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26 December 2018

The Federal Board of Revenue (FBR) has decided to implement a new procedure from January 2019 for its field formations for management of tax collection, reconciliation of revenue receipts with Accountant General of Pakistan, and automated issuance/verifications of tax credits, covering all taxes administration by the Inland Revenue Service (IRS). Sources said that the FBR will issue instructions regarding management of tax collection while its accounting procedure is issued for information and compliance by all concerned in the field formations.

The FBR is planning to place a new automated mechanism, from January 2019, for allocation of tax credit of collection including paid at import stage of all taxes for verification of tax credit under new management of tax collection.

Under the new procedure, sources said that the IT Wing FBR through Pakistan Revenue Automaton Limited (PRAL) shall make all possible efforts, on/before 1st July 2019 by redesigning/improving the tax payments recording system maintained by it, in order to identify tax payments made by any 'person'/'registered person' under all laws administered by the Inland Revenue authorities, and provide for an automated mechanism for allocation of credit of collection(including paid at import stage) of all taxes, to the Chief Commissioner/ Commissioner Inland Revenue, of concerned field formation, and ensure its access to the relevant tax payment data, for due verification of tax credit thereof. In addition, the IT Wing FBR will also ensure in reasonable time that allocation of tax credits by DPCs/DPUs /central treasury as well Certificate of Reconciliation of Receipts (duly signed/countersigned and issued by concerned accounts authorities) are recorded in respect of each field formations in the automated system for ease of access and safe custody of such record, so that all such credit allocation transactions are carried through the automated system in future. Cash Collection from Provincial Accountant General(s): The subordinate offices of the Provincial accountants General send a monthly note to the concerned Accountant(s) General of the deductions / collection of Inland Revenue taxes made by them.

The Accountants(s) General give a consolidated cheque to the AGPR/its sub-offices Peshawar/ Lahore/ Karachi/ Quetta/ Islamabad or to FTOs at these stations. These cheques are then credited to the federal government through CPRs/challans as cash payments. Thus the Provincial Accountant(s) General at these stations shall have the district-wise break-up of collection included in the monthly cheque /challan. FTOs at the DPCs/DPUs at these stations will, therefore, certify to the field formation concerned, having jurisdiction over the district of the monthly collection included in the cheque / challan and the concerned RTO will take credit accordingly.

The FBR has proposed that the record of all tax payments in the system (Veritax/TMS) shall be maintained by IT/PRAL (including its backups) or by DPC/DPU (in hard copies in safe custody/soft formats with back up) shall be maintained to avoid any loss of data at any stage. In addition, the DPC/DPU concerned, and central treasury at Islamabad, shall regularly distribute outstation CPRs/tax payment challans (as per procedure) duly verifiable from the system (Veritax/TMS/DPU/DPC /Central Treasury data) to the concerned field formation, latest by 5th of each succeeding month and maintain record thereof, in safe custody, in both hard and soft formats.

Each commission Inland Revenue holding charge of a zone, at a RTO/CRTO/LTU, shall prepare a monthly performance report (on prescribed format) of the zone, under his authorisation (seal and signature), reporting monthly collection of all revenue (taxes and other sources) of all subordinate units/offices, from all sources, and submit the same by 7th of each succeeding month to the Chief Commissioner Inland Revenue of the concerned field formation. Similarly, each subordinate office/unit will submit its MPR to the concerned reporting office and maintain the relevant record of collection. Each Chief Commissioner Inland Revenue of concerned field formation shall consolidate the MPRs (in the prescribe format) reporting collection of all revenue (tax and other sources) of all zones, FBR added.