
RCB delivers utility shock
Drinking water charges for cantonment residents will see an increase of 100% to 200%, while conservancy charges (sanitation fees) will go up by as much as 250%. Commercial water charges and sanitation taxes have also been multiplied several times over.
The decision was passed with a two-vote majority during a meeting of the Board. However, the vice president and 10 elected members rejected the decision, submitting a written dissenting note and staging a walkout from the board meeting.
The board meeting, chaired by RCB President Brigadier Ahmed Nawaz, was attended by VP Malik Munir Ahmed and 11 elected members, 12 nominated government members, the RCB President as the thirteenth member, and Cantonment Executive Officer Ali Irfan Rizvi as Board Secretary, along with other officials.
At the outset of the meeting, VP Malik Munir Ahmed objected to the 200% to 250% increase in residential and commercial rates for water and conservancy charges. His objection was supported by the other 10 elected members.
Following the passing of elected member Hafiz Hussain Malik, which reduced the number of elected members by one, the Board Secretary stated that he could call for a vote to approve the proposed water and sanitation charges under the Cantonment Act. In response, the elected members stated, "Take our written dissenting note; we do not accept this decision. We reject it." With this stance, the VP and the elected members boycotted the meeting and left the board hall.
Consequently, the proposal for the significant increase in water charges and sanitation taxes was approved by the majority of the 12 nominated government members and the Board president, who served as the thirteenth member.
Per the approved increases for monthly water charges on residential connections for cantonment residents, the water charges for one to five marla homes have been increased from Rs500 to: Category A: Rs1,250, Category B: Rs1,000, Category C: Rs900, Category D: Rs850, Category E: Rs750.
Furthermore, the fee for new residential water connections has been doubled from Rs5,000 to Rs10,000, while commercial water connection fees have increased from Rs10,000 to Rs20,000. Commercial water charges have also seen a 100% increase, meaning Rs15,000 charges will now be Rs30,000.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
13 hours ago
- Express Tribune
Govt relents after traders refuse to budge on demands
The federal government has issued new instructions to pacify the protesting business community and decided to gradually ban major purchases, would treat cash deposits as digital transactions, and linked the use of enforcement powers with consent of the grievances redressal committees. The Federal Board of Revenue (FBR) has issued two separate circulars to explain the taxation measures introduced in the budget and give effect to the understanding reached with the business community. The government has tried to address the concerns of the traders by softening the harsh provisions of the tax laws related to enforcement measures with subordinate legislation. According to the explanatory circular, the FBR maintained that "the board will also ensure that the provisions related to enforcement are carried out in a judicious manner with the redressal committees, consisting of representatives of business community and the Board". The traders closed shops in Lahore and Karachi last month against the government measures including giving the FBR arrest powers in tax fraud cases, allowing it to treat half of the cash expenses over Rs200,000 as income, deploying taxmen in business premises and authorising them to arbitrarily reduce tax refund claims. The FBR has now modified its position on cash expenses and stated that "when a person, whether a national tax number holder or otherwise, deposits the cash against invoices in the bank account of the seller, the payment shall be treated as having taken place through banking channel and no disallowance of the expenditure will be made in this regard under this clause". The explanation through subordinate legislation suggests a significant change in the FBR's earlier stance. The FBR, however, added that the expenditure disallowance power was aimed at enabling the formal sector to capture more market share as compared to that of the informal sector. It further said that this provision will not apply to agricultural produce unless it is sold by middle men. This provision also authorises the board to exempt any class of persons subject to conditions and limitations as it deems appropriate. While explaining the powers to arrest in tax fraud cases, the FBR said that the powers and procedure of inquiry and investigation in cases of sales tax fraud and other offences warranting prosecution under the Sales Tax Act have been streamlined. Warrant of arrest may be issued only after approval from a committee, comprising of three members of the FBR, as may be notified by the chairman, and that too only in the cases where fraud involves amount exceeding Rs50 million and nature of the fraud falls within the ambit of any of the first six sub clauses of the clause (37) of section 2, it added. The FBR said that the officer can only arrest a person, if there is a chance that the accused may tamper with documents, the accused may abscond and the accused does not help investigations despite three served notices However, the explanatory circular also underlined that the tax commissioner can obtain subscriber's information pertaining to the internet protocol in connection with any inquiry or investigation in tax fraud cases from any internet service provider, telecommunication companies and the Pakistan Telecommunication Authority (PTA). The FBR further said that sufficient safeguards have been introduced and multiple approvals are required at inquiry stage as well as investigations stage to prevent the misuse of the provisions of prosecution. The FBR has also altered the mechanisms that it had defined to use artificial intelligence for the purpose of identifying tax evasion by authorising its officers to reduce the amount of sales tax refund claims. The FBR had taken the authority to fix a certain limit of input tax adjustment based on Compliance Risk Management (CRM). The FBR said that now the "input restrictions and conditions shall not be altered without meaningful consultation with the business and trade representatives related to the sector for which such action is intended". The explanation implies that if the FBR has any doubts about the attempt to evade taxes by claiming higher refunds, it would first consult with chambers before making any decision. Last month, the FBR had given nearly 11,000 nudging notices on sales tax anomalies being identified through the CRM system. The FBR also explained its enforcement powers against hard to tax persons and promote documentation of the economy. It added that these measures include bar on the operation of bank accounts, bar on the transfer of immovable property, sealing of business premises, seizure of immovable property and appointment of a receiver. "However, these enforcement measures shall be carried out in conformity with natural principles of justice and in a sequential manner to avoid undue hardships", the FBR explained. It further stated that before taking any extreme measure like freezing bank accounts or business premises, a public notice of hearing will be given and hearing will be conducted jointly by a concerned representative of the chamber of commerce and trade and concerned officer of Inland Revenue. Such decisions will also be made public by placement on FBR's website and newspapers, it added.


Express Tribune
14 hours ago
- Express Tribune
PM restarts remittance subsidy
The federal government has decided to initially provide a Rs30 billion supplementary grant to resume subsidies for foreign remittances, indicating a lack of proper consultation among stakeholders before the finance ministry dropped the subsidies from the budget in June. Government sources told The Express Tribune that the finance ministry has conceded to the central bank's demand for subsidies under the Pakistan Remittances Initiative from the budget. However, the ministry agreed only after Prime Minister Shehbaz Sharif ordered it to urgently disburse funds for the scheme. Finance ministry officials said the scheme would now be fully funded, and in the first phase, about Rs30 billion could be approved very soon by the Economic Coordination Committee (ECC) of the Cabinet. The officials said that since there was no allocation in the budget, the money would be taken out of the contingency fund, which the federal government has retained to meet unforeseen expenses. Once the Rs30 billion is exhausted, further allocations will be made during the course of the fiscal year, they added. In the last fiscal year, the finance ministry had allocated Rs87 billion for the subsidies. But against the Rs87 billion allocation, the central bank had billed Rs200 billion to the Ministry of Finance. Of the total cost, around 85%, or Rs170 billion, was under the Telegraphic Transfer (TT) Charges Scheme. Due to the growing cost of subsidies, the finance ministry discontinued budgetary allocations and instead asked the central bank to fund the scheme, as maintaining foreign exchange reserves was the SBP's responsibility. Last month, Special Secretary Finance Nasheeta Mohsin told the Senate Standing Committee that "we are very clear that there is no money in the new budget for the Pakistan Remittances Initiative and the central bank will have to find the funding sources." But the central bank also informed the government last month that under the International Monetary Fund (IMF) programme, it cannot offer any kind of subsidies. "Overseas Pakistanis are our strength and valuable assets, and their hard-earned remittances play a vital role in Pakistan's development," said PM Sharif last week while ordering the finance ministry to resume subsidies. Sources said that SBP Governor Jameel Ahmad stated in one of the meetings that due to the discontinuation of subsidies, the flow of remittances had dropped in double digits during the first half of July. However, finance ministry officials said the slowdown in remittances could be seasonal and should not be attributed solely to the discontinuation of the scheme. SBP data shows that remittances reached a historic high of $38.3 billion in the fiscal year 202425, a 27% increase from $30.25 billion in the previous year. But the finance ministry viewed it as a Rs200 billion subsidy burden. The government has not been able to substantially increase exports, which barely touched $32 billion in the last fiscal year. Remittances helped ease pressure on foreign exchange reserves. Any slowdown in remittances may further pressure the rupee, which in recent days has started appreciating due to official intervention in the market. The ministry also had genuine concerns that financial institutions were breaking one remittance transaction into many to claim more financial benefits, and there was a need to scrutinise the payments. Acting Deputy Governor of the central bank Dr Inayat Hussain also cautioned last month that the government's decision to curtail subsidies for promoting foreign remittances may reduce the flow of these payments through banking channels. The federal cabinet has already approved a substantial reduction in remittance incentives. Following the revised scheme, the central bank issued changes that significantly reduced benefits for banks and exchange companies. The government doubled the minimum eligible transaction size to $200 and introduced a flat rebate rate of Saudi Riyal 20 per eligible transaction, effective July 1, 2025. The old rate ranged from 20 SAR to 35 SAR, which has now been cut by 43%. The TT Charges Scheme offers a zero-cost and free transfer model to the sender and receiver for eligible remittance transactions. The old model offered 20 SAR reimbursement for every transaction worth $100 and above, an additional incentive of up to 10% on growth over the previous year, and a further incentive of SAR 7 for growth exceeding 10% over the previous year. The federal government also decided that a mechanism should be established to gradually phase out the Remittance Incentive Schemes. In that regard, the SBP has been asked to propose and present an evidence-based plan factoring in a cost-benefit analysis of existing schemes, Raast integration with Buna and SAMA gateways, and strengthened controls on transferring remittances through formal channels. The government has also abolished the Exchange Companies Incentive Scheme (ECIS), under which these companies were receiving up to Rs4 per dollar as a government subsidy.


Express Tribune
2 days ago
- Express Tribune
Bilawal pays tribute to fallen cops
Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari paid heartfelt tribute to the brave sons and daughters of the police force who laid down their lives in the line of duty, as the country observed Police Shuhada Day on Sunday. In a message released by the Bilawal House Media Cell, the PPP chairman said that every police martyr is a symbol of courage and a reminder of the heavy price paid for maintaining peace. Our police martyrs are the silent guardians of our peace, who gave their lives so our people can live without fear," Bilawal said. He reiterated his party's firm commitment to the welfare of police martyrs' families. "Let us honour their memory with a pledge to build a society worthy of their sacrifices - a society founded on justice, peace, and dignity," he stated. Memorial Run at Do Darya To honour the fallen heroes of Sindh Police, a 5-kilometre "Run for Shuhada" was organised at Do Darya, Karachi, under the banner of "Born to Run Pakistan." Nearly a thousand male and female participants took part in the event. Inspector General of Police (IGP) Sindh Ghulam Nabi Memon, who was the chief guest, addressed the participants and said the run aimed to raise public awareness about physical fitness, respect for traffic rules, and the rule of law. He said that every year on August 4, Sindh Police commemorates the sacrifices of its martyrs by meeting with their families and distributing gifts among their children. At the conclusion of the run, cash prizes ranging from Rs100,000 to Rs50,000 were distributed among participants. The event ended with enthusiastic tributes paid to the martyrs of Sindh Police.