Latest news with #SalesTax
Business Recorder
5 days ago
- Business
- Business Recorder
ST, Federal Excise Return: FBR extends date of submission upto June 5
ISLAMABAD: The Federal Board of Revenue (FBR) has extended date of submission of Sales Tax and Federal Excise Return for the tax period of April, 2025 upto June 5, 2025. This is subject to the condition that due sales tax liability has been deposited within due date. FBR to levy 18% sales tax in erstwhile tribal areas In this regard, the FBR has issued instructions to all Chief Commissioners Inland Revenue of Large Taxpayers Offices (LTOs), Medium Taxpayers Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) on extension in date of Submission of Sales Tax & Federal Excise Return for the Tax Period of April, 2025. In exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005, the FBR has directed that the date of submission of Sales Tax and Federal Excise Return for the tax period of April, 2025 which was due on May 18, 2025 is extended till June 5, 2025 subject to the condition that due sales tax liability has been deposited within due date, FBR added. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
Oil and gas sector tax proposals for Federal Budget 2025-26
The upcoming Federal Budget 2025-26 of the country is arriving in a scenario when world is reeling from the shocks of US sanctions on the rest of the world, especially China. The trade war between two superpowers of the world has sent the world economy, particularly oil and gas sector, into a recessionary circle, whereby Crude Oil prices and refinery margins are squeezing, leading to projected closure of upstream and downstream businesses world over. Simultaneously, contrary to the expectations from the alternate sources of energy, Oil and Gas demand continues to grow. Oil and gas sector is the biggest contributor to the national economy. Upstream Exploration and Production (E&P) and downstream (Refineries and Oil Marketing Companies) contribute a substantial chunk of country's budget in the form of Petroleum Development Levy (PDL), Windfall and Discount, Sales Tax and Income Tax and other Federal, Provincial and Local Government levies and taxes. In view of its importance, the budgetary policies and measures should be designed in a way so as to boost the earning capacity of this sector. Challenges being faced by Oil & Gas sector Last year, we witnessed some positive developments in oil and gas sector of Pakistan as major international players had entered the marketing business while all the local refineries of the country were gearing to sign their respective upgrade agreements under the Pakistan Oil Refining Policy-2023 for existing/ Brownfield refineries with potential investment of around US$ 6 billion to the ailing economy of the country. Ideally, the budgetary measures should have been positively inclined to facilitate this investment environment. Unfortunately, the measures adopted were contrary to the expectations; whereby in order to resolve the operational issue of outstanding refunds of OMCs, the major petroleum products were declared as 'Sales Tax Exempt Supplies' disallowing OMCs and refineries from adjusting their input sales tax. Proposals for upcoming budget The government is urged to adopt tax measures proposed by the Overseas Investors Chamber of Commerce and Industry (OICCI), which should restore the confidence of local and foreign investors and facilitate the implementation of Pakistan Oil Refining Policy — 2023 for existing/ Brownfield refineries. The OICCI urges the government to undo the exemption of sales tax on major petroleum products; namely, Motor Spirit (Petrol), High Speed Diesel Oil, Kerosene, and Light Diesel Oil, brought through Finance Act 2024 and these should be declared as Taxable Supplies at an appropriate sales tax rate. The disallowance of input tax has increased the operating costs as well as cost of infrastructure development of the industry; impact for TY 2025 is expected to be more than Rs. 33 billion. The excessive tax burden on the formal corporate sector and especially the oil industry, which is already bearing the brunt of compliance and regulation, requires urgent review to ensure long-term sustainability and competitiveness. Further, taxation regime of E&P companies is governed under the respective Petroleum Concession Agreements (PCAs) signed by the President of Pakistan. The PCAs contain a freezing clause for pricing and taxation to provide fiscal stability and long-term investment security to E&P Companies. Imposing Super Tax on E&P companies violates the fiscal stabilization/freezing clause of the PCAs. Super Tax, originally introduced as a one-time levy, has been extended well beyond its initial scope. In light of the current economic climate and the need to support documented and responsible businesses, OICCI recommends the gradual abolishment of Super Tax in three years. Prices of Petroleum Products (High Speed Diesel and Motor Spirit — Petrol) and the margins thereon are fixed by the Government of Pakistan and cannot be changed unless approval of the relevant Ministries of the Government is obtained. This fixed margin covers all costs related to establishment, development, and set-up of the business and running of the business, including capital cost and financial costs, at the current price, the Minimum Tax eats up around 16% of OMCs' fixed margin. It's recommended that Minimum Tax applicable on Refineries and OMCs should be reduced to 0.25% and abolished in the subsequent year. Since the early 1990s, petroleum products produced by refineries have been exempt from withholding tax under the Income Tax Ordinance, 2001, with the Commissioner granting exemptions in accordance with the law. This exemption was provided because, despite the high sales volume of refineries, their profit margins are low. Due to this change, refineries are facing significant withholding tax liabilities without corresponding income to offset it. It is, therefore, OICCI's recommendation that the Commissioner's power for issuing Exemption Certificates should be reinstated. (The writer is the Managing Committee member of OICCI) Copyright Business Recorder, 2025
Yahoo
14-05-2025
- Business
- Yahoo
KBRA Assigns AAA Rating to Massachusetts Bay Transportation Authority Senior Sales Tax Bonds, 2025 Series A and Senior Sales Tax Bonds, 2025 Series B; Affirms Related Ratings
NEW YORK, May 14, 2025--(BUSINESS WIRE)--KBRA assigns a long-term rating of AAA to the Massachusetts Bay Transportation Authority Senior Sales Tax Bonds, 2025 Series A and Senior Sales Tax Bonds, 2025 Series B. KBRA additionally affirms the long-term rating of AAA for the Authority's outstanding Senior Sales Tax Bonds and AA+ for the Authority's Subordinated Sales Tax Bonds (USDOT Loan). The rating Outlook is Stable. Key Credit Considerations The rating actions reflect the following key credit considerations: Credit Positives Flow of funds requiring that pledged revenues must be used to pay debt service before being made available for other purposes insulates bondholders from MBTA operations. Pledged revenues provide strong coverage of both senior and combined sales tax bond pro forma MADS with residual amounts providing a substantial source of recurring financial support for capital and operating needs. Pledged revenue volatility is limited by the base revenue amount, an inflation-adjusted floor for pledged sales tax receipts, which at $1.16 billion for FY 2024 provides coverage of 3.08x senior and 2.34x combined pro forma MADS. Stable demographic trends and favorable socio-economic characteristics of tax base support growth and stability of pledged receipts. Credit Challenges Pledged revenues have some sensitivity to economic cycles. Rating Sensitivities For Upgrade Not applicable to senior sales tax bonds given AAA rating level. A rating upgrade is not anticipated for the subordinated sales tax bonds (USDOT loans). For Downgrade A significant decline in debt service coverage due to very large increases in sales tax bond leverage accompanied by significant and prolonged deterioration in the sales tax base. To access ratings and relevant documents, click here. Methodologies Public Finance: U.S. Special Tax Revenue Bond Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009448 View source version on Contacts Analytical Contacts Peter Scherer, Senior Director (Lead Analyst)+1 Joanne Ferrigan, Senior Director+1 Douglas Kilcommons, Managing Director (Rating Committee Chair)+1 Business Development Contacts William Baneky, Managing Director+1 James Kissane, Senior Director+1 Sign in to access your portfolio
Hindustan Times
06-05-2025
- Business
- Hindustan Times
Andheri scrap dealer booked for evading ₹111 cr in sales tax
MUMBAI: The Economic Offences Wing (EOW) of Mumbai police has booked an Andheri-based scrap dealer for allegedly evading ₹111.03 crore in sales tax between 2012 and 2016. The first information report (FIR) was registered at the Amboli police station on Saturday based on a complaint by Dr Atul Ghusale, deputy commissioner of Sales Tax, Mumbai, said EOW officers. According to the police, Dr Ghusale had submitted a written complaint in December 2024 against two top executives of STC Global Metal Private Limited, which had its office in Veera Desai Road in Andheri West. The executives were Imran Vahevaria, the firm's managing director, and Senhila Imran Vahevaria, a director of the firm. The Vahevarias had registered their scrap import and export business under the Maharashtra Value Added Tax Act and the Central Sales Tax Act and they subsequently defaulted on sales tax payments for the assessment years 2012-13 to 2015-16. 'As per the Maharashtra Value Added Tax Act, tax dues must be cleared within 30 days. The sales tax department had served several notices to the Vahevarias and approached the EOW after it failed to recover the dues,' said a police officer. The two executives of the firm have been booked under section 74 of the Maharashtra Value Added Tax Act, the officer noted. The sales tax department has intimated the EOW that they were unable to locate the two executives despite serving multiple notices, said an EOW officer. 'The accused caused a loss of ₹111 crore to the state government by not paying the dues. We have just registered the offence and are searching for them,' said the officer. The sales tax department has seized some bank accounts of the accused and could seize other assets if the dues are not cleared, said police.
Business Recorder
03-05-2025
- Business
- Business Recorder
Audits on large-scale: Third-party auditors being hired by FBR
ISLAMABAD: The Federal Board of Revenue will conduct large-scale audits including desk audits, investigative audits, forensic audits and field audits of the registered income taxpayers and sales taxpayers with the help of external auditors. In this regard, the FBR has issued a detailed audit plan for the third-party auditors on Friday. The new audit plan would be implemented in line with the FBR's transformation plan. FBR decides to conduct 3rd party audit of tracking services According to a notification issued by the FBR, consequent upon approval of the FBR Inland Revenue (IR) transformation plan, Third-party auditors are being hired to improve the audit capacity and quality of FBR. In this regard, the Board has notified the job descriptions, key performance indicators, performance review forms, performance management mechanisms and performance management flow charts for the said auditors. Through another notification, the FBR notified that consequent upon approval of the Federal Board of Revenue's (FBR) Inland Revenue (IR) Transformation Plan, Audit Mentors & Industry Experts are being hired to improve the audit capacity and quality of the FBR. In this regard, the Board has notified the job descriptions, key performance indicators, performance review forms, performance management mechanisms and performance management flow charts for the said Audit Mentors & Industry Experts. As per the FBR, the Key Performance Indicators for Auditors revealed that 40 percent would be given for productively; 30 percent quality of audit and 30 percent has been assigned for behavioral (attention to detail, accountability/transparency and discipline). As per the FBR audit plan, auditors will assist unit officer in conducting comprehensive desk audits, investigative audits, forensic audits and field audits to identify non-compliance, discrepancies and risk areas. Their role will involve preparing detailed audit reports and monitoring tax payments. The responsibilities of the third-party auditors is to assist officers in conducting detailed desk audits to identify high-risk taxpayers for audit selection and investigation; assist unit officer to analyze taxpayer declarations and reconcile Income Tax, Sales Tax, Federal Excise, Customs, and CVT data to identify discrepancies, fraud, and compliance issues under relevant tax laws, SECP regulations and accounting standards. The third-party auditors would also assist unit officer in conducting desk audits, investigative audits, forensic audits and field audits of Income Tax, Sales Tax, and Federal Excise affairs including examining tax returns, books of accounts, financial statements and annexures in compliance with IAS and IFRS standards and as per Companies Act, Income Tax Ordinance, 2001, Sales Tax Act, 1990 and Federal Excise Act, 2005 and relevant rules. They would identify outliers in financial reports using financial ratios and use deviations from industry benchmarks as risk indicators for audit selection and comprehensively examine taxpayers audit history, compliance history, books of accounts, financial statements, vouchers, journals, ledgers, purchases, sales, production, stock reports and their correlation with production processes machinery and logistics. The responsibilities of the third-party auditors is to assist unit officer to verify cost of sales, administrative expenses, selling expenses, financial charges and withholding taxes, verify trade creditors, trade debtors, bank statements, advances for shares and other balance sheet items. They will examine brought-forward losses, tax reduction claims, tax credits, and verification of admitted, withheld and demanded tax payments. They will assist unit officers in advance tax computation and preparation of exemption/reduced rate reports, conduct comprehensive chain analysis of buyers and suppliers to identify tax fraud cases and identify non-compliance with tax laws. Audit officers will assist unit officer during visits to business premises to understand business processes, market shares, input-output prices and sales-purchase volumes for accurate Income Tax and Sales Tax Declarations. Copyright Business Recorder, 2025
