Latest news with #IncomeTaxOrdinance
Business Recorder
2 days ago
- Business
- Business Recorder
FBR forms body to review licences for ST integration
ISLAMABAD: The Federal Board of Revenue (FBR) has reconstituted committee to evaluate applications for grant of licence for integration of registered persons under the Sales Tax Rules, 2006. In this regard, the FBR has issued a notification here on Monday. When contacted, a tax expert said that both the corporate and non-corporate sectors are waiting for the extension in time period for sales tax integration. According to the notification, the FBR has superseded Notification (IR-Ops)/2025-R dated June 16, 2025. IMF links 4pc further ST abolition to 50,000 new ST registrations: FBR In exercise of powers conferred under Sales Tax Act, 1990, Sales Tax Rules, 2006, Income Tax Ordinance, 2001 and Income Tax Rules, 2002, the FBR has reconstituted the committee to evaluate applications for grant of licence for integration of registered persons under the Sales Tax Rules, 2006. The committee shall comprise of the following members: Abid Mehmood, Director General (IT & DT) would be Chairman of the committee. Arshad Nawaz Chheena, Chief (Revenue-Operations), Member; Aamar Javed, Chief (Systems), Member/Secretary of the Committee; Abdul Hameed, Secretary (STB), Member; Abid Naeem, CIO, PRAL, Member and Mehboob-ur-Rehman, Sr Manager (Development), PRAL would be Member of the committee. The terms of reference (ToRs) of the committee shall be as follows: (i); To scrutinize the documents, evaluate the eligibility of the applicant for new registration. (ii); To scrutinize further documents required as per new rule in cases where registration hasearlier been granted. (iii); To prepare Request for Proposal (RFP) as per new rules and cope. (iv); To evaluate the complaints and to make recommendations to the Board for cancellation of licence. This notification is issued with the approval of the competent authority and supersedes the already issued notifications in this regard, the FBR added. Copyright Business Recorder, 2025
Express Tribune
6 days ago
- Business
- Express Tribune
Vanaspati manufacturers threaten closure over tax
Listen to article The Pakistan Vanaspati Manufacturers Association (PVMA) has warned of an indefinite nationwide shutdown of ghee and cooking oil production if the Federal Board of Revenue (FBR) does not withdraw controversial tax enforcement powers within 48 hours. At a press conference following the association's General Body meeting in Karachi, PVMA Chairman Sheikh Umer Rehan said the strike was unanimously approved by members. However, the strike is on hold for two days due to ongoing FPCCI-FBR talks facilitated by the Special Investment Facilitation Council (SIFC) in Islamabad. "We have delayed the strike by 48 hours, hoping that negotiations between FPCCI and FBR under SIFC supervision will bring results. If not, we will halt production across Pakistan," Rehan warned. According to a statement released on Wednesday, PVMA opposes new amendments in the Income Tax Ordinance in Budget 2025-26, particularly Sections 40B, 40C, 21S, and 8B. These allow FBR to monitor private businesses and grant power to arrest alleged defaulters without warrants under Section 37A. Rehan said these powers mirror the National Accountability Bureau (NAB), raising fears of arbitrary interference in commercial activities and would lead to harassment. "If NAB-like officers monitored the FBR chairman, could he work freely? Then how can we work under similar pressure?" he asked. PVMA highlighted its economic role, saying the sector is the second-largest taxpayer after petroleum. Rehan said the industry pays 35% tax on imports and 10% on sales but still faces raids and arbitrary rules. He also claimed that utility stores owe the industry over Rs6.5 billion, while billions in sales tax refunds remain unpaid. He added that the sector lacks capacity for immediate compliance with the newly introduced digital invoicing requirement. "Digitisation takes time and investment. We can't do it overnight," he said. The PVMA said it prefers dialogue but warned that if the government fails to act, it will proceed with a shutdown.
Business Recorder
21-07-2025
- Business
- Business Recorder
President NKATI praises KCCI for organising successful protest
KARACHI: President of the North Karachi Association of Trade and Industry (NKATI), Faisal Moiz Khan has appealed to Prime Minister Mian Shehbaz Sharif and Field Marshal General Syed Asim Munir to assist in resolving the issues of the business community through their genuine representatives and with written assurances, so that the wheels of national industry can move forward without fear, and export consignments continue uninterrupted. He demanded the reinstatement of the Final Tax Regime for exporters. He expressed his gratitude to the leadership of the Karachi Chamber of Commerce and Industry (KCCI) for organizing a highly successful strike on the appeal of KCCI President Muhammad Javed Bilwani. He said this peaceful protest was a powerful way to make the government hear the voice of the business community. The unanimous protest was against the oppressive, unrealistic, and business-unfriendly tax measures imposed through the Finance Act 2025–26. He paid heartfelt tribute to the KCCI leadership for the historic success of the strike held on Saturday, July 19. Faisal Moiz Khan stated that the business community had repeatedly conveyed its concerns to the government and also submitted positive suggestions through the Karachi Chamber. Unfortunately, those suggestions were not taken seriously. He particularly criticized sections 37A and 37B of the Income Tax Ordinance, which give authorities the power to arrest taxpayers and initiate cases without due legal process—an act he described as completely unjust and a means of creating a climate of fear. Additionally, he condemned the harsh penalties on cash transactions under Section 21(s), which remain a common business practice in Pakistan. Faisal Moiz Khan added that, shaken by the impact of the strike, certain government representatives and bureaucrats have launched campaigns against KCCI President Javed Bilwani, prominent trader leader Zubair Motiwala, and Lahore Chamber President Abu Zar Shad. Copyright Business Recorder, 2025
Business Recorder
21-07-2025
- Business
- Business Recorder
Finance Act 2025: BMP demands removal of ‘oppressive' clauses
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has strongly condemned the continuation of controversial fiscal amendments introduced under the Finance Act 2025, asserting that Saturday's successful shutter-down across Punjab and the rest of the country signals a deep rupture in the government's contract with the business community. Addressing the wave of frustration engulfing markets from Lahore to Faisalabad, Gujranwala, Sialkot and beyond, BMP Chairman Mian Anjum Nisar noted that this collective shutdown was not a routine protest—it was a definitive vote of no-confidence in the state's current economic direction. Traders, industrialists, wholesalers and retailers across Pakistan voluntarily ceased operations to register their dismay at the coercive new powers granted to tax officials under the revised law. Mian Anjum Nisar stated that Sections 37A and 37B of the Income Tax Ordinance—empowering tax officers with arrest and prosecution authority—violate the constitutional guarantees of fair treatment and due process. He said these clauses are more reflective of a police state than a participatory economy and have triggered panic throughout formal businesses already struggling with rising costs and limited liquidity. 'These measures were neither debated transparently nor tested through pilot phases. The sudden imposition of unchecked arrest powers, aggressive cash handling limits, and unrealistic digital compliance rules has pushed the entire business landscape into uncertainty,' Nisar warned. 'You cannot reform an economy by intimidating its engine. What the government has misjudged is the deep-rooted unity of Pakistan's trading and industrial community.' He pointed out that even law-abiding businesses with a clear tax history are now rethinking their operations due to the fear of misuse by the enforcement arms of the Federal Board of Revenue. Coupled with hasty implementation of SRO 350 and SRO 709, which mandate complex electronic invoicing and tracking requirements, the situation has left traders vulnerable to penalties without preparation. Anjum Nisar said the nationwide protest was not confined to any single region or sector. 'From mega industrial hubs in Lahore to small-town traders in central Punjab, the shutdown was absolute—and peaceful. This is not political agitation. It is a desperate but constitutional signal from those who have been pushed too far,' he said. BMP stated that instead of expanding the tax base through engagement, the government has opted for punitive actions that are alienating even registered taxpayers. 'This is not how you build trust. If every law-abiding businessperson starts to feel like a criminal, the tax system collapses under its own contradictions,' Nisar remarked. He expressed serious concern that the government's narrative continues to suggest that only a few sectors oppose the reforms. 'This strike disproved that myth. The unity seen across commercial centers in Punjab should be a wake-up call. We are talking about a total industry halt—a shutdown of production, supply chains, and sales from top to bottom,' he said. While acknowledging the establishment of a grievance redressal committee by FPCCI and the Ministry of Finance, BMP criticized the lack of urgency in addressing the issues. 'At this stage, verbal commitments are not enough. The government must issue written notifications immediately reversing or suspending the most dangerous aspects of these laws,' Nisar insisted. The Businessmen Panel emphasized that the business community has always been in favor of responsible reforms and progressive digitization. However, it cannot support a system that is imposed overnight, without education, infrastructure, or practical rollout plans. 'Pakistan's economy does not run on apps and directives. It runs on trust, predictability, and dialogue,' he added. He said BMP had repeatedly presented constructive suggestions, including timelines for documentation, gradual onboarding of digital systems, and protections against harassment. 'Unfortunately, the state continues to legislate from a distance, without consulting the very people who will bear the brunt of these policies,' Anjum Nisar lamented. He warned that if the Finance Act is not amended in the coming days, the economic consequences could extend beyond business closures to investment flight, job losses, and reduced exports. 'Pakistan's productive class cannot afford to operate in fear. We will not be spectators to our own collapse,' Nisar said. BMP reiterated its complete support for the constitutional right to protest and expressed pride in how peacefully and effectively the strike was observed across the country. 'The discipline and unity shown on July 20 have restored our belief that business owners can still come together for the nation's economic future. But that unity must now be respected—not ignored,' the chairman said. The Businessmen Panel demanded that the government issue official notifications to immediately withdraw Sections 37A and 37B, revise SRO 350 and SRO 709 with stakeholder input, and suspend punitive cash transaction rules until a proper mechanism is agreed upon. 'We are not seeking confrontation. We are demanding correction,' Mian Anjum Nisar said. 'If the government fails to act now, the business community will be forced to reconsider how—and whether—it continues to operate under such conditions.' Copyright Business Recorder, 2025
Express Tribune
20-07-2025
- Business
- Express Tribune
Economic halt as nation strikes
Listen to article Pakistan's business and industrial community observed a nationwide strike on Saturday, protesting Sections 37A, 37B, and 37AA of the Income Tax Ordinance, which grant the Federal Board of Revenue (FBR) powers to arrest defaulting taxpayers. The shutter-down strike, led by major trade bodies and industrial associations, saw thousands of markets, factories, and commercial units closed across the country in what business leaders called a unified stand against "draconian and anti-business" laws. The protest was led by major trade bodies, including the Karachi Chamber of Commerce and Industry (KCCI), the Pakistan Hosiery Manufacturers and Exporters Association (PHMA), and various industrial town associations. It was held in strong opposition to the controversial new tax laws introduced through the Finance Act 2025-26. "The complete shutdown of markets, industries, and commercial activities reflected a powerful message of economic unity and collective resistance by Pakistan's business community," KCCI President Muhammad Jawed Bilwani said in a statement issued on Saturday. Bilwani emphasised that the strike was not an act of defiance, but a last resort adopted in response to the government's failure to address widespread concerns raised by the business community. Despite several representations and appeals, key anti-business provisions were included in the Finance Act 2025-26 that have created an atmosphere of fear, uncertainty, and hostility among taxpayers. The business community's key demands, which remain unresolved, include the immediate suspension of Sections 37A and 37B of the Income Tax Ordinance, which grant unchecked powers to arrest and prosecute taxpayers without due process; the withdrawal of Section 21(s), which imposes penalties on transactions made through cash, mode of payment still widely used in Pakistan's business landscape, and the restoration of the Final Tax Regime for exporters. He said these demands were conveyed in detail to the special committee formed by the federal finance minister and headed by the Special Assistant to the Prime Minister (SAPM) on Finance, Haroon Akhtar Khan. The business community expected meaningful outcomes based on the recommendations and rationale submitted to this committee. However, only verbal assurances were given, which further intensified frustration and compelled businesses to demonstrate their discontent through a peaceful and united shutdown. "The business community observed a peaceful strike to show their protest against absurd laws and express solidarity; however, the closure of business and economic activities is not in the national interest," said Sheikh Mohammed Tehseen, President of the Federal B Area Association of Trade and Industry (FBATI). He added that the government should repeal these oppressive laws and offer confidence and protection to businessmen and investors. President of SITE Super Highway, Masood Pervaiz, said that the business community is open to consultations with the government to enhance tax revenue and curb tax evasion without any harassment or stringent attitudes. He suggested that the government work actively with the business community towards digitisation in the economic and governance systems to achieve multiple national objectives. He also urged the government to promote ease of doing business and reduce production costs for businesses and trade in the country. President of the Lahore Chamber of Commerce and Industry (LCCI), Mian Abuzar Shad, said that July 19, 2025, will go down in history as a defining day of awareness, unity, and struggle by Pakistan's business community. "Lahore has proven today that it is not just a city – it is a sentiment, a force," he said, demanding urgent revisions and clarifications on Section 37AA, implementation of the e-invoicing and e-Bilty systems, the 16% sales tax on property rent, and the 20% tax on transactions above Rs200,000. The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) also joined hands with chambers and trade bodies across the country in a complete industrial shutdown to protest the controversial arrest powers granted to the FBR. Zonal Chairman of PHMA, Abdul Hameed, along with former chairmen Shafiq Butt and Naseer Butt, announced the closure of hosiery units as part of the countrywide strike, warning that such legislation would only deepen the crisis facing Pakistan's export-oriented sectors. The PHMA leadership said the business community could no longer remain silent while draconian laws continued to erode the confidence of investors and exporters. They said PHMA's participation in the strike was not symbolic but a complete operational shutdown in protest against what they termed economic strangulation by the government's policies. Abdul Hameed expressed grave concern over Section 37AA, which gives FBR officers the authority to arrest businesspersons without due process or prior investigation, merely on suspicion of tax evasion. He said this law is a clear violation of constitutional rights and a serious blow to the already fragile industrial environment of Pakistan.
