Latest news with #Rs0.5
Express Tribune
2 days ago
- Express Tribune
Online fraud accused's remand extended
A physical remand of a foreigner, who was arrested in connection with an online fraud case, has been extended to two more days. The accused, identified as Sun Sun Li, was among 16 foreign nationals named in FIR No. 141/25, registered at the Cyber Crime Police Station. Senior Civil Judge Muhammad Ashfaq Malik approved the extension of her remand for further investigation. The case was lodged by Ayesha Munir, a resident of Toba Tek Singh, who claimed to have been defrauded of Rs0.5 million through an online scam.
Express Tribune
24-06-2025
- Business
- Express Tribune
RDA halts promotions amid fraud probe
Over a month after a major financial scandal involving Rs1.94 billion surfaced in the Rawalpindi Development Authority (RDA), the administration has begun implementing key reforms to restore financial discipline. As an initial step, the implementation of an irregular promotion has been halted, and a revised framework for financial authority has been introduced. Under the new structure, the director finance and deputy director finance have been jointly authorised to approve financial transactions up to Rs0.5 million. According to sources, these reforms come in response to ongoing investigations by the National Accountability Bureau (NAB), the Punjab Anti-Corruption Establishment, and a fact-finding committee set up by the chief secretary. The scandal involved the unauthorised transfer of Rs1.94 billion in public funds to various companies and individuals through Call Deposit Receipts (CDRs). In the first phase of corrective actions, the promotion of building inspector Nadeem Jamal has been suspended. Initially working in the engineering department, Jamal was promoted from Grade 11 to Building Superintendent (Grade 16) and subsequently to Assistant Director Engineering (Grade 17). However, a fresh directive has now halted the implementation of his most recent promotion, pending the committee's final decision. In parallel, significant reshuffling has taken place within the finance department. Sohaib Ahmed Qazi, previously Director Finance, has been appointed Deputy Director State Management while continuing to hold additional charge of Director Finance and Administration. Meanwhile, Masood Arshad, formerly Deputy Director of State Management, has been reassigned as Deputy Director Finance. Under the new management, both officials will co-sign all cheques up to Rs0.5 million and jointly manage the bank account used for RDA staff salaries, pensions, utility bills, and other routine expenses. It is worth noting that a dual-signatory system for higher-value cheques was already in placerequiring signatures from both the director general and director finance for amounts exceeding Rs0.5 million. However, years of weak oversight and poor monitoring enabled manipulation of the CDR mechanism, which ultimately led to the massive embezzlement. Investigations suggest the CDR-based system remained unchecked for nearly a decade, allowing for widespread misuse of public funds. NAB probes scam On the other hand, the National Accountability Bureau (NAB) has begun summoning both serving and retired officers of the RDA in connection with the alleged embezzlement in government funds. All former directors of administration and finance who served over the past decade are being called in phases, with summons already issued. Separately, the fact-finding inquiry committee set up by the Punjab chief secretary is scheduled to hold its second session on Wednesday (today) in Lahore to further investigate the matter. On Monday, several key officials, including RDA Director Land Malik Ghazanfar, who has been the Director of Admin and Finance in RDA, Assistant Director Finance Waqar Asghar Raja, retired Assistant Director Khawaja Arshad Javed, and other officials from the Finance Directorate, appeared before NAB, Rawalpindi.
Business Recorder
14-06-2025
- Business
- Business Recorder
Tax gap touches Rs7.1trn mark: FBR says Rs389bn enforcement steps hinge on parliament nod
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, Friday, disclosed before the National Assembly Standing Committee on Finance that the tax gap has reached Rs7.1 trillion in 2024-25 and approval of parliament is needed for enforcement measures of Rs389 billion, and help of provinces to increase tax-to-GDP ratio. On Friday, Minister of State for Finance and Revenue and Chairman FBR presented an overview of Finance Bill proposals and a summary of the FBR Transformation Plan. The FBR chairman disclosed that the FBR has suffered Rs0.5 trillion tax losses due to smuggling from borders, especially smuggling of petroleum products from Chagai district in Balochistan. He informed the committee that FBR has developed an ambitious transformation plan, which will be implemented from December 2025. He said that FBR's real tax, after adjusting for inflation and real GDP, has been one per cent from 2016-18 and -0.3 per cent from 2018–24. He added that Pakistan faces a tax gap of Rs7.1 trillion in 2024–25 and also lags behind peers in the tax-to-GDP ratio. The FBR's revenue as percentage of GDP stood at around 10.4 percent to 10.5 percent. Break-up of tax gap revealed that sales tax gap stood at Rs3.4 trillion, income tax gap Rs2 trillion, customs duty gap Rs0.5 trillion, totalling to Rs5.9 trillion. After including enforcement gap, autonomous growth and other factors, total tax gap stood at Rs7.2 trillion during 2024-25, the FBR chairman said. There is an urgent need to request provinces to help in raising tax-to-GDP ratio. Referring to the importance of enforcement, the FBR chairman said that the FBR has collected Rs50billion extra revenue from the sugar industry during the current year despite less production. This extra Rs50 billion has been collected without any change in tax rates on sugar industry. The digital integration exercise resulted in registration of 1,812 businesses having annual turnover of Rs11.8 trillion. A total of 489 companies are in testing phase and 42 companies are now digitally live. During the meeting, the finance committee expressed serious concern over the increase in tax on profits. The committee chairman directed the FBR to minimise the tax on profits of small depositors. The committee opposed the gradual withdrawal of the extension to the exemption for FATA/ PATA. Chairman Syed Naveed Qamar considered it an economic assassination of small-scale businesses in the area. He directed the FBR to reconsider the withdrawal and provide relief to the locals. The FBR chairman updated the committee on a series of reforms, but noted a lack of enforcement. He said that a Delivery Unit has been set up to drive transformation interventions with all stakeholders. A roadmap is in place to deliver transformational impact by the end of the year. He updated the committee on the Digital Production Tracking, Digital Invoicing, Digital Enforcement Stations, Cargo Tracking System, and Faceless Assessment System. The Minister of State for Finance and Revenue and the Chairman FBR also briefed the committee on potential concerns and justifications. He updated the committee on the current budgetary position, revenue receipts, target for FY 2025–2026, summary of income tax measures, summary of sales tax measures, relief for salaried individuals, relief in super tax, rationalisation in rates of advance tax on rendering of services to non-residents, reintroduction of tax credit for housing loans for small residences, gradual withdrawal of extension to exemption to FATA/ PATA, allowance to coal miners in Sindh to sell to buyers other than IPPs, dividend tax on mutual funds, tax on e-commerce transactions, and an increase in advance tax on cash withdrawals by non-filers. Some committee members raised issues with the Faceless Assessment System in Karachi, citing complaints of high charges, delays in examination and reviews, which caused significant demurrages. The members also complained about the misuse of the Digital Production Tracking and Digital Invoicing System. They stated that the Digital Production Tracking system makes errors in distinguishing between old, used, and scrap material. The FBR was; however, of the view that there are reports of usable material being misrepresented as scrap. Chairman Qamar observed that the digital enforcement station plan may choke port points and that the cargo tracking system will create practical issues. He observed that the mortgage culture has not yet been introduced in the country. He emphasised the need for the FBR to simplify the process of tax credits for housing loans. He directed the FBR to provide a specific table of options with thresholds for the committee's consideration. The committee expressed serious concern over the increase in tax on profits and tax on cash withdrawals. The chairman directed the FBR to minimise the tax on profits of small depositors. The meeting was attended by Omar Ayub Khan, Rana Iradat Sharif Khan, Syed Samiul Hassan Gilani, Ali Zahid, Zeb Jaffar, Muhammad Usman Awaisi, Dr Mirza Ikhtiar Baig, Dr Nafisa Shah, Sharmila Sahiba Faruque Hashaam, Ali Jan Mazari, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Ali Sarfraz (on Zoom), Muhammad Mobeen Arif, Usama Ahmed Mela, and Shahida Begum, MNAs. The meeting was also attended by the Minister of State for Finance and Revenue, Secretary Revenue Divisions, Special Secretary Finance and other senior officers from both the divisions. Copyright Business Recorder, 2025
Express Tribune
28-05-2025
- Business
- Express Tribune
Govt plans tax hikes, subsidy cuts under IMF-backed budget
Market analysts caution that IMF-related measures in the upcoming FY2026 budget—particularly new taxes and adjustments in energy prices—may lead to a renewed spike in inflation. PHOTO: FILE Listen to article The government is poised to unveil a tough federal budget for the fiscal year 2025-26, with sweeping reforms likely to trigger a new wave of inflation as the government looks to meet stringent demands set by the International Monetary Fund (IMF), sources claimed. According to Express News, Virtual talks between Pakistan's economic team and IMF officials are ongoing, focused on increasing tax revenues and narrowing the country's fiscal deficit. The measures being discussed include raising the sales tax on luxury goods above the current 25 per cent threshold and expanding the list of taxable items. "The government is seriously considering strict fiscal steps to meet IMF targets," a senior official involved in the discussions said. The IMF has called for greater transparency in the tax system, expanded use of technology to curb evasion, and more authority for tax enforcement agencies. In response, the government is reportedly planning a tenfold increase in penalties for tax evasion via point-of-sale (POS) systems — from Rs0.5 million to 5 million — and may introduce criminal proceedings for serious offenses. Read more: SAI urges tax reforms in budget proposals Also under review is the removal of tax exemptions across various sectors, including solar panels. Analysts warn such moves could stifle investment in renewable energy and burden households already grappling with rising costs. "The withdrawal of tax relief for solar products will deal a blow to clean energy efforts," said one energy sector analyst. Farmers, too, may be hit hard. The proposed budget includes an 18 per cent general sales tax on fertilizers, pesticides, and agricultural equipment, along with possible hikes in federal excise duties on agri-inputs, according to sources. Economic experts caution that these measures, if approved, will drive up inflation, hamper agricultural productivity, and worsen the cost-of-living crisis. 'These are painful but necessary steps,' an official said. 'The priority is to secure the IMF deal to prevent a deeper economic crisis.' The budget is set to be presented on June 10.
Express Tribune
21-05-2025
- Business
- Express Tribune
Govt to raise tax evasion fines to Rs5 million
The federal government has decided to increase fines in the upcoming budget in order to curb tax evasion among shopkeepers and businesses, Express News reported. During a meeting of the Senate Standing Committee on Finance on Wednesday, Federal Board of Revenue (FBR) officials briefed members that fines for shopkeepers who use to evade taxes, will be raised from Rs0.5 million to Rs5 million while also proposing a reward scheme for those who report fake receipts used to avoid taxes. According to the FBR, the upcoming budget will impose heavier penalties on retailers involved in tax evasion as the government aims to expand the number of retailers registered at points of sale, targeting seven million retailers. The FBR also proposed a reward scheme to incentivise reporting of fake receipts used to avoid tax payments, with informants eligible for cash prizes up to Rs10,000. Read more: IMF official visits amid budget talks Officials said monitoring will be strengthened by deploying cameras and additional staff at retail points. The upcoming budget will also focus on sectors such as poultry, tobacco, beverages, and sugar mills, where enhanced oversight has already led to increased tax collection. Meanwhile, Senate Finance Committee Chairman Saleem Mandviwala expressed concern over long delays in sales tax refunds, which exporters claim can take months instead of days. FBR officials said they are prioritising refunds for key export sectors including textiles, sports goods, carpets, leather, and surgical products, promising faster processing. To combat tax evasion, authorities said daily business closures and fines are being enforced in major cities including Lahore, Karachi, and Islamabad, with plans to raise fines and extend measures nationwide. Read more: Businessmen oppose tariff rationalisation A media campaign against fake receipts and tax evasion will be launched soon, with plans to involve university students to help monitor thousands of shops across the country, they added. The committee was informed that new higher fines could come into effect from July 2025. Officials said the current lower penalties have weakened enforcement efforts and the government will seek parliamentary approval for the increases.
