Latest news with #131
TimesLIVE
30-06-2025
- Automotive
- TimesLIVE
VinFast opens second domestic EV factory amid global expansion
Vietnamese electric vehicle manufacturer VinFast began production on Sunday at its second domestic factory, aiming to ramp up output of affordable mini urban models as its global expansion plans face delays. The new facility, located in the central province of Ha Tinh, has an initial annual capacity of 200,000 units and spans 36 hectares, the company said. By comparison, VinFast's flagship factory in northern Haiphong is designed to reach a capacity of 950,000 units by next year. VinFast, backed by Vietnam's largest conglomerate Vingroup, has set ambitious goals to establish production plants in international markets, including the US, India, and Indonesia. However, it has faced hurdles in its global expansion, including weaker demand and stiff competition. The company announced last year that operations at its US factory would be delayed until 2028. Its India assembly plant is expected to become operational next month. "Once operational, the VinFast Ha Tinh factory will contribute to VinFast's goal of producing one million vehicles per year to meet the increasing demand of domestic and foreign markets," said Nguyen Viet Quang, Vingroup's CEO. The EV maker has set a delivery target of 200,000 cars for 2025, having sold about 56,000 units in the first five months, primarily in its domestic market. It reported a net loss of $712.4m (R12,642,570,552) for the first quarter, less than the $1.3bn (R23,069,131,410) loss in the previous quarter but 20% more than a year before. Revenue jumped 150% to $656.5m (R11,649,911,362) over the same period.
Yahoo
13-06-2025
- Business
- Yahoo
13171229 B.C. Ltd. and Launchit Solutions Inc. Announce Execution of Business Combination Agreement and Launchit's Concurrent Financing
VANCOUVER, British Columbia, June 13, 2025 (GLOBE NEWSWIRE) -- 1317229 B.C. Ltd. ('131' or the 'Company') and Launchit Solutions Inc. ('Launchit') are pleased to announce that the Company, Launchit and 1001240330 Ontario Inc. ('Subco'), a wholly-owned subsidiary of the Company, have entered into a business combination agreement dated June 12, 2025 (the 'Business Combination Agreement') pursuant to which the Company will acquire Launchit by way of a three-cornered amalgamation, which will result in the reverse takeover of 131 by Launchit (the 'Proposed Transaction'). Upon completion of the Proposed Transaction, the Company will continue to carry on the business of Launchit (thereafter referred to as the 'Resulting Issuer'). Terms of Proposed Transaction Under the terms of the Business Combination Agreement, the Proposed Transaction will be completed by way of a three-cornered amalgamation under the laws of Ontario, whereby Subco and Launchit will amalgamate, and the resulting amalgamated entity will survive as a wholly-owned subsidiary of the Company. Immediately prior to or concurrently with closing of the Proposed Transaction, the Company is expected to change its name to 'Launchit Solutions Ltd.' or such other name as is determined by Launchit and the TSX Venture Exchange (the 'TSXV') and complete the Concurrent Financing (as described below). Pursuant to the terms of the Business Combination Agreement, completion of the Proposed Transaction will be subject to a number of conditions, including but not limited to, closing conditions customary to transactions of the nature of the Proposed Transaction, approvals of all regulatory bodies having jurisdiction in connection with the Proposed Transaction and approval of the TSXV, for the listing of the common shares of the Resulting Issuer (the 'Resulting Issuer Shares'), including the satisfaction of its initial listing requirements. There can be no assurance that the Proposed Transaction will be completed as proposed or at all. In addition, immediately prior to or concurrently with closing of the Proposed Transaction, 131 is expected to consolidate (the 'Consolidation') all of its issued and outstanding common shares (each, a '131 Share') on the basis of one (1) post-Consolidation 131 Share for approximately 2.47 pre-Consolidation 131 Shares, and Launchit is expected to complete a stock split (the 'Split') of all of its issued and outstanding Launchit Common Shares (as described below) and Class B non-voting common shares (collectively, the 'Launchit Shares') on the basis of one (1) post-Split Launchit Share for 2.5 pre-Split Launchit Shares. Jamie Harsevoort, Chief Executive Officer of Launchit stated, 'entering into the Business Combination Agreement with 131 represents a significant milestone for Launchit in its ongoing journey to become a publicly traded company in Canada. 131 has been great to work with throughout the course of this journey and we look forward to working hard to complete the business combination in the near future.' A listing statement in connection with the proposed transaction and listing of the Resulting Issuer Shares on the TSXV will be prepared and filed in accordance with the policies of the TSXV. Concurrent Financing In connection with the Proposed Transaction, Launchit is pleased to announce that it has entered into an agreement with Haywood Securities Inc. ('Haywood') and Centurion One Capital Corp., as a co-lead agents (the 'Co-Lead Agents'), to complete a commercially reasonable efforts brokered private placement of a minimum of 7,500,000 subscription receipts of Launchit (the 'Launchit Subscription Receipts') at a price of $0.40 per Launchit Subscription Receipt (the 'Issue Price'), for minimum gross proceeds to Launchit of $3,000,000 (the 'Concurrent Financing'). The Company has granted the Co-Lead Agents an option, exercisable in whole or in part, 48 hours prior to the Closing Date (as defined herein), to increase the size of the Concurrent Financing by selling such number of additional Launchit Subscription Receipts that is equal to 15% of the Launchit Subscription Receipts sold under the Concurrent Financing. Upon satisfaction of the Escrow Release Conditions (as hereinafter defined), each Launchit Subscription Receipt will automatically convert, without any further action of the holder thereof, immediately prior to the effective time of the amalgamation, into one unit of Launchit (each a 'Launchit Unit'). Each Launchit Unit will be comprised of one Class A voting common share of Launchit (each a 'Launchit Common Share') and one common share purchase warrant of Launchit (each a 'Launchit Warrant'). Each Launchit Warrant will entitle the holder to acquire a Launchit Common Share at a price of $0.60 at any time prior to the 60-month anniversary of the date on which the final bulletin is issued by the TSXV announcing approval of the Proposed Transaction, subject to adjustment and acceleration in accordance with the warrant indenture governing the Launchit Warrants to be entered into among 131, Launchit and Odyssey Trust Company, as warrant agent. Upon completion of the Proposed Transaction, each Launchit Common Share and Class B common share of Launchit shall be exchanged for one Resulting Issuer Share and each Launchit Warrant shall be exchanged for one warrant of the Resulting Issuer, exercisable for one Resulting Issuer Share on economically equivalent terms. The net proceeds from the Concurrent Financing, less 50% of the Cash Commission (the 'Escrowed Funds') and the expenses incurred by the Co-Lead Agents in connection with the Concurrent Financing will be deposited in escrow pursuant to the terms of a subscription receipt agreement with Odyssey Trust Company (the 'Subscription Receipt Agent') on the closing of the Concurrent Financing and shall be released upon satisfaction of certain conditions (the "Escrow Release Conditions") including the completion, satisfaction or waiver of all conditions precedent necessary for the completion of the Proposed Transaction. If the Escrow Release Conditions are not satisfied prior to 120 days after the Closing Date (the 'Release Deadline'), the Subscription Receipt Agent will return to the holders of Subscription Receipts an amount equal to the aggregate purchase price for the Subscription Receipts held by them and the Subscription Receipts will be cancelled and be of no further force or effect, unless such Release Deadline is otherwise extended by a period of 90 days the Co-Lead Agents, in their sole discretion and each acting reasonably, provided that the holders of the Subscription Receipts shall be entitled to request in writing, within 5 business days following the announcement of any such extension of the Release Deadline, that Launchit cancel the Subscription Receipts held by such holders and refund the aggregate subscription price paid by such holders, plus a pro rata share of any interest or other income earned on the proceeds of the Concurrent Financing (less applicable withholding tax, if any). Launchit intends to use the proceeds of the Concurrent Financing to pay for the costs and expenses of the Proposed Transaction, including the Concurrent Financing, for operations of the business of the Resulting Issuer, and for general working capital purposes. The Concurrent Financing will be conducted on a private placement basis pursuant applicable prospectus exemptions. Closing of the Concurrent Financing is expected to occur on or about July 16, 2025, or such other date to be agreed to by Launchit and the Co-Lead Agents (the 'Closing Date'). The securities offered have not been, nor will they be, registered under the U.S. Securities Act, as amended, or any state securities law, and may not be offered, sold or delivered, directly or indirectly, within the United States, or to or for the account or benefit of U.S. persons, absent registration or an exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any state in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. Wildeboer Dellelce LLP is appointed as counsel for Launchit, Borden Ladner Gervais LLP is appointed as counsel for the Company and Bennett Jones LLP is appointed as counsel for the Co-Lead Agents. About Launchit Launchit is a private company formed under the Business Corporations Act (Ontario) on August 2, 2024. Launchit is a Canadian-based life science focused venture studio that launches and acquires innovative life science technology and is at the forefront of transforming healthcare through an obesity-focused portfolio and strategic partnerships, including partnerships with Novo Nordisk, the manufacturer of Ozempic and Wegovy, and with Shoppers Drug Mart, Canada's largest pharmacy chain. About the Company and 1001240330 Ontario Inc. The Company was incorporated under the Business Corporations Act (British Columbia) on July 27, 2021. The Company is a reporting issuer under the securities laws of the jurisdictions of Alberta and British Columbia. None of its securities, are listed or posted for trading on any stock exchange and no public market exists for any securities of the Company. Additional information on the Company can be found by reviewing its profile on SEDAR+ at Subco is a private company incorporated under the Business Corporations Act (Ontario) on May 16, 2025, for the purpose of completing the Proposed Transaction. For more information, please contact: 1317229 B.C. Ltd. James WardChief Executive Officerjames@ Launchit Solutions Inc. Jamie HarsevoortChief Executive Officerjamie@ All information contained in this news release with respect to 131, Launchit, and the Resulting Issuer was supplied by the parties, respectively, for inclusion herein, and 131 and its directors and officers have relied on Launchit for any information concerning such party, and Launchit and its directors and officers have relied on 131 for any information concerning such statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words 'intend', 'may', 'will', 'expect', and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current beliefs or assumptions as to the outcome and timing of such future events. In particular, this news release contains forward-looking information relating to the Proposed Transaction and associated transactions, including statements regarding the terms and conditions of the Proposed Transaction and the Concurrent Financing. Although the Company and Launchit believe in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company and Launchit can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that the parties will not proceed with the Proposed Transaction and associated transactions, the ultimate terms of the Proposed Transaction and associated transactions differing from those that currently are contemplated, and the Proposed Transaction and associated transactions not being successfully completed for any reason (including the delay or failure to obtain the required regulatory approvals or clearances). The statements in this news release are made as of the date of this release. The Company and Launchit undertake no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, Launchit, their securities, or their respective financial or operating results (as applicable).The TSXV has not in any way passed upon the merits of the Proposed Transaction and the Concurrent Financing and associated transactions and has neither approved nor disapproved the contents of this news release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
11-06-2025
- Business
- Business Recorder
Rs17.6trn FY26 Budget unveiled under the shadows of IMF conditions, US tariff tensions and war threat
ISLAMABAD: Finance Minister Muhammad Aurangzeb on Tuesday presented the federal budget 2025-26 to the parliament, with a total outlay of Rs17.573 trillion, targeting a GDP growth target of 4.2 percent against 2.7 percent in the outgoing year. Aurangzeb termed the budget the start of a strategy to create a competitive economy and economic productivity to increase exports and fundamentally change the economy's DNA. The government has set inflation target of 7.5 percent for the next fiscal year. Regarding the fiscal deficit, the government projected a target of 3.9 percent of the GDP — or Rs5,037 billion — from the outgoing fiscal year's target of 5.9 percent. The primary surplus is targeted at 2.4 per cent of the GDP against the budgeted 2 percent in the current fiscal year, which has been revised to 2.2 percent. Pakistan's Rs17.6trn budget to be unveiled today The finance minister stated that it was unavoidable to aim for a 14 percent tax-to-GDP ratio and added that achieving the national targets was 'impossible without the transformation of the Federal Board of Revenue (FBR).' The government has set an ambitious tax collection target for the FBR at Rs14,131 billion, an 8.95 percent increase from the current fiscal year of Rs1,2970 billion and 18.7 percent higher than the revised estimate of Rs11,900 billion. Non-tax revenue is estimated to be Rs5,147 billion for the next fiscal year against the budgeted Rs4,845 billion for the current fiscal year. 'We are providing tax relief to those who need it the most, ie, the salaried class,' Aurangzeb said, noting that the government has decided to significantly reduce tax rates in various income tax slabs. Salaries of government employees were proposed to be raised by 10 percent with a seven percent increase in pensions. The Special Conveyance Allowance of 4,000 rupees monthly for special persons will be increased to 6,000 rupees. Further, 30 percent Disparity Reduction Allowance for deserving government employees has been proposed in the budget. The Armed Forces of Pakistan have rendered exemplary services for the defence of the motherland, said the minister, adding that in recognition of their services, it has been proposed to give a Special Relief Allowance to the officers, JCOs and soldiers of the Armed Forces of Pakistan. These expenditures will be met from the allocated Defence Budget of 2025-26. The federal government has proposed a significant increase in the defence budget for the upcoming fiscal year, allocating a total of Rs2,550 billion. 'The spirit with which we protected our national sovereignty, we need to ensure our financial security in the same way,' he maintained. 'Pakistan has now achieved economic stability and is moving towards a Pakistan that is prosperous,' he added. The minister said for the salaried class falling under the Rs600,000-Rs1.2 million annual tax slab, the government has decided to reduce the tax rate from five per cent to one per cent. Tax amount has been reduced to 6,000 rupees from existing 30,000 rupees on the employees getting 1.2 million rupees, whereas, the income tax rate on those earning between Rs1.2 million-Rs2.2 million has been reduced from 15 per cent to 11 per cent. Those earning between Rs2.2 million-Rs3.2 million are proposed to pay 23 per cent income tax as compared to the current 25 per cent,' he said. Further, the government, in a bid to reduce the ongoing 'brain drain', has decided to reduce the surcharge on those earning over Rs10 million by oneper cent. Aurangzeb said that from July onwards, the tax filing process will be simplified. Talking about relief measures to ease taxes on the corporate sector, Aurangzeb said a reduction of 0.5 per cent in the super tax has been proposed for the corporations generating 200 million to 500 million rupees annual income. He said this concession indicates government's resolve to rationalise the ratio of the corporate tax. The minister said withholding tax on purchase of property is being reduced from four per cent to 2.5 per cent and 3.5 per cent to 2.5 per cent as well as three per cent to 1.5 per cent. He said there is proposal to completely abolish the Federal Excise Duty (FED) up to seven per cent on the transfer of commercial properties, plots and houses to lessen burden on the construction sector. To encourage mortgage for the provision of loan on low-cost housing, tax credit is being introduced on houses up to 10 marlas and flats of 2,000 square feet. He said the government would promote mortgage financing and comprehensive mechanism would be introduced in that regard. Aurangzeb said stamp paper duty on purchase of property in Islamabad Capital Territory would be reduced from four per cent to one per cent so that shortage of houses could be addressed. He expressed the confidences that these measures will accelerate the housing sector, enabling it to play its due role in the economic development of the country. The government, in its bid to promote horizontal equity has proposed to raise tax rate on interest income from 15 per cent to 20 per cent. The government has proposed Rs16,286 billion for current expenditure in the budget for fiscal year 2026 budget, a 5.33 per cent decrease from the outgoing fiscal year. Civil administration expenditure would be Rs0.97 trillion, pension expenditure Rs1.06 billion, power and other sectors Rs1.19 billion. He said 971 billion rupees are being allocated for the civil administration expenditures, while 1,055 billion rupees have been reserved for the pension expenditures. He said 1,186 billion rupees are being earmarked for subsidy on electricity and other sectors. Speaking on tax revenues, he said the tax-to-GDP ratio was only 8.8 per cent in June 2024, which was raised to 10.3 per cent in the first nine months of fiscal year 2025, and would reach 10.4 per cent by the end of June. The government's revenue was now at 11.6 per cent, including the provinces' 0.8 per cent contributions. 'The FBR has increased tax-to-GDP ratio by 1.6 per cent, which is historic not just in Pakistan but the world,' he asserted. The government has announced to end the distinction between filers and non-filers. Only individuals who submit a wealth statement will be allowed to carry out major financial transactions. An 18 per cent sales tax will now be imposed on the import of solar panels to promote local manufacturing. The finance minister said it has been proposed to impose 'carbon levy' at the rate of 2.5 rupees per litre on furnace oil, high-speed diesel and petrol with the aim to discourage the use of fossil fuel and ensure availability of financial resources for climate change and Green Energy programmes. He said this levy will be enhanced to five rupees per litre in the fiscal year 2026-27. The budget also envisages enforcement measures under FED. The finance minister said it has been proposed to seize those items having no barcodes or original tax stamps under Track and Trace System. He said enforcement powers are also being delegated under FED to the particular provincial officers in small cities and rural areas in view of limited presence of FBR. He said this step is especially aimed at effectively curbing the smuggling of non-duty paid cigarettes. New taxation measures include a five per cent income tax on annual pensions exceeding 10 million rupees. The tax on cash withdrawals by non-filers has been increased from 0.6 per cent to one per cent. An 18 per cent sales tax will be imposed on small vehicles up to 850cc, aiming to bring uniformity in sales tax on petrol, diesel, and hybrid vehicles. The government plans to take strict measures against unregistered businesses. Bank accounts of such businesses will be frozen, and there will be a ban on property transfers. In severe cases, business premises can be sealed and goods confiscated. However, businesses will have the right to appeal within 30 days. The finance minister proposed that Balochistan and the merged districts in KP, which 'had a leeway with taxes for the past seven years', were now to pay sales tax starting from 10 per cent for five years. However, noting that the agriculture sector was the economy's engine of growth, Aurangzeb said no further tax on fertiliser and pesticides was being mulled. He warned that those committing theft in sales tax would face strict punishments, with the right to appeal. An automated risk-based income tax adjustment would be introduced to prevent the misuse of the income tax system. He said that foreign vendors from countries having no bilateral tax agreements with Pakistan could be taxed. 'A five per cent tax on items from foreign vendors has been proposed.' Petrol, diesel and hybrid cars that were excluded from an 18 per cent sales tax would now be hit with the same tax as well, the minister said. The government has proposed several tax measures in the federal budget for the financial year 2025-26, aiming to increase revenue and bring various sectors into the tax net. One key decision is to impose tax on e-commerce or online businesses and shoppers, bringing online transactions under the tax umbrella. Individuals or companies selling goods or services through online platforms will be subject to 18 per cent tax, and tax will also be applicable on goods and services ordered online. E-commerce businesses will be required to submit detailed data and tax reports of their monthly transactions to relevant authorities. Additionally, the budget proposes a 25 per cent tax on income earned on debt, while the tax rate on profits earned on shares remains unchanged. The federal government has announced plans to expand the Benazir Income Support Programme (BISP) with a proposed 21 per cent increase in allocation, bringing the total to Rs716 billion. As part of this expansion, the Kafaalat program under BISP will be extended to cover 10 million families, providing financial support to more households in need. The classification of all state-owned enterprises (SOEs) under SOE reforms has been finalised. Inefficient SOEs have been costing the government over Rs800 billion annually, and reforms aim to reduce these losses. Privatisation of Pakistan International Airlines (PIA) and the Roosevelt Hotel is scheduled for the next fiscal year, and privatisation efforts for power distribution companies (DISCOs) and generation companies (GENCOs) will continue. The Cabinet has approved downsizing staff in 10 federal ministries, with a total of 45 government entities marked for privatisation or closure, he added. The minister said 390,000 high-value non-filers of tax were identified through data integration, with Rs300m recovered. The minister highlighted that there was a 100pc increase in the number of tax filers, taking the revenues to Rs105 billion. 'For the first time, the IMF has acknowledged Rs389 billion revenues through law enforcement,' he said. The minister said those who were raising alarm about a mini-budget, no such move had been taken by the government. The finance minister said that there was a 31 per cent reduction in electricity prices, as well as 50 per cent reduction in prices for protected consumers. The minister said that the government had made plans to procure cheap energy. Noting the closure of costly power plants and reforms in the oil and gas sector, he said Turkish and other international companies were willing to invest in Pakistan. He mentioned the $5 billion investment pledge by RekoDiq and pointed out fuel price deregulation aimed to promote competition. 'Gold mines in RekoDiq are a key part of our future. The plan's feasibility study was completed in January,' he noted. 'We expect $71 billion in cash flows as well as $7 billion in tax and $8 billion in royalties,' he said, terming the project a 'game changer'. Aurangzeb said additional customs duties will come to an end in four years, regulatory duties will end in five years, Customs Act's Schedule 5 will also be eliminated in five years, and customs duty will be structured in slabs, with the maximum being 15 per cent. 'Tariff reforms will be applied step by step so that businesses can adjust and challenges are reduced. This will apply to all economic areas, including pharma, IT, telecom, textile and engineering.' Aurangzeb said that these instruments would lower the tariffs, bringing them to the same level as Indonesia. The minister said IT exports are projected to reach $25 billion in the next five years. Aurangzeb said that the Small and Medium Enterprise Development Authority had launched a three-year plan for financing small and medium enterprises (SMEs). He said that under the SME risk coverage scheme, 95,000 SMEs had received Rs300 billion in funding till May 2025. He affirmed that the government was taking steps for overseas Pakistanis, including an online system, civil procedure laws to prevent fraud, a quota in chartered medical schools, and civil awards for the top 15 senders. Speaking about the agricultural sector, Aurangzeb said Rs2.64 billion were earned in fiscal year 2024-25, adding that the National Seed Policy 2025 and the National Agri Technology Policy 2025 had been 'nearly approved'. The minister also praised the Strategic Investment and Facilitation Council (SIFC) for taking forward 'strategic Brownfield and Greenfield projects'. 'Inter-provincial and inter-federal connection improved,' he added. Aurangzeb stressed the need for the country to increase its water reservoirs and ensure water security. Under the 2018 National Water Policy, he mentioned the goals of 10m-acre increase in water storage, 35 per cent reduction in water waste and 30 per cent increase in water-use efficiency. He detailed that Rs133 billion would be allocated for projects, Rs34 billion for investment and Rs2 billion for 15 key schemes, detailing the breakdown for various dams. The minister said that the government needed to ensure the provision of cheap energy. He said that 47 schemes and Rs90.2 billion were allocated to the energy sector, including Rs840m for the Tarbela 5th Extension, Rs10.9 billion for the Dasu hydel project, Rs3.5 billion for the 884MW Suki-Kinari Hydropower Project, and Rs35.7 billion for the Mohmand hydel dam. The allocations for other power projects included Rs4.4 billion for the Allama Iqbal Industrial City grid station, Rs1.1bn for the Quaid-i-Azam Business Park, Rs1.6bn for the 100KVA and 200KVA transformers asset performance management system, Rs2.9 billion for the Islamabad Electric Supply Company (IESCO) advanced metering infrastructure, Rs1.8bn for the Multan Electric Power Company (MEPCO), Rs1.9 billion for the Hyderabad, Rs2.4 billion for the Peshawar, Rs67.2bn for the Water and Power Development Authority (Wapda) clean electricity scheme, Rs3bn for five energy schemes of Azad Jammu and Kashmir and Gilgit-Baltistan, and 1.2 billion for GB grids. 'Genetic improvement and post-harvest processes will be focused on,' he said, adding that a total of 1,000 agriculture graduates had been sent to China on government-funded programmes. He also announced five new livestock schemes. Aurangzeb said the Higher Education Commission (HEC) would be receiving Rs39.5 billion for 170 projects, of which, Rs38.5 billion would be set aside for the provinces. Aurangzeb said the a total of 164 billion rupees have been earmarked in the PSDP 2025-26 for the Azad Jammu and Kashmir, Gilgit-Baltistan and merged districts of Khyber-Pakhtunkhwa. Forty-eight billion rupees each has been allocated for Azad Kashmir and Gilgit-Baltistan while sixty-eight billion rupees have been reserved for merged districts of Khyber-Pakhtunkhwa. He further said the federal government has made block allocations of 32 billion rupees for Azad Jammu and Kashmir, 22 billion rupees for Gilgit-Baltistan and 65 billion rupees for merged districts of Khyber-Pakhtunkhwa and 10-year erstwhile FATA plan under the Annual Development Plan. Besides, the federal government has allocated five billion rupees for Azad Jammu and Kashmir and four billion rupees for Gilgit-Baltistan as Prime Minister's Special Package. The minister said that the government has formulated a new Electric Vehicle (EV) Policy aimed at promoting the use of two- and three-wheeled EVs over traditional petrol and diesel-powered vehicles. 'This initiative seeks to reduce environmental pollution while decreasing the country's reliance on imported fossil fuels,' he added. Highlighting the key features of the EV Policy, he said that the policy encourages the manufacturing and sale of electric two- and three-wheelers by introducing a levy on petrol and diesel vehicles. The levy will be applied at varying rates based on engine power, affecting both local sales and imports of fossil fuel-based vehicles. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
Over Rs623bn new taxes unveiled
ISLAMABAD: The government has introduced first of its kind of Finance Bill 2025-26 with extraordinary enforcement measures against non-filers and taken new taxation/enforcement measures of over Rs623 billion including tax on payments for digital transactions in e-commerce platforms, increase in withholding tax rate on sales of immovable properties and withdrawal of sales tax exemption on erstwhile tribal areas in phases to meet assigned target of Rs14,131 billion for 2025-26. Breakup of taxation measures revealed that out of Rs670 billion taxation measures, the revenue loss on account of relief provided to the salaried class of Rs58 billion. The net revenue impact of taxation measures stood at Rs623 billion including both tax and enforcement measures. There are taxation and enforcement measures of Rs281 billion and Rs389 billion respectively, resulting in total revenue of Rs670 billion. Following exclusion of relief measure of Rs58 billion, the net increase in revenue measure will generate revenue of Rs623 billion in the next fiscal year. Finance Bill 2025 nearly done: Rs200bn new tax measures of GST, FED expected The FBR did not arrange the traditional technical briefing on the Finance Bill and the new taxation measures for journalists due to unspecified reasons. Under the Finance Bill 2025-26, the government has imposed restriction on economic transactions by ineligible persons (non-filers) including bar on purchase of motor vehicles, immovable property, sale of securities including debt securities or units of mutual funds and banks would not allow non-filers to open or maintain an already opened current or a saving bank or investor portfolio securities accounts and also not allow cash withdrawal from any of the bank accounts. Sales tax exemption to Special Economic Zone (SEZ) and Special Technology Zone (STZ) entities, developers has been restricted to tax year 2035 or expiry of 10 years exemption period, whichever is earlier. Major changes have been proposed in the withholding tax regime including increase in withholding tax from 0.6 percent to one percent on cash withdrawals by non-filers. The withholding tax rate increase for specified services from four per cent to six per cent with the exception of IT and IT enabled Services has been proposed. For other non-specified services, a flat 15 per cent will be imposed and from 10 per cent to 15 per cent on sportsperson. The Finance Bill 2025-26 revealed on Tuesdaya tax of two per cent of gross value of supplies, persons supplying digitally ordered goods from within Pakistan through online market place. The FBR has imposed 18 percent sales tax on the import of solar panels/PV modules. The FBR has also withdrawn reduced rate of 12.5 per cent is chargeable on supply of locally manufactured or assembled motorcars up to 850cc. The imported pet food including 'dogs and cats' food in retail packing, coffee in retail packing, chocolates in retail packing and imported cereal bars in retail packing have been included in the list of items under Third Schedule of the Sales Tax Act, 1990, based on the retail price at applicable rates as embossed on the packaging of the product. Currently, supply of electricity to residential, commercial and industrial units located in erstwhile FATA/PATA is exempt till 30.06.2025. In order to provide relief to electricity consumers in these areas, it is proposed that above-mentioned exemption may be extended till 30.60.2026. Currently, reduced rate of 10 per cent is available on local supply of vermicellis and sheer mall. As part of the GST reforms, all existing concessionary rates are reviewed and withdrawn wherever possible. Therefore, reduced rate of 10 per cent is proposed to be withdrawn. Bun and rusk are currently subject to a reduced 10 per cent sales tax. Since they are staple foods for lower-income groups, it is proposed that their local sale be exempted from sales tax. On income tax side, 'Digital Transactions Proceeds Levy' has been introduced along with necessary changes in the Income Tax Ordinance, 2001 to cover domestic vendors supplying digitally ordered goods and digitally delivered services. Banks and courier services designated as withholding agents to capture entire payment chain. Provisions regarding assessment of banking companies has been made more disclosure oriented to determine true and fair income of the banking companies and tax payable thereon. Tax rate on profit on debt has been proposed to be increased from 15 per cent to 20 per cent. The dividend tax rate has been enhanced to 25 per centand 15 per cent on dividend from mutual funds. Pension income received by an individual below the age of 70 years and over and above of Rs10,000,000 has been charged to tax at the flat rate of five per cent. Super tax rates under Section 4C proposed to be reduced by half a percentage point for income slabs between Rs200 million to Rs500 million against each slab respectively. Tax rates for salaried individuals for income slab upto Rs3,200,000 has been reduced to provide relief to lower and middle tiers income bracket. Similarly, surcharge rate proposed to be reduced from 10 per cent to nine per cent for salaried individuals only. Income tax exemption along with withholding tax exemption for erstwhile FATA/PATA areas propose for extension for one year i.e. upto TY 2026. 25 per cent rebate against tax payable by full time teachers and researchers will be restored retrospectively i.e. from TY 2023 to TY 2025. Proportionate tax credit to on profit on debt on loan obtained for construction or acquisition of a house of 250 sq. yd. and a flat having 2,000 sq ft. or less area. To better incorporate digitally ordered taxable goods into the e-commerce sales tax framework, the definition of 'e-commerce' has been introduced, and 'online marketplace' is redefined to include all taxable activities. Currently, online marketplaces are required to withhold one per cent sales tax on local supplies made by non-active taxpayer vendors. However, this does not fully capture the growing e-commerce sector, especially businesses using websites, apps etc for online sales to consumers. To address this, the withholding tax scope has been expanded to cover transactions settled via online payment or CoD. Under the proposed regime — substituting S No 8 of the Eleventh Schedule — payment intermediaries (banks, financial institutions, exchange companies, and payment gateways) will collect sales tax on digital payments, while couriers will handle tax collection for CoD transactions. Additionally, the withholding tax rate is set to increase from one per cent to two per cent. Importers and manufacturers are required to collect sales tax on items listed in the Third Schedule of the Sales Tax Act, 1990, based on the retail price at applicable rates as embossed on the packaging of the product. The purpose of the inclusion in the Third Schedule to capture the down-stream value addition in the supply chain beyond manufacturing. Currently, supply of electricity to residential, commercial and industrial units located in erstwhile FATA/PATA is exempt till 30.06.2025. In order to provide relief to electricity consumers in these areas, it is proposed that above-mentioned exemption may be extended till 30.60.2026. Copyright Business Recorder, 2025
Express Tribune
10-06-2025
- Business
- Express Tribune
An untenable budget
Listen to article The federal government has laid out an ambitious budget of Rs17.573 trillion for FY26 while pinning its hopes on an exalted growth rate of 4.2%. This euphoric document has come a day after the Economic Survey posted a dismal picture of the economy — all targets were missed for the third consecutive year amid a growth rate of mere 2.7%. The budget proposes a cut in overall spending and banks heavily on tightening tax measures while estimating inflation at 7.5%. The lion's share from the deficit-laden economy goes to debt-servicing, at Rs8.207 trillion. And as foreseen, the defence takes a major share from revenue collection with a 20% rise — at Rs2,550 billion or 1.97% of GDP. The hope-line seems to be an estimated $71 billion in cash flows, $7 billion in taxes and $8 billion in royalties, apart from $5 billion from Reko Diq as well as privatisation of the national flag carrier, PIA, and Roosevelt Hotel in New York. The government is also expecting $25 billion from IT exports over the next five years. Moreover, a surplus in the current account, rise in remittances to the tune of $32 billion and the stability of the rupee are other hallmarks that posits a yearning of the economy's turnaround amidst positive ratings from Moody's and Fitch. The budget has set a tax collection target of Rs14,131 billion, an 8.95% increase from previous year, wherein expenditure of civil administration would be Rs0.97 trillion, pensions Rs1.06 billion, and power and other sectors Rs1.19 billion. The finance minister, while delivering the budget speech, pointed out that 390,000 high-value non-filers of tax were identified and Rs300 million recovered from them, and at the same time the revenue machinery has been able to post a 100% increase in the number of tax filers, taking the revenues to Rs105 billion. A 10% raise in salaries from grade 1-20 employees, a 7% hike in pensions and Rs6,000 allowance for the disabled constitute the only voluble theme of the budget speech. The government also promised to reduce the income tax slabs by balancing inflation and take-home income. An 18% tax on imported solar panels and imposition of taxes on online businesses and digital marketplaces are among the features making the budget anti-growth. However, no new tax on fertiliser and pesticides has been proposed. Similarly, the proposition to reduce the super tax to 5% on corporate sector earning from Rs200 million to Rs500 raises eyebrows given that all other sectors are reeling under pressure. Last but not least, the restive province of Balochistan as well as the merged districts in Khyber-Pakhtunkhwa, which had a leeway with taxes in the past years, will now have to pay sales tax starting from 10% for five years — and that is not a sound economic initiative. The most startling revelation is the confession from the finance wizard that the revenue machinery lacks the muscle to achieve the tax targets. This means reforms and not statistics or book-keeping should be the focus of the economy.
