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Business Recorder
8 hours ago
- Business
- Business Recorder
‘Cruel initiative': Farmers call for end to 45% agricultural income tax
Small and progressive farmers have called for abolishing the 45% agricultural income tax, describing it as a cruel initiative that will annihilate the entire agriculture sector given they have been dealing with 20%-50% underpricing of agricultural produce since the last couple of years. These farmers have said they will challenge the tax in the courts while declaring it as 'illegal' and 'unconstitutional'. Moreover, the farmers say they already been paying 5% to 15% agricultural income tax and advance agricultural income tax worth Rs200 per acre since 1994. IMF agreed to spare agriculture sector from taxes, says PM Shehbaz Sindh Chamber of Agriculture (SCA) Senior Vice President Nabi Bux Sathio told Business Recorder: 'Let me dispel common misconception of industrialists and trade bodies that agriculturalists do not pay taxes.' 'We are paying taxes since 1994 while we are not given loans by banks and no privileges like special industrial zones or special export zones etc by the government. Has the government any justification to increase agricultural income tax from 15% to 45%, while agricultural produce in the range of Rs600,000 is exempted from the tax?' He said industrialists, wholesalers and retailers can fix prices of their products but agriculturalists are at the mercy of the market. SCA rejects '45pc agricultural income tax' 'We are getting low prices for our agricultural produce since Jan 2024 - around 19 months. We are getting 20%to 50% less money for wheat, paddy (rice), cotton, oil seed crops and others. However, we have got a better price of sugarcane.' 'There are three main inputs for crops such as seeds, fertilizers and diesel. I get a 50 kg bag of DAP [phosphatic fertilizer] at Rs9,000, urea at Rs2,600, 1kg of hybrid rice seed at around Rs1,500, per litre diesel at Rs186 in 2023, while they are right now being sold at Rs13,000, Rs4,400,Rs2,000 and Rs286 respectively at a local market,' he added. Farmers Organisation Council Sindh Chairman Jawaid Junejo said there is a plan to destroy the agriculture sector which may bring about food insecurity in the country. He said the government must review its decision and give relief to farmers so that they may grow crops which can benefit the country and countrymen.
Express Tribune
17 hours ago
- Business
- Express Tribune
IMF ties 4% tax removal to wider net
Listen to article Pakistan said on Thursday that the International Monetary Fund (IMF) did not allow it to abolish the additional 4% sales tax being collected from unregistered persons and instead linked the removal with a one-fourth increase in sales tax base. The supposedly punitive 4% extra tax is now a way of remaining outside the tax net as businesses feel comfortable with paying the additional tax and then recovering it through prices, instead of becoming part of the tax net. The IMF rejected a proposal to abolish 4% sales tax and asked to first register 50,000 more persons in the sales tax regime, said Dr Hamid Ateeq Sarwar, Member Inland Revenue Operations of the Federal Board of Revenue (FBR), during a meeting of the Senate Standing Committee on Finance. PPP Senator Saleem Mandviwalla chaired the meeting, which was convened to address concerns of the business community and recommend solutions. Mandviwalla supported efforts to discourage tax evasion and broaden the tax base. There are hardly 200,000 registered sales tax persons, of which only 60,000 pay any tax, said Sarwar, who is reaching the superannuation age this week after having a splendid career in the FBR. The government had introduced the additional tax to compel people to come into the tax net, which is charged over and above the standard 18% sales tax. However, the businesses passed the extra tax on to consumers and avoided the net. There were heated discussions in the meeting between the FBR and business leaders over the new punitive powers introduced in the budget. The military establishment has now intervened in the matter after traders observed strikes in Lahore and Karachi. The Special Investment Facilitation Council (SIFC) held a meeting this week to resolve issues related to the FBR's arrest powers and adding back over Rs200,000 worth of expenses in cash to the income of businesses. After the intervention, the FBR seemed in a mood to address genuine concerns of the business community. Faisalabad Chamber of Commerce and Industry President Rehan Bharara questioned whether the FBR used its earlier punitive powers, including the disconnection of electricity and gas supply. Out of 380,000 industrial connections and 5 million commercial connections, only 5% were in the name of current allottees, thus, they could not be disconnected, said Hamid Ateeq Sarwar. The low collection from retailers remains one of the concerns but the FBR on Wednesday made a surprising claim before Prime Minister Shehbaz Sharif that it got an additional Rs455 billion from the retail sector in the last fiscal year. The claim requires independent verification as there are concerns that some of the corporate sector firms are also included in the retail category. Officials of the FBR claimed that total income tax payments made by the retail sector in fiscal year 2024-25 were in fact Rs617 billion and the additional income tax was Rs455 billion. They said that the collection of Rs617 billion included Rs316 billion in quarterly advances given by three categories, wholesalers, retailers, traders and some companies. The surprising Rs316 billion in quarterly advances could be looked into with critical lenses due to the highly informal nature of the sector. Sources in the FBR told The Express Tribune that a loose definition of the retail sector was used, which included some corporate sector firms. Representatives of the Karachi Chamber of Commerce and Industry (KCCI) once again raised the issue of arrest powers and penalising the use of cash above Rs200,000 worth of purchases. Senator Anusha Rahman of the PML-N pointed out some loopholes in the newly approved tax laws, which could be exploited by taxmen against the business community. Minister of State for Finance Bilal Azhar Kayani said that the prime minister has instructed that harassment of taxpayers will not be tolerated at any cost and the government stands ready to take action if any businessperson is hurt by the misuse of arrest powers. Anusha Rahman said that the recently approved law empowers the arrest of taxpayers on "suspicion" and "reasons to believe". She recommended that no person should be arrested until the FBR has evidence of sales tax fraud. Hamid Ateeq Sarwar said that the government could not amend the law before the next budget but those concerns would be addressed through a subordinate legislation by issuing an explanatory circular. However, PTI Senator Mohsin Aziz said that the subordinate legislation could not supersede the law. Immediate amendments to tax laws would reflect poorly on the standing committees that debated those amendments, parliament that approved the laws and the government that proposed them, remarked Saleem Mandviwalla. Sarwar came down hard on business leaders, saying that in the past two years attempts were made for a whopping Rs2.2 trillion worth of sales tax fraud and the FBR registered FIRs against those people. "If anyone has doubt, we can arrange their meetings with these people in jail," he said.
Time of India
a day ago
- Health
- Time of India
In Nashik, 19 more dengue cases take July tally up to 54
Nashik: The city is experiencing a significant rise in dengue cases this month, with 19 new infections reported in the last week alone. So far in July, the city has recorded 54 cases. This makes it the highest monthly total for the current calendar year. This surge follows the 25 cases reported in June. According to an official from the Nashik Municipal Corporation (NMC), the total number of dengue cases from Jan 1 to July 21 this year stands at 201. While this is considerably lower than the 584 cases reported during the same period last year, the recent rise in cases is a cause for concern. "We are implementing preventive measures, including imposing a fine of Rs200 for each mosquito breeding spot found in residential and commercial properties. This measure aims to curb the proliferation of mosquitoes and prevent a larger outbreak," the official said.
Asia News Network
2 days ago
- Asia News Network
In Pakistan, board sought as Zahir Jaffer on death row for Noor Mukadam's murder preparing mercy plea
July 21, 2025 ISLAMABAD – Zahir Zakir Jaffer, who was convicted of the gruesome murder of Noor Mukadam and sentenced to death, is preparing for a presidential mercy petition, according to a series of letters seen by as jail authorities have requested the formation of a medical board to evaluate his condition. Noor, aged 27 years, was found murdered at Zahir's Islamabad residence in July 2021, with the probe revealing she was tortured before being beheaded. Zahir's death sentence by the trial court had been upheld by the Islamabad High Court (IHC) in 2023. In May, the Supreme Court upheld the death sentence handed by two courts previously over the murder charges under Section 302B (premeditated murder) of the Pakistan Penal Code (PPC). After the ruling by the apex court, a presidential pardon under Article 45 of the Constitution could possibly provide Zahir pardon, or reprieve, or remit, suspend or commute his sentence. According to the letters, which are addressed to the hospital director at the Pakistan Institute of Medical Sciences (Pims) from the superintendent at Adiala Jail, Zahir requires an opinion from a medical or psychiatric board before submitting a presidential mercy petition. 'The appeal of above mentioned Confirmed Condemned Prisoner (Zahir) was pending at [the] Supreme Court of Pakistan and the same has been dismissed,' the letter, dated July 8, read. 'Now the mercy petition of [the] subject cited Confirmed Condemned Prisoner has to be submitted before the Honourable President of the Islamic Republic of Pakistan. For that, the medical board and psychiatric board opinion is mandatory.' The letter requested that a time and date be chosen for the medical and psychiatric boards to come to Adiala and examine Zahir. The superintendent made the same request in another letter dated July 14. In response to the first letter, Pims stated in a document seen by that Dr Shafqat Nawaz from the psychiatry department and Dr Amir Naveed from the neurology department will comprise the medical board. Zahir was not only convicted of the murder, but was also sentenced to 25 years of rigorous imprisonment along with a fine of Rs200,000 under Section 376 (punishment for rape) of the PPC. In October last year, Noor's father had urged the apex court to take up the murder case pending for more than one and a half years.
Business Recorder
3 days ago
- Business
- Business Recorder
COAS Munir instructs FBR to have dialogue with businessmen over arrest powers, penalties: FPCCI
While focusing on the recently enacted expansions of the Federal Board of Revenue's (FBR) powers, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh with the trade and industry's delegation met Chief of Army Staff (COAS) Field Marshal Syed Asim Munir, NI (M). who assured them of his full support for the economic growth of the country, according to a FPCCI statement on Tuesday. The development comes days after Pakistan's two largest cities - Karachi and Lahore - faced partial and complete market closures over a strike call by traders against what they called 'anti-business' tax measures introduced in the Finance Act 2025. Karachi, Lahore hit by strike against 'anti-business' tax measures In the Finance Act, the government expanded the FBR powers with Sections 37A and 37B, which empower the tax authority officials with arbitrary arrests; Section 21(S), which imposes harsh penalties on cash transactions of Rs200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of e-Bilty under Section 40(C). 'Mr Atif Ikram Sheikh maintained that the business community is immensely thankful to Field Marshal Asim Munir for immediately directing that the new provisions; particularly those added under Sections 37A and 37B of the Sales Tax Act 1990, pertaining to arrest and detention; be held in abeyance; and, for instructing the FBR to enter meaningful and solution-oriented dialogue with stakeholders and address their concerns,' the FPCCI statement read. The statement further said the delegation had presented a comprehensive overview of the challenges faced by the industrial sector – with particular emphasis on the recently enacted expansions of the FBR's powers. 'Additionally, the GHQ will support economic activities in the country through the platform of Special Investment Facilitation Council (SIFC); fostering an environment of collaboration and trust.' The business community's delegation also called for interest rates to be brought down in line with inflation to stimulate businesses and economic activities. It also highlighted the delay in notification of the Export Facilitation Scheme (EFS) amendments relating to exclusion of cotton and cotton yarn from the scheme; and, imposition of an 18% sales tax on their imports, according to FPCCI statement.
