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the Central Board of Revenue became Federal Board of Revenue in July 2007 by the

enactment of FBR Act 2007. The current chairman of FBR is Dr. Muhammad Irshad.

Function of FBR / Revenue Division


The Chairman FBR is the executive head of the Board as well as Secretary of the
Revenue Division. He (or She) has the responsibility for:
Formulation and administration of fiscal policies
Levy and collection of federal taxes, and
Quasi-judicial function of hearing of appeals.
Chief Commissioners Large Taxpayer Units (LTUs)
Three posts of Chief Commissioner Inland Revenue Large Taxpayers Unit (LTUs) were
established to provide convenience to the Large Taxpayers.
These three posts are:
Chief Commissioner Inland Revenue Large Taxpayer Unit Karachi
Chief Commissioner Inland Revenue Large Taxpayer Unit Islamabad
Chief Commissioner Inland Revenue Large Taxpayer Unit Lahore
These three Chief Commissioners LTUs are responsible for:
All matter relating to administrative control
Generation of revenue within jurisdiction
Enforcement/collection of revenue
Facilitation of Taxpayer
All legal issues pertaining to the jurisdiction
Any other assignment by the chairman.
They are assisted by Commissioner, Additional Commissioner, Deputy Commissioner,
Assistant Commissioner/Taxation Officers.

CHIEF COLLECTORS
South Region
Karachi, Hyderabad, Quetta and Gwadar
North Region
Lahore, Rawalpindi, Peshawar, Multan, Faisalabad, Sambrial
The most important wing of the FBR is Inland Revenue wing.he Central Board of
Revenue became Federal Board of Revenue in July 2007 by the enactment of FBR Act
2007. The current chairman of FBR is Dr. Muhammad Irshad.

Function of FBR / Revenue Division


The Chairman FBR is the executive head of the Board as well as Secretary of the
Revenue Division. He (or She) has the responsibility for:
Formulation and administration of fiscal policies
Levy and collection of federal taxes, and
Quasi-judicial function of hearing of appeals.
Chief Commissioners Large Taxpayer Units (LTUs)
Three posts of Chief Commissioner Inland Revenue Large Taxpayers Unit (LTUs) were
established to provide convenience to the Large Taxpayers.
These three posts are:
Chief Commissioner Inland Revenue Large Taxpayer Unit Karachi
Chief Commissioner Inland Revenue Large Taxpayer Unit Islamabad
Chief Commissioner Inland Revenue Large Taxpayer Unit Lahore
These three Chief Commissioners LTUs are responsible for:
All matter relating to administrative control
Generation of revenue within jurisdiction
Enforcement/collection of revenue
Facilitation of Taxpayer
All legal issues pertaining to the jurisdiction
Any other assignment by the chairman.
They are assisted by Commissioner, Additional Commissioner, Deputy Commissioner,
Assistant Commissioner/Taxation Officers.

CHIEF COLLECTORS
South Region
Karachi, Hyderabad, Quetta and Gwadar
North Region
Lahore, Rawalpindi, Peshawar, Multan, Faisalabad, Sambrial
The most important wing of the FBR is Inland Revenue wing.

Fiscal Policy of Pakistan


What is Fiscal Policy?
Fiscal policy of a government is its policy regarding revenue (or taxes) and
expenditure (or spending). Thus, fiscal policy is an instrument through which a
government can achieve the objectives of development very efficiently by striking a
balance between resources (revenue or income) and expenditures (spending). It works
by diverting existing resources from unproductive to the productive, profitable and
socially attractive sectors of the society.
Fiscal Policy of Pakistan
The Three main drivers of economic growth are:
Consumption
Investment, and
Savings

Pakistani society like other developing countries is a consumption oriented


society, having high marginal propensity to consume. The private consumption
expenditure in nominal terms reached to 80.1% of GDP, whereas public consumption
expenditures are 11.8% of GDP.
Total investment recorded the growth of 5.78% and is increased to Rs.4502 billion
in financial year 2015-16. Investment to GDP ratio has reached to 15.21% in FY 2016
(Financial Year 2015-16). Fix investment is registered at 13.61% of GDP. Private
investment witnessed at 9.79% of GDP. Public investment recorded an impressive
growth rate at 10.63% and as percentage of GDP it has increased to 3.82 percent in
FY 2016

part-I
Grammar Usage, Sentence Structuring
Part-II
? Functions of Federal Board of Revenue.
? Fiscal Policy of Pakistan
? Tax Administration/Reforms in Pakistan
? Sales Tax Act 1990 as amended upto July 2014
? Federal Excise Act 2005 as amended upto July
2014
? Income Tax Ordinance 2001 as amended upto
June 2014 (Chapter-III & Part IV of Chapter-X only.

posts
Saturday, February 7, 2015
FBR Chairman Members Laws Taxes Policy Functions

The Central Board of Revenue (CBR) was created on April 01, 1924 vide Act, 1924.
In 1960 FBR was made an attached department of the Ministry of Finance.
In 1974 the post of Chairman FBR was created.The Revenue Division continues to
exist since from December 01, 1998.By the enactment of FBR Act 2007 in July 2007
the Central Board of Revenue has now become Federal Board of Revenue.

Current Chairman FBR Mr. Tariq Bajwa


Fuctions
the Chairman, FBR, being the executive head of the Board as well as Secretary of
the Revenue Division has the responsibility for

(i) Formulation and administration of fiscal policies,

(ii) Levy and collection of federal taxes and

(iii) Quasi-judicial function of hearing of appeals.

FBR Chairman List

1)
Mr. Tariq Bajwa
02-07-2013
Till Date
2)
Mr.Ansar Javed
10-04-2013
30-06-2013
3)
Mr. Ali Arshad Hakeem
10-07-2012
09-04-2013
4)
Mr. Mumtaz Haider Rizvi
21.01.2012
10-07-2012
5)
Mr. Salman Siddique
24.12.2010
21.01.2012
6)
Mr. Sohail Ahmad
18.05.2009
24.12.2010
7)
Mr. Moinuddin Khan
02.01.1998
06.11.1998
8)
Mr. Hafeezullah Ishaq
11.11.1996
02.01.1998
9)
Mr. Shamim Ahmed
28.08.1996
11.11.1996
10)
Mr. Alvi Abdul Rahim
13.07.1995
28.08.1996
11)
Mr. Sajjad Hasan
24.07.1991
03.10.1991
12)
Mr. Ahadullah Akmal
16.08.1990
24.07.1991
13)
Mr. Ghulam Yazdani Khan
22.01.1989
11.08.1990
14)
Syed Aitezazuddin Ahmed
20.08.1988
02.01.1989
15)
Mr. I.A. Imtiazi
11.08.1985
20.08.1988
16)

Mr. Fazlur Rahman Khan


14.12.1980
11.08.1985
17)

Mr. N.M. Qureshi


12.11.1975
14.12.1980
18)

Mr. M. Zulfiqar
01.10.1974
12.11.1975
19)
Mr. Riaz Ahmad
17.11.1973
30.09.1974
20)

Mr. M. Zulfiqar
11.10.1971
17.11.1973

FBR Members
1.Member (Facilitation & Taxpayers Education)
2.Member (Inland Revenue - Policy/ Official Spokesperson FBR)
Functions:
Deal with all policy matters, rules, regulations, interpretation of relevant laws
and perform all allied functions, relating to Income Tax, Sales Tax, Federal Excise
Duty, Income Support Levy, Capital Value Tax, Wealth Tax and Corporate Asset Tax;
including:
Exemptions
Avoidance of Double Taxation Agreements
Formulate and present proposals relating to Income Tax, Sales Tax, Federal Excise
Duty, Income Support Levy and Capital Value Tax for annual Finance Bill;
Liaise with international organizations/ agencies on matters relating to Inland
Revenue;
Supervise all inter-ministerial issues relating to Inland Revenue;
Coordinate in matters relating to Inter Provincial Coordination Committee;
Process, short list and nominate officers of IRS for IRS specific training;
Exercise powers and perform functions of the Board under the provisions of Sales
Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules
2002, Federal Excise Rules 2005 and Sales Tax Rules 2006, as delegated by the
Board:.

3.Member (Administration)
4.Member (HRM)
5.Member (Accounting)
6.Member (Inland Revenue - Operations)
Functions:
Achieve revenue targets and manage operations relating to Inland Revenue;Supervise
revenue collection by Chief Commissioners of all RTOs / LTUs who shall report to
him;Monitor enforcement and Withholding Tax activities relating to Inland
Revenue;Law & Procedure except matters falling in the purview of Member (IR-
Policy);Liaise with the Member Customs for WHT on imports;Exercise powers and
perform functions of the Board under the provisions of Sales Tax Act 1990, Income
Tax Ordinance 2001, Federal Excise Act 2005, Income Tax Rules 2002, Federal Excise
Rules 2005 and Sales Tax Rules 2006, as delegated by the Board:To Exercise powers
and functions of the Board under section 214B of the Income Tax Ordinance, 2001.
7.Member (Taxpayers Audit)
8.Member (Legal)
9.Member (Customs)
10.Member (Strategic Planning, Reforms & Statistics)
11.Member IT (Information Technology)
12.Member (Enforcement & WHT )
13.Member FBR

RTO
Chief Commissioner Inland Revenue (RTOs).RTOs were established to provide efficient
service to taxpayers.
Responsibilities:All matter relating to administrative control,Generation of
revenue with in jurisdiction,Enforcement/collection of revenue,Facilitation of
Taxpayer,All legal issues pertaining to the jurisdiction,Any other assignment by
the chairman..

Motor Vehicles Taxes

Motor Vehicle Tax is levied on every motor vehicle registered in any district with
Registration Fee.

The annual Motor Vehicle Tax is levied under Sindh Motor Vehicle Taxation Act,1958
and
Motor Vehicle Rules, 1959.

The registration of vehicles and collection of taxes are being effected through
computerized
system and authorized online National Bank branches linked with main server at
Civic
Centre Karachi.

The Computer System of Civic Centre Karachi is also linked with the regional
Directorates, Excise and Taxation at Hyderabad/Sukkur/Larkana/Mirpurkhas.

Every vehicle whether commercial or private is registered, is issued registration


number,
registration book and number plate.

TYPE OF TAXES / FEE

New Registration fee


Rates of Transfer fee
Rates of Token Tax Motor Car
Rates of other Post Transactions
Rates of Security Featured Items
Rates of Withholding Tax - (One Time at Registration on Local Cars)
Rates of Motor Tax on Commercial Vehicles
Rates of Income Tax
Rebate in Token Tax

Hotel Tax
he Hotel Tax is collected under the provisions of Punjab Finance Ordinance 1978,
(Provisions relating to the levy and collection of Hotel Tax) and the Punjab Hotel
Tax Rules, 1992. This tax is levied and collected from the owner or management of a
hotel against the total number of lodging units (rooms) actually occupied in the
hotel. The rate of tax varies from 4% to 8% details of which are as under:

Rate of Tax

A-Lodging unit of a hotel actually occupied.


8% of the daily charges of a lodging unit. No tax is levied if daily charge for a
lodging unit is less than Rs.25/-.

B-Lodging unit of a hotel at Hill station actually occupied


4% of the daily charges of a lodging unit. No tax is levied if daily charge for a
lodging unit is less than Rs.25/-.

Note: This levy has been shifted to Punjab Revenue Authority (PRA) w.e.f 1-7-2014

cCotton fee was levied by Government of Punjab vide the Cotton Control
Ordinance/Rules 1966 and its recovery was earlier assigned to the Agriculture
Department. However, the levy was assigned to Excise and Taxation Department in
1973. The rates of fee since its levy continue to change and at present it is
charged @ 0.10 paisa per kg. Through a notification, Excise and Taxation Inspectors
were declared as Cotton Inspectors and following registers were described to be
maintained by an owner/proprietor of a Cotton Factor for the purpose of Cotton Fee

GATE REGISTER

The arrival of Phutti through trucks or other careers etc. received through main
gate is entered in the Gate Register and a gate pass is issued to the carrier of
Phutti (raw cotton).

XX REGISTER (WEIGHT REGISTER)

After entry in Gate register, phutti is weighed and entered in "TAK PATTI REGISTER"
and after weight of the phutti, it is entered in XX register on daily basis.

GINNING REGISTER

After weight and entry into XX register, phutti is put to ginning section and daily
ginning i.e. total phutti , lint obtained and cotton seed obtain is entered in
Ginning register according to their weight.

PRESSING REGISTER

After ginning the lint is sent to pressing Section where it is converted into bales
and every bale bears its lot number and bale number. The pressing register contains
full particulars of the bales pressed on daily basis carrying name of party date,
serial number and lot number.

OUT GATE REGISTER

Out gate register is maintained at out gate in which every lot/bale taken from the
factory is to be entered and a gate pass showing lot number, number of bale is to
be issued to the driver of the carrying vehicle. Cotton fee at the prescribed rate
by the Government is to be payable by every owner of a ginning factory on self-
assessment basis by every 7th of the following month. In case the owner is
different from the occupier, the liability is that of the owner who, on his part,
is expected to make suitable arrangements with the occupier for the payment of the
fee. The factory management is bound to submit a return in form "Y" on fortnightly
basis and monthly basis along with payment receipt. In case of failure of payment
or otherwise detection of any evasion by a cotton factory, the Excise and Taxation
Officer of the district after issuing necessary notice and personal hearing to the
proprietor/owner of a cotton factory is empower to assess the cotton fee at the
enhanced rate not more than equal of the amount of original fee. However, the
aggrieved owner/proprietor has the right to file an appeal before the Director,
Excise and Taxation concerned or revision before the Director General, Excise and
Taxation Punjab, Lahore.

Entertainments Duty

The entertainments duty is administered under the Punjab Entertainments Duty


Act/Rules 1958. This duty is levied on admission to any entertainment. According to
the Punjab Entertainments Duty Act 1958, entertainment includes any exhibition,
performance, amusement or horse-racing to which persons are admitted at payment.
The rate of duty varies according to the class/type of entertainment which details
are given below :-

Entertainment Duty is levied :-


Entertainment Duty is levied as follows:
65% of the Admission Charged on any Exhibition, Performance, Amusement, Game or
Sport.
20% of the payment for admission to stage Dramas & Theatres.
200% of the payment for admission to Horse Racing.
10% Entertainment Duty as Government share on the amounts share-cum-prize tickets
recovered on accounts maintained through Totalizator installed in the Lahore Race
Club.
Entertainment Duty @ 30 % has been fixed by converted into a "Fixed Charge per Day"
in respect of different categories of Cinema Houses Screening or exhibiting movies
with from 1-7-2001 for a period of five years. Rates of fixed charge per day
Entertainment Duty of each category is detailed below:
Category of Cinema Houses Fixed Charge per Day Entertainment Duty (Rupees)
A 25000/-
B 2000/-
C 1500/-
D 1000/-
E 500/-
F 200/-

Government's share from the Lahore Race Club (LRC)

@ Rs.50,000/- per race day for the calendar year, 2004 as Government's Share/
Entertainment Duty from the Lahore Race Club (vide Home Department's Notification
No.S.O.(JUDL-III)10-1/99(P-II), dated 19.6.2004).

Exemption:

All CINEMA HOUSES, screening or exhibiting movies, have been exempted from payment
of Entertainment Duty for a period of two years w.e.f. 01.07.2004 vide Excise and
Taxation Department's Notification No.SO(Excise)(E&T)2-3/2004, dated 30.06.2004.All
TOURING TALKIES have been exempted from the payment of Entertainment Duty for a
period of five years w.e.f 01-07-2001. vide Excise and Taxation Department's
Notification No.S.O.(Tax)(E&T)1-5/89(P-II), dated 18.07.2001.
Exemption from the liability to pay the Entertainment Duty is provided to any
entertainment where the Collector/District Officer concerned is satisfied that the
whole of the net proceeds of it will be devoted to philanthropic, charitable,
educational, athletics, sports, national or scientific purposes. (Procedure for
seeking exemption has been explained in Sections 8(1) and 9 of the Punjab
Entertainments Duty Act 1958 read with Rule 26 of the Punjab Entertainments Duty
Rules, 1958.

The Excise Fee is administered under the Punjab Excise Act 1914 and the Prohibition
(Enforcement of Hadd) Ordinance, 1979. The Excise Fee/Duty is levied on various
excisable articles including liquor, medicinal opium powder, liquor vends etc. The
details are as follows:
The following taxes are collected under the head of Excise Fee:

1. STILL HEAD DUTY


2. VEND FEE

3. DUTY ON THE MANUFACTURE OF RECTIFIED SPIRIT:

4. SALE OF OPIUM :

5. FEES ON LICENCE/PERMITS

phe Professional Tax is administered under the provisions of The Punjab Finance Act
1977 and the Punjab Proffesions and Trade Tax Rules 1977. This tax is levied and
collected on/from the persons or class of persons engaged in a profession, trade,
calling or employment in the Province of the Punjab.

For examples , Companies,lawyers, Doctors, etc

Modes of Professional Tax

1. Companies registered under Companies Ordinance, 1984


2. Factories as defined under the Factories Act,1932
3. Commercial Establishments other than the above said two categories
4. Importers and Exporters
5. Government Contractors
6. Government Builders
7. Government Property Developers
8. Service Providers

Property Dealers
Motor Car Dealers
Motor Cycle Dealer
Employees
Doctors
Hakeems or Ayuervedics
Auditing Firms
Engineers
Tax consultants
Architects
Lawyers
Member of Stock Exchange
Money Changers
Recruiting Agents
Carriage of Goods and Passengers
Health Clubs
Jewellers
Departmental Stores
Electronic goods Stores
Cable Operators
Printing Presses
Pesticide Dealers
Tobacco Whole Sellers
Taxing Year
Taxing year is from 1st July to 30th June (Fiscal Year), under section 1 (3) of the
Punjab Finance Act, 1977

Payment Duration
Every person liable to pay the tax shall before the 31st day of August, in each
calendar year, furnish to the District and Taxation Officer a statement giving his
name, address, nature of his profession, trade calling or employment.

Crediting of amount
Every person shall credit the amount of the tax in the nearest treasury in Form
P.R.T-2 or send the same to District Excise and Taxation Officer by postal order by
a cheque on the State Bank of Pakistan, National Bank of Pakistan or any other bank
having clearing accounts with either of these banks.

Deleting of Demand
If any person liable to pay tax discontinuous the trade, profession, employment or
calling on the basis of which he is liable to pay the tax such person shall within
30 days of his discontinuing such trade, profession, employment or calling notify
the fact to the District Excise and Taxation Officer, under section 10 of the
Punjab Professions & Trade Tax Rules, 1977

Exemption in property tax

EXEMPTIONS
The Property not capable of commanding annual rent exceeding Rs. 4320/-
A single house not commanding annual rent exceeding Rs. 6480/- if occupied by the
owner for his residence.
The buildings owned by widows, minor orphan and/or disabled person tax liability of
which is up to Rs.12150/- per annum are exempted.
One residential house up to one Kanal owned and occupied by a Federal or Provincial
Retired Government servant is exempted.
Those buildings owned by Government or a Local Authority such as a Corporation,
Municipality or town committee.
Mosques and other religious buildings.
Buildings and Lands used as public parks and playgrounds, schools, boarding,
houses, hostels, libraries, and hospitals.
Properties, the rents of which are devoted exclusively to religious or prescribed
public charitable institutions

Rebate in property tax

REBATE AND SURCHARGE

A rebate equal to 5 % of the amount of annual tax for financial year is allowed if
the amount of annual tax paid in lumpsum on or before the 30th September of the
financial year.

A late payment surcharge at the rate of one per cent of the gross payable tax shall
stand imposed on the first day of every month of delay if the tax payable for any
year is not paid by 30th day of September of the said year

Assessment of the properties is based primarily on the nature of occupation and the
type of building. Valuation Tables for reasonable rents in respect of Commercial
(Self & Rented) and Residential (Self & Rented) properties with categories of
localities classified from A to G on Main/Off Road basis have been notified u/s 5-A
of the Act ibid. Annual Value of the properties is calculated through the rates
specified in these valuation tables.

PROPERTY TAX NOTICES


P.T-10
It is a challan upon which name of assesses, his property number, amount of tax for
current financial year, arrears (if any) and last date of payment is mentioned.
Upon receipt of this challan the assessee should deposit tax before last date
mentioned in any branch of National Bank of Pakistan or State Bank of Pakistan
where provincial receipts are received. Challan consists of three portions. The
duplicate portion of this challan is sent to the E&T department through treasury
where amount deposited is entered in the concerned registered. It is desirable, if
photo copy of receipt is directly sent of E&T office, so that proper entry is
recorded in the relevant record in time so that no further notice is sent to the
assessee.
P.T-11
When the assesse does not pay the tax in time specified in PT-10 a penalty equal to
the amount of tax can be imposed upon him. Through PT-11 notice, the assessee is
given opportunity to satisfy that non deposition of tax in time was not willful. On
receipt of this notice, that assessee should appear personally or through some
representative, before the concerned authority and inform the reasons for non
depositions so that penalty may not be imposed upon him.
P.T-14
Where the owner of a property tax does not pay property tax in time, the tenant of
the property may be made bound to deposit the rent in Government Treasury until tax
liability is cleared. For this Purpose, Notice PT-14 is issued to the tenants who
should deposit rent in Government Treasury on Challan PT-10.
P.T-13
Whenever the Assessing Authority ETO/AETO gets information about any change in
description, use, possession, or ownership of any property unit, PT-13 is issued
stating such change, proposed assessment and tax. The person who is served with
this notice should file an objection in the office of concerned ETO within 14 days.
If no objection is received within 14 days proposed change is confirmed

Property Tax in punjab

Property Tax
RATE OF TAX
Under the provisions of the Act, the property tax is levied on the annual value of
buildings and land located in the rating area. It is levied at the rate of 5% of
annual value at which the property may be let out from year to year basis.
PROCEDURE FOR ASSESSMENT
Assessment of the properties is based primarily on the nature of occupation and the
type of building. Locality wise yardsticks for commercial and residential, self or
rented as the case may be, properties have been prescribed. Annual value the
properties is calculated through these yardsticks. On the basis of annual value of
the property unit, Property Tax is charged on the rates mentioned above.
TIME AND MODE OF PAYMENT
The Property Tax may be deposited on or before the 30th day of September with 5%
rebate of tax for the current financial year.
Time allowed for payment is 30 days from the date of serving of Demand Notice
accompanied with the Challan Form.
The tax is deposited into the Treasury or State Bank or in the specified branches
of National Bank of Pakistan.
Payment can be made through a cheque (accompanied by Challan Form) drawn on a
scheduled bank in favour of the Excise & Taxation Officer of the District
concerned.
Property Tax New Valuation Table 2014
Rebate
Assessment
Exemptions

Federal Taxes in Pakistan

There are many types of taxes are conducting in Pakistan but the most important are
as under: FBR deals with collection of federal taxes and tax policies

In the existing setup, the Chairman, FBR, being the executive head of the Board as
well as Secretary of the Revenue Division has the responsibility for
(i) Formulation and administration of fiscal policies,
(ii) Levy and collection of federal taxes and
(iii) Quasi-judicial function of hearing of appeals.
His responsibilities also involve interaction with the offices of the President,
the Prime Minister, all economic Ministries as well as trade and industry.

1-INCOME TAX

2-SALES TAX

3-EXCISE DUTY

4-CUSTOM DUTy
Customs Duty

Goods imported and exported from Pakistan are liable to rates of Customs duties as
prescribed in Pakistan Customs Tariff. Customs duties in the form of import duties
and export duties constitute about 37% of the total tax receipts. The rate
structure of customs duty is determined by a large number of socio-economic
factors. However, the general scheme envisages higher rates on luxury items as well
as on less essential goods. The import tariff has been given an industrial bias by
keeping the duties on industrial plants and machinery and raw material lower than
those on consumer goods.

Central Excise Duty

Central Excise duties are leviable on a limited number of goods produced or


manufactured, and services provided or rendered in Pakistan. On most of the items
Central Excise duty is charged on the basis of value or retail price. Some items
are, however, chargeable to duty on the basis of weight or quantity. Classification
of goods is done in accordance with the Harmonized Commodity Description and Coding
system which is being used all over the world. All exports are exempted from
Central Excise Duty

Sales Tax:

A tax taken by the government on the sale of a product called as general sales tax
(G.S.T). Mostly this tax will be taken on products sales by different types of
shopkeepers.
Sales Tax was a provincial subject at the time of partition. It was being
administered in the provinces of Punjab & Sindh as provincial levy. Sales tax was
declared a federal subject in 1948 through the enactment of General Sales Tax Act,
1948 and in 1952, this levy was transferred permanently to the Central Government.
Sales tax was levied at the standard rate of 6 pies per rupee at every stage
whenever a sale was effected. The trading community protested against this system,
and this resulted in the enactment of Sales Tax Act 1951.
A system of licensed manufacturers & wholesalers was instituted whereby they were
allowed to purchase goods free of sales tax from each other and pay tax on sales to
unlicensed traders. Imports were chargeable to Sales Tax but the licensed
manufacturers & wholesalers were allowed to import goods without the payment of
Sales Tax. Later on Sales Tax became chargeable on locally produced & imported
goods at the time of their sales & import, respectively. The sales tax, was
collected under the Finance Ordinance, 1956, on goods which were chargeable to
Central Excise Duty, as if it were a duty of Central Excise. In April 1981, by
virtue of an amendment in the Sales Tax act, 1951, the collection of Sales Tax on
non-excisable goods was also entrusted to the Central Excise Department.
In the late eighties the government decided to replace Sales Tax with the Value
Added Tax in the country as a part of its structural adjustment program which was
undertaken to correct anomalies & distortions both in our tax & non-tax regimes.
Accordingly new enactment titled Sales Tax Act 1990 replaced Sales Tax Act 1951
with effect from 1-11-1990.
Examples:
All foods items as jam, butter, oil etc.

income tax in Pak

income Tax

Income tax is that type of tax that is conducting on a person income, that is
generated by his/her business or we may say that a tax levied on the financial
income of persons, corporations or other legal entities. A person pays tax on total
profit that is getting by his business.
OR
Taxation according to a person�s ability to pay is universally accepted principle,
and income is considered a satisfactory though not a sufficient index of such
ability to pay. Income Tax is, therefore, generally recognized as a highly
equitable form of taxation. A tax levied on income can normally be shifted to
others and thus its incidence is on those for whom it is intended. Since income tax
is progressive in nature, it tends to reduce economic disparity. Tax rates and
method of calculating taxable income varies with fiscal status of the tax payer.
Following are the broad categories of taxpayers:-
Companies
Association of Persons (AOP)
Non Salaried Individuals
Salaried individuals
Capital Value Tax

It is payable by individuals, firms and companies which acquire an asset by


purchase or a right to use for more than 20 years.

Corporate Asset Tax

It is levied through section 12 of the Finance Act, 1991. This is one time levy
payable by a company as defined in Companies Ordinance, 1984, on the value of fixed
assets held by the company on the "specified date.

following is the syllabus for the post of Inspector Inland Revenue. Any one may
contact for syllabus and test related queries.
Part-I 20%
Grammar Usage, Sentence Structuring
Part-II 80%
? Functions of Federal Board of Revenue.
? Fiscal Policy of Pakistan
? Tax Administration/Reforms in Pakistan
? Sales Tax Act 1990 as amended upto July 2016
? Federal Excise Act 2005 as amended upto July 2016
? Income Tax Ordinance 2001 as amended upto June 2016 (Chapter-III & Part IV of
Chapter-X only.

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