Latest news with #FinanceBill2025–26
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
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
