Latest news with #FederalExciseAct
Business Recorder
3 days ago
- Business
- Business Recorder
ST, Federal Excise Return: FBR extends date of submission upto June 5
ISLAMABAD: The Federal Board of Revenue (FBR) has extended date of submission of Sales Tax and Federal Excise Return for the tax period of April, 2025 upto June 5, 2025. This is subject to the condition that due sales tax liability has been deposited within due date. FBR to levy 18% sales tax in erstwhile tribal areas In this regard, the FBR has issued instructions to all Chief Commissioners Inland Revenue of Large Taxpayers Offices (LTOs), Medium Taxpayers Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs) on extension in date of Submission of Sales Tax & Federal Excise Return for the Tax Period of April, 2025. In exercise of the powers conferred under section 74 of the Sales Tax Act, 1990 and section 43 of the Federal Excise Act, 2005, the FBR has directed that the date of submission of Sales Tax and Federal Excise Return for the tax period of April, 2025 which was due on May 18, 2025 is extended till June 5, 2025 subject to the condition that due sales tax liability has been deposited within due date, FBR added. Copyright Business Recorder, 2025
Business Recorder
14-05-2025
- Business
- Business Recorder
Tax laws termed ‘death warrants for industries'
KARACHI: Industrialists categorically rejected the recently introduced Tax Laws (Amendment) Ordinance, 2025, describing it as undemocratic, unconstitutional, and a death warrant to industries. They denounced the ordinance for granting disproportionate authority to the Federal Board of Revenue (FBR), especially regarding tax recovery. Signed into effect by the President of Pakistan Asif Ali Zardari, the ordinance amends Sections 138 and 140 of the Income Tax Ordinance, 2001, along with key portions of the Federal Excise Act, 2005. The changes permit the FBR to execute immediate enforcement measures—such as freezing accounts, confiscating property, and sealing business premises—once a final ruling is issued by the High Court or Supreme Court, with no requirement for additional notice. The ordinance also allows FBR personnel to be physically deployed within factories and commercial sites to oversee production, stock levels, and the movement of goods. President FBATI Sheikh Muhammad Tehseen has condemned this as a serious infringement on operational freedom and a new layer of bureaucratic intrusion. 'Having tax officers embedded in our workplaces is not only invasive but amounts to institutional harassment,' said the FBATI president. 'This legislation undermines constitutional rights, weakens the role of the judiciary, and creates a hostile environment for current and potential investors.' He criticized the move for bypassing legislative and judicial oversight, which he said is a clear violation of the country's constitutional framework. Calling the ordinance overstep of authority, he stated, 'This kind of enforcement leaves no room for voluntary compliance or appeals. It's coercive and strips businesses of basic legal protections.' President SITE Superhighway Association of Industries (SSHAI) Pervaiz Masood said that the government allowed tax authorities to recover taxes from industries at gunpoint, which is an unlawful and unconstitutional act. The ordinance will seriously hit the business confidence within the country, he said. Not only it will discourage investments at a local level, but industries may move to other countries to avoid harassment culture. Copyright Business Recorder, 2025
Business Recorder
12-05-2025
- Business
- Business Recorder
FBR deputes officers at 21 beverages cos
ISLAMABAD: The Federal Board of Revenue has deputed over 50 Inland Revenue officers at 21 beverage manufacturing companies for monitoring of production and sales of beverages cleared from the factories. In this regard, the FBR has issued instructions to the Chief Commissioner Inland Revenue, Large Taxpayers Office Lahore regarding monitoring of Beverages manufacturing units under section 40B of the Sales Tax Act 1990 and section 45(2) of the Federal Excise Act 2005. Under the said section of the Federal Excise Act, the Board may post officer of Inland Revenue to the premises of registered person to monitor production, removal or sale of goods and the stock position or the maintenance of records. Beverages, cotton bales: FBR decides to install production line counter system The FBR, in exercise of powers conferred under section 40B of the Sales Tax Act 1990 and section 45(2) of Federal Excise Act, 2005, is pleased to post the following officers/officials of Inland Revenue at the business premises of beverage manufacturing units mentioned against their names to monitor production, sales and stock position. A report on the outcome of the exercise may be furnished to the Board after completion of the exercise. The officers/officials are posted till June 2, 2025, the FBR's instructions added. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
EPBD asks govt to withdraw Tax Laws Ordinance
ISLAMABAD: Economic Policy and Business Development (EPBD) - a Think Tank has asked the government to immediately withdraw Tax Laws (Amendment) Ordinance 2025, as it would create cash flow disruptions for business community and undermines judicial safeguards that protect businesses during tax disputes. According to an analysis of EPBD of the said Ordinance on Tuesday, it explained that the Tax Laws (Amendment) Ordinance 2025 (Ordinance No. IV of 2025), promulgated by the President on May 2, 2025, introduces three significant amendments that pose grave concerns for Pakistan's business community at a critical economic juncture. Our analysis reveals serious issues with these amendments. First, changes to Sections 138(3A) and 140(6A) of the Income Tax Ordinance empower tax authorities to demand immediate payment when cases are decided by courts, effectively nullifying established legal timeframes and judicial stays. This creates potential for catastrophic cash flow disruptions and undermines judicial safeguards that protect businesses during disputes. Second, the new Section 175C grants unprecedented authority to tax officials to maintain continuous presence at business premises for monitoring operations. This surveillance mechanism will disrupt business activities, compromise confidential information, and increase compliance costs for enterprises already struggling in challenging economic conditions. Third, amendments to the Federal Excise Act dramatically broaden the government's seizure powers, allowing confiscation of goods based on technical non-compliance while extending enforcement authority beyond specialized tax officials to any government officer, creating heightened business uncertainty. These measures appear particularly unjustified given the remarkable improvement in tax compliance despite challenging economic conditions. The cumulative impact of these amendments extends far beyond tax administration and threatens fundamental aspects of Pakistan's economic environment. The creation of an unpredictable tax regime with diminished procedural safeguards signals a disregard for legal due process that will inevitably damage Pakistan's international competitiveness and deter both domestic and foreign investment at a time when capital formation is critically needed. The financial stability of businesses across sectors is placed at risk through the threat of unexpected tax demands that bypass normal judicial processes. Companies will be forced to maintain excessive cash reserves as protection against sudden tax liabilities, thereby reducing productive investment and economic growth potential. The diversion of management attention toward compliance with intrusive monitoring requirements will further impede business efficiency and innovation. Of particular concern are the constitutional implications of these amendments. By effectively limiting the authority of the courts to grant meaningful relief through stays and appeals, these provisions challenge fundamental protections established under Article 199 of the Constitution. The undermining of judicial authority and the resulting threat to separation of powers represents a troubling precedent that extends beyond tax matters to broader questions of governance. EPBD recommends that the government: (i) Review and withdraw the Ordinance to allow for open parliamentary debate and comprehensive stakeholder consultations. This would ensure that revenue objectives can be balanced against economic stability and constitutional principles through a deliberative process. (ii) Restore established legal timeframes for tax recovery and respect judicial stays and appeals as foundational elements of Pakistan's legal framework. A more balanced approach would implement targeted rather than blanket monitoring provisions and create robust safeguards against official overreach. (iii) Establish a structured business-government dialogue to address legitimate revenue concerns through consensus rather than unilateral action. If the government is serious about sustainable revenue generation, it must focus more on rightsizing and rationalizing expenses rather than implementing measures that undermine business confidence and economic stability. EPBD stands ready to facilitate constructive engagement to develop balanced policies that serve both fiscal needs and economic growth objectives. The goal is a prosperous, competitive, and economically stable Pakistan, and achieving this requires a predictable and fair tax regime that supports business growth rather than impedes it. The business community remains committed to contributing its fair share to national development, but this must occur within a framework that respects rule of law and economic sustainability. Copyright Business Recorder, 2025
Express Tribune
06-05-2025
- Business
- Express Tribune
Tax Ordinance withdrawal demanded
People opting for scheme will not be abiding by most of tax laws. PHOTO: BLOOMBERG Listen to article Rejecting the recently promulgated Tax Laws (Amendment) Ordinance 2025, traders have demanded its immediate withdrawal, warning that it could severely damage Karachi's industry and trade. They urged the government to repeal the ordinance in the broader interest of the business community. President SITE Superhighway Association of Industries (SSHAI) Pervaiz Masood said the government allowed tax authorities to recover taxes from industries what he termed as "at gunpoint", which is an unlawful and unconstitutional act. The ordinance that allows the revenue-collection authority to freeze bank accounts, deploy staff at sites, and offers no right of appeal to taxpayers, will seriously impact the country's business confidence, he said. Not only will it discourage investments at a local level, but industries may relocate to other countries to avoid harassment. The tax authority is reluctant broaden its taxpayers' net across the country, instead, continues to target taxpaying industrialists who are contributing to the economy even with severe challenges and issues, he said. The FBR should explore alternative sectors such as real estate and agriculture to enhance its tax revenues. It is ironic that one ordinance threatens industries, while another The Federal B Area Association of Trade and Industries (FBATI) categorically rejected the recently introduced Tax Laws (Amendment) Ordinance, 2025, describing it as undemocratic, unconstitutional, and a death warrant to industries. FBATI President Sheikh Muhammad Tehseen denounced the ordinance for granting disproportionate authority to the FBR, especially regarding tax recovery. Signed into effect by the President of Pakistan Asif Ali Zardari, the ordinance amends Sections 138 and 140 of the Income Tax Ordinance, 2001, along with key portions of the Federal Excise Act, 2005. The changes permit the Federal Board of revenue (FBR) to execute immediate enforcement measuressuch as freezing accounts, confiscating property, and sealing business premisesonce a final ruling is issued by the High Court or Supreme Court, with no requirement for additional notice. The ordinance also allows the FBR personnel to be physically deployed within factories and commercial sites to oversee production, stock levels, and the movement of goods. The FBATI has condemned the measures, calling it a serious infringement on operational freedom and a new layer of bureaucratic intrusion. "Having tax officers embedded in our workplaces is not only invasive but amounts to institutional harassment," said the FBATI president. "This legislation undermines constitutional rights, weakens the role of the judiciary, and creates a hostile environment for current and potential investors." Meanwhile, during a high-level meeting held at the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday, both KCCI and the Rawalpindi Chamber of Commerce and Industry (RCCI) unanimously rejected the controversial Tax Ordinance (Amendment) 2025 but also called for the formation of a national alliance of chambers under the Inter-Chambers Harmony Committee to amplify their collective voice and demand urgent pro-business reforms from the government. The meeting was held during the visit of RCCI delegation to KCCI aiming to strengthen ties and chart a unified path forward. Businessmen Group (BMG) Chairman Zubair Motiwala, who joined the meeting via Zoom, emphasised that fragmentation among chambers has historically undermined their influence. "We must raise a unified voice and work collectively to address the widespread challenges the business community is facing", he stressed. Referring to controversial government directives such as SRO709, SRO350, and the Tax Ordinance (Amendment) 2025, Motiwala warned that such policies are creating an environment of harassment and uncertainty.
