processed milk, official sources said.

Only 1.6pc Pakistanis registered taxpayers

Tuesday, April 06, 2010
KARACHI: Only 2.75 million Pakistanis, or 1.6 percent of the country’s estimated 160 million people, are registered tax-payers and posses the National Tax Numbers (NTN), FBR report said.

FBR collects Rs178.306bn withholding tax

ISLAMABAD: The Federal Board of Revenue has collected Rs178.306 billion by deducting withholding tax on various accounts during the first eight months (July-Feb) of 2009-10, including Rs8.3 billion on cash withdrawals from banks on transaction exceeding Rs25,000.

On prize bonds, the FBR collected Rs1.310 billion in the first eight months of the current fiscal year.

15% value added tax proposed: FBR

KARACHI: Chairman Federal Board of Revenue (FBR) Sohail Ahmed has said that 15 percent value added tax has been proposed.

Talking to Geo News, he said the draft proposal in this regards has been presented to the Parliament which, after approval, will be put into effect from July 1, 2010.

FBR collections up 4.2pc in six months

ISLAMABAD: The Federal Board of Revenue has collected Rs577.337 billion during July-Dec, 2009-10 as against Rs553.833 billion collected during the same period last year, showing an increase of 4.2 per cent. 
 
The revenue collected includes Rs208.594 billion as direct taxes and Rs368.743 billion as indirect taxes.
Asrar Raouf, Member Direct Tax Policy said on Wednesday that the direct taxes this year fell short by 0.8 per cent compared to Rs210.3 billion collected last year.

FBR collects over Rs577bn revenues in first 6 months

Thursday, January 07, 2010
ISLAMABAD: The Federal Board of Revenue has collected revenues amounting to Rs577.337 billion during first-half of the current financial year, as against Rs553.833 billion collected during the same period of last year, showing an increase of 4.2 per cent.

The revenue collections in July-December included Rs208.594 billion as direct taxes and Rs368.743 billion as indirect taxes, Asrar Raouf, Spokesman for the FBR and Member Direct Tax policy, told APP on Wednesday.

Get ready to face the music, FBR chief tells tax dodgers

Saturday, December 19, 2009
By our correspondent

ISLAMABAD: Habitual tax offenders should come clean up to December 2009, otherwise, get ready to face the music as the government is quite serious to make tax dodgers, tax evaders or short filers to pay their due share in the national kitty, said Sohail Ahmed, Chairman Federal Board of Revenue on Friday.

Addressing the business community at the Islamabad Chamber of Commerce & Industry, he said the FBR will salute those who come clean by the given date and the businessmen are partners of the FBR in improving country’s revenues and assured them that persuasion, instead of harassment, will be the approach of the FBR to woo people towards tax net, said an ICCI release.

VAT draft sent to provinces for consideration

ISLAMABAD: The Federal Board of Revenue (FBR) has sent the draft of the proposed Value Added Tax (VAT) for consideration to the provinces and it would be submitted before the Federal Cabinet for approval by December 31.
 
This was stated by Chairman FBR Sohail Ahmad here Friday, while addressing the business community at the Islamabad Chamber of Commerce and Industry (ICCI).

921 corporate, AoPs selected for audit

ISLAMABAD: The Federal Board of Revenue (FBR) on Friday selected a total of 921 taxpayers in two different categories of corporate cases and Association of Persons (AoPs) through computerised random balloting for audit of domestic taxes.

Out of the total selected, 468 are corporate taxpayers and 453 are AoPs. Figures released at the balloting ceremony showed a total of 42,148 companies are registered for income tax and 9,871 companies for sales tax purposes.

KARACHI: Rs40m fraud in motor vehicle tax collection detected

KARACHI, Oct 17: The Sindh excise and taxation department has unearthed a Rs40 million fraud in motor vehicle tax collection. An unspecified number of suspects, E&T staff of inspector rank, have been placed under suspension and a high-level inquiry into the fraud has been instituted.

The disclosure was made by provincial Minister for Excise and Taxation Mukesh Kumar Chawla at a press conference here on Saturday. He said that the fraud was detected in transactions involving four of the 11 branches of the National Bank of Pakistan authorised to collect the motor vehicle tax. The transactions, made through an MV tax committee, pertained to January and July (2009) accounts. He said the involvement of any bank employee in the racket was yet to be established.

Shortfall of Rs30bn in revenue feared

ISLAMABAD: The government is likely to face a revenue shortfall of Rs25 to Rs30 billion during the current fiscal year, mainly due to the additional cost of military operation in South Waziristan.
 
The government is likely to take fiscal measures in January to meet the shortfall, said Federal Board of Revenue chairman Suhail Ahmed on Wednesday.

The new fiscal measures would not affect the common man, the FBR chairman said while talking to newsmen.
The cost of military operation in South Waziristan was not part of the federal budget for 2009-10 announced in June this year, he said.