Latest news with #FinanceBill2025
The Guardian
4 hours ago
- Politics
- The Guardian
Outrage over arrest of Kenyan software developer as regional repression grows
A Kenyan software developer who was arrested last week after creating a tool for people to express their opposition to a proposed law has been arraigned in court and released on bail, amid public anger at her detention and growing signs of repression in the east African country and its neighbours. Rose Njeri was charged on Tuesday with 'unauthorised interference with a computer system' in violation of the country's computer misuse and cybercrime law. Prosecutors said on the charge sheet that her tool enabled users to automatically send emails to the national assembly's finance committee, 'thereby interfering with the normal functioning of the systems'. Njeri published a post on X on 19 May announcing her new tool. 'I wrote a simple program that lets you reject the Finance Bill 2025 with just one click. Click below to send your objection,' she said. She was arrested at her home in Nairobi on Friday, and police confiscated her electronic devices. Her arrest sparked outrage in the country, with politicians, civil society members and Kenyans at large condemning it and calling for her release. Activists and family members protested outside the police station where she was being held on Sunday. 'Imagine having to tell her children that she's in jail for developing a website that eases public participation for Kenyans who want to submit their proposals on the 2025 budget,' activist Boniface Mwangi said. The executive director of Amnesty International Kenya, Irũngũ Houghton, said in a statement on Tuesday: 'It is clear to us that Rose Njeri's rights have been severally violated, and any contemplated fair trial is in jeopardy.' Njeri's tool related to a finance bill that proposes a wide range of tax changes to increase government revenue. Experts say it may increase tax burdens and reduce Kenyans' disposable income. A similar proposed law last year caused unprecedented protests that led to the killing of dozens of protesters and the disappearance and abduction of many more. Demonstrations reduced over time, but killings and disappearances continued with the target tending to shift towards online critics. Njeri's arrest is in line with what observers say is a wave of repression by east African governments cracking down on dissent. The former Kenyan chief justice Willy Mutunga and activists Hanifa Adan and Hussein Khalid were deported from Tanzania two weeks ago. They had travelled to the country to attend a hearing in a treason case against the opposition politician Tundu Lissu. Two other people who had also gone for the case – Mwangi and the Ugandan lawyer Agather Atuhaire – said on Monday that Tanzanian security officers had sexually assaulted them. The Police Reforms Working Group, a coalition of Kenyan rights organisations, called on the east African and international community to put pressure on the Tanzanian government to hold the officers 'responsible for the torture … and sexual assault committed against Boniface Mwangi and Agather Atuhaire' accountable. The group spoke alongside the Law Society of Kenya at a press conference in Nairobi. 'Torture and cruel, inhuman and degrading treatment are serious crimes under multiple treaties and international law,' they said. In Uganda, where the opposition politician Kizza Besigye has been in jail for six months over alleged treason charges, lawmakers passed a bill last month to allow civilians to be tried in military court.
India.com
a day ago
- Business
- India.com
No DA Hike, Pay Commission Benefits For Retired Govt Employees? Claims Vs Facts DECODED
photoDetails english 2909870 Updated:Jun 02, 2025, 12:51 PM IST Decoding Rules Of New Finance Act 2025 On DA, Pay Commission Benefits: Claims Vs Facts 1 / 9 Has the Center has decided to eliminate important post-retirement perks for retired government employees? Reports circulating in several media assert that under the new rules, pensioners will no longer get dearness allowance hikes or benefits from future pay commissions, including the 8th Pay Commission. According to the reports, the regulation changes are being brought due to the Finance Act 2025. What is amendment to Rule 37 of the CCS (Pension) Rules, 2021? 2 / 9 There is an amendment to Rule 37 of the CCS (Pension) Rules, 2021. The Department of Pension and Pensioners' Welfare has introduced an amendment to Rule 37(29)(c). The amended Rule 37(29)(c) states, "… the dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also and in the event of his dismissal or removal or retrenchment the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking.' Decoding the Rule 37 of the CCS (Pension) Rules, 2021 3 / 9 According to the amended Rule 37(29)(c) if a PSU employee who previously worked for the government is fired for wrongdoing, all of his retirement benefits may be forfeited. A pension from his prior government service is one of these benefits. This represents a significant change from the previous regulation, rule stated that pension payments from past government employment should not be impacted by termination from a PSU. Will Govt employees cease to get DA hikes and Pay Commission benefits? 4 / 9 Examining the allegations of the reports that the new rules in the Finance Act 2025 are depriving retirees of their pension and other retirement benefits, it becomes clear that the modification of Rule 37 has nothing to do with pay commission benefits or dearness allowance. Will Govt employees be deprived of DA, Pay Commission Hikes? 5 / 9 Therefore, the claims that say that dearness allowance hikes and Pay Commission benefits have been removed for retired government employees and linking this amendment to the Finance Act are NOT TRUE. The only pertinent rule change concerns PSU employees who were dismissed for misconduct and absorbed from the government service. Finance Bill 2025: What has the govt said? 6 / 9 It is important to note that the government has not issued any official notification or confirmation about any such changes. Finance Bill 2025: FM Clarification 7 / 9 When the Finance Bill 2025 was passed in Parliament a controversy was sparked regarding a clause about pensions. The clause, according to employees' unions, was detrimental to retirees and led to a gap between old and new pensioners. To resolve the issue, Finance Minister Nirmala Sitharaman then provided clarification in Parliament. According to her, the clause did not change civil or defense pensions. It only restated rules that have been in place since June 1, 1972. The Department of Pension & Pensioners' Welfare also stated that the pension parity introduced by the 7th Central Pay Commission would continue to exist. Govt announced a 2 percent increase in DA 8 / 9 The central government had in March announced a 2 percent increase in Dearness Allowance and Dearness Relief for central employees and pensioners. Central government employees were given the hiked salary for March along with arrears for January and February. DA For July-December 2025 Due 9 / 9 The central government employees and pensioners are waiting for the next DA hike update for the July to December 2025 period. The revision is expected to be announced around October or November.
Business Recorder
4 days 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
Express Tribune
19-05-2025
- Business
- Express Tribune
Drinks, junk food taxes under review
In one of his speech Trump hints for huge taxes on Chinese imports. PHOTO: PEXELS A proposal is being considered to increase taxes on sugary drinks and impose federal excise duty (FED) on ultra-processed products in the upcoming budget for 2025-26. At present, the tax rate is 20%, which is being considered to be enhanced to 40% in the budget. The rate was raised from 13% to 20% two years ago with the commitment to increasing it 10% every year. But the commitment was not met. Moreover, there is no tax on ultra-processed food and the health ministry wants to impose a 20% FED to discourage their use in order to save the lives of millions of people. However, the multinational companies operating in Pakistan have been building pressure on governments during different tenures to ensure their sales continue to increase. Briefing the media, Pakistan National Heart Association (PANAH) Secretary General and Director Operations Sanaullah Ghumman said that the health ministry was working on increasing taxes on sugary drinks and imposing taxes on ultra-processed food to save people from sugar-related and heart diseases. He disclosed that the Ministry of Health Services has formally submitted proposals to the Ministry of Finance and the Federal Board of Revenue (FBR) to increase FED on ultra-processed products – particularly those high in sugar, salt and unhealthy fats – as part of the upcoming Finance Bill 2025. He said that different countries had imposed 50% taxes on sugary drinks and the government of Pakistan should increase the tax rate to discourage their use, adding that the state could raise $810 million in revenue by imposing a 50% tax. Responding to a question, he said that the issue was also being taken up with the Special Investment Facilitation Council (SIFC) to address tax matters pertaining to sugary drinks and ultra-processed food. He added that 2,200 people die daily due to non-communicable diseases that could be avoided by imposing higher taxes. Pakistan is grappling with a national health emergency as non-communicable diseases (NCDs) such as diabetes, cardiovascular conditions, obesity and chronic liver and kidney diseases become increasingly prevalent. The country now ranks first globally in diabetes prevalence, with 31.4% of adults aged 20-79 living with the disease. This is more than a public health issue; it is a national emergency. He said that over 230,000 deaths annually were linked to diabetes-related complications and more than nine million individuals remain undiagnosed. With health spending standing at only $79 per capita, Pakistan is severely under-resourced to address this escalating crisis. A major contributor to the rise in NCDs is the consumption of ultra-processed products. These items are aggressively marketed, highly palatable and easily accessible; yet they offer little to no nutritional value. Their overconsumption is directly linked to the surge in chronic health conditions. These alarming statistics were shared during a media session organised by PANAH in Murree. Health and policy experts addressed the media, urging them to raise their voice in support of this critical national issue. In parallel, the ministry has proposed the mandatory display of front-of-pack warning labels (FOPWL) on these products. These science-based, clear labels aim to empower consumers with accurate information at the time of purchase. He called on the media to play a vital role in shaping public opinion and influencing policy. Its support is essential for raising awareness, educating the public and forcing decision-makers to enact life-saving regulations. Media outlets were urged to amplify the importance of these policy measures and contribute to a national movement for a healthier Pakistan.
Express Tribune
30-04-2025
- Business
- Express Tribune
NA panel dilutes tax bill 2024
The National Assembly Standing Committee on Finance on Wednesday adopted a softer version of a bill to ban purchases of cars, investment in stocks and properties beyond a certain value by ineligible persons but linked its approval by the National Assembly with budget. Headed by PPPP MNA Syed Naveed Qamar, the committee instructed that the modified version of the Tax Laws (Amendment) Bill 2024 be included in the Finance Bill 2025. The committee further decided that the modified bill's approval will be secured from the National Assembly along with next fiscal year's budget. Unlike in the past when the National Assembly standing committee on Finance was not allowed to discuss the Finance Bill, this time the committee would go through the new taxation proposals after changes in the rules. The modified version is quite different from the original bill proposed by the Federal Board of Revenue. It exempts a major segment of the society from the applicability of the law. The definition of the eligible persons has been expanded and the list of the assets that can be used to justify the purchase has been enlarged. The committee decision came on the recommendation of a sub-committee in which PTI's Usama Mela and MNA Jawed Hanif played important roles. The government had introduced the Tax Laws Amendment Bill in the National Assembly to ban economic transactions by the ineligible persons – the ones who do not have sufficient declared cash equivalent resources to buy a property. According to the proposed legal amendment, a person cannot buy a property until the assets declared in his last year's tax returns are sufficient for the purchase or the person will submit a new statement to disclose the source of buying the property. The FBR has not yet developed a real time safe technological solution where the buyer is required to file the declaration. The FBR had proposed Section 114C as an additional layer of declaration and the FBR still had the legal authority to verify those assets, once the purchaser submitted its income and wealth statement every year. There are two significant amendments by the standing committee. According to a change in the proposed Section 114C, the new law cannot be implemented without determining the value threshold by the federal government. The "property transactions conducted by common citizens and the lower- and middle-income class, particularly first-time buyers or those purchasing their primary residential property, are not impacted" by the new legislation. The definition of the eligible persons has also been expanded by including the immediate family members' assets to justify the purchase. Importantly, the definition of "sufficient resources" has also been enlarged by adding local and foreign currencies, fair market value of gold, net realised value of stocks, bonds, receivables or any other cash equivalent assets as may be prescribed". The barter transactions have also been allowed to settle the value of one plot against another plot. In the past, the government had also imposed withholding taxes to encourage people to become tax filers. But people have been filing the tax returns just for the sake of undertaking a property transaction and the FBR seemed satisfied with only getting an extra amount of taxation instead of going after them for not fully paying their taxes on actual incomes. It was also decided that even if Section 114C was passed in the budget; it would not come into effect until the exemption value was notified by the federal government. The committee also amended the clause related to the immediate family members and introduced the definition of dependent children instead of using the terms son and daughter. The non-resident Pakistanis and the listed companies will be exempted from filing the additional information disclosure. Some of the members of the committee had in the past expressed reservations about relaxing these definitions. The committee's decision will exclude 95% people from the purview of the new amendments and it means that there can never be true documentation in Pakistan," said MNA Jawed Hanif Khan in February this year. ZTBL turns around The National Assembly expressed reservations against the government's decision to sell the Zarai Taraqiati Bank Limited despite it having been turned around and being the only specialised bank that serves the under-privileged farming community. The committee decided to raise the matter of the ZTBL privatisation in the National Assembly to put pressure on the government to drop the transaction. The ZTBL's listing in the privatisation programme has stopped the progress on the new information technology programmes and we cannot even hire a person despite pressing needs, the ZTBL president Tahir Yaqoob Bhatti informed the standing committee. Being a three-time former privatisation minister I can sense that the bank's privatization cannot happen in the next two years and there is no rationale to stop the important work at the bank, remarked Syed Naveed Qamar.
