Latest news with #FinanceBill2025–26
Business Recorder
26-06-2025
- Business
- Business Recorder
KCCI slams FBR for its ‘authoritarian' conduct, ‘indifference'
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani criticised the Federal Board of Revenue (FBR) for its authoritarian conduct and indifference towards the Business Anomalies Committee, comprising presidents of Chambers of Commerce and leaders of trade bodies from across the country. In a powerful move, the KCCI, after thorough consultations with its members, has launched a full-scale protest by displaying bold banners across Karachi against the oppressive measures proposed in the Finance Bill 2025–26, particularly the insertion of Section 37AA in Sales Tax Act. In a statement issued, Bilwani said, 'This is just the beginning. The protest will escalate, press conferences will follow not only by KCCI but also by other major Chambers across Pakistan. And if our demands are ignored, we may be left with no option but to call for citywide or even nationwide strikes. I appeal to the entire business community, especially small traders, to stand united with KCCI if such a call is made.' Bilwani criticised the Finance minister's repeated claims that the budget is 'public-friendly' and 'business-friendly', stating that these claims are totally contrary to reality. 'Industrialists and exporters across the board are unanimous; there is absolutely no relief in this budget. He painted a grim picture of Pakistan's business environment, citing soaring energy costs, substandard electricity, gas shortages, water unavailability, and delayed tax refunds that have paralyzed liquidity. 'Exports are not thriving because of any government policy. They are sustained solely due to the resilience and global reputation of our business community. In fact, many of our international buyers are urging us to shift operations to other countries where conditions are stable, sustainable, and truly pro-business.' Highlighting the most controversial provision, Section 37AA, Bilwani labeled it as a draconian law that defies all norms of justice. 'This section empowers FBR to freeze bank accounts, seize funds, and arrest taxpayers based merely on suspicion, even those who have been tax-compliant for decades. Is this a fair thing to do? Who will continue to do business in such a hostile climate?' He revealed that many businessmen are now asking KCCI to form a committee to guide them on how to relocate their businesses abroad so they can operate in a safer, fairer environment. 'But we are still here. We want to stay, we want to contribute, and we want the Prime Minister and the government to hear us and give us the confidence we need to make sound business decisions.' Bilwani emphasised that this is not just Karachi's grievance. 'Faisalabad, Lahore, Sialkot, all major export hubs, are echoing the same concerns. These cities including Karachi house most of Pakistan's industries and top taxpayers, yet they are being sidelined. If this continues and the people support us, we will not hesitate to call for strikes.' He also slammed the FBR for its mishandling of the Business Anomalies Committee meeting, calling it 'pathetic and humiliating.' Despite the presence of senior business leaders, the FBR failed to send officials to listen to critical recommendations. Instead of a proper Zoom link, a Cisco link full of flaws was shared, resulting in technical chaos as participants were unable to understand the audio or view the presentation slides. 'The Member IR showed up after a long delay, spoke for barely five minutes, and then disappeared, demonstrating the government's total lack of seriousness. To make matters worse, the anomalies list shared during the meeting didn't even include the issues raised by chambers, it only reflected inputs from a select few. Disgusted by this farce, most members walked out of the meeting and submitted their resignations, rightly concluding it was a complete waste of time.' Copyright Business Recorder, 2025
Business Recorder
16-06-2025
- Business
- Business Recorder
Senate body backs zero ST on stationery, okays tax on e-commerce
ISLAMABAD: The Senate Standing Committee on Finance and Revenue recommended to reduce the sales tax on stationery items from 10 percent to zero, besides gave its nod to a proposal imposing sales tax on e-commerce items. The committee continued its third consecutive session on the Finance Bill 2025–26, under the chairmanship of Senator Saleem Mandviwalla, as part of the budget review process for the upcoming fiscal year. The session was attended among others by Federal Minister for Finance and Revenue Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiyani, Chairman FBR Rashid Mahmood Langrial and senior officials from concerned departments. Ministers propose eCommerce tax reforms Opening deliberations on the Sales Tax provisions of the Finance Bill 2025–26, the committee proposed significant reforms. One key recommendation was to reduce the sales tax on stationery items from 10 percent to zero, following concerns from the Stationery Association. The committee gave its nod to a proposal imposing sales tax on e-commerce items, with Chairman FBR clarifying that sales tax is collected from the consumer in e-commerce transactions but often not deposited with the FBR. He further elaborated that courier services will now be designated as collection agents, since they possess the seller's invoice. However, sales tax will not apply to services provided locally. The Finance Bill mandates that all digital vendors, including non-resident businesses, must register in Pakistan if they sell goods digitally through marketplaces, websites, or apps. The committee reviewed new laws on Registration for anyone selling goods online to consumers in Pakistan. Discussion were made on unregistered entities which will face strict enforcement actions Committee members raised concerns about the impact on small and one-time online sellers, prompting Chairman FBR to assure that housewives and those doing one-time transactions will be protected and won't be required to register. Copyright Business Recorder, 2025
Business Recorder
31-05-2025
- Business
- Business Recorder
Finance Bill 2025–26: CAP urges govt to overhaul retail tax structure
LAHORE: Pakistan's organized retail sector on Friday urged the government to overhaul the current retail taxation structure in the upcoming Finance Bill 2025–26, highlighting the urgent need for fairer policies to support compliant businesses and expand the tax base. In a detailed appeal to Federal Minister for Finance Muhammad Aurangzeb, the Chainstore Association of Pakistan (CAP)—the official representative body for over 150 Tier-1 retail chains—called for inclusive policy-making through structured consultation with the private sector. CAP stressed that the upcoming budget presents a critical opportunity to resolve long-standing disparities and bring undocumented retailers into the tax net without penalizing compliant players. CAP acknowledged the Finance Minister's leadership and reiterated its confidence in the government's commitment to reviving the economy. The association underscored the significant contributions of integrated retailers to employment, commerce, tax revenues, and export value chains, despite representing only a fraction of the retail and wholesale trade landscape. At present, POS-integrated retailers contribute approximately 25–30% of their turnover in taxes under various heads. Meanwhile, the vast majority of the retail sector remains either under-taxed or entirely undocumented. CAP warned that this growing imbalance has placed an unsustainable burden on documented businesses, many of whom have been forced to downsize or shut down in recent years. CAP Chairman Asfandyar Farrukh noted that strict enforcement actions and unresolved technical issues in the FBR-POS system have further disrupted operations for compliant retailers. The withdrawal of GST concessions for documented consumers last year, coupled with the failure of the Tajir Dost Scheme due to a lack of consultation and planning, has only worsened the situation. 'To prevent another setback, the Finance Bill 2025–26 must introduce bold, technology-led solutions that broaden the tax base without penalizing formal businesses,' Farrukh emphasized. To drive formalization and promote a cashless economy, CAP proposed fixed GST rates on retail sales made via digital payments 1–2% for consumer goods and 3–4% for textile and leather items. These rates should be extended to all tiers of retailers, including small and mid-sized enterprises, along with simplified compliance measures and alignment with provincial digital payment incentives. CAP maintains that such a framework will reduce costs, encourage documentation, and accelerate tax collection. The association also recommended a fixed quarterly advance income tax regime for small retailers, payable via mobile wallets and adjustable against annual income tax returns. Predictable rates for 3–5 years, coupled with incentives such as government service privileges or cash back offers, would increase voluntary compliance and build trust. To reignite consumer engagement in tax compliance, CAP urged the government to revive the FBR-POS Prize Scheme, which has been suspended since November 2022. Additionally, the association demanded transparency in the use of the over Rs1.2 billion collected through the POS Re1 per invoice fee under the IRS Common Pool Fund. Despite their large contributions, organized retailers remain restricted to just 10% of Pakistan's retail sector, compared to 15–20% in comparable regional economies. CAP warned that unchecked informal competition, coupled with rising compliance costs, continues to hamper sector growth. The association reiterated its readiness to collaborate with government institutions, including the Ministry of Commerce, FBR, SBP, CCP, and others, to support the development of a fair, digital, and growth-oriented retail tax ecosystem. A formal meeting has been requested with the Finance Minister to present CAP's proposals and assist in shaping meaningful reforms in Budget 2025–26. Copyright Business Recorder, 2025
Business Recorder
17-05-2025
- Health
- Business Recorder
Ultra-processed products: Parliamentarians urged to impose taxes
ISLAMABAD: Pakistan National Heart Association (PANAH) urged parliamentarians for imposing taxes on ultra-processed products to curb rising non-communicable diseases (NCDs), said a press release. More than 41 per cent of Pakistani adults are classified as overweight or obese, while over 33 million individuals are living with diabetes. Alarmingly, an additional 10 million people are pre-diabetic. If urgent and decisive policy actions are not taken, projections indicate that the number of diabetes patients in Pakistan could soar to 62 million by 2045. A key contributor to this escalating health crisis is the consumption of unhealthy diets, particularly ultra-processed food and beverage products, which are often laden with excessive amounts of sugar, salt, and trans fats. These dietary patterns are among the most significant modifiable risk factors driving the prevalence of NCDs in the country. In response to the alarming surge in non-communicable diseases (NCDs) across Pakistan, the Pakistan National Heart Association (PANAH) convened a high-level pre-budget sensitization roundtable aimed at galvanizing support from parliamentarians for the imposition of excise taxes on ultra-processed products (UPPs) in the upcoming Finance Bill 2025–26. The event was attended by MNA Saad Balouch, MNA Shafqat Awan, MNA Brig Aslam Ghumman, MNA Ghazala Chitrali, MNA Dr Nelson Azeem, Ex MNA DrNisar Cheema, MNA Saad Baloch, MNA Moazam Ali Khan, Health and nutritionist expert Munawar Hussain and General Secretary PANAH Sana Ullah Ghumman. PANAH emphasised that increasing excise taxes on ultra-processed products is an evidence-based, globally endorsed strategy proven to reduce consumption of harmful foods and mitigate the burden of related chronic illnesses. PANAH called on legislators to take bold action in the Finance Bill 2025–26 by extending excise taxes to include a wider range of UPPs, especially all categories of sweetened beverages and processed snacks. This policy intervention is not only essential for safeguarding public health but also presents a dual benefit: generating additional revenue for the government while reducing the healthcare costs associated with NCDs. These revenues should be earmarked for strengthening public health programs. PANAH shred with the participants that Ministry of National Health Services, Regulations and Coordination has submitted a proposal to increase taxes on ultra-processed products in Finance Bill 2025-26. PANAH seek the support of parliamentarians for public health. Parliamentarians in attendance expressed grave concern over the growing NCD crisis and agreed on the urgent need for preventive strategies, including taxation of unhealthy food and beverage products. They acknowledged PANAH's tireless efforts to protect public health and pledged their support for future policy reforms aimed at reducing dietary risks. Parliamentarians with a renewed commitment by parliamentarians to advocate for pro-health fiscal measures in the Finance Bill 2025–26. Copyright Business Recorder, 2025
