PARTLY FACETIOUS: ‘We don't talk shoes, we talk pages'
'The word blitzkrieg comes to mind.'
'Whatever do you mean?'
'Blitzkrieg means lightning war – an offensive warfare method responsible for German successes in the early years of the Second World War.'
'That would be the period when Hitler was in-charge, right – a man responsible for the present day German foreign policy supporting genocide of Palestinians.'
'Well, there are other Western nations supporting Israel, and perhaps the reason is the US unconditional support for Israel.'
'Right, but the Germans are kinda different. Anyway, the US has reportedly asked countries to stay away from the UN conference scheduled for next week sponsored by Saudi Arabia and France on a two-state solution to the Israeli-Palestinian conflict…'
'Yes, that is according to a US diplomatic cable.'
'Cable or cypher?'
'Are you by any chance referring to the charge levelled by the Man Who Must Remain Nameless and Faceless…'
'If the shoe fits.'
'We don't talk shoes, we talk pages.'
'Shut up anyway, the difference between the two situations is that the one was sent by the US diplomats and the cypher was sent by a Pakistani diplomat. And there I rest my case.'
'But…'
'Stop, no more discussion anyway, when I used the word blitzkrieg I wasn't quite referring…'
'Let me take a guess: the US is pulling out non-essential staff from countries around Iran and sources reveal that it is because Israel has informed its ally that it is going to attack Iran, which would almost certainly pull the US into the fray and…'
'No, not that either. When I used the word blitzkrieg I was actually referring to the presence of the Finance Minister and the Chairman of FBR whichever channel I surfed yesterday.'
'Ha ha yes indeed they first antagonized the independent media then said sorry then Finance Minister displayed some Marie Antoinette like mind set…'
'What that, if the people don't have bread, why don't they eat cake?'
'Let me put it this way, this was not the time to justify the massive increase in salaries of publicly elected representatives and…'
'But the two men displayed a great sense of ease during the post-budget press conference, so what changed?'
'I reckon the Prime Minister told them to explain to the people of the country….'
'Ah, right, I didn't think of that.'
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- 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
Business Recorder
an hour ago
- Business Recorder
EPBD's BoG rejects granting FBR excessive powers
ISLAMABAD: The Economic Policy and Business Development (EPBD) Board of Governors categorically rejected the draconian amendments introduced in the Budget that grant the Federal Board of Revenue (FBR) unprecedented and excessive powers over the business community. These measures represent a fundamental assault on business rights and economic freedom that no business organisation can tolerate. It also goes fundamentally against the government's policy of promoting Ease of Doing Business in Pakistan, the board observed. The budget transforms the FBR into an enforcement agency, with powers that threaten the foundation of Pakistan's business environment. Under the Anti-Money Laundering Act, 2010, FBR's Directorate General of Intelligence and Risk Management-Customs now operates with police-like authority, treating every businessman as a potential criminal rather than a contributor to the national economy. The mandatory e-bilty system under Section 83C imposes comprehensive digital surveillance on all business transactions. With penalties reaching Rs1 million, goods confiscation, and six-month imprisonment for non-compliance, this system creates a climate of fear that will cripple legitimate business operations. Most alarmingly, the Finance Bill 2025 grants FBR officers dangerous and excessive powers that have no place in a modern democracy: Section 37AA authorises arrest without warrant based on mere suspicion of tax fraud—a power that invites abuse and harassment; Section 14AE allows arbitrary seizure of business premises and property without adequate safeguards; Section 37B permits 14-day detention of businesspersons, extendable through magistrates; Section 11E enables tax assessment and recovery based on suspicion alone, without proper investigation; Section 33 (13 and 13A) introduces 10-year prison terms and Rs10 million fines for broadly defined "tax fraud" that could criminalise routine business errors; Section 32B empowers private auditors with quasi-legal authority over businesses. These provisions create a surveillance state where businesses operate under the constant threat of arbitrary action. This is not tax policy—this is systematic harassment institutionalised by law. While burdening businesses with these oppressive measures, the budget offers absolutely zero incentives for industrial growth or investment. With interest rates at 11 per cent - the highest in the region - businesses are already fighting for survival. Industrial closures, flight of capital, and unprecedented unemployment. This demands urgent relief to the business community, not additional persecution. The effective tax burden on Pakistani businesses has reached a breaking point. Corporate income tax at 25 per cent, combined with 25 per cent dividend tax, creates a 50 per cent burden before accounting for super tax, minimum turnover tax, withholding taxes, sales tax, and import duties. The total effective tax rate of 50-60 per cent makes Pakistan one of the most punitive business environments regionally, driving away investment and destroying job creation. The EPBT also expressed its resolve that with the inflations having been brought down to 4.5 per cent, the policy rate must not exceed six per cent. This will not only make the struggling businesses viable, but also create enough fiscal space to double the vital expenditures, as compared to last year on education and health, rather than reducing them, as has been proposed in this budget. The government is advised to use the monetary policy as a tool to kick-start the economy and not to throttle it. The EPBD issues ultimatum: If these provisions remain in the Finance Bill 2025, the business community will, unfortunately, have no choice but to cease operations in Pakistan. It is not difficult to appreciate that the tax-paying business community will find it difficult to participate in an economy that criminalises business activity and treats entrepreneurs as suspects. Pakistan's economy cannot survive without its business community. The proposed policy measures will make it impossible for law abiding businesses to survive in Pakistan. If the government believes it can collect taxes without taxpayers, it can try. If FBR thinks it can run the economy without businesses, let them do so. The EPBT demanded immediate actions by the government including; complete withdrawal of all arbitrary enforcement powers granted to FBR, reduction of interest rates to six per cent to provide relief to struggling businesses, elimination of the punitive tax structure that penalises compliant businesses, introduction of genuine pro-business policies that encourage investment and growth. Copyright Business Recorder, 2025
Business Recorder
an hour ago
- Business Recorder
Gilani distanced himself from over 600pc pay raise
ISLAMABAD: Chairman Senate Yousaf Raza Gilani has distanced himself from over 600 percent raise in his salary, saying he has 'nothing to do' with this development. 'I was not consulted by anyone in this regard. I have nothing to do with my salary raise,' Gilani told the media, when asked about unprecedented raise in his salary, on the sidelines of the Senate session on Friday. Asked whether he was going to 'reverse' this raise by returning the increased salary, Gilani replied, 'get it reversed, it would be a good thing to do.' Federal government as well as the custodians of the two Houses of the Parliament are under massive public criticism following the surfacing of a government notification from last month in which over 600 percent increase in the salaries of the chairman Senate, speaker National Assembly, deputy chairman Senate and deputy speaker NA was notified. Conspicuously, feeling the heat of public criticism, Defence Minister Khawaja Asif joined the public circles in slamming this raise, terming it 'financial vulgarity,' in a recent post on X. Prime Minister Shehbaz Sharif also appeared 'defensive'— with reports suggesting that the PM 'took notice' of the matter, and ordered an inquiry into massive pay raise and other perks for NA speaker and deputy speaker as well as Senate chairman and deputy chairman. 'I respect the defence minister — but I have nothing to do with the pay raise,' Gilani told reporters on Friday. Meanwhile, the chairman Senate presided over the Senate session. The House unanimously passed the Societies Registration (Amendment) Bill, 2025, moved by Law Minister Azam Tarar. The bill deals with the registration of religious seminaries. Last December, Jamiat Ulema-e-Islam Fazal (JUI-F) chief Maulana Fazlur Rehman had announced the plan to launch a protest movement to push the government to enact this legislation. Later, he postponed the planned protest reportedly after the government assured him to resolve the matter. The House also passed a unanimous resolution in condemnation of Israel's attack on Iran. Moved by Deputy Prime Minister Ishaq Dar, the resolution expressed concern over what it described was inaction of Muslim world against genocide of Palestinians, 'which has now led Israel to attack another sovereign Muslim state Iran.' 'The world and Muslim Ummah are witnessing the slaughter of innocent children and civilians in Gaza for the last two years on an unimaginable scale,' said the resolution. The House, through its resolution, said it stands resolute with Iranian brethren and supports their right to defend themselves against Israeli aggression. Earlier, the House commenced discussion on the proposed federal budget in which senators from different political parties participated. The Senate was adjourned till Monday. Copyright Business Recorder, 2025
