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Business Recorder
a day ago
- Business
- Business Recorder
PCJCCI hails FBR's move to withdraw ‘excessive' tax measures
LAHORE: Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) strongly welcomes the Federal Board of Revenue's (FBR) recent decision to withdraw the excessive and impractical tax measures proposed in the Federal Budget 2025–26. This reversal marks a critical step towards restoring business confidence and stabilizing Pakistan's fragile economic landscape. This decision, made possible through the direct support and intervention of Field Marshal General Asim Munir, reflects a deep understanding of the economic challenges facing the private sector and a genuine commitment to inclusive, sustainable growth. Zafar Iqbal, Acting President of PCJCCI, stated that the proposed tax measures would have directly impacted over 3.5 million small and medium enterprises (SMEs), threatened over 1.2 million jobs, and discouraged both local and foreign investment. Field Marshal Asim Munir's timely action has not only prevented this fallout but also sent a strong message of solidarity with the business community. He further added that Pakistan's GDP growth for FY 2024–25 was recorded at 2.4%, already below the projected 3.5% due to inflationary pressures and high interest rates. The industrial sector, contributing 19.1% to GDP, had shown a decline of 1.3% in the last quarter, mainly due to reduced business activity and investment uncertainty. Foreign Direct Investment (FDI) from China declined by 18% in FY 2024 compared to the previous year, largely attributed to tax unpredictability and regulatory instability. Salahuddin Hanif, Secretary General PCJCCI said that the reversal of these policies paves the way for enhanced bilateral cooperation under CPEC Phase II and renewed investor confidence from China. We are confident that this business-friendly shift will lead to increased joint ventures, job creation, and SME development. He also added that we reaffirm our commitment to contributing towards a resilient and globally competitive economy through strengthened Pakistan-China business collaboration. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
PM hails record business confidence
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday expressed satisfaction over a recent Gallup Pakistan survey indicating a significant rise in business confidence, reaching its highest level in four years. According to the Gallup Business Confidence Index, business sentiment regarding Pakistan's economic direction improved notably, with the index score climbing to -2 in the second quarter of 2025 – the strongest reading since the final quarter of 2021. 'The surge in business confidence is a welcome sign and reflects increasing trust in the country's economic direction,' Sharif said a statement. He credited his administration's economic and institutional reforms for improving transparency and facilitating the business community. Business sentiment witnessing signs of improvement: Gallup Survey The prime minister highlighted a series of government initiatives, including the digitization of the Federal Board of Revenue (FBR), structural reforms in the energy sector, and broader institutional changes aimed at improving the investment climate. 'These reforms have opened new avenues for business and investment,' Sharif said. He added that improvements in macroeconomic indicators and recent upgrades to Pakistan's credit ratings by international financial institutions demonstrate the effectiveness of his administration's policies and a decline in corruption. Sharif also pointed to gains on the Pakistan Stock Exchange, where the benchmark KSE-100 Index recently crossed 147,000 points – an all-time high. He praised Finance Minister Muhammad Aurangzeb and his economic team for their role in stabilizing the economy. He said that the benefits of macroeconomic reforms are beginning to reach ordinary citizens and that efforts to enhance institutional performance will continue. He further stated that the government is expanding consultations with the business community to ensure continued support for enterprise and investment. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business
- Business Recorder
FWCCI hails withdrawal of tax measures by FBR
FAISALABAD: Rubina Amjad, Founder President FWCCI & UBG Leader and Shahida Aftab, President FWCCI have appreciated withdrawal of draconian tax measures introduced in the Budget 2025-26 by Federal Board of Revenue. They have also lauded support and understanding of the business community's viewpoint by Field Marshal General Asim Munir. They said in a joint statement issued here today. They said that business community is the major stakeholder in the tax revenue and also in strengthening the economy of Pakistan within and at external level. They said that facilitation to the business community means to gear up the economic activities which results into more revenue generation, employment and accelerated pace of Gross Domestic Product (GDP). They also hailed the Government for this pro-business community decision and acknowledged the Field Marshal's role in promoting the economic interest of the country. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Rules updated: Debit/credit card machines and QR Codes must be integrated: FBR
ISLAMABAD: The Federal Board of Revenue (FBR) has directed the sales tax integrated persons to integrate the facility of debit and credit card machines, QR Codes or any other mode of digital transaction available at all the sale points for integration purposes with the FBR. The FBR has issued updated Sales Tax Rules 2006 on integration after incorporating amendments introduced through Finance Act 2025. According to the updated Sales Tax Rules 2006 issued on Saturday, Board may require an integrated person to integrate the facility of debit and credit card machine, QR Code or any other mode of digital transaction available at all the sale points and the sales through aforesaid means shall not be ordinarily refused. The integrated person through Board's online system shall provide information of his outlets, points of sale or electronic invoicing machines as the case may be. No supply shall be made by the integrated person, except through the integrated outlets, point of sale or electronic invoice issuing machines. The revised rules said that the electronic invoicing software or point of sales software shall be capable of generating and sending alert messages to the Board's computerized system in case of any malpractice or error or any inconsistent action noticed in the system and keeping a log thereof. The Board may require an integrated person to integrate the facility of debit and credit card machine, QR Code or any other mode of digital transaction available at all the sale points and the sales through aforesaid means shall not be ordinarily refused. The Board may require an integrated person to record transactions on each point of sales by a CCTV camera and the recording thereof shall be retained for a period of at least one month. Such recordings shall be provided to the Commissioner concerned as and when demanded and for the period of time as specified by the Board through a sales tax general order. In case of supply of exempt items, the electronic invoices shall also be issued through system integrated with the Board's Computerized System under these rules. The cost for integration including the cost of equipment and electronic invoicing software or point of sales software shall be borne by the integrated person. The integrated person shall prominently display on each of the notified outlets, points of sale or electronic invoicing machines a signboard bearing FBR's official logo along with the text 'Integrated with FBR' and also the registration number of each electronic invoicing software or point of sales software verifiable through the Board's verification services. In case of online sale including online market place, the integrated person shall register such website, software and mobile application with the Board's Computerised System to record the auto-electronic invoices as specified by the Board through a Sales Tax General Order. The integrated person shall issue a real-time verifiable electronic sales tax invoice for every taxable supply and service. The invoice so issued shall be retained as record for a period of six years on electronic media. The integrated person who is found to have tampered with the system or made sales in the manner otherwise than as prescribed in this Chapter, or who contravenes any of the provisions of this Chapter, shall be subject to penalty under section 33 and any restriction under any provisions of the Act or the rules made thereunder. The integrated person shall make all electronic invoicing hardware and software including payment counters comprising point of sale at each outlet, available for installation of the systems; be responsible for smooth functioning of all the hardware and software; report to the Board and the concerned Commissioner within twenty-four hours of any operational failure, damage disruptions or tampering of the system; or report any inoperative electronic invoicing hardware and software within twenty-four hours with reasons along with documentary evidence to the Commissioner holding the jurisdiction, the FBR added. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
IT, IT-enabled services to face 4% WHT
ISLAMABAD: The IT and IT enabled services will continue to be subject to withholding tax rate of 4 percent during 2025-26. According to an income tax circular of the Federal Board of Revenue (FBR), the withholding tax rates on non-categorized services under section (u/s 153) applicable prior to Finance Act, 2025 were applied at the rate 9 percent and 11 percent for company and other than companies respectively. The rate of withholding for Sports Person was 10 percent. Similarly, under section 152 and 153 of the Income Tax Ordinance categorized services were chargeable to withholding tax at the rate of 4 percent. Pakistan's IT, ITeS sector: P@SHA underscores need for consistent tax policy Through Finance Act, 2025 the withholding tax rate for unspecified services as well as for sports person will be charged at the flat rate of 15 percent. However, for specified services mentioned under section 152, the withholding tax rate have been increased from 4 percent to 8 percent and the rate under section 153 is increased from 4 percent to 6 percent excluding IT and IT enabled services which will continue to be subject to withholding tax rate of 4 percent. Copyright Business Recorder, 2025
