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West Australian
4 days ago
- Business
- West Australian
Editorial: As momentum finally builds, Treasurer Jim Chalmers must act on the tax reform
If one of life's few certainties is tax (alongside death, depressingly) then one of economics' certainties is the constant call for tax reform. For once, there could be some momentum behind those calls, with Treasurer Jim Chalmers sounding a positive tone and saying the right things ahead of a highly-promoted economic reform roundtable, for which there are high hopes. 'Of course we are interested in ways to simplify the tax system.,' he said during the week. 'Ideally, people will come with views about how we simplify the tax system and where that fits more broadly into our efforts on productivity.' The Productivity Commission has also published submissions to its inquiry into economic dynamism and resilience, including from the nation's biggest company, the Commonwealth Bank, which is urging a greater clampdown on multinational tax avoidance. 'It will be critical that we find mechanisms to ensure that multinationals do not profit-shift offshore, but instead contribute to Australia and pay their fair share of tax,' the CBA said. 'This is particularly true for software-based businesses, which continue to grow significantly faster than the economy.' Australia's tax take — the way government funds its spending on services the nation enjoys and needs — has been for too long now too reliant on personal income taxes compared to other forms of revenue. In the 2023-24 financial year, income tax was $331.5 billion, with the strong labour market pushing that figure 11.7 per cent higher compared to the year before. Productivity Commissioner Danielle Wood, in her former capacity as head of the Grattan Institute think tank, previously explained various taxes cost the economy in different ways — that some come at the cost of economic activity and some cost the system more than they actually collect. Stamp duty on property purchases remains the bugbear of many academics, but few State governments will willingly accept reform in that area given how much revenue it yields. With a projected decline in the number of workers, Australia needs to reform its tax system to ensure it's effective beyond relying on income tax. This concern is even more acute when considering the big expenses facing the country: Medicare, the NDIS, aged care and defence, and when considering the Federal Budget is in structural deficit. To this end, a raft of options should be on the table, with big business, key lobby groups and research institutes attending the reform roundtable next month. Though tempting to just write it off as another gabfest (and the Treasurer, should this eventuate, will rightly be condemned) the potential is too great given how genuine tax reform has not been implemented for decades. While a sugar tax may be controversial, it's an idea worth considering, as are broader changes to cut tax concessions that don't add to the economy. The Treasurer must seriously commit to action following the talks, and ensure the tax system is fair and equitable for coming generations. The worst outcome from yet another political talkfest would be maintaining the status quo. Responsibility for editorial comment is taken by Editor-in-Chief Christopher Dore.
Business Recorder
5 days ago
- Business
- Business Recorder
APTMA approaches Aurangzeb: Call to issue SRO issuance to impose 18pc sales tax on cotton fibre, yarn, & greige cloth imports
ISLAMABAD: All Pakistan Textile Mills Association (APTMA) has approached Finance Minister, Senator Muhammad Aurangzeb to issue an SRO (Statuary Regulatory Order) for the imposition of 18% sales tax on cotton fiber, yarn, and greige cloth imports without further delay. In a letter to Finance Minister, Chairman APTMA, Kamran Arshad has drawn his attention to the commitment made in the Federal Budget 2025–26 to impose 18% sales tax on all imports of cotton fiber, yarn of all kinds, and greige fabric, while retaining these items under the Export Facilitation Scheme (EFS). 'Our original request was for their complete exclusion from the EFS considering the damage caused by unnecessary imports to the domestic industry. Nevertheless, the important correction of equalizing the tax treatment of local and imported supplies for exports was pledged during announcement and presentation of the budget,' Chairman APTMA said adding that it has now been a month and a half since the Budget speech and almost three weeks since the Budget was passed; in accordance with the Deputy Prime Minister's Committee's decision, sales tax was to be imposed from July 15, onwards and this date has also passed. Yet the requisite SRO has not been issued. The Association further stated that delay coincides with the arrival of the new cotton crop, for which there are no buyers in the market. The tax disparity has eroded demand for locally grown cotton and domestically manufactured yarn and greige cloth. Given the continued uncertainty regarding the imposition of equivalent sales tax on imports, traders and mills are unwilling to off-take the new crop. Textiles account for over half of Pakistan's exports and represent one of the few sectors showing robust growth-exports increased by $1.5 billion in FY 2024–25. However, during the same period, textile sector imports rose by approximately US$1.5-2 billion, yielding a net loss for the balance of payments. The current account remains precariously balanced due to temporarily low international oil and gas prices. This situation cannot be sustained in the medium or long term. Pakistan must increase the share for domestic value addition in its exports, yet current policy incentives run counter to that objective. 'We submit that any further delay in issuing the promised SRO will exacerbate mill closures, businessmen migrating abroad, and the loss of hundreds of thousands of jobs. To safeguard the livelihood of our growers, spinners, and exporters-and to uphold the Federal Government's own fiscal and export targets we request that the SRO for imposition of 18% sales tax on cotton fibre, yarn, and greige cloth imports be issued without further delay,' he maintained. Copyright Business Recorder, 2025
Washington Post
5 days ago
- Entertainment
- Washington Post
With PBS funding cut, the next generation will be raised by ‘Skibidi Toilet'
Gen X and millennial parents grew up on the gentle rhythms of 'Sesame Street' and 'Between the Lions.' But sweeping cuts to public broadcasting could leave their children facing a starkly different entertainment landscape. A Republican-backed package that slashes billions from the federal budget including funding for NPR and PBS passed through the Senate this week, putting a slate of beloved PBS Kids shows in jeopardy, the network says. Democratic politicians took to social media to condemn the cuts, some citing the role PBS programming has historically played for kids and families. Some Republicans, meanwhile, alleged that PBS censors conservative views while promoting progressive politics.
CBC
15-07-2025
- Business
- CBC
Indigenous Services budget cuts?
Cutting billions of dollars from the federal Indigenous services budget could worsen the quality of essential services and spark lawsuits that would cost Ottawa more money long term, some advocates say.
Business Recorder
14-07-2025
- Business
- Business Recorder
Federal Budget: PAPGAI, APPMA decry preferential treatment to specific firm
KARACHI: The Pakistan Association of Printing & Graphic Arts Industry (PAPGAI) and the All Pakistan Paper Merchants Association (APPMA) expressed serious concern regarding the prejudiced /one-sided preferential discriminatory treatment granted to a specific company under the recently announced Federal Budget 2025–26. The printing and packaging industry of Pakistan—one of the country's largest economic contributors and the second-highest employment generator after textiles—strongly protests the undue and selective facilitation being extended to a single domestic paper manufacturer through recent tariff manipulations. Specifically, the introduction of a new HS Code, 4810.9210 (Aseptic Liquid Food Packaging), with a reduced customs duty of 10%, marks a significant departure from the previously applicable 20% duty under HS Code 4810.9200 for coated packaging board (multi-ply). This move is seen as arbitrary and lacks industry-wide consultation or justification. The reclassification and artificial tariff bifurcation, which now distinguishes HS Code 4810.9210 from 4810.9290, appears deliberately designed to benefit a single manufacturer. This not only exempts the manufacturer from alleged anti-dumping duties but also grants an unjust competitive advantage at the expense of the rest of the industry. Such preferential treatment distorts the market, disrupts fair competition, and imposes discriminatory cost burdens on the broader packaging sector that depends heavily on coated board materials as critical raw input. The consequences are far-reaching—raising costs, discouraging investment, and threatening jobs across the entire value chain. Further compounding this issue is the National Tariff Commission's continued push to impose anti-dumping duties on Coated Bleach Board (HS Code 4810.9290) imported from China. These actions, pursued without a fair and transparent consultative process, appear to serve narrow commercial Interests rather than the broader goals of National Economic Development. The proposed anti-dumping duty seems to be a policy instrument crafted to patronize a single domestic manufacturer, while placing an unjust burden on over 10,000 printing and packaging businesses across Pakistan. Such measures threaten the viability of a critical industry that plays a vital role in supporting both domestic production and export-oriented sectors. The printing and packaging industry, which serves both domestic and export-oriented sectors, is already burdened by the extreme 20% customs duty (CD) and 4% additional customs duty (ACD) on essential raw materials. The imposition of additional duties, coupled with unreliable alternative sources, will significantly wear down competitiveness, hurt SMEs, and discourage investment. This tariff manipulation and policy favoritism are in direct violation of Article 25 of the Constitution of Pakistan, which upholds the principle of equality before law. It also undermines the government's own stated objectives of industrial growth, fair competition, and export promotion. We urge the Federal Board of Revenue (FBR) and the Ministry of Commerce to immediately review and rectify transparent tariff structure across the board as under: Review and rectify the tariff reclassification to ensure uniform, fair, and transparent tariff structure across the board and aligns with WTO norms and Pakistan's trade obligations. Restore a level playing field by applying duties uniformly across all importers and end-users of coated packaging board. Consult with stakeholders across the industry before implementing structural changes that can impact thousands of businesses and livelihoods. Failure to address this issue could further destabilize a vital sector that is pivotal to Pakistan's export competitiveness and domestic economic resilience. Copyright Business Recorder, 2025
