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Business Recorder
9 hours ago
- Business
- Business Recorder
No integration with system: FBR orders hefty fines on corporate taxpayers
ISLAMABAD: The Federal Board of Revenue (FBR) has ordered the imposition of huge penalties on corporate sales taxpayers across Pakistan, who failed to integrate with the board's system. Resultantly, field formations are issuing penalty notices to the corporate sales taxpayers despite the FBR's commitment of extension in deadline for corporate taxpayers during last meeting of Senate Standing Committee on Finance. For corporate registered persons, the date of registration/integration was July 1, 2025 and non-corporate registered persons August 1, 2025. FBR extends tax returns filing deadline to Aug 4 According to the FBR's recent instructions to the field formations, 'I am directed to state that the worthy Director General (IT&DT) has issued instructions regarding issuance of penalty notices to taxpayers who have as yet not integrated themselves with FBR as per provisions of Rule 150Q of the Sales Tax Rules, 1990 read with SRO.709(I)/2025. The matter may please be accorded top priority in accordance with the above and Board's ongoing drive of integration of un-registered taxpayers, the FBR's instructions added.' During the last meeting of Senate Standing Committee on Finance, the FBR has assured to extend deadline for integration of sales taxpayers. The FBR has decided to implement policy of sales tax integration in phases and sector wise. Similarly, non-corporate taxpayers would be given extension in this regard. The FBR had assured the committee that the FBR will soon issue sales tax explanatory circular to address all concerns of the business community. Meanwhile, the FBR has officially reconstituted the committee responsible for evaluating applications related to the integration of registered persons under the Sales Tax Rules, 2006. A formal notification in this regard was issued by the FBR on Monday/28.07.2025. The move comes amid growing anticipation within both the corporate and non-corporate sectors for an extension in the deadline for sales tax integration. Tax professionals have indicated that businesses are awaiting clarity from the FBR regarding future compliance timelines. According to the new notification, the FBR has rescinded its earlier directive issued under Notification (IR-Ops)/2025-R dated 16.06.2025. The reconstitution exercise has been carried out under the powers granted by the Sales Tax Act, 1990; the Sales Tax Rules, 2006; the Income Tax Ordinance, 2001; and the Income Tax Rules, 2002. The newly-formed committee will now oversee the evaluation process of licence applications for integration. It will be chaired by Mr. Abid Mehmood, Director General (IT & DT), with the other members. The committee's Terms of Reference (ToRs) include: Scrutinising submitted documents and determining eligibility for new registrations; Reviewing additional documents in previously approved registrations under updated rules; Preparing Requests for Proposal (RFP) in line with the new regulations; Assessing complaints and making recommendations for licence cancellations to the FBR. The FBR confirmed that this notification replaces all prior orders concerning this matter and has been issued with the approval of the competent authority. The step reflects FBR's continued efforts to streamline tax administration and promote transparent integration processes. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
FBR forms body to review licences for ST integration
ISLAMABAD: The Federal Board of Revenue (FBR) has reconstituted committee to evaluate applications for grant of licence for integration of registered persons under the Sales Tax Rules, 2006. In this regard, the FBR has issued a notification here on Monday. When contacted, a tax expert said that both the corporate and non-corporate sectors are waiting for the extension in time period for sales tax integration. According to the notification, the FBR has superseded Notification (IR-Ops)/2025-R dated June 16, 2025. IMF links 4pc further ST abolition to 50,000 new ST registrations: FBR In exercise of powers conferred under Sales Tax Act, 1990, Sales Tax Rules, 2006, Income Tax Ordinance, 2001 and Income Tax Rules, 2002, the FBR has reconstituted the committee to evaluate applications for grant of licence for integration of registered persons under the Sales Tax Rules, 2006. The committee shall comprise of the following members: Abid Mehmood, Director General (IT & DT) would be Chairman of the committee. Arshad Nawaz Chheena, Chief (Revenue-Operations), Member; Aamar Javed, Chief (Systems), Member/Secretary of the Committee; Abdul Hameed, Secretary (STB), Member; Abid Naeem, CIO, PRAL, Member and Mehboob-ur-Rehman, Sr Manager (Development), PRAL would be Member of the committee. The terms of reference (ToRs) of the committee shall be as follows: (i); To scrutinize the documents, evaluate the eligibility of the applicant for new registration. (ii); To scrutinize further documents required as per new rule in cases where registration hasearlier been granted. (iii); To prepare Request for Proposal (RFP) as per new rules and cope. (iv); To evaluate the complaints and to make recommendations to the Board for cancellation of licence. This notification is issued with the approval of the competent authority and supersedes the already issued notifications in this regard, the FBR added. Copyright Business Recorder, 2025
Express Tribune
24-07-2025
- Business
- Express Tribune
Vanaspati manufacturers threaten closure over tax
Listen to article The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of an indefinite nationwide shutdown of ghee and cooking oil production if the Federal Board of Revenue (FBR) does not withdraw controversial tax enforcement powers within 48 hours. At a press conference following the association's General Body meeting in Karachi, PVMA Chairman Sheikh Umer Rehan said the strike was unanimously approved by members. However, the strike is on hold for two days due to ongoing FPCCI-FBR talks facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad. "We have delayed the strike by 48 hours, hoping that negotiations between FPCCI and FBR under SIFC supervision will bring results. If not, we will halt production across Pakistan," Rehan warned. According to a statement released on Wednesday, PVMA opposes new amendments in the Income Tax Ordinance in Budget 2025-26, particularly Sections 40B, 40C, 21S, and 8B. These allow FBR to monitor private businesses and grant power to arrest alleged defaulters without warrants under Section 37A. Rehan said these powers mirror the National Accountability Bureau (NAB), raising fears of arbitrary interference in commercial activities and would lead to harassment. "If NAB-like officers monitored the FBR chairman, could he work freely? Then how can we work under similar pressure?" he asked. PVMA highlighted its economic role, saying the sector is the second-largest taxpayer after petroleum. Rehan said the industry pays 35% tax on imports and 10% on sales but still faces raids and arbitrary rules. He also claimed that utility stores owe the industry over Rs6.5 billion, while billions in sales tax refunds remain unpaid. He added that the sector lacks capacity for immediate compliance with the newly introduced digital invoicing requirement. "Digitisation takes time and investment. We can't do it overnight," he said. The PVMA said it prefers dialogue but warned that if the government fails to act, it will proceed with a shutdown.
Business Recorder
21-07-2025
- Business
- Business Recorder
President NKATI praises KCCI for organising successful protest
KARACHI: President of the North Karachi Association of Trade and Industry (NKATI), Faisal Moiz Khan has appealed to Prime Minister Mian Shehbaz Sharif and Field Marshal General Syed Asim Munir to assist in resolving the issues of the business community through their genuine representatives and with written assurances, so that the wheels of national industry can move forward without fear, and export consignments continue uninterrupted. He demanded the reinstatement of the Final Tax Regime for exporters. He expressed his gratitude to the leadership of the Karachi Chamber of Commerce and Industry (KCCI) for organizing a highly successful strike on the appeal of KCCI President Muhammad Javed Bilwani. He said this peaceful protest was a powerful way to make the government hear the voice of the business community. The unanimous protest was against the oppressive, unrealistic, and business-unfriendly tax measures imposed through the Finance Act 2025–26. He paid heartfelt tribute to the KCCI leadership for the historic success of the strike held on Saturday, July 19. Faisal Moiz Khan stated that the business community had repeatedly conveyed its concerns to the government and also submitted positive suggestions through the Karachi Chamber. Unfortunately, those suggestions were not taken seriously. He particularly criticized sections 37A and 37B of the Income Tax Ordinance, which give authorities the power to arrest taxpayers and initiate cases without due legal process—an act he described as completely unjust and a means of creating a climate of fear. Additionally, he condemned the harsh penalties on cash transactions under Section 21(s), which remain a common business practice in Pakistan. Faisal Moiz Khan added that, shaken by the impact of the strike, certain government representatives and bureaucrats have launched campaigns against KCCI President Javed Bilwani, prominent trader leader Zubair Motiwala, and Lahore Chamber President Abu Zar Shad. Copyright Business Recorder, 2025
Business Recorder
21-07-2025
- Business
- Business Recorder
Finance Act 2025: BMP demands removal of ‘oppressive' clauses
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has strongly condemned the continuation of controversial fiscal amendments introduced under the Finance Act 2025, asserting that Saturday's successful shutter-down across Punjab and the rest of the country signals a deep rupture in the government's contract with the business community. Addressing the wave of frustration engulfing markets from Lahore to Faisalabad, Gujranwala, Sialkot and beyond, BMP Chairman Mian Anjum Nisar noted that this collective shutdown was not a routine protest—it was a definitive vote of no-confidence in the state's current economic direction. Traders, industrialists, wholesalers and retailers across Pakistan voluntarily ceased operations to register their dismay at the coercive new powers granted to tax officials under the revised law. Mian Anjum Nisar stated that Sections 37A and 37B of the Income Tax Ordinance—empowering tax officers with arrest and prosecution authority—violate the constitutional guarantees of fair treatment and due process. He said these clauses are more reflective of a police state than a participatory economy and have triggered panic throughout formal businesses already struggling with rising costs and limited liquidity. 'These measures were neither debated transparently nor tested through pilot phases. The sudden imposition of unchecked arrest powers, aggressive cash handling limits, and unrealistic digital compliance rules has pushed the entire business landscape into uncertainty,' Nisar warned. 'You cannot reform an economy by intimidating its engine. What the government has misjudged is the deep-rooted unity of Pakistan's trading and industrial community.' He pointed out that even law-abiding businesses with a clear tax history are now rethinking their operations due to the fear of misuse by the enforcement arms of the Federal Board of Revenue. Coupled with hasty implementation of SRO 350 and SRO 709, which mandate complex electronic invoicing and tracking requirements, the situation has left traders vulnerable to penalties without preparation. Anjum Nisar said the nationwide protest was not confined to any single region or sector. 'From mega industrial hubs in Lahore to small-town traders in central Punjab, the shutdown was absolute—and peaceful. This is not political agitation. It is a desperate but constitutional signal from those who have been pushed too far,' he said. BMP stated that instead of expanding the tax base through engagement, the government has opted for punitive actions that are alienating even registered taxpayers. 'This is not how you build trust. If every law-abiding businessperson starts to feel like a criminal, the tax system collapses under its own contradictions,' Nisar remarked. He expressed serious concern that the government's narrative continues to suggest that only a few sectors oppose the reforms. 'This strike disproved that myth. The unity seen across commercial centers in Punjab should be a wake-up call. We are talking about a total industry halt—a shutdown of production, supply chains, and sales from top to bottom,' he said. While acknowledging the establishment of a grievance redressal committee by FPCCI and the Ministry of Finance, BMP criticized the lack of urgency in addressing the issues. 'At this stage, verbal commitments are not enough. The government must issue written notifications immediately reversing or suspending the most dangerous aspects of these laws,' Nisar insisted. The Businessmen Panel emphasized that the business community has always been in favor of responsible reforms and progressive digitization. However, it cannot support a system that is imposed overnight, without education, infrastructure, or practical rollout plans. 'Pakistan's economy does not run on apps and directives. It runs on trust, predictability, and dialogue,' he added. He said BMP had repeatedly presented constructive suggestions, including timelines for documentation, gradual onboarding of digital systems, and protections against harassment. 'Unfortunately, the state continues to legislate from a distance, without consulting the very people who will bear the brunt of these policies,' Anjum Nisar lamented. He warned that if the Finance Act is not amended in the coming days, the economic consequences could extend beyond business closures to investment flight, job losses, and reduced exports. 'Pakistan's productive class cannot afford to operate in fear. We will not be spectators to our own collapse,' Nisar said. BMP reiterated its complete support for the constitutional right to protest and expressed pride in how peacefully and effectively the strike was observed across the country. 'The discipline and unity shown on July 20 have restored our belief that business owners can still come together for the nation's economic future. But that unity must now be respected—not ignored,' the chairman said. The Businessmen Panel demanded that the government issue official notifications to immediately withdraw Sections 37A and 37B, revise SRO 350 and SRO 709 with stakeholder input, and suspend punitive cash transaction rules until a proper mechanism is agreed upon. 'We are not seeking confrontation. We are demanding correction,' Mian Anjum Nisar said. 'If the government fails to act now, the business community will be forced to reconsider how—and whether—it continues to operate under such conditions.' Copyright Business Recorder, 2025
