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Thursday November 21, 2024

FBR to update ATL daily: PM approves withdrawal of enforcement powers from Customs Intelligence

FBR announced amendments to Income Tax Rules, 2002, as notified via SRO 1638(I)/2024

By Mehtab Haider
October 25, 2024
Federal Board of Revenue (FBR) building can be seen. — X/@FBRSpokesperson/file
Federal Board of Revenue (FBR) building can be seen. — X/@FBRSpokesperson/file

ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday announced to update the Active Taxpayer List (ATL) of Income Tax filers daily against the previous practice of doing this every week.

The FBR announced amendments to the Income Tax Rules, 2002, as notified via SRO 1638(I)/2024, dated 18th October 2024. These amendments, issued under section 237 of the Income Tax Ordinance, 2001 will be improving the updating mechanism for ATL in a bid to incentivise non-filers to come into the tax net.

The taxpayers who file their returns after the due or extended date may still be included in the ATL upon payment of the surcharge specified in Section 182A of the Income Tax Ordinance. The previous system, whereby the ATL was shifted annually in March, has been revised. Now, a taxpayer’s inclusion in the ATL will occur immediately upon filing the Income Tax Return.

Under the much-hyped FBR’s Transformation Plan, Prime Minister Shehbaz Sharif has granted his assent for the withdrawal of major enforcement powers from the Directorate General of Intelligence and Investigation (I&I) Customs and this office would undertake only intelligence-related assignments. The role of Customs Intelligence has been curtailed for intelligence and their responsibilities of enforcement have been withdrawn from their jurisdictions.

The Customs Intelligence will be barred from taking enforcement actions on roads across the country. The Customs Intelligence will only be empowered to undertake sting operation in case of dire need but its DG will have to obtain post facto approval from the Member Customs or within two days of the completion of the operation.

The government has granted all enforcement powers to newly established Director General Customs Enforcement Islamabad. For enforcement purposes, the DG Enforcement will be assigned to establish check posts on River Indus at all connections, entry and exit points.

FBR Chairman Rashid Mahmood Langrial said that this restructuring plan was granted go ahead where the intelligence and enforcement were bifurcated and DG Enforcement would now be held responsible for all such actions going to be undertaken against smuggling and for achieving other enforcement related matters. Under the new arrangement, anti-smuggling activities will be conducted by Director General of Customs Enforcement, Islamabad, and these powers were taken away Directorate General of Intelligence and Investigation (I&I) Customs. Now most of the functions of Directorate General of Intelligence and Investigation (I&I) Customs have been transferred to the Director General of Customs Enforcement, Islamabad.

Following the directive from the prime minister, the FBR has barred the Customs Intelligence officers from stopping or releasing consignments, as well as conducting raids or sting operations. The FBR has also imposed a bar on the Customs Intelligence and Investigation from stopping imports/exports consignments cleared under the “WEBCO” system. As part of this transition, Customs Intelligence offices in Rawalpindi, Multan, Hyderabad, and Gwadar have already been closed, with plans to shut down remaining offices across the country within the next 10 to 15 days.