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Business Recorder
5 hours ago
- Business
- Business Recorder
Sindh govt says will launch new mega projects in upcoming budget
Sindh Chief Minister Syed Murad Ali Shah convened cabinet meeting with ministers, advisors, Chief Secretary Asif Hyder Shah, and relevant secretaries to deliberate on the province's budget proposals for the upcoming fiscal year 2025-26, a statement from the CM House said on Saturday. The meeting underscored the government's commitment to inclusive development, poverty alleviation, and sustainable progress in line with the directives of PPP Chairman Bilawal Bhutto Zardari, it added. Opening the session, Murad Shah said, 'I want to engage all cabinet members thoroughly in shaping the next budget to ensure it addresses the real needs of our people.' Cash withdrawals from banks: FBR proposes raise in WHT for non-filers The CM outlined the core focus areas of the new budget, emphasising water supply and drainage, solar energy expansion, education, healthcare, agriculture, and industrial growth. 'This year ((2024-25), we have not introduced any new schemes under the priority to complete ongoing projects,' he said. For the upcoming budget, he added, Bilawal Bhutto has issued instructions for launching new initiatives that 'bring tangible benefits to the people'. As per the CM House, the important highlights from the meeting included continued rehabilitation efforts for flood-affected communities, repair of schools and hospitals, and launching new mega projects through Public-Private Partnerships to boost infrastructure and services, strengthening social protection programmes aimed at eradicating poverty and increasing budget allocations for repair and maintenance, as well as upgrading hospital equipment and completion of transport projects in Karachi to improve urban mobility. Proposals given by the cabinet members included reducing non-development expenditures and empowering local governments to become financially self-reliant, introducing digital cash transfers with incentives to enhance social welfare delivery, expanding solid waste management and solar energy systems across the province, and constructing new bus stands in multiple districts to improve public transportation. Industrial raw materials: Proposals for duty cuts to be submitted to PM The CM also highlighted the importance of federal-provincial coordination, stating, 'We will finalise the budget based on the federal government's funding commitments (provincial share) and our provincial revenue targets to ensure fiscal responsibility and effectiveness.' 'After Eid, we will hold further meetings to finalise and approve the budget proposals. Our goal is to present a budget that is transparent, development-oriented, and focused on improving the lives of every Sindh resident,' he said.
Express Tribune
18 hours ago
- Business
- Express Tribune
K-P seeks FED hike on gas, levy on oil
The Finance Ministry has raised concerns over the financial management of the oil and gas sector. PHOTO: PEXELS Listen to article The provincial government run by Pakistan Tehreek-e-Insaf (PTI) in Khyber-Pakhtunkhwa (K-P) has demanded that the federal government increase federal excise duty (FED) on gas as well as introduce a similar levy on oil in the upcoming budget for fiscal year 2025-26. Sources told The Express Tribune that special assistant to the K-P chief minister on energy and power took up the matter in a recent meeting with representatives of the federal government. He apprised them that the FED on gas had not been revised for a long time and the duty had not been imposed on oil despite repeated requests from the provincial government. Consequently, he said, Article 161 of the Constitution remains unimplemented. He requested the urgent attention of the federal government towards revising the FED on gas, based on the Consumer Price Index (CPI), and imposition of FED on oil in the upcoming budget. K-P has emerged as a major oil and gas producing province. Therefore, it wants more revenue on the hydrocarbon production. During the meeting, the federal and provincial governments decided that the director (oil) would carry out a consumer impact analysis in consultation with the K-P government and place the matter before the prime minister for a decision. In the meantime, the provincial government may also request the Finance Division and the Federal Board of Revenue (FBR) to include the FED on oil in the FY26 budget. Regarding the FED on gas, it was decided that the director (gas) would conduct a consumer impact analysis in consultation with the K-P government and place the matter before the prime minister for a decision. Meanwhile, the provincial government may also ask the Finance Division and the FBR to revise the FED on gas in the budget. Moratorium on gas connection The K-P government has also requested the federal government to relax the moratorium on new gas connections on an immediate basis in its oil and gas producing districts. These districts are arguing that it is their right to receive gas supply. However, there have been many cases in some K-P districts where residents are receiving direct gas supply without paying bills, causing increase in the circular debt. In order to expedite the execution of new gas development schemes in the oil and gas producing districts of K-P, it was decided that the director general (gas) would share cost estimates with the Energy & Power Department of the province. These schemes will be executed on a cost-sharing basis between Sui Northern Gas Pipelines Limited (SNGPL) and the K-P government through the provision of funds in the FY26 budget. The special assistant to the K-P CM also drew attention towards the forced curtailment of gas supply from various fields in the province, which has not only resulted in production losses and damage to reservoirs, but also caused substantial revenue loss to the provincial government in the form of royalties, windfall levy, etc. He requested the establishment of a mechanism to avoid the forced reduction of oil and gas production at local fields in the best interest of both the province and the federal government.
Business Recorder
18 hours ago
- Business
- Business Recorder
Cash withdrawals from banks: FBR proposes raise in WHT for non-filers
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to raise withholding tax on cash withdrawal from the banks by non-filers from 0.6 percent to 1.2 percent to generate additional revenue during 2025-26. Sources told Business Recorder that the proposal is part of the government's policy to penalise non-filers of income tax returns. However, the government is also trying to impose financial restrictions on non-filers of income tax returns from July 1, 2025. Under the proposal, the government will abolish the category of non-filers and 'ineligible persons' would not be able to carryout any kind of financial transactions. The National Assembly Standing Committee on Finance and Revenue, had adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year. From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill. FBR will now share income tax returns data with banks Sources said that the government may not abolish all withholding taxes for non-filers in one go due to revenue implications. Therefore, the doubling of withholding tax rates on cash withdrawal from the banks by non-filers is also under consideration. Presently, over Rs 50,000 cash withdrawals by non-filers, in a single day, through credit cards/ATMs is also be subjected to 0.6 percent withholding tax. The Finance Act 2023 had reintroduced tax collection on cash withdrawals from Non-ATL persons by banks. The section 231AB requires every banking company to deduct advance adjustable tax at 0.6 percent from a person whose name is not appearing in the Active Taxpayer List, at the time of making payment for sum total of cash withdrawal (aggregate cash withdrawal) in a single day exceeding Rs 50,000. Cash withdrawals made on credit cards or from ATMs were also be covered by this provision. If the aggregate of cash amount withdrawn in a single day exceeds Rs 50,000, the tax is required to be deducted on the entire amount of cash withdrawn. Copyright Business Recorder, 2025
Business Recorder
18 hours ago
- Business
- Business Recorder
Finance Bill 2025–26: CAP urges govt to overhaul retail tax structure
LAHORE: Pakistan's organized retail sector on Friday urged the government to overhaul the current retail taxation structure in the upcoming Finance Bill 2025–26, highlighting the urgent need for fairer policies to support compliant businesses and expand the tax base. In a detailed appeal to Federal Minister for Finance Muhammad Aurangzeb, the Chainstore Association of Pakistan (CAP)—the official representative body for over 150 Tier-1 retail chains—called for inclusive policy-making through structured consultation with the private sector. CAP stressed that the upcoming budget presents a critical opportunity to resolve long-standing disparities and bring undocumented retailers into the tax net without penalizing compliant players. CAP acknowledged the Finance Minister's leadership and reiterated its confidence in the government's commitment to reviving the economy. The association underscored the significant contributions of integrated retailers to employment, commerce, tax revenues, and export value chains, despite representing only a fraction of the retail and wholesale trade landscape. At present, POS-integrated retailers contribute approximately 25–30% of their turnover in taxes under various heads. Meanwhile, the vast majority of the retail sector remains either under-taxed or entirely undocumented. CAP warned that this growing imbalance has placed an unsustainable burden on documented businesses, many of whom have been forced to downsize or shut down in recent years. CAP Chairman Asfandyar Farrukh noted that strict enforcement actions and unresolved technical issues in the FBR-POS system have further disrupted operations for compliant retailers. The withdrawal of GST concessions for documented consumers last year, coupled with the failure of the Tajir Dost Scheme due to a lack of consultation and planning, has only worsened the situation. 'To prevent another setback, the Finance Bill 2025–26 must introduce bold, technology-led solutions that broaden the tax base without penalizing formal businesses,' Farrukh emphasized. To drive formalization and promote a cashless economy, CAP proposed fixed GST rates on retail sales made via digital payments 1–2% for consumer goods and 3–4% for textile and leather items. These rates should be extended to all tiers of retailers, including small and mid-sized enterprises, along with simplified compliance measures and alignment with provincial digital payment incentives. CAP maintains that such a framework will reduce costs, encourage documentation, and accelerate tax collection. The association also recommended a fixed quarterly advance income tax regime for small retailers, payable via mobile wallets and adjustable against annual income tax returns. Predictable rates for 3–5 years, coupled with incentives such as government service privileges or cash back offers, would increase voluntary compliance and build trust. To reignite consumer engagement in tax compliance, CAP urged the government to revive the FBR-POS Prize Scheme, which has been suspended since November 2022. Additionally, the association demanded transparency in the use of the over Rs1.2 billion collected through the POS Re1 per invoice fee under the IRS Common Pool Fund. Despite their large contributions, organized retailers remain restricted to just 10% of Pakistan's retail sector, compared to 15–20% in comparable regional economies. CAP warned that unchecked informal competition, coupled with rising compliance costs, continues to hamper sector growth. The association reiterated its readiness to collaborate with government institutions, including the Ministry of Commerce, FBR, SBP, CCP, and others, to support the development of a fair, digital, and growth-oriented retail tax ecosystem. A formal meeting has been requested with the Finance Minister to present CAP's proposals and assist in shaping meaningful reforms in Budget 2025–26. Copyright Business Recorder, 2025
Business Recorder
18 hours ago
- Business
- Business Recorder
FBR misses May target by Rs206bn
ISLAMABAD: The Federal Board of Revenue (FBR) has provisionally collected Rs 904 billion in May 2025 against the assigned target of Rs1110 billion, reflecting a massive shortfall of Rs 206 billion. The FBR has collected 10,213 billion during July-May (2024-25) period against the target of Rs 11,240 billion, reflecting a shortfall of Rs 1027 billion. Rs118bn short of target: April provisional collection totals Rs845bn The shortfall has been increased from Rs 703 billion during July-March (2024-25) to Rs 821 billion during July-April (2024-25). Now the shortfall has been further increased to Rs 1027 billion during July-May (2024-25) period. The tax machinery is facing an impossible task to collect Rs 2121 billion during last month of current fiscal year i.e. June 2025. The government had downward revised the FBR's annual tax collection target from Rs 12,913 billion to Rs 12,334 billion for 2024-25. Copyright Business Recorder, 2025
