MH Insights

  Federal Board of Revenue (the Board) issued SRO 99(I)/2021 on 26 January 2021 in which Federal Government has provided exemption from the provisions of S.148 of Income Tax Ordinance, 2001 for the import of wheat by the Trading Corporation of Pakistan.   Snapshot Reference No. SRO 99 (I)/202 1 Description Import of wheat Date of Issuance 26 January 20 21 Amendment Second Schedule of Income Tax Ordinance , 200 1 Objective To provide the exemption from collection of advance tax on import of three hundred thousand metric tons of wheat through tendering process by the Trading Corporation of Pakistan. Effective date Immediate Explanation Collector of Customs collects advance tax from every importer of goods on the value of goods in accordance with the requirements of S.148 of Income Tax Ordinance, 2001. Since the Cabinet Division has...

Federal Board of Revenue (FBR) issued SRO 78(I)/2021 on 22 January 2021 to introduce the Inland Revenue Reward Rules, 2021. The purpose was to consolidate rewards rules already issued from time to time and make a robust system of incentives to motivate officers of Inland Revenue for enhancing their performance.   The rules also provide incentives to whistle blower and informants not belonging to the office Inland Revenue. Snapshot Reference No. SRO 78 (I)/202 1 Description The Inland Revenue Reward Rules, 2021 Date of Issuance 22 January 20 21 Amendment Consolidation of the Reward Rules, 1980 dated 29 March 1988, The Sales Tax Reward Order dated 30 November 1998, The Unified Reward Rules, 2006 dated 05 December 2006 and SRO 398(I)/2016 dated 05 May, 2016 Objective To consolidate exiting reward rules and introduce a robust reward system for officials and staff ...

Federal Board of Revenue (the Board) issued SRO 82(I)/2021 on 19 January 2021 to introduce draft amendment in Customs Rules, 2001 regarding Afghanistan – Pakistan transit trade. As per rule 631, all vehicles carrying transit cargo from Quetta to Qila Abdullah and back were required to get registered at Baleli Customs check post. Now the route has been proposed to be extended from Quetta to Chaman. The customs check post will also be shifted from Baleli to Yaro.   Snapshot Reference No. SRO 82 (I)/202 1 Description Rule 631. Monitoring of transit cargo from Karachi or Port Qasim to up country Date of Issuance 19 January 20 21 Amendment Customs Rules, 200 1 Objective To extend the route from transit cargos from Quetta to Chaman from existing route from Quetta to Qila Abdullah. To change the customs check post from Baleli to Yaro. Effective date ...

Federal Board of Revenue (the Board) issued SRO 05(I)/2021 on 04 January 2021 in order to add a new chapter in Customs Rules, 2001. The chapter deals with the forfeiture of assets of people involved in smuggling. Illegal trade of goods is a major issue in Pakistan and a reason for both cost push inflation and closure of domestic industry. Promulgation of these rules is a good step if implemented in letter and spirit. Following is the snapshot of the law: Snapshot Reference No. SRO 05 (I)/202 1 Description Chapter XXXVII Forfeiture of Property Rules Date of Issuance 04 January 202 1 Amendment Customs Rules , 200 1 Objective To implement law for the forfeiture and confiscation of assets of the person, directly or indirectly, involved in smuggling Effective date With immediate effect A brief explanation of the rules is as follows: Important D...

The Securities and Exchange Commission of Pakistan (SECP) has declared through the circular on 11 January 2021 that growth rate scenarios for life insurance and family Takaful illustration for the year 20 21 and onward shall remain unchanged .   Snapshot Reference No. Circular 1 of 202 1 Description Growth Rate Scenarios for Life Insurance and Family Takaful Illustrations -2021 Date of Issuance 11 January 20 21 Objective To declare that the nominal rate of return and inflation adjusted rate of return will remain the same for financial year 2021 and onward . Effective date From January 2021 Explanation Each year SECP specifies and issues growth rate scenarios in accordance with the provisions of SECP’s Directive for Life Insurance and Family Takaful Illustrations, 2016 after consultation with Pakistan Society of Actuaries. Growth rate scenarios are very im...

Federal Board of Revenue (the Board) issued SRO 13(I)/2021 on 08 January 2021 relating to the furnishing of taxpayer’s profile as per the requirements of section 114A of Income Tax Ordinance, 2001. The Board had already issued SRO 1341 (I)/2020 on 16 December 2020 for the draft rules for comments from the likely affected persons within seven days of the publications of the draft. The rules, which have been made for the purposes of section 114A of Income Tax Ordinance, 2001, describes that taxpayer’s profile shall be filed electronically on the prescribed format and manner as provided on IRIS Web Portal.   Snapshot Reference No. SRO 13 (I)/202 1 Description Rule 34B. Taxpayer’s profile Date of Issuance 0 8 January 20 21 Amendment Income Tax Rules, 2002 Objective To decide the format and manner for taxpayer’s profile . Effective date With immediate eff...

Since the volume and trend of online transactions have increased manifold, Federal Board of Revenue (the Board) has framed custom rules for the regulation of business-to-consumer (B2C) transactions. Snapshot Reference No. SRO 14 (I)/202 1 Description Chapter XXXVIII Import and Export of E-Commerce Rules Date of Issuance 0 6 January 20 21 Amendment Customs Rules , 200 1 Objective To regulate online buying and selling Effective date With immediate effect Scope These rules shall apply for assessment and clearance of imported or exported goods of business-to-consumer (B2C) transactions through authorized dealer via designated stations. The scope of the rules includes e-commerce transactions which the rules define as: e-commerce means buying and selling of goods or services including digital products through electronic transactions conducted via the...

Federal Board of Revenue (the Board) issued SRO 01(I)/2021 on 05 January 2021 in order to make minor amendments in sales tax return. Following is the brief introduction of the law: Snapshot Reference No. SRO 01 (I)/202 1 Description Amendments in Sales Tax Return Date of Issuance 05 January 202 1 Amendment Sales Tax Rules, 200 6 Objective To introduce minor amendments in sales tax return. Effective date With immediate effect