Latest news with #PKR
&w=3840&q=100)
First Post
8 hours ago
- Business
- First Post
Pakistan farmers threaten wheat cultivation boycott over 'unethical' farm tax
Sindh Chamber of Agriculture (SCA) alleged that a new 45 per cent income tax on farm earnings was introduced under pressure from the IMF and threatened of a widespread wheat cultivation boycott in protest read more In a development reflecting rising rural frustration at mounting economic pressures in Pakistan's farm belt and potentially spelling a world of trouble for food security in the cash-strapped nation, Sindh's largest agricultural body said it would mount a legal challenge against a new 45 per cent income tax on farm earnings, branding the levy 'unconstitutional, illegal and unethical'. The Sindh Chamber of Agriculture (SCA) warned of a widespread boycott of wheat cultivation in protest, escalating tensions between farmers and the provincial government. STORY CONTINUES BELOW THIS AD The chamber convened in Pakistan's Hyderabad on Tuesday (July 22) under the leadership of its patron-in-chief, Dr Syed Nadeem Qamar, to formalise its response. It alleged the tax was introduced under pressure from the International Monetary Fund (IMF), with the move drawing strong resistance from growers who argue that poor returns on crops leave no room for additional fiscal burdens, Dawn reported. Farmers attending the meeting said they were struggling to receive adequate prices for their produce and slammed the government's tax move as unjustified. The SCA responded by instructing farmers across Sindh to refrain from paying the new tax, adding that if authorities attempted arrests, 'millions of other farmers would also court arrest.' 'We are ready to face imprisonment, but will not pay the agricultural income tax,' the group's leaders declared. Participants vowed full-scale defiance, comparing their treatment unfavourably to industrialists, who they said had been granted tax exemptions. The SCA also declared a boycott of wheat cultivation for the 2025-26 season, citing inadequate support prices. Instead of sowing wheat, the SCA said farmers would switch to alternative crops such as mustard, nigella (kalonji), sunflower and other oilseeds. The group said growers were unable to recover their costs due to low wheat prices and declared 2025-26 a 'boycott year' for the staple crop. The chamber also raised alarm over a 40 per cent decline in cotton output, forecasting a total yield of no more than four million bales. It said that although the Sindh agriculture minister had pledged a support price of Rs11,000 per maund, farmers were currently receiving just Rs6,500. STORY CONTINUES BELOW THIS AD The SCA called for the immediate removal of an 18 per cent local tax on cotton and demanded a 25 per cent tariff on imported cotton to encourage domestic production. At the same time, it voiced concern over the surging cost of key inputs, noting a PKR 22 per litre jump in diesel prices and a PKR 600 increase in DAP fertiliser per bag over just a fortnight. Such rising costs, paired with stagnant farmgate prices, were pushing cultivators to the brink. The chamber warned that this squeeze signalled a 'deliberate destruction' of the agricultural sector and called on the authorities to reverse the price hikes on diesel, fertiliser, seeds and pesticides immediately. Farmers were urged to register for the government's Benazir Hari Card via local administrative offices to access welfare benefits. The chamber also demanded that existing subsidies of PKR 10,000 per acre– currently applied to sunflower and canola– be extended to mustard and rapeseed crops as well. STORY CONTINUES BELOW THIS AD The meeting included senior figures from Sindh's farming leadership, including Sindh Irrigation and Drainage Authority Chairman Kabool Khatian, general secretary Zahid Bhurgari and agricultural organisers from across the province.
Yahoo
11 hours ago
- Politics
- Yahoo
‘Not their home any more': Rafizi warns PKR risks Umno-style exodus over grassroots anger after party polls
KUALA LUMPUR, July 19 — Former PKR deputy president Rafizi Ramli has reportedly cautioned that rising dissatisfaction among grassroots party members could lead to an exodus that similarly plagued Umno during the 1998 Reformasi movement. Malaysiakini cited him from his podcast Yang Berhenti Menteri suggesting that the discontent stems from the recent PKR party elections, where members questioned the transparency of the process. 'In the madness of grabbing power or positions, don't let it come to making people feel like this is not [their] home any more,' he reportedly said, adding that this will be dangerous to the party. 'When they've moved on, it's not easy to ask them to come back,' he added. Datuk Seri Anwar Ibrahim, then Umno deputy president and deputy prime minister was sacked in 1998 by Tun Dr Mahathir Mohamad — leading to the Reformasi movement and formation of PKR. Meanwhile, Rafizi was recently defeated in the PKR number two post by Anwar's daughter Nurul Izzah. He and fellow loser Nik Nazmi Nik Ahmad both quit their Cabinet posts, citing the party's loss of trust in them. Since then, he has since one of the biggest critics of Anwar's administration, from issues ranging from the 13th Malaysia Plan to judicial independence. Yesterday, Rafizi led nine PKR MPs to remind the government that the need to strengthen the judicial appointment process continues, despite the finalised top judicial appointments. Rafizi had similar stepped down from politics in 2018 after he was defeated by Datuk Seri Mohamed Azmin Ali to be Anwar's deputy in PKR — before returning to the post and active politics in 2022.
The Star
15 hours ago
- Business
- The Star
Cash aid and other measures shows Govt's commitment, says Ramanan
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim's announcement of cash aid for all Malaysians demonstrates the Madani government's commitment to supporting people of all races, religions, and backgrounds, says Deputy Minister of Entrepreneur and Cooperative Development Datuk Seri R. Ramanan. He stated that, alongside the cash aid, major measures such as targeted subsidies, cost of living reduction initiatives, and record high investments reflect the government's concern for all levels of society, including the Indian community. "Nandri PM (Thank you PM). This is another very important and timely announcement. The one-off RM100 Sara Assistance via MyKad to all citizens aged 18 and above, along with the increased allocation for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) to RM15bil in 2025, is evidence of the government's commitment to providing comprehensive assistance," he said in a statement. Ramanan added that the implementation of the Sejahtera Madani initiative, involving cooperation between the government and the corporate sector, offers new hope in addressing extreme poverty, particularly among urban and rural communities of all races. He also praised the government as brave and responsible for postponing toll rate increases, lowering electricity bills for most users, and expediting appointments for more than 4,000 job vacancies in the healthcare sector, including contract doctors. "The increase in the minimum wage to RM1,700 from August shows the government's determination to defend workers' rights. This has a significant impact, especially on youth and industrial workers," said Ramanan. Ramanan, who is also the Vice President of PKR, commended the government's efforts in attracting investments amounting to RM384bil last year, the highest in the country's history. He noted the country's rise to 23rd place in the 2025 World Competitiveness Index as another significant achievement. He emphasized that all these efforts manifest the Madani government's inclusive and fair approach to ensuring shared prosperity. "The Madani government works for the people of Malaysia based on concern and justice for all Malays, Chinese, Indians, Sabahans, and Sarawakians," he said. Ramanan urged the people to continue supporting the government's reform agenda, focusing on the people's well-being, economic sustainability, and national unity.
Malaysiakini
19 hours ago
- Politics
- Malaysiakini
Muhyiddin's anti-Madani axis
Good morning. Here's what you should know today. Key Highlights Muhyiddin's anti-Madani axis Anwar's magnanimity Jho Low's new identity Muhyiddin's anti-Madani axis Perikatan Nasional chairperson Muhyiddin Yassin met with several opposition party leaders on Friday. Besides PN parties, those at the talks included Muda and PSM. PAS was notably absent from the meet, but was reportedly invited. The meeting sought to explore the possibility of forming a united front on national and public interest matters. HIGHLIGHTS Anwar's magnanimity PKR president Anwar Ibrahim has no intention to discipline his former deputy Rafizi Ramli and the latter's allies for going "rogue". The party's communications director said that Anwar had told members to respect differing opinions. Meanwhile, Rafizi warned that if unhappiness within PKR is not resolved, it may experience a break-up like Umno did after Anwar was sacked in 1998. HIGHLIGHTS Jho Low's new identity Fugitive businessperson Jho Low is reportedly living in Shanghai under a fake identity. Investigative journalists Bradley Hope and Tom Wright claimed that Low is using a fake Australian passport with the name Constantinos Achilles Veis. He is allegedly living in an affluent part of Shanghai and works at the city's financial centre as a "behind-the-scenes strategist" for the Chinese government. HIGHLIGHTS Views that matter In case you missed it Other news that matter
Business Recorder
21 hours ago
- Health
- Business Recorder
Tobacco taxation and youth initiation
Tobacco use in Pakistan is not just a public health concern, it is a fiscal crisis demanding urgent re-evaluation of cigarette taxation especially as it fuels youth initiation. Every year, it claims approximately 164,000 lives and drains nearly Rs 700 billion from the economy through healthcare and lost productivity. Despite this, cigarette taxes have remained untouched since February 2023. Policymakers continue to hesitate at a time when swift and evidence-based action is needed most, especially to protect the youth from early addiction of tobacco consumption. The 2025–26 federal budget with a total outlay of Rs 17.57 trillion reflects continued fiscal restraint, with health infrastructure development bearing the brunt. The combined budget for the Ministry of Health, National Health Services Regulation & Coordination was cut nearly 16 percent, declining from Rs 54.87 billion in FY2024-25 to just Rs 46.10 billion and the Public Sector Development Programme (PSDP) allocation shrank from Rs 27 billion to Rs 14.34 billion, a staggering 47 percent real-term cut. Meanwhile, defence outlay surged to Rs 2.55 trillion, which highlights an ongoing prioritisation of security over social development. This stark contrast underscores the need for an alternative sustainable revenue streams like tobacco taxation. In this fiscal context, tobacco control remains sidelined. Our two-tier Federal Excise Duty (FED) remains unchanged with PKR 330 per pack applied on premium brands and PKR 101 on economy brands. As inflation and income have risen, this makes cigarettes more affordable. The 2023 hike provided a welcomed 19.2 percent drop in legal consumption and a 66 percent surge in revenue from Rs 142 billion to Rs 237 billion but without further action, affordability of tobacco products is climbing again. This reversal affects adolescents disproportionately who are more likely to initiate smoking when cigarettes are financially accessible. There is compelling evidence for reform. A March 2025 fact sheet by Social Policy and Development Centre 'SPDC-WHO–Tobacco-Free Kids' shows that a modest PKR?39 FED increase, raising the duty to PKR 140 for economy and PKR?369 for premium pack would cut cigarette consumption by 6.9 percent. It would help reduce the number of smokers by approximately 263,000 and generate an additional Rs 67.4 billion in revenue. Youth would be particularly protected given their higher price sensitivity. Economic models from comparable countries suggest that taxation is the single most cost-effective method to deter smoking among youth. Yet, this statistical warning is overshadowed by a dark reality, the rise of illicit cigarette trade. Pakistan is ranked 101st on the 2025 Illicit Trade Index. Illicit trade is estimated to be causing a revenue loss of Rs 300 billion in taxes potentially increasing to Rs 415 billion, as unauthorized brands now constitute 58 percent of the market. That leaves only 42 percent of cigarette consumption which contributes to the treasury. This is not a revenue issue solely rather it shows a significant breach in regulation and oversight undermining national development and exacerbating public health risks. The industry protests that higher taxes worsen this. However, after the 2023 hike, legal consumption fell and revenue grew, hardly the signs of a failing tax policy. Instead, weak enforcement, porous borders and brand-switching loopholes exacerbated by our tiered excise system are the true culprits. Umeed-e-Sehar study shows 67 percent of smokers shifted to illegal, unstamped cigarettes with 71 percent switching brands and 89 percent maintaining their consumption. These figures point to the urgent need for administrative reform alongside fiscal changes. It will reduce consumption modestly, increase government revenue substantially and most importantly, discourage smoking among youth and low-income populations who are far more price-sensitive. Pakistan has the legal tools; a WHO Illicit Trade Protocol-compliant Track & Trace system ratified in 2018 but implementation remains highly uneven. Only major manufacturers have installed the system while smaller firms lag behind and only 19 out of 413 brands comply fully. This leaves illicit players free to capitalize on gaps in retail enforcement especially in AJK and along the western corridor. Smuggling remains prevalent partly due to weak border controls and limited inter-agency coordination. Strengthening the Federal Board of Revenue's enforcement capacity, including real-time tracking and digital verification systems, must be prioritized. Pakistan now stands at a policy crossroads. Without change cigarettes become more affordable, illicit trade expands further and youth initiation accelerates. A moderate excise hike of PKR 39–60 per pack, uniformly applied, indexed to inflation and linked to FED stamps, enforcement, and retailer compliance could reclaim lost revenue and reduce youth smoking. Such reform would also simplify taxation structures, making them easier to monitor and enforce. This is a win-win for both government and public health. The opportunity is also strategic. With the health sector development cut by nearly half, tobacco tax reform could free up Rs 67 billion+ for prevention, withdrawal, pictorial warnings, and youth education, thereby plugging critical gaps in infrastructure. Funds can also be redirected toward developing smoke-free campuses, launching public awareness campaigns and training healthcare workers to provide support for quitting tobacco among at-risk youth populations. Defenders of the status quo argue that illicit trade makes reform dangerous. Yet the evidence is clear; the main driver of illicit markets isn't taxation, it's our own institutional weakness. To counter this, enforcement must be paired with fiscal action. A uniform FED regime will reduce price gaps which would eliminate incentives to downgrade or buy illicit. Stronger penalties for smuggling and retailer non-compliance, combined with a well-publicised crackdown could help restore consumer trust and market stability. Tobacco fiscal reform is not a luxury rather a strategic necessity. With political resolve and public support, Pakistan can shift from passive loss to proactive protection of its youth, its economy and its public health future. Copyright Business Recorder, 2025
