Latest news with #FinanceBill2025-26
Business Recorder
13 hours ago
- Business
- Business Recorder
Tax fraud via bank account to land holder in jail
ISLAMABAD: The person, whose bank account has been used to commit tax fraud, would be considered as 'abettor' and would be subjected to prosecution including punishment/ imprisonment. Thus, the person operating business bank account to facilitate tax fraud would be considered as 'abettor'. The amended Finance Bill (2025-26) has revised the definition of 'abettor'. Key amendments made to Finance Bill: Tax fraud arrests only post-inquiry According to the amended Bill, the 'abettor' means a person who intentionally abets or connives in tax fraud as defined in clause (37) of section 2 or in the commission of any offence warranting prosecution under Sales Tax Act, and includes a person who, prepares, or causes to be prepared with or without authorization of the registered person, invoices for false claim of input tax adjustment. The 'abettor' also included a person who allows use of bank account held or operated by him for abetting tax fraud or other offence warranting prosecution under this Act or unauthorisedly or illegally maintains or operates business bank account in other registered person's name, amended Finance Bill 2025-26 added. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Business
- Express Tribune
KCCI slams FBR proposals
Listen to article President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, has strongly criticised the Federal Board of Revenue (FBR) for what he termed its authoritarian conduct and disregard for the Business Anomalies Committee, comprising presidents of chambers and trade bodies from across Pakistan. Following extensive consultations with its members, KCCI has launched a citywide protest by displaying banners across Karachi against what it calls "oppressive" provisions in the Finance Bill 2025-26, particularly the proposed Section 37AA in the Sales Tax Act. "This is just the beginning," Bilwani said in a statement. "The protest will escalate, with press conferences by KCCI and other major chambers. If our demands are ignored, we may have no choice but to call for citywide or even nationwide strikes." He dismissed the finance minister's claims of a "public-friendly" and "business-friendly" budget as detached from reality. "Industrialists and exporters unanimously agree — there is no relief." Bilwani outlined a grim outlook for the business environment, citing high energy costs, poor infrastructure, gas shortages, water scarcity, and delayed tax refunds. "Our exports survive not because of policy support, but due to the resilience of our business community. Some buyers are even advising us to shift operations to more stable, business-friendly countries." Criticising Section 37AA as a "draconian law," he said it allows FBR to freeze bank accounts, seize funds, and arrest taxpayers based solely on suspicion, regardless of their past compliance. "Who will continue to do business under such hostile conditions?" He revealed that many businessmen have asked KCCI to help them explore options for relocating abroad. "We still want to stay and contribute. But we need the government and prime minister to listen and give us confidence." Bilwani stressed that this frustration is nationwide. "Faisalabad, Lahore, Sialkot — all major export hubs — are raising the same concerns."
Business Recorder
2 days ago
- Business
- Business Recorder
Punjab PA approves Rs5,335bn budget
LAHORE: The Punjab Assembly on Thursday approved a tax-free budget of Rs 5,335 billion for the fiscal year 2025-26, maintaining the current tax structure without imposing any new taxes. The Finance Bill 2025-26 was also passed, ensuring no changes in provincial taxes, property tax, or transport tax, with no additional levies on industries, agriculture, health, or education sectors. During the session, the House approved 41 demands for grants worth Rs4,306.9792 billion, while rejecting eight cut motions presented by the opposition. The newly passed budget and finance bill will take effect from July 1, 2025. Key allocations in the budget includes; Rs120 billion for construction of roads and bridges, Rs462 billion for pensions, Rs258 billion for healthcare facilities, Rs137 billion for education reforms, Rs200 billion for police to maintain law and order, Rs27 billion for jail administration, Rs1 billion for civil defence, Rs26 billion for farmers welfare, Rs66 billion for agricultural loans, Rs18.22 billion for industrial development and Rs37.96 billion for irrigation projects. Moreover, the assembly approved Rs910 billion for various development projects, Rs161 billion for government buildings, Rs26.5 billion for agriculture, Rs19 billion for veterinary services and Rs1.6 billion for fisheries. Grants for registration, stamps, motor vehicle acts, and excise were also approved. Four significant bills were presented by Mian Mujtaba Shujaur Rehman which include Punjab Autism School and Resource Centre Bill 2025, Urban Immovable Property Tax (Amendment) Bill 2025, Essential Commodities Price Control (Amendment) Bill 2025 and Punjab Labour Courts Bill 2025 These bills were referred to relevant standing committees, with the Speaker seeking reports within two months. During the session, government member Saeed Akbar Nawani raised objections over duplicate serial numbers (35 and 41) in the demands for grants, suggesting they should be merged for clarity. Parliamentary Affairs Minister Mian Mujtaba Shujaur Rehman responded that the practice was longstanding but assured a review to determine if a technical merger was feasible. The Punjab Assembly session was commenced under the chairmanship of Speaker Malik Muhammad Ahmad Khan after a delay of 4 hours and 6 minutes. The proceedings began with heated exchanges over a point of order, as government member Munawar Ghous lashed out at the alleged illegal actions of the Counter-Cybercrime Department (CCD). Ghous claimed that a former councillor from his constituency was unlawfully arrested by a CCD DSP, handcuffed, paraded in public, and humiliated. He further alleged that the officer slapped the detainee, recorded videos, and encouraged bystanders to film the incident, saying, 'Look at him and make videos.' Speaker Malik Muhammad Ahmad Khan termed the act unconstitutional and illegal, stating, 'If a video was indeed made, it violates both the law and a High Court order.' He directed the Provincial Minister for Parliamentary Affairs to investigate the matter, calling it a 'bad practice.' In response, Parliamentary Affairs Minister Mujtaba Shujaur Rehman assured the assembly that he would look into the issue immediately. The Speaker also emphasized the need for the government to disarm the public, stating, 'I will consider this government successful only when it retrieves weapons from people's hands.' He expressed concern over personal vendettas leading to entire villages living in fear, urging the minister to take the matter to the cabinet. 'Armed civilians spread terror, and murders are occurring in broad daylight,' he added. Minister Shujaur Rehman responded that Chief Minister Maryam Nawaz was already working on a campaign to eliminate weapons from society and eradicate such a culture. He recalled that the cabinet had previously discussed reopening arms licences in Punjab. Meanwhile, Speaker Punjab Assembly Malik Muhammad Ahmad Khan read the ruling regarding his decision on June 16th incident in which the Speaker suspend opposition member Hassan Malik for his misconduct during the budget session. The Speaker stated that opposition members attempted to disrupt the budget speech, with Hassan Malik allegedly throwing the budget book at the Finance Minister. 'After reviewing the video footage, it became clear that this behaviour was repeated, forcing the Finance Minister to halt his speech,' the Speaker said. While acknowledging that protest is a constitutional right, he emphasized, 'I will not allow the assembly to be taken over. I have the authority to suspend members for misconduct. Attempts to obstruct House proceedings will not be tolerated.' The Speaker warned that strict action would be taken against any member trying to disrupt the assembly's functioning. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
Arbitrary powers
EDITORIAL: The Overseas Investors Chamber of Commerce and Industry (OICCI) has raised strong concerns, understandably so, over the recent government proposal — inserted in the Finance Bill 2025-26 — that grants sweeping powers of arrest and prosecution to the Federal Board of Revenue (FBR) officials, without adequate checks and balances. In a letter addressed to Finance Minister Muhammad Aurangzeb, Secretary General of OICCI has said that such arbitrary measures, without thorough consultation with key stakeholders and consideration of its potential impact on the business environment, add to a negative perception of the country as a business (un)friendly destination. The intention behind the proposal may be to deter tax evasion and strengthen enforcement, but it could easily backfire by creating fear and mistrust among investors. The OICCI is rightly worried that granting arrest powers to tax officials would open the door to potential misuse, harassment, and overreach, resulting in unwarranted arrests, legal battles, and reputational damage for companies. In fact, leaders of almost all political parties — when out of power — have faced such punitive measures provided for in the National Accountability Bureau (NAB) law. It was to guard against such abuses that a while ago the accountability law was amended to significantly soften some of its harshest provisions. The ruling coalition should have known better than to allow similar high-handedness under the FBR. In any regulatory system, especially one as sensitive as taxation, the enforcement mechanisms need to be based on clear, irrevocable guidelines. As regards the issue at hand, local investors would be the first to react to the new policy. Faced with the threat of arrest over alleged discrepancies – such as those arising from management errors, disputes, or differing interpretations — they may scale back operations or shift to the informal sector, and reduce the already small tax base. Local investors' lack of trust in the system will not be ignored by foreign investors. In fact, foreign companies are known to fully evaluate investment destinations based on a combination of factors, such as political stability, continuity of policies, regulatory clarity, and how local enterprises are treated. Instead of increasing tax officials' powers the government focus ought to be on reforming and modernising the FBR. To ensure compliance, conversations in public forums have repeatedly been highlighting the need for digitising relevant processes to reduce human contact between the FBR officials and potential taxpayers. Rather than resorting to arbitrary arrest and prosecution the government needs to weigh the long-term economic costs of such measures against short-term enforcement benefits. It must think of more constructive avenues for increasing tax collection. Copyright Business Recorder, 2025
Business Recorder
21-06-2025
- Business
- Business Recorder
E-Commerce sector urges govt to revise proposed tax steps
KARACHI: Pakistan's E-Commerce ecosystem has urged the federal government to revise proposed tax and compliance measures announced in Finance Bill 2025-26 and initiate a structured dialogue with stakeholders to co-create practical, growth-friendly tax policies Addressing a press conference here on Friday at Karachi Press Club (KPC), representatives of the Chainstore Association of Pakistan (CAP) and the Pakistan E-Commerce Association (PEA), along with other stakeholders including freelancers, marketplaces, courier services, payment providers, and digital platforms, have urged the government to adopt practical revisions to the proposed tax and compliance measures in the Finance Bill 2025-26. On the occasion, representatives including Muhammad Zeeshan, Shoaib Bhatti, Joint Secretary CAP Bushra, Atta Bin Azad, Mahwish from Payfast, Shoaib Ahmed and others were also present. They informed that Pakistan's e-commerce sector has grown over 35 percent annually in the past five years and currently, over 100,000 micro and small online sellers are active, supporting incomes for more than a million people nationwide. The total market size is estimated at Rs 2.2 trillion or $7.7 billion with some 2 percent share in the national GDP. They said that all stakeholders is supporting fair taxation and documentation, but the proposed measures risk severely disrupting both established and small businesses by putting an extreme compliance burden all at once. 'Their design and immediate implementation will stifle digital entrepreneurship, especially among youth and women,' they added. The coalition appreciates the proposed 5 percent digital presence levy on offshore platforms like Temu and supports improved data reporting requirements of the sector. However, the gains should not be undermined by excessive and impractical tax compliance obligations. They said that Finance Bill introduces multiple taxes and complex procedures across all related businesses, with no stakeholder consultation or phased rollout. Industry leaders warn that this top-down approach mirrors the unsuccessful 'Tajir Dost' scheme, which failed due to impractical design and lack of consultation. 'Blanket 2 percent sales tax withholding, mandatory sales tax registration for all online merchants, complex income tax withholding at six different rates, penalties of up to Rs 500,000 per case on platforms, couriers, and sellers and enforcement from 1st July with no transition period are key concern,' highlighted the representatives. They recommended 2 percent sales tax withholding to non-ATL (unregistered) sellers and income tax registration for small/ home-based sellers instead of complicated sales tax registration and monthly filings. Industry leaders urged the Prime Minister, Finance Minister, Commerce Minister, and Federal Board of Revenue (FBR) to pause enforcements and initiate a structured dialogue with stakeholders to co-create practical, growth-friendly tax policies. Copyright Business Recorder, 2025
