Latest news with #Rs670
Express Tribune
05-08-2025
- Automotive
- Express Tribune
SUV imported for Rs17,635, evading billions in taxes
The Directorate General of Customs Post Clearance Audit (PCA) has uncovered large-scale under-invoicing and money laundering in the clearance of luxury vehicles through the faceless system. A shocking 127-page audit report has revealed what is being described as the largest trade-based money laundering scandal in Pakistan's history involving the import of luxury vehicles. According to the report, importers systematically undervalued the vehicles to evade billions of rupees in taxes. One of the most startling cases in the report involved a 2023 model Toyota Land Cruiser, which had a market value of over Rs10 million, but was cleared through customs at an absurdly low declared value of only Rs17,635, allegedly with the collusion of customs officers. The audit covered the period from December 2024 to March 2025 and reviewed post-clearance data of 1,335 imported vehicles. It found significant discrepancies between the declared and assessed values of the vehicles, with differences exceeding Rs1 million per vehicle in many cases. Importers declared the total import value of these vehicles as Rs670 million, while the actual value was found to exceed Rs7.25 billion. Due to this manipulation, importers paid only Rs1.29 billion in duties and taxes, while evading an estimated Rs18.78 billion in customs duties and taxes. According to the PCA report, not a single importer was able to provide proof that the payments for these vehicles were made through legal channels from abroad. This raised strong suspicions that payments were made through illegal hawala and hundi networks. The report further revealed that 99.8 percent of all Land Cruiser vehicles imported during the audit period were cleared using under-invoicing to evade taxes and duties. It warned that such organized under-invoicing not only results in massive tax evasion but also poses serious threats to Pakistan's financial system. These revelations come at a critical time, as Pakistan continues efforts to meet the compliance standards of international financial institutions, particularly the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). The audit report has been forwarded to the Federal Board of Revenue (FBR), State Bank of Pakistan, and the Financial Monitoring Unit (FMU) for joint investigation and legal action against the network involved in this financial fraud.
Business Recorder
11-06-2025
- Business
- Business Recorder
Over Rs623bn new taxes unveiled
ISLAMABAD: The government has introduced first of its kind of Finance Bill 2025-26 with extraordinary enforcement measures against non-filers and taken new taxation/enforcement measures of over Rs623 billion including tax on payments for digital transactions in e-commerce platforms, increase in withholding tax rate on sales of immovable properties and withdrawal of sales tax exemption on erstwhile tribal areas in phases to meet assigned target of Rs14,131 billion for 2025-26. Breakup of taxation measures revealed that out of Rs670 billion taxation measures, the revenue loss on account of relief provided to the salaried class of Rs58 billion. The net revenue impact of taxation measures stood at Rs623 billion including both tax and enforcement measures. There are taxation and enforcement measures of Rs281 billion and Rs389 billion respectively, resulting in total revenue of Rs670 billion. Following exclusion of relief measure of Rs58 billion, the net increase in revenue measure will generate revenue of Rs623 billion in the next fiscal year. Finance Bill 2025 nearly done: Rs200bn new tax measures of GST, FED expected The FBR did not arrange the traditional technical briefing on the Finance Bill and the new taxation measures for journalists due to unspecified reasons. Under the Finance Bill 2025-26, the government has imposed restriction on economic transactions by ineligible persons (non-filers) including bar on purchase of motor vehicles, immovable property, sale of securities including debt securities or units of mutual funds and banks would not allow non-filers to open or maintain an already opened current or a saving bank or investor portfolio securities accounts and also not allow cash withdrawal from any of the bank accounts. Sales tax exemption to Special Economic Zone (SEZ) and Special Technology Zone (STZ) entities, developers has been restricted to tax year 2035 or expiry of 10 years exemption period, whichever is earlier. Major changes have been proposed in the withholding tax regime including increase in withholding tax from 0.6 percent to one percent on cash withdrawals by non-filers. The withholding tax rate increase for specified services from four per cent to six per cent with the exception of IT and IT enabled Services has been proposed. For other non-specified services, a flat 15 per cent will be imposed and from 10 per cent to 15 per cent on sportsperson. The Finance Bill 2025-26 revealed on Tuesdaya tax of two per cent of gross value of supplies, persons supplying digitally ordered goods from within Pakistan through online market place. The FBR has imposed 18 percent sales tax on the import of solar panels/PV modules. The FBR has also withdrawn reduced rate of 12.5 per cent is chargeable on supply of locally manufactured or assembled motorcars up to 850cc. The imported pet food including 'dogs and cats' food in retail packing, coffee in retail packing, chocolates in retail packing and imported cereal bars in retail packing have been included in the list of items under Third Schedule of the Sales Tax Act, 1990, based on the retail price at applicable rates as embossed on the packaging of the product. Currently, supply of electricity to residential, commercial and industrial units located in erstwhile FATA/PATA is exempt till 30.06.2025. In order to provide relief to electricity consumers in these areas, it is proposed that above-mentioned exemption may be extended till 30.60.2026. Currently, reduced rate of 10 per cent is available on local supply of vermicellis and sheer mall. As part of the GST reforms, all existing concessionary rates are reviewed and withdrawn wherever possible. Therefore, reduced rate of 10 per cent is proposed to be withdrawn. Bun and rusk are currently subject to a reduced 10 per cent sales tax. Since they are staple foods for lower-income groups, it is proposed that their local sale be exempted from sales tax. On income tax side, 'Digital Transactions Proceeds Levy' has been introduced along with necessary changes in the Income Tax Ordinance, 2001 to cover domestic vendors supplying digitally ordered goods and digitally delivered services. Banks and courier services designated as withholding agents to capture entire payment chain. Provisions regarding assessment of banking companies has been made more disclosure oriented to determine true and fair income of the banking companies and tax payable thereon. Tax rate on profit on debt has been proposed to be increased from 15 per cent to 20 per cent. The dividend tax rate has been enhanced to 25 per centand 15 per cent on dividend from mutual funds. Pension income received by an individual below the age of 70 years and over and above of Rs10,000,000 has been charged to tax at the flat rate of five per cent. Super tax rates under Section 4C proposed to be reduced by half a percentage point for income slabs between Rs200 million to Rs500 million against each slab respectively. Tax rates for salaried individuals for income slab upto Rs3,200,000 has been reduced to provide relief to lower and middle tiers income bracket. Similarly, surcharge rate proposed to be reduced from 10 per cent to nine per cent for salaried individuals only. Income tax exemption along with withholding tax exemption for erstwhile FATA/PATA areas propose for extension for one year i.e. upto TY 2026. 25 per cent rebate against tax payable by full time teachers and researchers will be restored retrospectively i.e. from TY 2023 to TY 2025. Proportionate tax credit to on profit on debt on loan obtained for construction or acquisition of a house of 250 sq. yd. and a flat having 2,000 sq ft. or less area. To better incorporate digitally ordered taxable goods into the e-commerce sales tax framework, the definition of 'e-commerce' has been introduced, and 'online marketplace' is redefined to include all taxable activities. Currently, online marketplaces are required to withhold one per cent sales tax on local supplies made by non-active taxpayer vendors. However, this does not fully capture the growing e-commerce sector, especially businesses using websites, apps etc for online sales to consumers. To address this, the withholding tax scope has been expanded to cover transactions settled via online payment or CoD. Under the proposed regime — substituting S No 8 of the Eleventh Schedule — payment intermediaries (banks, financial institutions, exchange companies, and payment gateways) will collect sales tax on digital payments, while couriers will handle tax collection for CoD transactions. Additionally, the withholding tax rate is set to increase from one per cent to two per cent. Importers and manufacturers are required to collect sales tax on items listed in the Third Schedule of the Sales Tax Act, 1990, based on the retail price at applicable rates as embossed on the packaging of the product. The purpose of the inclusion in the Third Schedule to capture the down-stream value addition in the supply chain beyond manufacturing. Currently, supply of electricity to residential, commercial and industrial units located in erstwhile FATA/PATA is exempt till 30.06.2025. In order to provide relief to electricity consumers in these areas, it is proposed that above-mentioned exemption may be extended till 30.60.2026. Copyright Business Recorder, 2025
Business Recorder
30-05-2025
- Business
- Business Recorder
SHEC's CIEC Chairman urges universities to enhance internal revenue amid budget constraints
HYDERABAD: Dr Sarosh Hashmat Lodi, Chairman of the Charter Inspection and Evaluation Committee (CIEC) of the Sindh Higher Education Commission (SHEC) and former Vice-Chancellor of NED University Karachi, has emphasized the need for public sector universities to reduce expenditures and explore internal revenue streams to navigate growing financial challenges. Speaking at a dinner hosted in his honour at Sindh Agriculture University (SAU), Tandojam, Dr Lodi pointed out that while the federal government has not increased university budgets over the past eight years, the Sindh government has stepped up with a proposed allocation of Rs42 billion for provincial universities. However, he warned that fiscal challenges are likely to intensify, urging universities to adopt more sustainable financial strategies. 'Increasing student fees is not a viable option for public sector universities, as they are often the only accessible avenue for quality education for students from underprivileged backgrounds,' he said. 'In my new role, I am committed to supporting the enhancement of academic and research standards across institutions, along with addressing structural and operational issues.' Dr Lodi also highlighted the vital role of universities in producing leadership across all sectors and called for efforts that yield long-term, generational benefits for the country. Speaking on the occasion, Meritorious Professor and former Vice Chancellor of SAU, Dr A Q Mughal, praised Dr Lodi's financial reforms at NED University, which have contributed significantly to its current financial stability. He noted that Dr Lodi has been a consistent supporter of universities across Sindh, facilitating improvements and institutional strengthening. SAU Vice Chancellor Dr Altaf Ali Siyal shared that the university is currently grappling with financial constraints. 'A special grant request of Rs670 million has been submitted to the Sindh Government and SHEC to clear outstanding gratuities of retired staff since 2022,' he informed. Dr Siyal acknowledged Dr Lodi's instrumental role in resolving key issues at SAU, including the long-standing delay in promotions of meritorious professors. He expressed hope that university graduates would be able to secure viable market opportunities and emerge as successful entrepreneurs in the evolving job market. Copyright Business Recorder, 2025
Express Tribune
16-03-2025
- Business
- Express Tribune
Poultry prices surge despite unchanged official list
A greengrocer displays vegetable prices outside his shop at Chowk Rustam Park in Lahore. photo: app LAHORE The local administration is struggling to enforce the official poultry prices with farmers selling live birds at self-determined rates, leading to a sharp increase in chicken meat prices. Official rate lists appear outdated amid the daily price fluctuations faced by the consumers. For the fourth consecutive week, the official chicken meat price remained Rs397-411 per kilogram, yet market rates ranged from Rs600 to Rs670 per kg. The official price for whole chicken was Rs595 but consumers paid Rs750-800 per kg, with boneless cuts reaching Rs1,100-1,200 per kg. Price hikes extended beyond poultry, with inflationary pressure on fruits, vegetables and other meats. Potatoes, officially priced at Rs50-55 per kg for A-grade, Rs40-45 for B-grade and Rs35-38 for C-grade, were sold at Rs80-100. Onion prices slightly dropped, but the A-grade variety, set at Rs45-50 per kg, retailed at Rs80 per kg. Tomatoes rose by Rs10 per kg, with the A-grade variety priced at Rs55-60 but sold at Rs120-140 per kg. Garlic and ginger prices remained volatile. The local garlic variety dropped by Rs30 per kg to Rs270-280 but sold for Rs350 per kg. Chinese garlic, fixed at Rs595-610, was available at Rs800-900 per kg. Ginger prices surged with the Thai and Chinese varieties rising by Rs10 per kg, officially set at Rs370-385 but reaching Rs450-600 in the markets. Several vegetables saw price manipulation with capsicum, cauliflower and cabbage overpriced. Fruit prices were similarly inflated. Apples, officially priced at Rs170-325 per kg, were sold at Rs250-600 per kg. Bananas, set at Rs250-260, were available for Rs350-400 per dozen. Guavas remained officially priced at Rs160-220 per kg but sold for up to Rs300 per kg. Kinow prices increased by Rs5 per dozen, officially Rs185-430 but sold for Rs400-600 per dozen. Pomegranates were sold at steep rates, with the Danaydar variety set at Rs425-445 but available for Rs600-800 per kg. Dates, officially set at Rs425-465 per kg, were sold for Rs750-2,000 per kg.
