logo
#

Latest news with #Rs2.43

Taxed to the limit, still in the red: govt misses target by a mile
Taxed to the limit, still in the red: govt misses target by a mile

Express Tribune

time2 days ago

  • Business
  • Express Tribune

Taxed to the limit, still in the red: govt misses target by a mile

The federal government has missed the annual tax target of nearly Rs13 trillion by a record margin of around Rs1.2 trillion, as the authorities failed to increase the tax revenues to 10.6% of the size of the economy, despite putting unprecedented additional burden on the people. The collection, nonetheless, was Rs2.43 trillion or 26% higher than the preceding year, proving independent analysts correct that the government had set a wrong target in the first place that was impossible to achieve without a mini-budget. The Federal Board of Revenue (FBR) provisionally collected Rs11.73 trillion in the fiscal 2024-25 – falling short of the target by about Rs1.2 trillion, according to its provisional figures, on Monday, the last day of the financial year. The federal government had given a commitment to the International Monetary Fund (IMF) that it would increase the tax-to-GDP ratio to 10.6% in fiscal 2024-25. However, the ratio remained at little over 10.2% of the GDP, according to the provisional figures compiled till Monday evening. The shortfall of about Rs1.2 trillion is unprecedented because the government had imposed a record Rs1.3 trillion in additional taxes in the budget. This follows the fiscal year 2019-20, when the economy suffered greatly due to Covid-19 and as a result the target was missioned by a margin of Rs1.6 trillion. After assuming the office in August last year, FBR Chairman Rashid Langrial had said that the collection through additional measures might not be more than Rs650 billion due to slowdown of the economy, and inflation falling to single digit. In July last year, former FBR chairman Amjad Zubair Tiwana had said that irrespective of the amount of efforts that the FBR would put in, the annual collection could not exceed Rs11.8 trillion. His prophecy was proven correct. The government overburdened the salaried class and taxed almost every essential consumable good, including packaged milk, to raise Rs12.97 trillion in taxes. The FBR had to chase an unrealistic tax target coupled with a slowing economy and falling inflation rate – the three key factors that have overshadowed the 26% increase in the collection from the sluggish economy. Finance Minister Muhammad Aurangzeb had vowed to achieve the over Rs12.9 trillion target without the need for the mini-budget. He could not succeed, although the government increased petroleum levy rates to record Rs78 per litre to offset the impact of tax shortfall on the primary budget surplus target. At the start of the fiscal year, the petroleum levy rate was Rs60 per litre on petrol and high speed diesel. The huge shortfall is also far more than what the government had committed to the IMF just in March this year, when the lender lowered the target by Rs640 billion for the full fiscal year. Subsequently, the government further downward revised the target to Rs11.9 trillion in June, which was missed, too. Prime Minister Shehbaz Sharif has been personally focusing on the affairs of the FBR and he has tried to introduce many new initiatives, including digital tracking of the economy and focusing on tax evasion prone sectors. FBR Chairman Langrial also got more fiscal incentives for his workforce, including giving them new 1,300 cc cars and additional one to four monthly salaries. The federal government approved Rs55 billion worth of two projects for the FBR to strengthen its workforce, set up new custom posts along the Indus River to curb smuggling and upgrade digital infrastructure. The tax authorities said that the results of all these initiatives would be visible in the new fiscal year. Langrial also vowed to take affidavits from chief finance officers of the companies to check under declaration of the sales and to collect more revenues from the businesses and the people, including the richest people of Pakistan. However, all such initiatives did not help reach the goal. Also, the government could not meet the commitment to collect Rs50 billion in income taxes from the retailers under the Tajir Dost Scheme. The collection could not even reach Rs50 million. For the new fiscal year, the government has set the Rs14.13 trillion worth tax target for the FBR, which requires 20% growth in collection over the last fiscal year's revenues. For the month of June, the FBR's target was Rs1.67 trillion. However, despite taking advances and slowing refunds, it could collect Rs1.49 trillion, falling short of the target by about Rs180 billion. The IMF compelled the country to impose new taxes, primarily burdening the salaried class and levying taxes on nearly all consumable goods, including medical tests, stationery, vegetables, and children's milk. Tax collection breakup The FBR missed its targets for sales tax, federal excise duty, and customs duty but again exceeded the income tax target on the back of over burdening the salaried class. According to the details, income tax collection amounted to nearly Rs5.8 trillion, Rs340 billion more than the target. It was also Rs1.25 trillion more than the last year. The burden was shared by the salaried class and the corporate sector, as the retailers and landlords still remained under-taxed. Sales tax collection stood at Rs3.9 trillion, nearly Rs1.03 trillion less than the target of over Rs4.9 trillion. The sales tax remained the most difficult area for the FBR and one of the reasons for low collection was less than estimated growth in large industries. The government had immensely increased the sales tax burden in the budget. The collection was Rs812 billion more than the last year. The FBR collected Rs767 billion in the federal excise duty, Rs187 billion less than the target. But it was Rs190 billion higher than the last year. The government did not spare homes, lubricants, fruit juices, cement, sugar etc from imposing the excise duty in the last budget. Yet it miserably failed to achieve the target. Custom duty collection stood at Rs1.28 trillion, Rs315 billion below the target. The collection was hit by lower-than projected import volumes. It was Rs173 billion more than the last year. The FBR paid Rs493 billion in tax refunds, which were Rs13 billion more than the preceding year.

Accident Victims Awarded Rs2.43 Crore at Nagpur Lok Adalat
Accident Victims Awarded Rs2.43 Crore at Nagpur Lok Adalat

Time of India

time11-05-2025

  • Time of India

Accident Victims Awarded Rs2.43 Crore at Nagpur Lok Adalat

Nagpur: The Motor Accident Claims Tribunal (MACT) in Nagpur resolved 43 pending cases during the National Lok Adalat, awarding Rs2.43 crore in compensation to victims and their families. The event, organised by the District Legal Services Authority (DLSA) under Principal District and Sessions Judge DP Surana's guidance, provided relief to families awaiting notable case involved Dinesh Purushottam Ladi, who died in a container-truck collision at Somalwada Chowk in July 2024. His family received Rs32 lakh in compensation from Oriental Insurance Company through structured dialogue led by panel head DK and DLSA secretary Sachin Patil confirmed that all MACT cases were resolved amicably with insurer and claimant participation. He noted that speedy settlements through dialogue help avoid the emotional and financial toll of prolonged tribunal also addressed claims involving serious injuries, with victims or their heirs receiving adequate compensation based on established legal formulas accepted by both sides. The MACT resolutions were part of the broader Lok Adalat effort, which settled over 84,000 cases district-wide, including civil, criminal, family, labour, and property praised the judicial officers, insurers, and legal volunteers for their roles in ensuring fair outcomes, calling the compensation drive a model of effective legal delivery. Get the latest lifestyle updates on Times of India, along with Mother's Day wishes , messages , and quotes !

Mumbai man arrested in Rs2.43 crore online investment scam by Hyderabad Cyber Crime Police
Mumbai man arrested in Rs2.43 crore online investment scam by Hyderabad Cyber Crime Police

India Gazette

time21-04-2025

  • Business
  • India Gazette

Mumbai man arrested in Rs2.43 crore online investment scam by Hyderabad Cyber Crime Police

Hyderabad (Telangana) [India], April 21 (ANI): The Cyber Crime Unit of Hyderabad Police arrested a 22-year-old man from Navi Mumbai for his alleged involvement in a high-value online investment fraud on Monday. The fraud cost a Hyderabad resident over Rs2.43 crore. The accused, identified as Rashmit Rajendra Patil, a private employee residing in Navi Mumbai, played a key role in the scam. He is said to be the account supplier. He was apprehended by a special police team, assisted by other officers from the Cyber Crime wing. According to the press release, the victim, a 56-year-old man from Hyderabad, was referred to the SAMCO Securities and IIFL applications through social media. He downloaded and logged in to these applications to invest the money for earning purposes. Initially, these investments appeared to yield steady returns, with the profits reflected in a virtual wallet within the app. The fraudsters claimed that the accumulated profits could be withdrawn into his personal bank account within one to three days, after deducting a six per cent tax. Believing them to be genuine, he deposited multiple amounts. Convinced by the ongoing profit displays and smooth transactions, the victim continued transferring money to different bank accounts listed in the application. Eventually, he deposited a total of Rs2.43 crore across multiple transactions. However, once the amount reached this substantial figure, the scammers abruptly blocked his access to withdrawals and ceased all communication. Following the victim's complaint, a case was registered under Crime Number 348/2025, invoking relevant sections of the Information Technology Act and the Bharatiya Nyaya Sanhita (BNS). Following a thorough investigation, the police identified Patil's involvement and successfully arrested him in Maharashtra. The investigation also revealed the method used by the fraudsters. They targeted victims through platforms such as WhatsApp, Telegram, and other social media apps, offering fraudulent stock trading schemes with promises of unusually high returns. By initially allowing small withdrawals and displaying fake profits within the app, they built credibility before persuading victims to invest larger amounts. Once the funds were in their control, they cut off contact and denied access to the money. During the arrest, police seized a mobile phone from the accused, which is now being analysed for further evidence. The Cyber Crime Unit stated that more individuals may be involved in the broader network behind this scheme and that further arrests are likely as the investigation progresses. The Hyderabad Cyber Crime Police urged the public to remain cautious of online investment offers that seem too good to be true. They warned against trusting unknown individuals on social media who promote trading apps or platforms, especially those not registered with official regulatory bodies, such as the Securities and Exchange Board of India (SEBI). Officials stressed the importance of verifying the authenticity of financial services before sharing personal or banking information. (ANI)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store