Federal Board of Revenue - FBR

PRESS RELEASE ****** FBR Introduces New Payment Creation System ****** Guided by the vision of the Government to modernize Pakistan’s tax infrastructure, FBR is reinforcing its commitment to advancing tax administration and enhancing revenue collection through advanced digital solutions. As part of this progressive approach, FBR has introduced the New Payment Creation System, namely ePayment 2.0, available within the IRIS 2.0 portal, an advanced platform designed to simplify tax payment processes for taxpayers across Pakistan. This innovative system enables secure, efficient, and user-friendly online payments, accessible directly from taxpayers' bank accounts via internet banking, ATMs, and mobile banking, eliminating the need for physical bank visits. ePayment 2.0 marks a significant advancement in revenue management, covering a wide range of taxes, including Income Tax, Sales Tax, Federal Excise Duty, and Withholding Taxes. Previously, taxpayers used a separate ePayment system outside IRIS 2.0, requiring them to switch between portals. Now, with ePayment 2.0, FBR has provided a unified and improved user interface accessible directly within IRIS 2.0. By generating a unique Payment Slip ID (PSID), it enables quick and convenient payments for both registered and unregistered taxpayers. Upon payment completion, a Computerized Payment Receipt (CPR) is issued via email and SMS, providing official confirmation and easy access for future use within the IRIS 2.0 system. Through a secure, precise multi-step workflow, the system allows taxpayers to generate a PSID, complete payment through ADC channels and receive a Computerized Payment Receipt (CPR) in real-time, accessible for future compliance needs within IRIS. Ms. Aisha Farooq, Director General (IT&DT) inaugurated the ePayment System at PRAL Headquarters in Islamabad. Her presence underscored the strategic importance of this digital advancement in FBR’s ongoing modernization initiatives, emphasizing the system’s role in enhancing taxpayer convenience and operational efficiency. This is yet another groundbreaking innovation that solidifies FBR's leadership in digital tax administration. With the introduction of ePayment 2.0, FBR has not only simplified the tax payment process but also unified it within the IRIS 2.0 platform, providing taxpayers with a seamless, enhanced experience. This integrated system eliminates the need for multiple logins and platform switches, offering a single, cohesive interface that is both intuitive and efficient. Taxpayers now benefit from a streamlined process that brings all essential tax payment functions under one roof, making compliance more accessible and convenient than ever. By prioritizing user experience through a modernized, consolidated interface, FBR reaffirms its commitment to supporting taxpayers and fostering a more efficient, digitally progressive Pakistan. *****^

Press Release **** October 17, 2024: During the data-driven analytic exercise of sales tax returns filed by major businesses, it was observed that significant fraudulent practices are being employed by some of their authorized representatives and CFOs and that they are not exercising due diligence. Even the analysis within sectors and sub-sectors shows huge discrepancies. It is noteworthy that such discrepancies could not exist if the authorized representative and CFOs of the companies had exercised due diligence. In this backdrop, it was decided by FBR that CFOs/authorized representatives will submit an affidavit along with sales tax return regarding its correctness. Since then, a number of representations have been received from various trade bodies including FPCCI that affidavit for CFOs/authorized representatives of the companies about correctness of the sales tax return in terms of section 26 of Sales Tax Act, 1990, has caused hardship. It is clarified that the said affidavit was only introduced by the Board in order to sensitize the authorized representatives/CFOs about existing provisions of Sales Tax Act and that the said Affidavit only reiterates the legal obligations of the persons filing return for any tax period and informs them about the criminal liability that they may incur if such returns contain false information. However, on request of trade bodies and in order to take all stakeholders in confidence, it has been decided that: a) The filing of affidavit will not be required for return filing for the tax period September, 2024 to be filed in October, 2024. b) FBR will receive alternative proposals from the stakeholders till 31st of October to curb menace of falsified sales tax return. c) The Board may modify the particulars of affidavit where valid concerns of stakeholders do exist. However, it is again emphasized that no new legal obligation arises out of the “affidavit” and that the registered taxpayers should always be cognizant of the fact that declaration of fake or flying invoices and suppression of sale is a cognizable offence under the sales tax law and all registered persons need to exercise extreme caution while filing returns in order to avoid pecuniary and criminal liabilities under section 33 of the Sales Tax Act, 1990. ***

PRESS RELEASE. ***** Government Strengthens Anti-Smuggling Efforts: Confiscation of Conveyances Used in Smuggling Operations ***** In a decisive move to intensify the government’s ongoing anti-smuggling campaign, Prime Minister Muhammad Shehbaz Sharif directed all relevant government bodies, particularly the Federal Board of Revenue (FBR) and Pakistan Customs, to take stringent measures to combat smuggling across the country. One of the key amendments reinforcing these efforts is the recent change to S.R.O.499(I)/2009 dated 13-06-2009, introduced via SRO 1619(I)/2024 dated 03-10-2024, which empowers authorities to confiscate vehicles and other conveyances used in transporting smuggled goods. This amendment, announced earlier this month, is a reflection of the government’s firm resolve to eradicate smuggling, which has long plagued the nation’s economy, depriving it of critical revenue while encouraging the informal market. Under the amendment, all conveyances involved in the transportation of smuggled goods are now subject to immediate confiscation without the option for redemption fine. This is a significant shift from the previous regime under S.R.O.499(I)/2009 dated 13-06-2009, where offenders had the opportunity to recover seized vehicles by paying a redemption fine. The new measure closes that loophole, ensuring that the tools used in smuggling operations are permanently removed from circulation. The Chairman FBR has called for immediate action by the Customs officials and law enforcement agencies to enforce this amendment through coordinated efforts and ensure that all conveyances used in smuggling activities, once apprehended, are confiscated, and permanently removed from operations. With these renewed efforts, Pakistan moves one step closer to securing its economic borders and ensuring that those who contribute to the illicit economy are held accountable. The recent amendment is just one of the many steps being taken to eliminate smuggling and protect the integrity of Pakistan’s economy.

World Bank Country Director Calls on Chairman FBR ***** The Country Director of World Bank, Mr. Najy Benhassine along with Mr. Tobias Akhtar Haque (Lead Country Economist), Ms. Lucy Pan (Senior Economist) and Ms. Irum Touqeer (Public Sector Specialist) visited Federal Board of Revenue HQs today and met Chairman FBR Mr. Rashid Mahmood Langrial to discuss FBR Transformation Plan. The Chairman FBR briefed about the vision of the Government for transformation of FBR and Transformation Plan approved by the Prime Minister. A detailed overview of the FBR Transformation Plan and major reforms was given which also focused on aligning initiatives under Pakistan Raises Revenue Project. The Chairman FBR informed that the purpose of reforms was to maximise revenue growth while facilitating compliance. He highlighted the key reform areas to plug the gap in tax compliance i.e. tax policy reforms, digitalization initiatives, capacity building of HR, anti-smuggling initiatives and broad-based tax administration reforms. The Country Director expressed support for the initiatives under the FBR Transformation Plan and reiterated the World Bank’s commitment to continue supporting the revenue mobilization efforts in Pakistan. ***** ایف بی آر ***** پریس ریلیز ***** چیئرمین ایف بی آر سے ورلڈ بینک کے کنٹری ڈائریکٹر کی ملاقات ***** چیئرمین ایف بی آر راشد محمود لنگڑیال سے ورلڈبینک کے کنٹری ڈائریکٹر ناجی بینہسن نے ٹیم لیڈ کنٹری اکانومسٹ ٹوبیاس اختر حق، سینئر اکانومسٹ لوسی پین اور پبلک سیکٹر سپیشلسٹ ارم توقیر کے ہمراہ جمعرات کے روز ایف بی آر ہیڈکوارٹرز میں ملاقات کی۔ ملاقات میں ایف بی آر کے ٹرانسفارمیشن پلان پر بات چیت کی گئی۔ چیئرمین ایف بی آر نے ایف بی آر کی ٹرانسفارمیشن کے لیے حکومت کے وژن اور وزیراعظم پاکستان کی جانب سے منظور شدہ ٹرانسفارمیشن پلان کے بارے میں بتایا۔ انہوں نے ایف بی آر کے ٹرانسفارمیشن پلان اور اس کے تحت کی جانے والی اہم اصلاحات کے بارے میں بتایا۔ اسکے ساتھ ساتھ پاکستان ریزز ریونیو پراجیکٹ کے تحت کئے جانے والے انیشیٹیوز کے بارے میں بھی بات چیت کی گئی۔ چیئرمین ایف بی آر نے بتایا کہ اصلاحات کا مقصد ریونیو میں زیادہ سے زیادہ اضافہ کرنا اور ٹیکس کمپلائنس کے لئے آسانیاں پید اکرنا ہے ۔ انہوں نے ٹیکس کمپلائنس سے متعلق خامیوں کو دور کرنے کے لیے اصلاحات کے اہم شعبوں کو اجاگر بھی کیا جن میں ٹیکس پالیسی ریفارمز، ڈیجیٹلائزیشن کے اقدامات، انسانی وسائل کی صلاحیت میں اضافہ، انسداد سمگلنگ اقدامات، اور وسیع پیمانے پر ٹیکس ایڈمنسٹریشن میں اصلاحات شامل ہیں۔ ورلڈ بینک کے کنٹری ڈائریکٹر نے ایف بی آر ٹرانسفارمیشن پلان کے تحت کیے جانے والے اقدامات کی مکمل حمایت کا یقین دلایا اور پاکستان میں محصولات بڑھانے کی کوششوں میں ورلڈ بینک کی مستقل حمایت کا اعادہ کیا۔ ***

PRESS RELEASE ****** Ambassador of Iran to Pakistan Calls on Chairman FBR ****** Ambassador of Iran to Pakistan H.E. Dr. Reza Amiri Moghaddam called on Chairman Federal Board of Revenue Mr. Rashid Mahmood Langrial today at FBR HQs. During the meeting, the two sides discussed matters pertaining to customs, cross border trade and management for smooth flow of bilateral trade between the two countries. They agreed to remove the irritants in the bilateral trade to tap the true trade potential for increased economic activity between the two neighbors. It was agreed to form a sub-committee to further deliberate upon and resolve customs-related issues between the two brotherly countries. ******

Dear taxpayers, please file your tax returns in time to fulfil your duty as responsible citizens of our beloved country. The non-filers may face disconnection of mobile phone sim and utility services.

“Danielle Dufour On August 25, 2024, a shipment, containing two laptops valued at USD 800 (PKR 223,056), arrived via Flight No. FZ-0329 through TCS Courier Company at the Immediate Clearance Group, Jinnah International Airport, Karachi. The shipment was detained by Customs Authorities as per ICG procedure due to the declared value exceeding USD 500. Subsequently, an agent named M. Waqas, contact No. 0300-2474954, approached Mr. Bilal Siddique and demanded an unreasonable clearance fee of Rs. 150,000. This issue came to the knowledge of Chairman of the Federal Board of Revenue (FBR), who directed an immediate review and redressal of the case. On September 3, 2024, Collector of Customs Mr. Adeem Khan and Assistant Collector of Customs Mr. Sharjeel Wassan from JIAP Karachi intervened. The correct duty and taxes were calculated to be Rs. 58,694, and the goods were delivered to Mr. Siddique at 9:30 PM on the same day. The goods were received by the consignee directly from the office of the Assistant Collector of Customs at JIAP. Additionally, proceedings under Licensing Rules against TCS (Pvt) Limited have been initiated, with recommendations for strict action, including the possible cancellation of their license. *****

PRESS RELEASE **** FBR Collects Rs. 1,588 billion in Gross Revenue in first two months of 2024-25 ***** Federal Board of Revenue (FBR) has collected gross revenues of Rs 1,588 billion for the months of July & August 2024. Against a target of Rs. 1,554 billion, FBR has collected Rs.1,456 billion in net revenue and refunds of Rs. 132 billion (44% more than last year) were issued to the exporters to resolve their liquidity problems. The FBR collected Rs. 593 billion under the head of domestic income tax as compared to Rs. 437 billion in July & August 2023, thereby showing a growth of 36%. A healthy year-on-year growth of 40% was achieved in the domestic sales tax with collection of almost Rs.314 billion. Around Rs.86 billion were collected as Federal Excise Duty (FED) showing a year-on-year increase of 13%. As a result a cumulative growth of almost 35% has been achieved in the collection of domestic taxes. However, on the import side the same momentum could not be maintained due to continued compression in imports. In US$ terms, imports in the country have declined by 2.2% in August 2024 as compared to August 2023. Similarly, the imports during August 2024 in PKR value also showed a decline of 7% as compared to August last year. Moreover, the import of high duty items such as vehicles, home appliances, as well as miscellaneous consumer goods such as garments, fabrics, footwear etc have reduced significantly, changing the import mix. This trend has impacted collection of Customs duties as well as other taxes collected at import stage . Despite a modest increase of 4% in collection of Customs duties, FBR’s overall growth in net collection registered a 21% increase on collection of previous year. FBR is likely to achieve the revenue targets of the first quarter as both the economic activity and imports are expected to show a healthy turnaround in the month of September due to lower policy rate and other interventions being made by the Government in recent months. The growth is also likely to show a significant increase as a result of digitisation and other FBR’s reforms which are currently being very keenly supervised by the Prime Minister and the Finance Minister. These reforms include end to end monitoring of supply chains, automated production monitoring, POS, AI based data integration, import scanning and strict integrity management of FBR workforce. FBR is also doing a revamp of it’s business processes to facilitate business growth and ease. *****

Press Release ****** FBR Denies Rumors of Any Upcoming Amnesty Scheme for Smuggled Vehicles ****** It has come to the notice of the Federal Board of Revenue (FBR) that certain rumors are circulating on the social media regarding a purported upcoming amnesty scheme for regularizing smuggled vehicles. FBR categorically denies these rumors and would like to make it clear that no such scheme is under consideration of the Federal Government at this time. The general public is therefore advised not to believe any such misinformation circulating in the social media or any other unverified sources. ****** ایف بی آر ***** پریس ریلیز ***** ایف بی آر نے ا سمگل شدہ گاڑیوں کے حوالے سے ایمنسٹی سکیم کی افواہوں کی تردید کردی۔ ***** فیڈرل بورڈ آف ریونیو(ایف بی آر) کے نوٹس میں یہ بات آئی ہے کہ سوشل میڈیا پر اسمگل شدہ گاڑیوں کو ریگولرائز کرنے کے حوالے سے ایمنسٹی سکیم کے بارے میں کچھ افواہیں گردش کررہی ہیں۔ ایف بی آر ان افواہوں کی تردید کرتا ہے اور یہ واضح کرنا چاہتا ہے کہ اس وقت ایسی کوئی سکیم وفاقی حکومت کے زیر غور نہیں ہے۔لہذا عام لوگوں کو ہدایت کی جاتی ہے کہ وہ سوشل میڈیا پر گردش کرنے والی یا کسی دوسرے غیر تصدیق شدہ ذریعہ سے موصول ہونے والی گمراہ کن خبروں پر یقین نہ کریں۔ *****