Latest news with #FinanceBill2025-26
Express Tribune
2 days ago
- Business
- Express Tribune
Retailers push for tax reforms
Listen to article Pakistan's organised retail sector on Friday urged the government to overhaul the current retail taxation structure in the upcoming Finance Bill 2025-26, highlighting the need for fairer policies to support compliant businesses and expand the tax base. In an appeal to Federal Minister for Finance Muhammad Aurangzeb, the Chainstore Association of Pakistan (CAP) — representing over 150 Tier-1 retail chains — called for inclusive policymaking through structured consultation with the private sector. CAP said the budget presents a key opportunity to address long-standing disparities and bring undocumented retailers into the tax net without penalising formal players. The association expressed confidence in the government's commitment to economic revival. CAP underscored the contributions of integrated retailers to employment, commerce, tax revenue, and exports, despite their small share in the overall retail sector. Currently, POS-integrated retailers contribute around 25-30% of turnover in taxes under various heads, while most of the sector remains either under-taxed or undocumented. CAP warned this imbalance has placed an unsustainable burden on documented businesses, forcing many to downsize or shut down. CAP Chairman Asfandyar Farrukh said strict enforcement actions and unresolved technical issues in the FBR-POS system have disrupted compliant retailers. The removal of GST concessions last year and the failure of the Tajir Dost Scheme due to poor planning worsened matters.
Business Recorder
3 days ago
- Business
- Business Recorder
Cash withdrawals from banks: FBR proposes raise in WHT for non-filers
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to raise withholding tax on cash withdrawal from the banks by non-filers from 0.6 percent to 1.2 percent to generate additional revenue during 2025-26. Sources told Business Recorder that the proposal is part of the government's policy to penalise non-filers of income tax returns. However, the government is also trying to impose financial restrictions on non-filers of income tax returns from July 1, 2025. Under the proposal, the government will abolish the category of non-filers and 'ineligible persons' would not be able to carryout any kind of financial transactions. The National Assembly Standing Committee on Finance and Revenue, had adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year. From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill. FBR will now share income tax returns data with banks Sources said that the government may not abolish all withholding taxes for non-filers in one go due to revenue implications. Therefore, the doubling of withholding tax rates on cash withdrawal from the banks by non-filers is also under consideration. Presently, over Rs 50,000 cash withdrawals by non-filers, in a single day, through credit cards/ATMs is also be subjected to 0.6 percent withholding tax. The Finance Act 2023 had reintroduced tax collection on cash withdrawals from Non-ATL persons by banks. The section 231AB requires every banking company to deduct advance adjustable tax at 0.6 percent from a person whose name is not appearing in the Active Taxpayer List, at the time of making payment for sum total of cash withdrawal (aggregate cash withdrawal) in a single day exceeding Rs 50,000. Cash withdrawals made on credit cards or from ATMs were also be covered by this provision. If the aggregate of cash amount withdrawn in a single day exceeds Rs 50,000, the tax is required to be deducted on the entire amount of cash withdrawn. Copyright Business Recorder, 2025
Business Recorder
17-05-2025
- Health
- Business Recorder
Ultra-processed products: Parliamentarians urged to impose taxes
ISLAMABAD: Pakistan National Heart Association (PANAH) urged parliamentarians for imposing taxes on ultra-processed products to curb rising non-communicable diseases (NCDs), said a press release. More than 41 per cent of Pakistani adults are classified as overweight or obese, while over 33 million individuals are living with diabetes. Alarmingly, an additional 10 million people are pre-diabetic. If urgent and decisive policy actions are not taken, projections indicate that the number of diabetes patients in Pakistan could soar to 62 million by 2045. A key contributor to this escalating health crisis is the consumption of unhealthy diets, particularly ultra-processed food and beverage products, which are often laden with excessive amounts of sugar, salt, and trans fats. These dietary patterns are among the most significant modifiable risk factors driving the prevalence of NCDs in the country. In response to the alarming surge in non-communicable diseases (NCDs) across Pakistan, the Pakistan National Heart Association (PANAH) convened a high-level pre-budget sensitization roundtable aimed at galvanizing support from parliamentarians for the imposition of excise taxes on ultra-processed products (UPPs) in the upcoming Finance Bill 2025–26. The event was attended by MNA Saad Balouch, MNA Shafqat Awan, MNA Brig Aslam Ghumman, MNA Ghazala Chitrali, MNA Dr Nelson Azeem, Ex MNA DrNisar Cheema, MNA Saad Baloch, MNA Moazam Ali Khan, Health and nutritionist expert Munawar Hussain and General Secretary PANAH Sana Ullah Ghumman. PANAH emphasised that increasing excise taxes on ultra-processed products is an evidence-based, globally endorsed strategy proven to reduce consumption of harmful foods and mitigate the burden of related chronic illnesses. PANAH called on legislators to take bold action in the Finance Bill 2025–26 by extending excise taxes to include a wider range of UPPs, especially all categories of sweetened beverages and processed snacks. This policy intervention is not only essential for safeguarding public health but also presents a dual benefit: generating additional revenue for the government while reducing the healthcare costs associated with NCDs. These revenues should be earmarked for strengthening public health programs. PANAH shred with the participants that Ministry of National Health Services, Regulations and Coordination has submitted a proposal to increase taxes on ultra-processed products in Finance Bill 2025-26. PANAH seek the support of parliamentarians for public health. Parliamentarians in attendance expressed grave concern over the growing NCD crisis and agreed on the urgent need for preventive strategies, including taxation of unhealthy food and beverage products. They acknowledged PANAH's tireless efforts to protect public health and pledged their support for future policy reforms aimed at reducing dietary risks. Parliamentarians with a renewed commitment by parliamentarians to advocate for pro-health fiscal measures in the Finance Bill 2025–26. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
NA body adopts report on Tax Laws (Amendment) Bill: Restrictions on transactions of non-filers from July 1
ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue, Wednesday, adopted the report on Tax Laws (Amendment) Bill, 2024 to impose restriction on economic transactions of non-filers through Finance Bill 2025-26 from next fiscal year. The threshold proposed for valuation of immovable properties of non-filers has been abolished under the revised Tax Laws (Amendment) Bill, 2024. The revised Tax Laws (Amendment) Bill, 2024 was presented before the committee here on Thursday. Tax laws bill may be part of FY26 Finance Bill: Non-filers to face curbs on economic deals From July 1, 2025, the government will impose strict restriction on economic transactions of non-filers through the next Finance Bill. During the committee proceedings, the committee adopted the report of the sub-committee and clear the amendments made by the Federal Board of Revenue (FBR) in the Tax Laws (Amendment) Bill, 2024. On the conclusion of the meeting, Syed Naveed Qamar, chairman of the committee told Business Recorder that now the Bill would be made part of the Finance Bill 2025-26 and it would be debated clause by clause during review of the finance bill (2025-26). The adoption of the report of the sub-committee would result in detailed review of the bill during the budget finalisation exercise for 2025-26, he added. During the last meeting, the committee had deferred new Section 114C (restriction on economic transactions of non-filers) of Tax Laws (Amendment) Bill, 2024 till the FBR demonstrates necessary technological changes in its online systems. The bill will introduce measures to detect and take corrective measures against under-declarations of income/sales by fetching taxpayers banking system data and match with the declaration filed with the FBR. The chair emphasised that the Revenue Division should revisit Clause (5)(a) to provide greater clarity on the term 'cash and equivalent assets.' He also directed the Revenue Division to finalize the updated online system/mobile app and present a demonstration to the committee within two months. Sub-committee recommended in section 114C, in clause (1) (b) the word 'Board' be replaced with the word 'Federal Government'. The Federal Government may determine the value threshold for transactions affected by this restriction to ensure that property transactions conducted by common citizens and the lower- and middle-income class—particularly first-time property buyers or those purchasing their primary residential property—are not impacted. As per the direction of the Sub-Committee, the FBR has shared aggregate data on property transaction values for FY 2023-24. According to 'Tax Laws (Amendment) Bill, 2024', non-filers will be prohibited from purchasing, booking, registration of vehicles over 800cc, acquiring property beyond a specified limit, and making stock purchases beyond a certain threshold. Additionally, non-filers will not be able to open bank accounts, and there will be restrictions on the number of banking transactions they can conduct. However, non-filers will still be allowed to purchase motorcycles, rickshaws, and tractors. The purpose of the bill also imposed restriction on economic transaction by certain persons such as 'any person, authorized to sell securities including debt securities or units of mutual funds including a person authored to open and maintain account or clear such transactions, shall not sell, open an account or clear sale of securities, mutual funds, to an ineligible person being an individual or an association of persons.' Copyright Business Recorder, 2025
