Latest news with #FederalBoardofRevenue
Business Recorder
13 hours ago
- Business
- Business Recorder
PM to open ‘PortVerse' next month
ISLAMABAD: Prime Minister Shehbaz Sharif will launch 'PortVerse' maritime one-window system during the first week of August in Karachi. Port Community System (PCS) is a digital platform that facilitates information exchange and collaboration among stakeholders in a port community. Addressing a press conference on Wednesday, CEO PSW Aftab Haider on Wednesday said that the 'PortVerse' acts as a central hub, enabling efficient and secure data sharing between various entities like customs, port authorities, shipping lines, and freight forwarders. By streamlining communication and automating processes, PCS aims to improve efficiency, transparency, and security in port operations and global trade. PSW CEO explains trade facilitation, regional connectivity agenda The CEO said that we are optimistic that this PCS will help in reducing clearance of containers time at ports from 52 hours to just 12 hours. He said that the government will perform a system audit of the WeBOC (Web-Based Computerised Clearance System) application and the Pakistan Single Window (PSW) to evaluate glitches and issues that have occurred over the past two to three years. Haider also confirmed that some technical glitches in system occurred before the start of this year; however, he ruled out any revenue losses from these technical glitches. The system had lacked proper validation since 2015, allowing some users to manipulate WeBOC system, the CEO added. He also clarified that there were no technical glitches involved in the recently surfaced high-end smuggled vehicle scam; rather, someone had misused a user's login credentials. The CEO PSW also informed that the Federal Board of Revenue is working on integrating scanners, which will help consolidate data in a centralized system. Haider also said that PSW has been established to facilitate the cross border trade, by streamlining and reducing the movement time through digitalisation and eliminating human interaction to the maximum limit. Currently, around 23 government departments and 29 banks were in the PSW system and all were interlinked at the single platform, facilitating stakeholders including the traders and the truckers who have to wait for hours to load containers at the ports. Copyright Business Recorder, 2025
Business Recorder
13 hours ago
- Business
- Business Recorder
FBR tells PM: Tax-to-GDP ratio jumps 1.5pc to 10.6pc
ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday said the country's tax-to-GDP ratio rose by 1.5 percentage points in FY2025, reaching 10.6 percent compared to FY2024 – a notable advance towards the government's goal of 13 percent under its three-year reform agreement with the International Monetary Fund (IMF). In a briefing to Prime Minister Shehbaz Sharif, who chaired a high-level meeting to review the FBR's reform agenda, officials said that the number of tax filers had increased from 4.5 million in 2024 to more than 7.2 million by the end of June 2025. Sharif welcomed the gains, calling the rise in tax compliance encouraging, but cautioned that continued progress would depend on deep and sustained reforms at the FBR, the country's primary tax authority. FBR seeks 18pc tax-to-GDP ratio by 2027-28 He praised the improvements in revenue collection – particularly what he described as a 'historic' increase in the tax-to-GDP ratio – but stressed that further modernisation was needed to align the tax system with international norms. 'Meeting targets is commendable, but our real challenge is building a sustainable and contemporary tax system,' Sharif said, according to a statement issued by the Prime Minister's Office. 'Reforms must be implemented within a fixed timeline, with the input of all relevant stakeholders.' Officials said that recent efforts to formalise the retail sector – including integration through the FBR's Point of Sale (POS) system and enhanced enforcement – had yielded an additional Rs45.5 billion in tax revenue compared with the previous financial year. They also highlighted early successes of the FBR's new 'faceless' customs clearance platform, a digitisation initiative designed to curb corruption and improve efficiency. The system has already bolstered revenue, officials said, and is expected to cut average clearance times from 52 hours to just 12 hours within three months. To further streamline operations, the agency has launched remote case hearings via video link – a move aimed at expediting decisions and minimising in-person interactions. Additional measures, officials added, have reduced the weighted average tariff on imports by 2.16 percent – a change expected to lower input costs for manufacturers and support industrial growth. Tax collection in the retail sector rose by Rs455 billion on the previous year, driven by the integration of point-of-sale systems and tighter enforcement. Officials also told the meeting that recent reforms had reduced the weighted average tariff on imports by 2.16 per cent, lowering raw material costs and supporting domestic industry. Sharif directed the FBR officials to deliver a comprehensive implementation plan for the next phase of reforms within a week. That plan, he added, should include restructuring the agency's digital wing and actionable timelines for execution. He also emphasised the importance of expanding the tax base – especially into the informal sector – while easing the burden on compliant taxpayers. 'The convenience of businesspeople, traders, and taxpayers must be ensured as we move forward,' he said, underscoring that the reform process should remain people-centric. Officials also noted that better use of economic data would help track production across industrial sectors and improve coordination with relevant government agencies. Recommendations from international consultants – particularly in digital taxation and compliance – will be incorporated as part of the FBR's ongoing modernisation drive. The prime minister concluded the meeting by commending FBR personnel for their efforts but warned that real reform would require discipline, transparency, and sustained commitment. The meeting was attended by senior government officials, including Information Minister Ataullah Tarar, Economic Affairs Minister Ahad Cheema, Law Minister Azam Nazir Tarar, the FBR chairman Rashid Langrial, and other senior officials. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
PM Shehbaz lauds FBR reforms as tax filers jump to 7.2mn
The number of income tax return filers in Pakistan has crossed 7.2 million by June 30, 2025, up from 4.5 million in the previous year — a significant increase of 60% attributed to the Federal Board of Revenue's (FBR) ongoing reforms and digitisation efforts. The development came to light during a review meeting on ongoing FBR reforms held under the chairmanship of Prime Minister Shehbaz Sharif on Wednesday, read a statement released by the Prime Minister's Office (PMO). During the meeting, it was shared that enforcement actions and other reforms by FBR have resulted in a historic 1.5% increase in the tax-to-GDP ratio in 2025 compared to 2024. It was reported that due to the faceless customs clearance system, the clearance time will be reduced from 52 hours to 12 hours within the next three months. PM calls for third-party validation of FBR reforms In the retail sector, tax collection on income increased by Rs455 billion by June 30, 2025, compared to 2024. This rise was attributed to the implementation of Point-of-Sale (POS) integration, alignment of retailer systems with FBR, and enforcement efforts. It was told that a specialised system has been introduced to allow for appeals within the faceless system, ensuring timely case resolutions through video links. Due to these measures, the weighted average tariff on imports has decreased by 2.16%, reducing raw material costs for industries and supporting the manufacturing sector, read the statement. It was learnt that international experts' recommendations will also be incorporated into tax reforms and the digitisation of various economic sectors. The meeting was also presented with additional proposals for FBR reforms. PM Shehbaz appreciated the efforts of FBR officials and staff involved in the reform process and directed that actionable targets with timelines be finalised and presented next week. The prime minister stated that while achieving targets is a positive sign, further effort is needed. He emphasised that FBR's digitisation has supported goal achievement, and steps must now be taken to make it a sustainable, permanent system. PM Shehbaz orders crackdown on tax evasion, under-invoicing PM Shehbaz instructed that additional enforcement measures be introduced to curb the informal economy. He also directed that a comprehensive roadmap be developed for the restructuring of FBR's Digital Wing, with a timeline established for achieving set objectives. The prime minister stressed that all stakeholders must be consulted and their input incorporated into the reform process. He also directed that the facilitation of businesses, traders, and taxpayers should be prioritised in implementing FBR reforms.
Business Recorder
2 days ago
- Business
- Business Recorder
COAS Munir instructs FBR to have dialogue with businessmen over arrest powers, penalties: FPCCI
While focusing on the recently enacted expansions of the Federal Board of Revenue's (FBR) powers, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh with the trade and industry's delegation met Chief of Army Staff (COAS) Field Marshal Syed Asim Munir, NI (M). who assured them of his full support for the economic growth of the country, according to a FPCCI statement on Tuesday. The development comes days after Pakistan's two largest cities - Karachi and Lahore - faced partial and complete market closures over a strike call by traders against what they called 'anti-business' tax measures introduced in the Finance Act 2025. Karachi, Lahore hit by strike against 'anti-business' tax measures In the Finance Act, the government expanded the FBR powers with Sections 37A and 37B, which empower the tax authority officials with arbitrary arrests; Section 21(S), which imposes harsh penalties on cash transactions of Rs200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of e-Bilty under Section 40(C). 'Mr Atif Ikram Sheikh maintained that the business community is immensely thankful to Field Marshal Asim Munir for immediately directing that the new provisions; particularly those added under Sections 37A and 37B of the Sales Tax Act 1990, pertaining to arrest and detention; be held in abeyance; and, for instructing the FBR to enter meaningful and solution-oriented dialogue with stakeholders and address their concerns,' the FPCCI statement read. The statement further said the delegation had presented a comprehensive overview of the challenges faced by the industrial sector – with particular emphasis on the recently enacted expansions of the FBR's powers. 'Additionally, the GHQ will support economic activities in the country through the platform of Special Investment Facilitation Council (SIFC); fostering an environment of collaboration and trust.' The business community's delegation also called for interest rates to be brought down in line with inflation to stimulate businesses and economic activities. It also highlighted the delay in notification of the Export Facilitation Scheme (EFS) amendments relating to exclusion of cotton and cotton yarn from the scheme; and, imposition of an 18% sales tax on their imports, according to FPCCI statement.
Express Tribune
4 days ago
- Business
- Express Tribune
Sugar, power and patronage
In the digital age, there's no excuse for opacity as a transparent digital dashboard that tracks sugar from mills to wholesalers to retailers would make it harder for hoarders and profiteers to operate undetected. Photo: file Listen to article Pakistan's recurring sugar crises have become a telling reflection of how entrenched elite interests continue to manipulate the economy under the guise of policy. The latest surge in sugar prices, now hitting between Rs180 and Rs210 per kilogramme despite official claims of intervention, shows just how far removed state actions are from public welfare. What is unfolding isn't simply mismanagement. It's a system that protects the powerful and punishes the public. In July 2024, the federal government announced with much fanfare that it had reached an agreement with sugar mills to sell sugar to wholesalers at Rs165 per kg. This was framed as a breakthrough deal. But within days, the mills began violating the agreed price, resuming supply at Rs175, not Rs165. Even at inflated rates, sugar remains scarce in wholesale markets. The public, meanwhile, continues to pay well over Rs200 per kg in major cities like Karachi and Lahore. This was not just a policy failure. It was the illusion of reform – an orchestrated move to deflect public outrage without touching the roots of the problem. And at the root lies one uncomfortable fact: the sugar sector is not regulated by the government. It is effectively governed by itself. The concentration of political and economic power is stark. The Sharif family, which sits at the core of the current ruling coalition, owns major sugar mills. That the same actors who draft economic policies also control production and pricing of sugar reveals a conflict of interests so blatant that it no longer shocks. This overlap turns policy into patronage, and governance into a tool for private gain. Earlier this year, the government allowed sugar exports even as domestic stocks were under pressure. Predictably, local prices soared. Then came the tax-free import of 500,000 metric tons of sugar; a move that drew criticism from the International Monetary Fund, which questioned both its timing and its lack of transparency. No one has explained who received import licences, under what conditions, or how the decision was justified while government revenues continue to bleed. What the country witnessed was a two-way windfall: profits made on the export side and further gains through duty-free imports. Also there is an issue of price collapse when the shipments arrive in November; around the time sugar mills will be buying from growers, giving them leverage to manipulate buying prices. Throughout all this, regulators have remained silent. The Competition Commission has issued no inquiry into possible cartelisation. The Federal Board of Revenue (FBR) has not released any audits on sugar mill compliance or tax contribution. No action has been taken against mills for openly breaching their agreement with the government. When institutions with legal mandates refuse to act, the market ceases to be a marketplace. It becomes a racket. This isn't new. But it's become more brazen. The previous PTI-led government also faced sugar price hike in 2020. However, its response was markedly different. Then prime minister Imran Khan ordered a wide-ranging inquiry, involving the FIA, SECP, FBR, and other agencies. The investigation looked into hoarding, tax fraud, price manipulation, and the misuse of subsidies. Importantly, it didn't shy away from naming allies or investigating politically connected individuals within PTI itself like Jahangir Tareen. The inquiry report was published in full. While it triggered backlash, it also marked a rare moment where the state asserted its regulatory role over an entrenched industrial elite. The investigation was abandoned and charges dropped when the PTI government was removed. What we are seeing now is the opposite. Instead of confronting the sugar mafia, the current government has aligned itself with it. Instead of enforcing transparency, it has shielded its members from scrutiny. At every step, decisions have served the interests of the few at the expense of many. This has real human costs. Sugar is not just a luxury good. It is a daily essential for households and a critical input for small businesses. Rising sugar prices drive up food inflation, burden already stretched family budgets, and hurt bakeries, tea stalls, and street vendors across the country. When a government facilitates price spiral through weak enforcement and preferential trade decisions, it doesn't just fail the economy. It abandons its moral claim to serve the people. To fix this, Pakistan must first acknowledge that the sugar crisis is not a temporary market blip. It is a symptom of a deeper structural disease: the collusion between political elites and monopolistic interests. The solution begins with cutting these links. Public officeholders, and their immediate families, must be barred from owning or profiting from industries they are in a position to regulate. This principle is basic in any functioning democracy. Without it, policy becomes an instrument of personal enrichment, not public service. Next, regulatory institutions must be depoliticised and empowered. Agencies like the CCP, FBR, and SECP should have independent boards, professional leadership, and the authority to publish findings without seeking ministerial approval. If sugar mills are in violation of tax laws or pricing agreements, the public has a right to know. Trade policy must also be demystified. Export and import decisions, especially for essentials like sugar, should not be made behind closed doors. They must be based on evidence, presented in parliament, and subjected to public scrutiny. Import licences should be granted through open bidding, and their recipients disclosed proactively. In the digital age, there's no excuse for opacity. A transparent digital dashboard that tracks sugar from mills to wholesalers to retailers would make it harder for hoarders and profiteers to operate undetected. It would also empower consumers and watchdog groups with real-time data. Finally, subsidies and tax exemptions must be subjected to rigorous review. No tax waiver or import concession should be granted without a clear, documented public interest rationale. Otherwise, they will continue to be used as vehicles for elite enrichment. The sugar industry has become a symbol of how deeply elite capture runs in Pakistan. But it can also become a turning point. If the state can confront the sugar mafia – not with hollow deals but with real accountability – it can begin to rebuild public trust and economic fairness. If it cannot, the crisis will return. Prices may dip briefly, but the profiteering will continue. This is not just about sugar. It is about who the system is designed to serve and who it leaves behind. The writer is a graduate of the University of British Columbia
