Karachi, October 26, 2024 – The Federal Board of Revenue (FBR) has detailed the process for collecting advance tax at the import stage for the fiscal year 2024-25. According to the FBR, this process is primarily governed by Section 148 of the Income Tax Ordinance, 2001. The ordinance, recently updated to reflect amendments until June 30, 2024, specifies the collection of tax for various classes of imported goods, emphasizing compliance at customs points across Pakistan. The FBR clarified that all importers are required to pay an advance tax on imported goods, with rates specified in Part II of the First Schedule of the Income Tax Ordinance. Under this provision, the Collector of Customs is tasked with collecting advance tax on goods classified in Parts I to III of the Twelfth Schedule. These classifications determine the applicable rates, with adjustments or amendments allowed by the FBR through official Gazette notifications. The board also reserves the right to classify imported goods, allowing flexibility for products used both as raw materials and finished goods, particularly if imported for personal or business-specific purposes. Under subsection (5), the FBR specified that this advance tax is collected simultaneously with customs duty. If certain goods are exempt from customs duty, the tax is collected at the point when customs duty would otherwise be applicable. This allows the FBR to apply tax consistently, irrespective of duty exemptions, ensuring that all importers contribute tax revenue based on the assessed value of imported goods. The Customs Act of 1969 serves as the framework for FBR’s procedures regarding the collection of import taxes, specifically when it pertains to the valuation of imported goods. Further, subsection (6A) of Section 148 authorizes the FBR to establish a minimum value for goods at which advance tax is calculated, making valuation adjustments to avoid discrepancies at customs checkpoints. This…