Gul Ahmed & Co.

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Gul Ahmed & Co.

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News Others April 4, 2014

Tax Collection

FBR Lobbies to Switch Back to ‘Old Circle System’

Date: April 04, 2014

‘Imported’ administrative reforms implemented over the last 12 years in the Federal Board
of Revenue (FBR) with the help of $149 million in external assistance could not work in
Pakistan, believe top tax officials who have now started lobbying for reverting back to the
old ‘circle system’.

The sweeping reforms that started changing the face of the FBR from 2001-02 had been financed
by the World Bank and Department for International Development (DFID) of the United
Kingdom. In the old system, called circle, the country had been divided into over 700 small
circles for tax collection. The circles were present at the tehsil level.

News Others April 4, 2014

Tax Evasion

Two Foreign IT Firms’ Officials Held

Date: April 04, 2014

The Directorate General of Intelligence and Investigation Inland Revenue (IR) on Thursday
arrested two high-profile executives of an international IT giant in Karachi, selling computer
products and accessories on alleged involvement in tax evasion. Sources told Business Recorder
here on Thursday that it was the first of its kind of case where the directorate has successfully
nabbed senior executives of a top IT company. The agency has taken action against the local
office of the international IT company.

News Others April 1, 2014

Proposal Under Consideration to Impose Tax on Agriculture Sector

Date: 31 March, 2014

Punjab Minister for Finance Mujtaba Shuja-ur-Rehman on Saturday said that taxes have been
levied only on affluent segments of society, while there is also a proposal under consideration to
impose tax on agriculture sector. While talking to various delegations of the PML-N workers in
Lahore, Mujtaba said that property tax, motor vehicle tax and tax on services are the major
sources of provincial income and government is taking solid steps to simplify the tax
collecting/paying system.
He added that present government has launched many public welfare oriented projects, so that to
uplift the socio-economic status of the masses. Mujtaba told the PML-N activists that an amount
of Rs 102 billion is being utilised on the provision of standardised health facilities, which is 10.9
percent of the total budget. He said huge amount of Rs 7.5billon is being spent on the provision
of free treatment and medicines to the poor and destitute in public sector hospitals of the
province. He further said government is spending Rs 244 billion on education sector which is 26
percent of the total budget.

Direct Taxes Income Taxes March 29, 2014

Amendment in second schedule of Income Tax Ordinance, 2001

SRO Number:           17(I)/2014
SRO Date:                January 13,2014
SRO Relates to:       Income tax
SRO Title:                Amendment in second schedule of Income Tax Ordinance, 2001
Brief Description:     New clauses were added as per sub section (2) of section (53) after clause (88), namely (89) and (90)

 

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News Others March 29, 2014

FBR Verifying Exemption Certificates

Date: March 29, 2014

The Federal Board of Revenue is verifying authenticity of thousands of exemption certificates
used for clearance of imported consignments without payment of withholding tax during July 1,
2013 – January 2014. The FBR issued instructions to field formations here on Friday. The FBR
has launched verification of exemption certificates on national level based on discrepancies
detected in the certificates issued by RTO Faisalabad.

Indirect Taxes Sales Tax March 28, 2014

Input tax allowed against provincial laws

SRO Number:       212(I)/2014
SRO Date:            March 26, 2014
SRO Relates to:   Sales Tax
SRO Title:             Input tax adjustment allowed against provincial laws
Brief Description:  The claim of input related to Provincial Sales Tax on Services is allowed from July 01, 2013

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