Latest news with #RashidMahmoodLangrial
Business Recorder
3 days ago
- Business
- Business Recorder
Solar panels: Pakistan govt mulling withdrawing ST exemption
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood said Thursday that the government is examining a proposal to withdraw sales tax exemption on solar panels in budget (2025-26). FBR Chairman was responding to a query of a member of the Senate Standing Committee on Finance during meeting held at the Parliament House. He stated that the FBR is working on proposals to withdraw all kinds of tax exemption including exemption available on the import of solar panels. Cabinet halts additional tax on solar power users Meanwhile, during another meeting of the National Assembly Standing Committee on Finance, the representatives of Refineries briefed the committee that their input was taxed, but on output, there was no GST, causing problems over the last several years. Without resolving this issue, they would not be able to invest $6 billion. The Chairman FBR, Rashid Mahmood Langrial, said that their business came out of the ambit of the Value Added Tax (VAT) when there was no tax on their output. He said that there were proposals under consideration to impose sales tax on their output or provide them some kind of other permanent solutions. Chairman FBR has also assured the committee that he will inquire into the matter of recovering over Rs 80 million amounts from KababJee restaurant Karachi. Member of committee Mirza Ikhtiar Baig raised the issue before the finance committee chaired by Nafeesa Shah. He informed that FBR has recovered more than Rs 80 million from accounts of this restaurant without giving any chance of hearing in different forums. He has no money to pay salaried and owner of the restaurant has threatened to commit suicide. The business community is pressing me for this harassment by the FBR, Baig added. The FBR Chairman replied that I did not have knowledge of this particular case. I will update the committee after inquiring about the matter from the relevant field office of FBR. The committee considered 'The Income Tax (Second Amendment) Bill, 2025'. The Committee expressed concern over the second proviso of the newly inserted clause (3A). The Secretary Revenue assured the Committee that the concerns of the Hon. Members would be addressed and that the words 'and shall cease to have effect after tax year 2025' would be deleted. Upon the assurance given by the Secretary Revenue, the Committee recommended that the Bill, as amended, may be passed by the Assembly. The Committee considered Starred Question No. 38, moved by Aliya Kamran, MNA, regarding the imposition of Section 99D of the Income Tax Ordinance, 2001, and Starred Question No. 40, moved by Sharmila Sahiba Faruqui Hashaam, MNA, regarding the recent policy shift prioritizing digital currencies, without adequately addressing their regulatory deficiencies. After a detailed discussion the Committee decided to defer both agenda items for discussion in the next meeting of the Committee. The report on the 'non-implementation of minimum wages, as announced by the Federal Government in its departments', a matter raised by Syed Rafiullah, MNA and referred by the Honourable Speaker, was also deferred due to the absence of the mover. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Solar panels: Govt mulling withdrawing ST exemption
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Rashid Mahmood said Thursday that the government is examining a proposal to withdraw sales tax exemption on solar panels in budget (2025-26). FBR Chairman was responding to a query of a member of the Senate Standing Committee on Finance during meeting held at the Parliament House. He stated that the FBR is working on proposals to withdraw all kinds of tax exemption including exemption available on the import of solar panels. Cabinet halts additional tax on solar power users Meanwhile, during another meeting of the National Assembly Standing Committee on Finance, the representatives of Refineries briefed the committee that their input was taxed, but on output, there was no GST, causing problems over the last several years. Without resolving this issue, they would not be able to invest $6 billion. The Chairman FBR, Rashid Mahmood Langrial, said that their business came out of the ambit of the Value Added Tax (VAT) when there was no tax on their output. He said that there were proposals under consideration to impose sales tax on their output or provide them some kind of other permanent solutions. Chairman FBR has also assured the committee that he will inquire into the matter of recovering over Rs 80 million amounts from KababJee restaurant Karachi. Member of committee Mirza Ikhtiar Baig raised the issue before the finance committee chaired by Nafeesa Shah. He informed that FBR has recovered more than Rs 80 million from accounts of this restaurant without giving any chance of hearing in different forums. He has no money to pay salaried and owner of the restaurant has threatened to commit suicide. The business community is pressing me for this harassment by the FBR, Baig added. The FBR Chairman replied that I did not have knowledge of this particular case. I will update the committee after inquiring about the matter from the relevant field office of FBR. The committee considered 'The Income Tax (Second Amendment) Bill, 2025'. The Committee expressed concern over the second proviso of the newly inserted clause (3A). The Secretary Revenue assured the Committee that the concerns of the Hon. Members would be addressed and that the words 'and shall cease to have effect after tax year 2025' would be deleted. Upon the assurance given by the Secretary Revenue, the Committee recommended that the Bill, as amended, may be passed by the Assembly. The Committee considered Starred Question No. 38, moved by Aliya Kamran, MNA, regarding the imposition of Section 99D of the Income Tax Ordinance, 2001, and Starred Question No. 40, moved by Sharmila Sahiba Faruqui Hashaam, MNA, regarding the recent policy shift prioritizing digital currencies, without adequately addressing their regulatory deficiencies. After a detailed discussion the Committee decided to defer both agenda items for discussion in the next meeting of the Committee. The report on the 'non-implementation of minimum wages, as announced by the Federal Government in its departments', a matter raised by Syed Rafiullah, MNA and referred by the Honourable Speaker, was also deferred due to the absence of the mover. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
Pakistan Tax Bar Association urges FBR to extend ST return filing deadline
KARACHI: The Pakistan Tax Bar Association (PTBA) has formally requested the Federal Board of Revenue (FBR) to extend the deadline for filing sales tax returns for March and April 2025, citing widespread technical difficulties and system discrepancies affecting taxpayers nationwide. In a letter addressed to FBR Chairman Rashid Mahmood Langrial, the tax bar highlighted that despite the government's documentation initiatives aimed at enhancing transparency through structured disclosure via various annexures and notifications, many registered taxpayers are struggling to file accurate returns within the statutory deadline. According to the PTBA, member bars across the country have reported that the statutory deadline for March and April 2025 sales tax returns has already passed, yet only a minimal number of returns have been successfully filed, attributing this low filing rate to unresolved discrepancies in newly inserted annexures within the filing system. ST returns: PCDMA urges FBR to extend deadline to May 31 'Unfortunately, only a meager number of returns have been filed to date and a huge number of sales tax registered persons are still unable to file their sales tax returns for the respective months due to the non-resolution of discrepancies in the newly inserted Annexures,' the letter said. The Bar expressed concern that many taxpayers risk being declared inactive through no fault of their own due to their inability to complete the filing process. This could potentially impact their business operations and compliance status despite their willingness to fulfill tax obligations. The Bar has requested two key measures from the FBR. First, an extension of the filing deadline for March and April 2025 sales tax returns until June 30, 2025, or until the resolution of system discrepancies in the annexures. Second, permission for taxpayers who have already filed returns with inadvertent errors due to misunderstanding of annexure disclosure requirements to make automatic revisions through the IRIS portal. 'We are confident that this extension will provide sufficient time to address the current discrepancies in the annexures, enabling taxpayers to fulfill their legal obligations under the Sales Tax Act, 1990, in a proper and compliant manner,' the letter said. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
PTBA urges FBR to extend ST return filing deadline
KARACHI: The Pakistan Tax Bar Association (PTBA) has formally requested the Federal Board of Revenue (FBR) to extend the deadline for filing sales tax returns for March and April 2025, citing widespread technical difficulties and system discrepancies affecting taxpayers nationwide. In a letter addressed to FBR Chairman Rashid Mahmood Langrial, the tax bar highlighted that despite the government's documentation initiatives aimed at enhancing transparency through structured disclosure via various annexures and notifications, many registered taxpayers are struggling to file accurate returns within the statutory deadline. According to the PTBA, member bars across the country have reported that the statutory deadline for March and April 2025 sales tax returns has already passed, yet only a minimal number of returns have been successfully filed, attributing this low filing rate to unresolved discrepancies in newly inserted annexures within the filing system. ST returns: PCDMA urges FBR to extend deadline to May 31 'Unfortunately, only a meager number of returns have been filed to date and a huge number of sales tax registered persons are still unable to file their sales tax returns for the respective months due to the non-resolution of discrepancies in the newly inserted Annexures,' the letter said. The Bar expressed concern that many taxpayers risk being declared inactive through no fault of their own due to their inability to complete the filing process. This could potentially impact their business operations and compliance status despite their willingness to fulfill tax obligations. The Bar has requested two key measures from the FBR. First, an extension of the filing deadline for March and April 2025 sales tax returns until June 30, 2025, or until the resolution of system discrepancies in the annexures. Second, permission for taxpayers who have already filed returns with inadvertent errors due to misunderstanding of annexure disclosure requirements to make automatic revisions through the IRIS portal. 'We are confident that this extension will provide sufficient time to address the current discrepancies in the annexures, enabling taxpayers to fulfill their legal obligations under the Sales Tax Act, 1990, in a proper and compliant manner,' the letter said. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
Green Leaf Threshing (GLT) unit: Govt planning to deploy FC personnel for monitoring
ISLAMABAD: The government is planning to deploy Frontier Constabulary force in Khyber Pakhtunkhwa to regulate/monitor Green Leaf Threshing unit, to strengthen enforcement for checking massive evasion in tobacco sector. The decision has been taken by the law enforcement agencies on the request of Chairman Federal Board of Revenue (FBR). Sources told Business Recorder that the country's tax potential from the cigarette sector exceeds Rs 600 billion annually. The two multinational companies that hold 44% of the market paid Rs 292 billion in taxes. Contrary to this, more than 40 local manufacturers controlling the remaining 56% of the market paid a meager Rs 5 billion. Over Rs 300 billion in tax revenue, more than the federal allocations for education and health combined, has disappeared into the black market. FBR Chairman Rashid Mahmood Langrial recently admitted that over 90% of the cigarette sector operates outside the formal tax system. The Track and Trace System, introduced to enforce compliance, is failing. Only 19 of 413 registered brands are compliant. The government has proposed deploying Frontier Constabulary units in Khyber Pakhtunkhwa to regulate Green Leaf Threshing, signaling the extraordinary scale of the breakdown in civilian enforcement mechanisms. 'This is no longer just a fiscal gap. It is a full-scale collapse of enforcement,' said Mubashir Akram, National Convener of ACT Alliance Pakistan. 'We are watching legal businesses being penalized while the tax evaders thrive. A parallel economy has taken over this sector.' Copyright Business Recorder, 2025
