Latest news with #Rs157
Express Tribune
29-06-2025
- Business
- Express Tribune
K-P budget leaves hopes in the dust
Where the budget for the fiscal year 2025-2026 shattered people's hopes of a new mega transit or development project for Khyber-Pakhtunkhwa (K-P), it simultaneously hit the province's ailing industry by imposing new fixed and additional taxes on the business classes. Reportedly, the total budget for the upcoming fiscal year has been estimated at Rs2119 billion while the annual total expenditure has been estimated at Rs1962 billion. The budget has been kept at a surplus of Rs157 billion while the allocation for the annual development program has been kept at Rs547 billion. Despite some tax relief, the scope of new taxes and old taxes has been expanded in the budget. According to the finance bill, a ten per cent property tax will be collected from institutions including government, semi-government, development finance, corporate, autonomous, public limited, public sector, private commercial, and distribution businesses, warehouses and guest houses in case of renting or leasing buildings or lands. Similarly, a fifteen per cent tax will be collected from all banks and financial institutions, five per cent from private hospitals, five per cent from medical stores and other businesses related to the health sector. Likewise, a five per cent tax will be levied on endowment land or property used for business purposes. In an interview with The Express Tribune, economist and lecturer at the University of Peshawar, Dr Sanam Khattak cautioned that the proposed tax increases in both the federal and provincial budgets may be too heavy for the province to bear. "Extending the tax net would not only impact the business community but would also increase the prices of daily commodities. Citizens are already burdened with multiple taxes like sales tax, duty tax, excise tax, TV tax, and numerous federal levies. Under such circumstances, the government should focus on offering tax relief rather than imposing further increases. With purchasing power drastically reduced, even the poorest families are struggling under inflationary pressure and taxes. Charging taxes on already unaffordable essentials goes against the principle of equity," explained Dr Khattak. Dr Khattak further explained that given low purchasing power, stagnant incomes and small industry closures, a budget focused on tax hikes presented new economic threats to the province. "While the government aims to boost revenue, increasing taxes under current economic strains may lead to a "bubble effect", with businesses already suffering from energy crises facing further losses," predicted Dr Khattak. Similarly, K-P Chamber of Commerce and Industry President Fazal Muqeem Khan opined that the increased taxes will not have a good impact on the business community. "Currently, half of the 500 factories in the Hayatabad Industrial Zone in Peshawar are closed while seventy per cent of industry in the Gadoon Industrial Estate Swabi is also nonfunctional. Facilities should be provided to small businesses and large units. The government should take interest in providing loans to traders from banks on easy installments, and not impose new taxes or increase the rate of old taxes," said Khan. Conversely, K-P Finance Advisor Muzammil Aslam expressed his satisfaction with the recent budget. "Due to the opposition government in the province, the federation is not paying us the arrears. The government has achieved 93 per cent of the revenue generation target in the province. No new taxes have been imposed in the budget while some taxes have been reduced," claimed Aslam. Criticizing the budget for rewarding its members, K-P Assembly Opposition Leader Dr Ibadullah claimed that the Assembly had not given even a single penny from the previous budget. "The opposition has been sidelined again. Development projects in the corruption-ridden province will again be a victim of corruption. The opposition was not even consulted in the preparation of this budget. The suggestions we had given were not discussed. This budget is nothing but a manipulation of words," lambasted Dr Ibadullah.
Express Tribune
18-06-2025
- Business
- Express Tribune
Surplus budgets
Listen to article The restive provinces of Khyber-Pakhtunkhwa and Balochistan have endeavoured to post budget surplus to the tune of Rs157 billion and Rs36.5 billion, respectively, as they went on to project massive developmental outlays for FY26. Khyber-Pakhtunkhwa led from the front as it came up with categorical statistics in a budget of Rs2119 billion, allocating Rs363 billion for education and Rs276 billion for health; raising the minimum wage to Rs40,000 per month (a step that the federal budget fell short of); and increasing salaries by 10% and pensions by 7%. Likewise, the law and order-infected province has kept Rs158 billion for local security edifice (while expecting Rs1,147 billion in federal transfers) and allocating a generous Rs547 billion under Annual Development Programme, including Rs40 billion for the merged districts. The PTI-governed province has, however, complained that Islamabad has deducted Rs42 billion under the NFC Award. Balochistan with a record outlay of Rs1.03 trillion has vowed to go on a development spree with an allocation of Rs349.5 billion. The provincial finance guru surprised all by claiming that the province has fully utilised the outgoing year's developmental budget of Rs219 billion — something that is contestable given the abject backwardness and revulsion all around. The province's total receipts are projected at Rs801 billion, both from federal and straight transfers, as it goes on to generate Rs101 billion indigenously (including Rs48 billion from levy on services), apart from Rs104.5 billion from federal and foreign assistance for development. Surprisingly though, there is no clear mention of allocations for health, education and law and order, whereas the troublesome province has come up with special funds of: Rs18 billion for eight more safe cities; Rs25 billion for Mashkel dam construction; Rs20 billion for public welfare; and Rs3 billion for sanitation schemes and 1,000 water filtration plants. Last but not least, a first-of-its-kind climate grant of Rs500 million will be a litmus test as drought and floods repeatedly take a toll on the desolate province.
Express Tribune
17-06-2025
- Business
- Express Tribune
Excise misses tax target by 52 per cent
The Excise, Taxation, and Narcotics Control Department has failed to meet its property tax and professional tax collection targets for the fiscal year 2024-25 across the Rawalpindi Region as the department has only achieved 48% of its target, falling short by a significant 52%. In contrast, the Motor Branch of the department successfully met its targets in the categories of new vehicle and motorcycle registrations, transfer fees, and token taxes, achieving a remarkable 150% of its revenue target in those areas. Total revenue collection for the Rawalpindi region stood at Rs680 million. Due to the department's complete failure in collecting domestic and commercial property taxes, professional taxes, and luxury taxes, the Director General of Excise has ordered the cancellation of weekly Sunday holidays. Starting this Sunday and continuing until the beginning of the new fiscal year, Excise offices will remain open on Sundays to boost revenue recovery. In a controversial move to increase tax collection, the department has started issuing revised property tax bills by changing the names on previously taxed residential units. One such case involves Advocate Najma Malik, who reported that despite paying Rs150,000 in property tax under her name, a new notice of Rs157,000 was issued under her husband's name, based on signage outside the house. She has challenged the new notice with the previous tax receipt. As part of its ongoing crackdown on defaulters, the department has sealed 241 property units and recovered Rs3.1m in overdue taxes. Excise Inspectors have been directed to leave their offices and collect taxes directly in the field. However, with only 12 days remaining before the end of the fiscal year, achieving the collection targets for property tax, luxury tax, and professional tax seems increasingly unlikely, leaving the department far from meeting its financial goals.
Express Tribune
14-06-2025
- Business
- Express Tribune
Centre agrees to resolve 'financial matters'
Khyber-Pakhtunkhwa Finance Advisor Muzammil Aslam has announced that the federal government is now willing to recognize the province's rightful shares in net hydel profit, National Finance Commission Award (NFC Award), royalties, and other revenue heads. A meeting for the 11th National Finance Commission (NFC) has been scheduled for August, and the Center has also agreed to resolve outstanding financial matters concerning the merged tribal districts, which are administratively integrated but still face economic challenges. Addressing a post-budget press conference in Peshawar on Saturday, Aslam revealed that K-P has presented its largest-ever budget, amounting to Rs2,119 billion. He noted that the province is on track to generate Rs93 billion from its own resources. "Whether the federation provides funds or not, we are committed to spending on the tribal areas from our own treasury," he declared. Aslam emphasized a shift away from reliance on federal support, announcing plans to construct the Peshawar-DI Khan Motorway independently. He defended the provincial government's economic performance, recalling criticism when the current administration took office last year amid concerns of an empty treasury. "Today, we have presented a Rs157 billion surplus budget," he said, highlighting timely salary payments and increases of 10 per cent in salaries and seven per cent in pensions for government employees in the new fiscal year. The minimum wage has also been raised to Rs40,000. Aslam contrasted K-P's development budget of Rs547 billion with the federal government's Rs1 trillion-plus allocation, pointing out that despite being a smaller province, K-P has managed substantial development spending. He acknowledged that while the province remains under debt — currently at Rs680 billion — loan repayments have been made and a dedicated repayment fund established. He clarified that any current inflows under debt are part of previously agreed contracts, and there are no plans for new borrowing unless required for a major project. Criticizing the center for sidelining K-P, he stated that only Rs550 million have been allocated to the province this year. "Despite minimal federal cooperation and receiving Rs90 billion less under NFC allocations, we increased our development budget," he noted. K-P also allocated Rs20 billion from its own funds to the tribal districts, demonstrating its commitment to inclusive development.
Business Recorder
13-06-2025
- Business
- Business Recorder
KP govt presents Rs2.12trn surplus budget 2025-26 with no new tax
The Khyber Pakhtunkhwa (KP) government on Friday presented Rs2.12 trillion surplus budget for the fiscal year 2025-26 with no new tax and an increase of 10% in salary and 7% in pension of its employees. Presenting the annual budget, Finance Minister KP Aftab Alam said the estimated annual expenditures for the new fiscal year would be Rs1.962 trillion with a surplus of Rs157 billion. Giving the break-up, the minister said the government was expecting to get Rs292.340 billion from the federal government for the merged tribal districts including Rs80 billion current budget grant, Rs39.600 annual development programme, Rs50 billion under AIP, Rs42.740 billion as their share from other provinces and Rs17 billion for TDPs. Sindh CM Murad presents Rs3.45trn provincial budget for FY2025-26 According to the minister, he said Rs3.293 billion would be received from PSDP, Rs1,506.92 billion from the federal receipts, Rs129 billion provincial owns receipts and Rs10.250 other receipts, Rs291.340 million from merged districts receipts and Rs177.188 million from federal projects assistance. He said no new tax has been imposed in the budget; rather tax net base has been enhanced with Rs83.500 billion tax receipts and Rs45.500 billi on non-tax receipts for the new fiscal year. Similarly, the other receipts of Rs10.25 billion would include capital receipts of Rs250 million and Rs10 billion in other ways and means and Rs1.14 trillion as federal tax assignment.
