Latest news with #IslamabadCapitalTerritory
Business Recorder
19 hours ago
- Business
- Business Recorder
ICT service providers: Businesses integration with FBR system mandatory
ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory for large categories of service providers to integrate their sales tax businesses with the Board's computerized system for real-time reporting of provision of services from July 1, 2025. This has been mentioned in the updated Islamabad Capital Territory (Tax on Services) Ordinance, 2001. According to the updated Ordinance vide Finance Act 2025, from such date and in such mode and manner, as may be prescribed through a general order by the Board, any service provider as mentioned in Table 1 and Table 2 of the Schedule shall integrate his businesses with the Board's computerized system for real-time reporting of provision of services. Table-1 cover 60 different types of services including services provided or rendered by hotels, motels, guest houses, farmhouses, marriage halls, lawns, clubs and caterers, courier services and cargo services by road provided by courier companies; construction services and other services specified in the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. Table-2 also covers different categories of services. Notwithstanding the provisions of this section, the Board may, whenever deem necessary, subject to such conditions, restrictions and limitations, specify a Negative List of Services exempt from tax under this Ordinance in Table-3 to the Schedule, by notification in the official Gazette, Islamabad Capital Territory (Tax on Services) Ordinance, 2001 added. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business
- Business Recorder
Key amendments made to Finance Bill: Tax fraud arrests only post-inquiry
ISLAMABAD: The government has introduced major amendments to the Finance Bill (2025-26), barring Federal Board of Revenue (FBR) from arrest of persons involved in tax fraud at the stage of inquiry and accused arrested may approach the competent court for release on bail. In cases of payment intermediaries and couriers in respect of digitally ordered goods from within Pakistan, the persons supplying digitally ordered goods from within Pakistan through online market place, website, software applications, the 2% of gross value of supplies would be deducted. The FBR will issue a Negative List of services exempt from sales tax under Islamabad Capital Territory (Tax on Services) Ordinance, 2001. FBR redrafts Sec 37A: Amended Finance Bill sets conditions for tax fraud arrests The amended bill revealed that no arrest under this section shall be made before the completion of inquiry. The accused arrested may approach the competent court for his release on bail under the provisions contained in sections 497 and 498 of the Code of Criminal Procedure, 1898. The purpose of prosecution under the provision of section 37A and 37B of this Act shall remain to create sufficient deterrence against tax fraud and provide for retribution for commission of tax fraud. A three-member committee of the FBR would authorise the Commissioner to issue warrant of arrest against a person involved in tax fraud in cases where tax loss exceeds Rs 50 million. The said arrest would be made in a situation where the accused is intentionally or wilfully not joining the investigation after three notices; accused attempting to abscond or there are sufficient grounds that the accused would temper with the evidence. The amended Finance Bill (2025-26) has also revised penalty regime for committing tax fraud and non-filing of monthly statements by intermediaries or courier companies collecting payments from online marketplaces. In case the person failed to obtain sales tax registration, notwithstanding anything contained in this Act or any other law for the time being in force, the Commissioner shall have the powers to direct banking companies, scheduled banks and other financial institutions, through an order in writing, to intermittently suspend the operation of the bank account of such any person for three working days. The Commissioner shall repeat suspension specified in sub-section (2), for two more times with an interval of one week between the suspensions. The amendments in Finance Bill have reduced sales tax on solar panels from 18 to 10 percent and Federal Excise Duty of 10 percent on Day old Chicks (DOC) of poultry sector. The rate of tax increased from 25 percent to 29 percent on dividend received by a company from mutual fund deriving income from profit on debt. The withholding tax has been increased from 15 to 20 percent on profit on government securities paid to any person (institutional investors) other than an individual. The amended Finance Bill has given tax exemption to Beaconhouse National University; Federal Ziauddin University; Punjab Police Welfare Organization, Lahore and Army Officers Benevolent Fund/Benevolent Fund/Bereaved Family Scheme. The tax exemption would be available on any monetary award received from the Federal or Provincial Government or from a Public Office holder by a sportsperson winning a medal in international Olympic Games representing Pakistan. Provided that this clause shall be applicable from tax year 2025. To bar on transfer of Immoveable Property of non-filers, the committee after affording a personal hearing to the person, shall either recommend for imposition of bar on transfer of immovable property or recommend the Commissioner to remove the bar imposed under section 14AC. The amended Finance Bill revealed that Federal Government may, by notification in the official Gazette, subject to such conditions and restrictions as may be specified therein, exempt any country, any class of goods or services and class of persons from the chargeability under this Act, as deemed appropriate. The amended Bill (2025) further elaborated that where an individual is deriving income under the head 'income from other source' on account of any annuity or pension, such individual shall be charged to tax on his annuity or pension income received at the rate provided in proviso to clause (2) of this Division. According to the amended Finance Bill (025-26), the committee after affording a personal hearing to the person, shall either recommend for imposition of bar on transfer of immovable property or recommend the Commissioner to remove the bar imposed under section 14AC. For imposition of bar on transfer of immovable property, the Committee shall recommend the Commissioner for imposition of bar on transfer of immovable property: Provided that the Committee shall provide an opportunity to obtain registration within fifteen days prior to the recommendation. The amended Bill 2025 revealed that where an individual is deriving income under the head 'income from other source' on account of any annuity or pension, such individual shall be charged to tax on his annuity or pension income received at the rate provided in proviso to clause (2) of this Division.' The amended Bill revealed that a foreign vendor shall have significant digital presence in Pakistan under this Act, where the foreign vendor supplies digitally ordered services and goods from outside Pakistan to any user in Pakistan, if the aggregate amount exceeds one million rupees in a financial year along with one of the following additional factors – (a) existence of a user base and the associated data input. (b) billing or collection in local currency or with a local form of payment. (c) responsibility for the final delivery of goods and services to Pakistani consumers. (d) responsibility for the provision by the foreign vendors of other support services (after sales services, repairs and maintenance) and (e) continued marketing and sales promotion activities, online or not, to attract customers.' For the tax treatment to NLC, the amended Finance Bill further specified that the rate of tax under clauses (b) and (c) of sub-section (1) of section 153 and sub-section (1) of section 236A to be deducted and collected from the National Logistics Corporation shall be 3% of the gross amount of payment and gross sale price of a lease of the right to collect tolls, respectively: Provided that the tax so deductible and collected shall be minimum tax and in case the normal income tax, chargeable under Division II of Part I of First Schedule on the taxable income of the taxpayer, is higher than the amount of tax under this clause, the taxpayer shall be liable to pay the normal income tax, amended Finance Bill added. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Business
- Business Recorder
DRAP STRN deregistration case: FTO orders swift conclusion
ISLAMABAD: Federal Tax Ombudsman (FTO) has instructed the Large Taxpayers Office (LTO), Islamabad to promptly conclude proceedings in the matter of de-registration of Sales Tax Registration Number (STRN) application of Drug Regulatory Authority of Pakistan (DRAP). The complaint was filed under Section 10(1) of the FTO Ordinance, 2000, citing prolonged inaction by the tax authorities despite clear directions from the Appellate Tribunal Inland Revenue (ATIR) to reconsider the case afresh. The Complainant pointed out that no decision had been made on their statutory application for de-registration, while notices continued to be issued for tax compliance, resulting in procedural confusion and administrative hardship. FTO observed that the delay in implementing the Tribunal's order and inaction on the de-registration request fell within the definition of maladministration as per Section 2(3) of the FTO Ordinance. The matter is further complicated by a legislative amendment that potentially exempts regulatory and licensing bodies like DRAP from certain taxes under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001. The LTO in its response claimed that remand proceedings were underway, and a hearing notice had already been issued. However, no final order had been passed. The complainant's authorized representative confirmed receipt of the notice but emphasized that the application for de-registration had still not been adjudicated. Taking serious note of the administrative delays, the FTO has directed the Chief Commissioner, LTO Islamabad to expedite the conclusion of de novo proceedings in line with the Tribunal's remand order and decide the complainant's pending application for de-registration in accordance with applicable laws. The LTO has been asked to submit a compliance report within 45 days. This direction by the FTO reflects a continued push for institutional responsibility and fair treatment of taxpayers by ensuring due process is not sacrificed at the altar of bureaucratic inertia. Copyright Business Recorder, 2025
Express Tribune
12-06-2025
- Express Tribune
Professional panhandlers thrive in capital
Amidst repeated action against beggars by Islamabad Capital Territory (ICT) administration, the city continues to witness a rise in the number of beggars at its streets, markets and traffic intersections. In most of areas of main city and housing societies in the suburbs, they are seen in abundance with scores among them are permanent and professional seeming like to be part of a nexus operating in the city. Some residents have pointed out that many of these permanent beggars are travelled to designated places daily in the morning and picked up in the evening by their masters after day long begging in these areas. Particularly busy areas like F-6, F-7, F-10 Markaz, capital's main traffic signals and housing societies along Islamabad Expressway including PWD, Police Foundation and Pakistan Town commercial areas have witnessed a surge in beggars including women and children, soliciting money from commuters and shoppers. Expressing concerns on prevailing situation, the residents have demanded strict enforcement of anti-begging laws, arguing that unchecked beggary not only tarnishes Islamabad's reputation but also resulting in petty crimes. They are also perturbed on re-emergence of beggars groups after a couple of days of action by ICT administration who occasionally launch operation against these beggars, nab them and put behind the bars. But, this practice could not prove to be a permanent solution to this menace as there are also reports that many rag pickers conduct recce in different areas during the day that leads to theft and robbery after sunset. Citizens in many localities have expressed frustration over frequent encounters with organized groups of beggars as well as the crimes like snatching or plundering valuables and breaking into houses, also threatening human lives. "Once regarded as one of the most orderly and serene cities in South Asia, Islamabad is now grappling with a persistent and increasingly visible challenge of beggary," remarked a businessman, Saleem Khan. "From traffic signals to bustling markets, the city's thoroughfares are teeming with individuals with many of them seeming like part of organized groups or an unseen nexus operating in the city," Saleem Khan said. "Some of them aggressively seek alms and when refused either they abuse you or scratch your vehicles and run away. " Since they are professional engaged in this notorious practice for years, they have numerous techniques to allure people. "Their techniques range from sympathetic women holding infants, children selling flowers, some knocking windows of your car and some elderly begging for medical treatment or marriage of their daughters," said Aiman Baig, a working woman. "Some among them are too sticky and arrogant and also pass derogatory remarks when refused alms. " She said, whether it is intersection at Aabpara, traffic-laden Jinnah Avenue or other areas in the city, you can find them everywhere. Amina Rafeeq, a local resident describes it as very uncomfortable and says, "even if you desire to help someone needy, you cannot ascertain who is genuinely deserving and who belongs to a nexus."
The Hindu
30-05-2025
- Politics
- The Hindu
Pakistan enacts law to curb child marriages
Pakistan President Asif Ali Zardari on Friday (May 30, 2025) signed into law a bill fixing the minimum age for marriage at 18 years to curb child marriages despite opposition from right-wing clerics. The Islamabad Capital Territory Child Marriage Restraint Bill, seeking to protect the rights of children and eventually eradicate marriages of children under the age of 18, was sent to the President's approval on May 27 after sailing through both houses of Parliament. Pakistan Peoples Party (PPP) Senator Sherry Rehman shared on X a presidential notification related to the approval of the legislation. 'The Islamabad Capital Territory Child Marriage Restraint Bill, 2025 is assented to, as passed by the Parliament,' the notification read. 'Pakistan has reached a milestone in the enactment of important legislation against child marriages,' she said. Mr. Zardari accented to the bill despite strong opposition from religious groups and even the Council of Islamic Ideology (CII), a constitutional body tasked to offer counsel on legal issues, in a ruling said that classifying marriage under the age of 18 as rape did not conform with Islamic law. Ms. Rehman said that the approval of the bill was successful despite resistance from various sections, adding that President Zardari signed the bill despite pressure. 'The signing of the Child Marriage Restraint Bill is a symbol of a new era of reforms in Pakistan,' she said. She hailed the approval as a victory for the protection of the rights of women and children, adding, 'This law was possible after a long and difficult struggle.' 'This bill is not just a law, it is a commitment that our girls have the right to education, health and a prosperous life,' Ms. Rehman continued. She thanked PPP Chairman Bilawal Bhutto-Zardari, party leaders, other political parties and representatives of the opposition and the public for their support to the bill. Earlier, CII member Maulana Jalaludin, who belongs to the Jamiat Ulema-e-Islam Fazl (JUI-F), said President Zardari should prevent anarchy in society by not signing the bill.
