Latest news with #FederalBudget2025
Business Recorder
04-07-2025
- Automotive
- Business Recorder
Haval maker: Sazgar says not increasing vehicle prices despite new tax
Sazgar Engineering Works (SAZEW) - company engaged in manufacturing and sale of automobiles, automotive parts and household electric appliances - said on Friday it had decided not to increase its vehicle prices for end-consumers despite imposition of a new tax in the Budget 2025-26. In a letter sent to Haval dealers in Pakistan on Friday, the company said it was absorbing the impact of the 'additional levy to ensure that the final payment of our vehicles remains unchanged'. 'Following the recent announcement of the Federal Budget 2025, a new government levy under New Energy Vehicles Adoption Levy Act, 2025 has been imposed on all our vehicles. As a responsible and customer-focused organisation, Sazgar has consistently taken proactive measures to protect the interests of its valued customers. Sazgar records 'second-highest' 4-wheeler sales in June 2025 'True to this commitment, we are pleased to inform you [dealers] that the company has decided to absorb the impact of this additional levy to ensure that the final payment of our vehicles remains unchanged including all taxes and duties,' the letter read. To recall, some of the industry players have increased their vehicles prices to pass on the impact of the levy on cost of production this week, including Lucky Motors (the assembler of Kia cars), Pak Suzuki Motor and Atlas Honda - the bike manufacturer in the country. The car sales in Pakistan surged 39% in the first 11 months of FY25, standing at 126,226 units in the under review period compared to the same period of the prior fiscal year; FY24.
Business Recorder
21-06-2025
- Business
- Business Recorder
Proposed sweeping powers for FBR will cripple economy: PBF
LAHORE: Pakistan Business Forum (PBF) has strongly denounced the Federal Budget 2025; calling it a direct assault on the business community and warning that the sweeping powers proposed for the Federal Board of Revenue (FBR) will cripple the economy and trigger widespread unrest if not immediately reversed. Speaking to the media, Muhammad Naseer Malik, Chairman (Central Punjab) of the PBF, said the Finance Bill introduces a range of unprecedented and undemocratic enforcement clauses that violate the principles of fair taxation and due process. He warned that these proposals will create an environment of fear and intimidation, where businesses operate under constant threat of legal action without the protection of proper checks and balances. PBF highlighted specific provisions of the Finance Bill 2025 that it says are particularly damaging to business confidence and fundamental rights: Section 37AA allows for the arrest of individuals without a warrant, solely on the basis of suspicion of tax fraud, paving the way for arbitrary detentions and harassment. Section 14AE empowers FBR officials to seize business premises and property without judicial oversight or meaningful safeguards. The Section 37B authorizes the detention of businesspersons for up to 14 days, with possible extension by a magistrate, even before the conclusion of an investigation. Further, Section 11E permits FBR to make tax assessments and initiate recovery based purely on suspicion, bypassing the need for a complete inquiry or verifiable evidence. Section 33 (13 & 13A) introduces 10-year prison terms and Rs10 million fines for vaguely defined 'tax fraud,' which the PBF warns could criminalize genuine business errors or disputes. Section 32B grants private auditors quasi-legal authority, allowing them to act with powers that blur the line between auditing and prosecution — a move PBF considers both unconstitutional and dangerous. 'These provisions do not promote tax compliance — they institutionalize fear, harassment, and unchecked power,' Malik said. 'They will push the business community to the edge, and many will be forced to shut down operations or move abroad.' The PBF also criticized the existing tax structure, pointing out that the effective tax burden on businesses has soared to between 50% and 60%, the highest in the region. This includes a 25% corporate tax, 25% tax on dividends, super tax, sales tax, withholding taxes, and high import duties. According to the Forum, these combined pressures make investment, expansion, and job creation impossible under the current fiscal regime. In addition to demanding the complete withdrawal of the above clauses, the PBF is calling for a reduction in interest rates to 6% to support business recovery and economic growth. The Forum believes that a more balanced tax policy - coupled with targeted reforms and incentives - could double public spending on education and health without suffocating the productive economy. Naseer Malik also warned if the Finance Bill 2025 is passed in its current form, Pakistan's economy will face irreversible damage. If the government thinks it can collect taxes without taxpayers, it is free to try. And if the FBR believes it can run an economy without businesses, let it go ahead; the consequences will be clear soon enough.' Copyright Business Recorder, 2025
Business Recorder
14-06-2025
- Business
- Business Recorder
Budget lacks essential pro-business reforms: PBF
KARACHI: The Pakistan Business Forum (PBF) has raised serious concerns over the recently announced Federal Budget 2025, calling it a missed opportunity to stimulate economic growth and restore investor confidence. Senior Vice President of PBF, Ms Amna Awan, stated that the budget, as presented, lacks the essential pro-business reforms required to build momentum in a stabilizing economy. 'While Pakistan's economy is showing early signs of stabilization, the current budget does not provide the business community with the tools or confidence necessary to drive export-led growth,' said Amna Awan. 'We urge the government to reconsider anti-business tax provisions and to incorporate a more investment-friendly fiscal framework before the Finance Bill is passed by Parliament.' PBF leadership highlighted the sweeping discretionary powers proposed for tax authorities, warning that such measures would discourage investment, breed harassment, and exacerbate corruption and maladministration. Malik Khuda Baksh, President of PBF's Karachi Region, described the budget as 'deeply disappointing,' noting that it fails to address the real needs of the industrial sector or meet the expectations of citizens. 'The burden of fiscal adjustment has once again been shifted to the industrial sector, with no adequate relief to counteract rising costs of production,' said Malik. 'At a time when investor trust is fragile, the lack of meaningful incentives or reforms undermines the country's economic potential.' He also criticized the lack of emphasis on digitalization and one-window operational reforms, describing these as critical tools to improve the ease of doing business. Furthermore, PBF expressed concern that the government has not broadened the tax base, yet has set overly ambitious revenue targets that could harm compliant taxpayers and formal businesses. With the government projecting GDP growth of 4.2% for FY 2025 up from the current 2.7% PBF stressed that structural flaws within the budget must be addressed to meet these targets realistically. The Pakistan Business Forum has called for urgent consultations between the government and key business stakeholders to ensure the final Finance Bill supports sustainable economic growth, transparency, and private sector participation. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
Exceeding Rs10m annually: Flat 5pc tax on pension income proposed
ISLAMABAD: The federal government has introduced a new tax measure targeting high-value pension incomes, as part of its Finance Bill 2025-26 proposals. Under the new framework, pension income exceeding Rs10 million annually, received by individuals below the age of 70, will be subject to a flat tax rate of five percent. The proposal clearly delineates that pension income up to Rs10 million in a tax year will remain entirely tax-free, preserving relief for the vast majority of pensioners. Pension, tax relief thresholds: FBR working on two major budget proposals However, individuals below 70 years of age with pension earnings above this threshold will now contribute to the national exchequer through a modest five per cent tax on the pension income. Tax lawyer Waheed Shahzad Butt, commenting on the proposal, said, 'This is a prudent step towards a more equitable tax system. High-earning individuals benefiting from generous pension schemes should participate in tax contributions, and this move promotes fairness and fiscal responsibility.' The measure is expected to enhance revenue collection without burdening the lower and middle-income retired population, striking a balance between equity and economic prudence. This decision marks a step forward in broadening the tax base and ensuring that wealthier segments of society share a fairer portion of the national tax burden. The Federal Budget 2025 document stated, '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 5%. There will be 0% tax rate on pension income not exceeding Rs10,000,000.' Copyright Business Recorder, 2025
