Latest news with #Rs3.9
Express Tribune
09-06-2025
- Business
- Express Tribune
Railways posts gross earnings of Rs65b
Pakistan Railways (PR) has recorded gross earnings of Rs65.17 billion during July-March fiscal year 2025, marking a robust 21 per cent increase compared to Rs53.70 billion in the same period last year, driven by a significant rise in passenger and freight volumes on the national rail network. According to the Economic Survey 2024-25 presented on Monday by Minister for Finance Muhammad Aurangzeb, the data highlights Pakistan Railways as a cornerstone of the country's transportation infrastructure, playing a vital role in fostering national integration and economic development. Meanwhile, the Economic Survey 2024-25, highlighted a significant financial turnaround for PIA, the national flag carrier. According to the survey, PIA recorded an operating profit of Rs9.3 billion in 2024, more than double its Rs3.9 billion profit in 2023. This marks the second consecutive year of operational profitability for the airline, reflecting continued progress under a strategic reform plan.
Express Tribune
09-06-2025
- Business
- Express Tribune
Tax exemption costs jump to Rs5.8tr
In a surprising development, the government on Monday reported that the cost of tax exemptions has surged to a record Rs5.8 trillion in the current fiscal yeara surge of nearly Rs2 trillion in the first year of the present government, despite the withdrawal of many tax exemptions. In dollar terms, the cost of tax losses was $21 billionsubstantially higher than the $17 billion Pakistan is required to repay this year against its maturing commercial and bilateral external debt owed to China, Saudi Arabia, the United Arab Emirates, and Kuwait. The Economic Survey of Pakistan 2025, unveiled by Finance Minister Muhammad Aurangzeb on Monday, revealed that despite multiple rounds of withdrawing tax concessions and exemptions, the amount has continued to rise annually. These exemptions, approved over the years, are protected under three distinct tax laws. The survey showed that compared to the previous fiscal year's Rs3.9 trillion tax expenditure, the figure has jumped to Rs5.84 trillion this yearreflecting an increase of Rs1.96 trillion or 51%, despite the Pakistan Muslim League-Nawaz (PML-N) government removing several exemptions in its last budget. The reported Rs5.8 trillion in "tax expenditures for 2025" casts doubt on the credibility of previously published losses. Tax expenditure has continued to grow steadily despite efforts by successive governments to scale back or eliminate tax exemptions each year. This indicates either the introduction of numerous hidden tax exemptions during the fiscal year or that the prior year's figures were understated. There has been no extraordinary increase in economic activity to justify such a sharp spike in tax exemption costs. Finance Minister Muhammad Aurangzeb did not respond when asked about the reasons behind this sudden and substantial increase to Rs5.8 trillion in tax losses. A senior Federal Board of Revenue (FBR) official admitted that the Rs5.8 trillion figure may have been erroneously reported in the survey. He said the government plans to revise the number online by excluding the losses on account of petroleum products. The official also acknowledged that some tax losses were double-counted due to confusion over calculation methodology. However, he added that many of these exemptions were necessary or offset by other forms of taxation. For example, while the government incurred a cost of Rs1.8 trillion in forgone sales tax on petroleum products, it recovered more than Rs1 trillion by imposing a petroleum levy of Rs78 per litre. Sales tax The survey reported sales tax exemptions worth Rs4.3 trillion in the outgoing fiscal year, compared to Rs2.9 trillion in the previous yeara rise of nearly 50%. In absolute terms, the cost of sales tax exemptions jumped by Rs1.4 trillion, primarily due to exemptions on petroleum products, imported goods, and local supplies. Sales tax exemptions accounted for nearly three-quarters of total tax expenditure. During the outgoing fiscal year, the government maintained a 0% sales tax on petroleum products while charging a fixed petroleum levy of up to Rs78 per litre on petrol and diesel. According to the survey, the government forfeited Rs1.8 trillion in sales tax on petroleum products, up from Rs1.3 trillion last year. Additionally, Rs683 billion was lost due to exemptions on products covered under the Fifth Schedule of the Sales Tax Actrepresenting a phenomenal 232% increase over last year's Rs206 billion. The Fifth Schedule pertains to zero-rated items. The International Monetary Fund (IMF) has urged Pakistan to withdraw the remaining exemptions under this category. Sales tax exemptions granted under the Sixth Schedule cost Rs986 billion this year, up from Rs676 billion last year. These include Rs613 billion on local supplies and Rs373 billion on imports. The loss from local supplies rose by one-third despite the government imposing an 18% sales tax on various goods, including packaged milk, in the last budget. Exemptions provided under the Eighth Schedulewhich permits lower-than-standard 18% sales tax ratescost the government Rs618 billion, an increase of Rs259 billion or 75% over the previous year. The IMF is now asking that these reduced rates be raised to standard levels, or in cases where the rate is 5%, doubled to 10%. Sales tax exemptions on mobile phone sales cost Rs88 billionan increase of 166%. Exemptions from additional sales tax accounted for another Rs49 billion in losses. Income tax Income tax exemptions totalled Rs801 billion in the outgoing fiscal year, up 68% from Rs477 billion last year, according to the FBR's estimates. This increase came despite the government's decision to shift more tax burdens onto salaried individuals while sparing other blue-eyed sectors like retailers. The government itself benefited from Rs123 billion in income tax exemptions related to its income from various entitiesup 112%, or Rs58 billion, over the previous year. Income tax exemptions on allowances rose to Rs16.5 billionmore than double the previous year's figure. Exemptions for tax credits cost Rs101 billionup Rs75 billion over last year. Under the Second Schedule of the Income Tax Ordinance, Rs444 billion worth of total income exemptions were granted, reflecting a Rs150 billion or 51% increase. The IMF is now pressuring the government to reconsider these exemptions. Reductions in tax liabilities cost Rs65 billionsubstantially more than the previous year. Another Rs52 billion was lost due to exemptions from "specific provisions". Customs duty Customs duty exemptions increased to Rs786 billion this fiscal yearup Rs243 billion or 45% from Rs543 billion last year, the survey showed. The government lost Rs133 billion in customs duties due to concessions granted to the automobile sector, oil and gas exploration industry, and China-Pakistan Economic Corridor (CPEC) projects. Exemptions under the Fifth Schedule of the Customs Actcovering goods entirely exempted from customs dutiescost Rs380 billion, an increase of Rs189 billion over the prior year. The cost of import-related exemptions for exporters rose from Rs127 billion to Rs179 billion. Exemptions linked to free trade agreements also saw an increase from Rs44 billion to Rs61 billion.
Time of India
05-06-2025
- Time of India
Cops seize vapes worth 1.25 lakh
Kolhapur: The Kolhapur police have seized Korean and Chinese vapes worth Rs1.25 lakh from a cigarette shop in the New Shahupuri area. The total value of prohibited nicotine and non-nicotine items recovered from the shop is estimated at Rs3.9 lakh, which includes foreign cigars and expensive imported cigarettes. Tired of too many ads? go ad free now The shop owner, Shashikant Lakshman Patil, who runs the outlet named C Zone, was arrested and later released on bail. "We are finding out the source of the vaping devices. We received a tip about the sale of such e-cigarettes from that shop, and we carried out a surprise search," said Santosh Doke, police inspector of Shahupuri police station. According to the police, the vapes were being sold at prices ranging from Rs425 to Rs1,350. Officials suspect the devices may have been sourced through online platforms. Investigations are ongoing to trace the supply chain of the banned products.
Express Tribune
05-06-2025
- Business
- Express Tribune
Provinces demand NFC, agri tax review
The National Economic Council on Wednesday approved an enlarged national development outlay of Rs3.9 trillion, as some of the provinces have demanded reviewing the National Finance Commission and reopening the agriculture income tax issue with the International Monetary Fund. The NEC-approved the federal Public Sector Development Programme 2025-26 shows the government's political priorities to appease allies and spend more on roads. It approved reduced budgets for Pakistan's space and atomic energy programmes, health and education but increased allocations for the Sindh-specific projects and the parliamentarians' schemes. Headed by Prime Minister Shehbaz Sharif, the NEC also set the economic growth target at 4.2% and inflation at 7.5% for the next fiscal year 2025-26. The NEC is the nation's constitutional body having mandate to approve the macroeconomic and development plans. The NEC also expressed concerns over growing population and showed resolve to find a solution, as the economic growth in this fiscal year was almost equal to the population growth rate. The NEC approved the Rs1 trillion for the federal Public Sector Development Programme and Rs2.9 trillion for the provincial annual development plans. The cumulative budgets of Rs3.9 trillion negate the harsh fiscal ground realities, as the federal government even went to the extent of further reducing some critical proposed allocations to make room for more politically oriented development spending. As against its earlier plan to allocate Rs50 billion for discretionary spending on the parliamentarians schemes, the allocation has been approved at Rs70 billion, showed the NEC document. Not only that, the federal government further increased the spending on provinces' development project from three-day old allocation of Rs93.4 billion to nearly Rs106 billion. The room has been created by further reducing the spending on health and education from the level approved by the Annual Plan Coordination Committee on Monday. The Higher Education Commission's allocation is drastically reduced to Rs39.4 billion whereas the Ministry of health's budget is cut to Rs14.3 billion. To make room for political projects, the allocation for power sector projects was reduced from the earlier proposed Rs104 billion to Rs90 billion. But the water sector allocation has been increased to Rs133 billion, from earlier proposed Rs119 billion. Compared to the budget approved by the APCC on Monday, the Space & Upper Atmosphere Research Commission's (SUPARCO) budget has been reduced from Rs24.2 billion to just Rs5.4 billon while the Pakistan Atomic Energy Commission's budget is reduced from Rs4.7 billion to Rs781 million. The budget has been finalised by a committee comprising Deputy Prime Minister Ishaq Dar and PM's political Advisor Rana Sannuallah Khan. Such large allocations for the provincial projects are in breach of commitments to the IMF for reducing federal expense on provincial projects. The sources said that some of the NEC members discussed the low agriculture sector growth of mere 0.6% in this fiscal year and urged to change the economic policies, including high cost of inputs. The participants of the meeting said that Sindh asked to review the agriculture income tax and take it up with the IMF. Finance Secretary Imdad Ullah Bosal did not comment on the question whether the Ministry of Finance will take up the matter with the IMF. The four provincial governments have passed the new agriculture income tax laws but these have not yet been enforced. There is high chance that the IMF would not entertain any such request. The Khyber Pakhtunkhwa government took up the issue of delay in reopening the NFC award, as the provincial government is demanding higher share in the light of merger of the tribal districts. The prime minister assured the K-P government to convene the NFC meeting in August. However, the government has further reduced the K-P merged districts allocation from Rs70 billion to Rs65.4 billion that had been approved by the APCC on Monday. The Punjab government raised the issue of higher taxes on agriculture machinery. The NEC approved Rs2.86 trillion for the four provincial governments, with the highest spending outlay of Punjab worth Rs1.2 trillion. Khyber-Pakhtunkhwa will spend Rs417 billion. Sindh government plans to spend Rs995 billion and the Balochistan government is proposing Rs280 billion for development. The proposed development allocations by the four provinces are roughly Rs860 billion more than what the IMF has included in its plan. It means either the provinces will not be able to spend the entire allocations or the IMF cash surplus target will not be met. The NEC also reviewed the implementation of the annual plan for this fiscal and approved the economic targets for the next fiscal. It also took a review of the implementation of the PSDP for the current fiscal year, taking note of low utilization of the funds. The NEC also discussed the progress report of the CDWP & schemes approved by CDWP and ECNEC in the past one year. The NEC authorized the publication of 13th Five Year Plan 2024-29 and approved the URAAN Pakistan Implementation Framework. Exports are projected at $35.3 billion, while foreign remittances are expected to exceed $39.4 billion in the next fiscal year. Imports are projected at $65.2 billion with the current account deficit estimated at $2.1 billion for the next fiscal year. Currently, 1,071 development projects with a total cost of Rs13.4 trillion are under implementation. These projects require an additional Rs10.2 trillion to be completed, and the planning ministry estimates it would take more than a decade to finish them all. The NEC also approved to publish the Five-year economic plan 2024-29. The NEC was told that 13th Five-Year Plan has been updated as a result of stakeholders' consultations and is ready for publication the five year's plan is aimed at a balanced regional and equitable development, enhance export orientation of the economy - vibrant SMEs sector - social protection and poverty alleviation - improve the quality of human resources - moving into the knowledge economy - adaptation and mitigation strategy to combat climate change. The Prime Minister had launched 'URAAN Pakistan' on 31st December, 2024 and the NEC on Wednesday approved its implementation framework.
Express Tribune
11-02-2025
- Politics
- Express Tribune
Islamabad Model Jail faces delays
RAWALPINDI: The Islamabad Model Jail project has been delayed indefinitely due to severe funding shortages, leading to a 30 per cent increase in construction costs. Initially estimated at Rs3.9 billion in 2021, the cost escalated to Rs7.4 billion in 2022-23 and has now exceeded Rs8.35 billion due to ongoing delays. The Islamabad jail complex, spanning 90 acres in Sector 16, was launched during the Pakistan Tehreek-e-Insaf (PTI) government and was slated for completion by January 31, 2025. However, due to a lack of funds Rs. 3.6 billion in pending allocationsconstruction has stalled once again. The jail is designed to accommodate 2,000 inmates in the first phase and an additional 2,000 in the second phase, reaching a total capacity of 4,000 prisoners. Facilities include a women's ward, children's ward, hospital, mosque, church, Imambargah, separate cells for different categories of inmates, a kitchen, a playground, and a library. A 22-bed mini-hospital and a large visitor's area for up to 200 people are also part of the plan. Despite its completion, the new jail is not expected to significantly ease overcrowding in Adiala Jail, Rawalpindi, which currently houses over 7,000 inmatesnearly three times its official capacity of 2,700. During the PTI's November 26 protests at D-Chowk, the number of detainees surged past 9,000, forcing authorities to transfer inmates to jails in Attock, Jhelum, and Chakwal. The transfer of 2,000 prisoners from Islamabad to the new facility will provide some relief to Adiala Jail authorities. However, a complete resolution will only be possible once the second phase of the project is completed by December 31, 2025. Sources suggest that the project is unlikely to resume for at least the next three months due to financial constraints.
