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The Hindu
a day ago
- General
- The Hindu
Bonalu transforms Lal Darwaza into a spectacle of faith, colour
The streets of Lal Darwaza in Hyderabad came alive with vibrant colours and devotional chants on Sunday as thousands of devotees thronged the Sri Simhavahini Mahankali Temple and Akkanna Madanna Temple to mark Bonalu festival. Celebrated on the third Sunday of Ashada masam, the annual event saw an overwhelming turnout of worshippers offering bonam to goddess Mahankali. Women, adorned in traditional attire and jewellery, carried bonams, decorated pots filled with cooked rice, milk and jaggery on their heads an offering symbolising gratitude and a prayer for protection from misfortune and disease. Alongside bonams, bangles and sarees were also presented to the deity. The festive spirit extended across the lanes of Lal Darwaza, Hari Bowli, Sultan Shahi and neighbouring areas of the Old City. Temple committees had made extensive arrangements to manage the influx of devotees and ensure a seamless darshan. Telangana Deputy Chief Minister Mallu Bhatti Vikramarka and Minister Ponnam Prabhakar visited the Simhavahini Mahankali Temple, where they presented pattu vastralu (silk robes) to the deity. Addressing the gathering, the Deputy CM announced that the Telangana government has allocated ₹1,290 crore for the development and renovation of temples across the State. 'We are committed to enhancing the infrastructure and spiritual ambience of the Simhavahini Mahankali Temple and the surrounding area. The Bonalu festivities, which began on June 26, have so far been peaceful, thanks to the dedication of officials across departments,' he said. Several other dignitaries also offered prayers to the goddess, including Adluri Laxman Kumar, Vakati Narayana Reddy, MPs Chamala Kiran Kumar Reddy and Anil Kumar Yadav, Legislative Council Vice Chairman Banda Prakash, MLC K. Kavitha, Khairatabad MLA Danam Nagender, Finance Commission Chairman Siricilla Rajaiah, Mayor Gadwal Vijayalakshmi, former Haryana Governor Bandaru Dattatreya, TTD chairman B.R. Naidu, former MP Anjan Kumar Yadav, Endowments Commissioner S. Venkat Rao, and Hyderabad District Collector Hari Chandana Dasari. The Hyderabad Police made heavy security personnel and implemented strict traffic diversions in the Old City and other Bonalu hubs to ensure public safety and a smooth conduct of the festivities. With even larger crowds expected for the Simha Vaahini Sri Mahankali procession on Monday, several routes in the Old City will witness a shutdown of vehicular movement. In view of the celebrations, the State government has declared a public holiday on Monday for all educational institutions and government offices in Hyderabad.
Time of India
14-07-2025
- Business
- Time of India
Telangana govt draws up plan to identify key tasks in villages before local polls
HYDERABAD: In preparation for local body elections, the state govt is preparing a detailed report to identify and prioritise essential tasks for each village, including outstanding projects and additional development initiatives. The plan will be implemented soon and the govt will also seek the support of voluntary organisations to aid in village development. Telangana is home to 12,777 panchayats. Officials from the panchayat raj department are concentrating on creating a thorough village plan. They are collecting data on income sources, primary occupations, infrastructure such as roads and drainage systems, community facilities such as halls, libraries, sports grounds and educational institutions, student enrolment figures, health centres, veterinary hospitals etc. They are also evaluating streets that require concrete paving, determining where drainage systems need to bebuilt and identifying locations for streetlights. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad Officials are also looking at funding requirement and ways to secure it, including financial support from Centre and state. The panchayat raj department intends to utilise funds from State Finance Commission (SFC) along with resources from the Finance Commission, centrally sponsored schemes, foundations (voluntary organisations), NREGS etc. To speed up development, the department is set to implement outstanding projects in stages in villages. All relevant information will be made available on the mobile 'PS App' (Panchayat Secretary App).
Mint
11-07-2025
- Business
- Mint
Sitharaman urges states to tap Centre's interest-free capex loan scheme to drive growth
New Delhi: Finance minister Nirmala Sitharaman on Friday urged states to make full use of the Centre's special assistance to states for capital expenditure (SASCE) scheme to drive economic growth by investing in employment-generating infrastructure and local development. 'When you build capital assets, employment increases, core sectors benefit, and the multiplier effect is a lot more than just putting money in people's hands,' Sitharaman said while speaking at a public event in Shillong. The minister said the central government aimed to empower states to invest in physical and social infrastructure post-Covid pandemic. '(The nation's) economic recovery is dependent on states' recovery as well,' she added. Introduced in 2020-21 (FY21), the Centre's 50-year interest-free capex loan scheme has been crucial to driving capital spending by states and stimulating the economy post-pandemic. For FY26, the Centre has allocated ₹ 1.5 trillion for these loans, aiming to boost public infrastructure spending and support state-level capital projects. Of the ₹ 1.5 trillion earmarked for FY26, around 60% will be unconditional or linked to infrastructure spending, while the remaining 40% will be tied to reforms that states. Union territories were included under the scheme in FY26. Sitharaman said that these loans to states go beyond the constitutionally mandated transfers under the Finance Commission and reflect Prime Minister Narendra Modi's deeper understanding of states' development challenges. 'These funds come without interest, and repayment is due only after five decades, and even that may be waived. The focus is on creating long-term public assets, not short-term handouts,' the minister said. The Finance Commission of India is a constitutional body established under Article 280 to recommend how the Centre's revenues should be distributed between the Union and the states. It determines the vertical devolution (share of taxes between Centre and states) and horizontal devolution (distribution among states), based on factors such as population, income levels, and fiscal performance. The Centre has significantly increased the scheme's allocation to ₹ 1.5 trillion each for FY25 and FY26, up from ₹ 1.10 trillion in FY24, although the FY25 allocation was revised to ₹ 1.25 trillion due to a slowdown in the first half of the fiscal year, mainly due to elections. On 27 April, Mint reported that states' total outstanding liabilities under the scheme are expected to exceed ₹ 3.5 trillion by end-FY25. Sitharaman highlighted a series of major infrastructure and institutional investments in Meghalaya, funded by the central government, many of them through the capital expenditure scheme. These projects, she said, reflect the government's long-term commitment to the development of the Northeast and are aimed at boosting economic opportunities, connectivity, and access to services in the region. Among the key initiatives is the redevelopment of Umiam Lake, with a central outlay of ₹ 99.99 crore, alongside the creation of a world-class MICE (meetings, incentives, conferences and exhibitions) hub to host large events, including G20-style gatherings.
Business Recorder
10-07-2025
- Business
- Business Recorder
Federalised tax reform strategy
The Constitution (Eighteenth Amend-ment) Act, 2010, [18th Amendment], became effective on April 19, 2010, brought a major shift in Pakistan's fiscal and administrative architecture. With principal objective of granting greater autonomy to provinces by devolving critical functions, the 18thAmendment transformed federal-provincial relationship, with re-sharing of taxation powers conforming to fiscal federalism and decentralized governance model. The Federal Board of Revenue (FBR) retained power to collect major taxes, e.g., income tax, sales tax on goods, customs duty and federal excise duty. Provinces were empowered to collect capital gains tax, estate duty, capital value tax and wealth tax on immoveable property, as well as retaining income tax on agricultural income and self-collection of sales tax on services—an indirect tax that has since emerged as a vital source of provincial revenue. The devolution embedded in the 18th Amendment held immense potential to redefine the country's financial model envisioning a federation where provinces would act as self-sufficient units, driving competition, enabling business-friendly policies, and harmonizing fiscal discipline with regional development goals. If implemented with prudence and vision, the model could have stimulated inter-provincial competition in ease of doing business, infrastructure development, and investment attraction. Reality, however, has unfolded far differently. Having gained greater fiscal access through federal transfers under the National Finance Commission (NFC) Award, the provinces have largely failed to generate proportional revenues of their own—collectively itremains 0.7-0.8% of the GDP. The result is a pronounced fiscal disparity where spending powers have grown while revenue capacities have stagnated, increasing provinces' dependency on federal transfers. Lack of coordination between federal and provincial tax authorities has created a fragmented tax environment that burdens businesses and deters investment. Businesses operating across multiple provinces now encounter varying tax rates, legal definitions, compliance portals, audit procedures, and dispute mechanisms. The duplication and contradiction in tax regimes have raised the cost of doing business and spawned a growing number of tax disputes. In several instances, both federal and provincial authorities claim jurisdiction over the same transaction, leading to double taxation. The resulting uncertainty not only affects businesses' financial planning but also shakes investor confidence in Pakistan's regulatory environment. The most recent provincial budgets for Punjab, Sindh, and Khyber Pakhtunkhwa for fiscal year 2025-26 [FY 2026] have further complicated the already convoluted tax framework. Introduction of a negative-list regime signifies a massive shift, wherein all services are considered taxable by default unless explicitly exempted or assigned a different rate. The Punjab Sales Tax Act, 2012is amended to tax commercial property rentals at 16%, exempting only residential rentals, under Entry 19 of the First Schedule. Similarly, the Sindh Finance Act 2025 adopted a comparable structure under which commercial property rentals are taxed at 3% pursuant to Entry 17 of Part II of the Second Schedule of the Sindh Sales Tax on Services Act, 2011. The new legislation in Sindh marks a key moment in the province's efforts to expand its tax base, though it also raises critical constitutional and legal questions. The previous legal position, enunciated by the Sindh High Court in Constitutional Petition No. D-2421 of 2016 (Young's Private Limited v. Province of Sindh), explicitly ruled that renting of immoveable property does not constitute service. The Court clarified that leasing property does not involve active provision or rendering of a service by the landlord and is merely the transfer of a right to use premises. Therefore, rental income, which lacks the characteristics of economic activity or facilitation by the owner, cannot be brought within the purview of sales tax on services. The Sindh Finance Act 2025 attempts to circumvent this legal clarity by amending the definition of 'service' in the Sindh Sales Tax on Services Act to include 'the granting, assignment, cession or surrender of any right,' thereby legally justifying taxation of property rentals. The law has further codified this change through amended Section 2(79) and provided statutory backing to tax transactions, notwithstanding past judicial interpretations. Punjab has mirrored this approach with its new legal provision taxing commercial rentals, effectively creating a multi-jurisdictional expansion of sales tax regimes into domains previously exempt or deemed untaxable. Imposition of sales tax on property rentals, which are already subject to income tax under the federal Income Tax Ordinance, 2001, represents a severe escalation in the cost of doing business. Rental income is taxed federally at rates reaching up to 25% for individuals and associations of persons and as high as 39% for corporate entities. The additional layer of provincial sales tax now results in tax stacking, further eroding business margins. The move reflects growing financial appetite of both federal and provincial governments, which have resorted to aggressive revenue extraction from compliant sectors instead of undertaking the difficult but necessary task of broadening the tax base. The resulting tax framework is not only complex and burdensome but also fundamentally regressive. Small and medium enterprises (SMEs) that constitute the backbone of Pakistan's economy are most vulnerable to these cumulative tax measures. Fragmentation and overlapping of federal and provincial tax domains create an environment where formal businesses face constant regulatory uncertainty, financial unpredictability, and operational challenges. Instead of encouraging entrepreneurship and investment, the system punishes compliance and disincentivizes growth. Taxation of rental income under both income tax and sales tax frameworks violates the principles of tax neutrality and legal certainty. The notion that mere possession of a commercial property constitutes a taxable (sic) service under provincial sales tax laws defies traditional legal definitions of the term 'service'. This overreach raises constitutional issues and is likely to be challenged again in courts. The issue becomes even more concerning when considered in the light of prior judicial pronouncements that protected rental transactions from such encroachments. The fundamental role of taxation is to facilitate development, incentivize formalization, and ensure equity. However, Pakistan's tax system increasingly appears to be functioning in reverse, penalizing documented sectors whereas leaving the vast informal economy untouched. Absence of coordination between FBR and provincial revenue authorities further exacerbates the problem. Duplication of audit notices, contradictory assessments, and arbitrary application of tax laws are all symptoms of a governance system that is out of sync with the needs of a modern economy. Focus on squeezing existing taxpayers, rather than creating an enabling environment for expanding the tax net, reflects a short-term, reactive approach to revenue generation. This mindset overlooks the larger structural issues, such as outdated tax administration systems, lack of data integration between authorities, and the political reluctance to bring influential untaxed segments into the tax fold. Consequently, the formal sector continues to shrink under the weight of growing tax demands, however, informal operators flourish without oversight. Time has come to adopt a holistic and forward-looking tax reform strategy. The federal and provincial governments must first recognize the 18th Amendment's constitutional spirit, not just as a political realignment, but as a responsibility to harmonize policies for national progress. The need for an integrated tax policy framework, jointly developed by federal and provincial governments, is more pressing than ever. The policy must provide clarity on jurisdictional boundaries, eliminate overlapping taxes, and ensure that the same transaction is not subjected to dual taxation under different laws. Harmonization of definitions, rates, procedures, and audit mechanisms across federal and provincial jurisdictions would significantly reduce the cost of doing business and enhance voluntary compliance. The creation of a unified tax portal, shared audit protocols, and coordinated taxpayer databases would go a long way in restoring confidence in the tax system. The provinces must be encouraged and supported to generate their own revenues, but not through regressive and legally questionable means. Instead, focus should be on widening the tax base by formalizing real estate, retail, agriculture, and service sectors that currently escape the tax radar. The rental taxation issue should be revisited through a constitutional and economic lens. If commercial rentals are to be taxed, then the mechanism must be clear, justified, and proportionate. The burden on taxpayers must be fair and rational, and any dual taxation must be eliminated through amendments or harmonization agreements between federal and provincial entities. Moreover, existing judgments of superior courts must be respected in both letter and spirit to maintain the sanctity of judicial oversight in fiscal policy. The future of Pakistan's economy depends on its ability to move from fiscal coercion to fiscal cooperation. Governments at all levels must treat taxpayers as partners in national development rather than as easy targets for revenue collection. A simplified, harmonized, and fair tax system is not only a constitutional imperative under the 18th Amendment but a foundational requirement for economic stability, investment promotion, and social trust. Only through serious institutional reform, coordination, and legal clarity can Pakistan transform its tax regime from a deterrent into a driver of prosperity. Copyright Business Recorder, 2025
Business Recorder
10-07-2025
- Business
- Business Recorder
Finance minister urges population as key criterion in NFC Award formula
Finance Minister Muhammad Aurangzeb has called for the population to be recognised as a core allocation criterion in the National Finance Commission (NFC) Award. The minister made these remarks at an event organised by the Ministry of National Health Services, Regulations and Coordination at a local hotel in Islamabad today, in observance of World Population Day. He agreed with the views expressed by the Health and Planning Ministers, advocating for the inclusion of broader human development indices to guide equitable resource distribution between the federation and provinces. The NFC Award in Pakistan is a mechanism for distributing financial resources between the federal government and the provinces. It's established by Article 160 of the Constitution and involves a formula-based allocation of taxes and other revenues. Senator Aurangzeb also called for a reorientation of donor engagement and development financing. He remarked that while infrastructure had been the primary recipient of international funding in the past, it is now imperative to direct those resources toward human capital development, particularly in health, education, and population planning. Conflict with India won't have large fiscal impact, says Aurangzeb 'If we want to realise the dream of being a $3 trillion economy by 2047, we have to deal with two existential issues, i.e. climate change and population growth,' said Aurangzeb. Aurangzeb drew attention to Pakistan's population growth rate of 2.55% and its alarming implications for national development, economic planning, and social well-being. '40% of the children, below the age of five in Pakistan, suffer from stunted growth,' he said. Aurangzeb warned that the country's future leadership is already at risk. He stressed that addressing stunting and learning poverty requires an integrated, end-to-end approach, encompassing nutrition, sanitation, clean drinking water, birth spacing, and greater awareness—all of which were discussed by scholars and experts at the event. Similarly, a large chunk of the population, especially females, remains deprived of literacy, said Aurangzeb. 'Females account for at least 50% of the population; if they don't become a productive part of the workforce, then this country cannot move forward in a sustainable way,' he said. He emphasised the need for a paradigm shift in national budgeting. Rather than compartmentalising federal and provincial finances, he proposed a unified, country-level approach to development spending. Citing this year's development budget of Rs1 trillion at the federal level and Rs4.2 trillion when including provinces, he noted that the real challenge is not the availability of funds but their optimal allocation and prioritisation. He referenced Pakistan's 10-year Country Partnership Framework with the World Bank, noting that four out of its six pillars focus on population and climate-related issues. He informed the gathering that one-third of the total funding—amounting to nearly $20 billion over a decade, or around $600–700 million annually—will be dedicated to population-related measures. He urged that such resources must be strategically deployed, moving beyond symbolic steps like tax relief on contraceptives, and instead ensuring impactful investments across the board.
