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A jail sentence and heavy fines were declared for fake tax documents.

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7 months ago

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In an effort to strengthen the anti-tax fraud and evasion procedures, the Federal Board of Revenue (FBR) has released a notification detailing important changes to the Sales Tax Act, 1990.

The decision to create a specialised section tasked with looking into tax fraud cases is among the major improvements. The new wing will include a Digital Forensic Unit and an Intelligence and Analytical Unit to improve the enforcement of tax rules.

People who don’t file tax returns could get summonses or notices under the modified laws. A steep fine of either Rs 25,000 or 100% of the tax amount, whichever is higher, would be imposed for submitting forged or fraudulent documentation. On top of that, filing false tax returns can land you in jail for up to five years.

Severe fines for tax evasion have also been established by FBR. Offenders risk a maximum five-year prison sentence for tax evasion of less than Rs. one billion. A fine equivalent to the amount evaded is imposed in addition to a 10-year prison sentence for amounts over Rs-1 billion.

Under the amended definition, purposeful under-declaration of taxes or underpayment of dues are now included, as well as the filing of fake documents and information concealment. The revised law will also closely examine claims of excess tax credits against duty paid.

All matters concerning tax fraud will be handled by the recently established Tax Fraud Investigation Wing. The ability to obtain electronic invoices from people, organisations, or businesses will be provided by this wing. An automated system makes it possible to verify these invoices in real time, guaranteeing increased accountability and transparency.

As a major step towards preventing tax fraud and improving the integrity of Pakistan’s tax system, these strict procedures and the creation of the special investigation wing are being implemented.

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The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

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As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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