Latest news with #Tola
Business Recorder
a day ago
- Business
- Business Recorder
Tola suggests MAT via CVT
LAHORE: Taxonomist Ashfaq Yousuf Tola has suggested introduction of Minimum Asset Tax (MAT) via Capital Value Tax (CVT) and modernization of the definition of 'Resident Individual' for tax purposes to broaden the tax base and ensure equity within the tax system. To ensure high-net-worth individuals contribute a fair share to national revenue, he has proposed to introduce MAT by expanding the scope of Capital Value Tax CVT. He said the MAT would apply to resident individuals whose domestic assets exceed PKR 100 million and the tax would be charged at 1% of the fair market value of the assets exceeding this threshold. According to him, MAT would be adjustable against the individual's income tax liability, serving as a minimum threshold for direct taxation rather than imposing an extra tax burden. Regarding modernization of the definition of 'Resident Individual' for tax purposes, he said the current residency definition under Section 82 of the Income Tax Ordinance. 2001, which classifies a resident as someone spending 183 days or more in Pakistan, is outdated and lacks alignment with more nuanced residency rules in other jurisdictions. Tola has proposed a revised framework, saying that a more appropriate definition of residency would classify individuals as a 'resident' if they stay in Pakistan for 182 days or more during a financial year. For individuals who stay between 120 and 181 days, he said, their residency status should depend on both citizenship and income. Specifically, Tola pointed out, a Pakistani citizen (as defined under the Pakistan Citizenship Act, 1951) or a person holding a Pakistan Origin Card (POC) who earns income exceeding a prescribed threshold (excluding foreign-sourced income), and has no tax liability in any other country, should be treated as a Resident but Not Ordinarily Resident (RNOR). Those who do not meet these criteria should be classified as non-residents, he stressed. Also, he said, individuals who spend less than 120 days in Pakistan during the financial year should be treated as Non-Residents, regardless of their income or nationality. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
Pakistan budget 2025-26: Rs2.8 trillion defence budget proposed citing ‘war-like situation' with India
With Pakistan scheduled to unveil its federal government budget for fiscal year 2025-26, Tola Associates, a tax advisory and consultancy firm, has proposed to raise the defence budget to Rs2.8 trillion, reflecting a 32% increase as compared to the last fiscal, owing to a 'war-like situation' with neighbouring India. The tax advisory firm gave the proposal in its report 'Budget 2025-26 a rare catalyst for course correction', released on Saturday. 'The budgeted defence expenditure stood at Rs2,122 billion for FY25 while the actual expenditure till March 2025 was Rs1,424 billion. [However], due to the ongoing war situation with the neighbouring country, defence spending may increase by up to 50% in the Q4FY25,' read the report. The firms noted that in the previous three years, defence expenditure in the last quarter accounted for 36% of the annual total defence expenditure made throughout the fiscal year. Pakistan budget 2025-26: expenditure likely to fall by massive Rs2 trillion, says report 'Given the current regional tensions and the need to ensure Pakistan's defence preparedness, we estimate total defense spending to reach Rs2.4 trillion by June 2025.' Moreover, it also proposed to enhance the defence budget to Rs2.8 trillion in FY26, reflecting a 32% increase when compared with the outgoing FY's budget, 'due to the war situation with the neighbouring country and the new recruitment of army personnel'. In its report, Tola said that the upcoming budget serves as a great opportunity for course correction. 'It is a rare catalyst to realign the direction of our economy.' It said that the upcoming budget theme should focus on creating a balance between stability and economic growth. 'Therefore, economic and fiscal reforms should be framed in a manner that puts the economy on a path of steady growth.' Tola estimate the budget expenditure for FY26 to be around Rs17.2 trillion, lower than the Rs18.9 trillion budgeted by the government in FY25. The decline in expenditure comes amid an expected reduction in markup payments, which are likely to reduce to Rs7.5 trillion in FY26, compared to Rs9.8 trillion originally budgeted for FY25. IMF, govt to continue FY26 budget discussions 'over the coming days' The tax advisory estimated the federal development budget (PSDP/public sector development programme) at Rs950 billion for FY26, far lower than the Rs1.4 trillion budgeted in FY25. The report estimated the FBR revenue collection at Rs13.5 trillion for FY26. 'As per our estimates, if the FBR collects around 11.9 trillion in FY25, given our inflation estimates at 10.0% and estimated GDP growth at 3% in the upcoming FY26, then the FBR might collect only Rs13.5 trillion worth of tax revenue.
Hans India
07-05-2025
- Politics
- Hans India
It's all over for Cong in TG: Bandi Sanjay
Hyderabad: Union Minister of State for Home Affairs Bandi Sanjay Kumar has declared that Congress is finished in Telangana, claiming that their web of lies and empty promises has been thoroughly exposed by Chief Minister A Revanth Reddy's recent comments regarding the state's financial situation. Speaking to the media in Ellareddypet, Rajanna Sircilla district, on Tuesday, Sanjay Kumar addressed the Chief Minister's remarks about the dire financial condition of the state, stating that no loans are being granted. He referred to CM Revanth Reddy's comments, where the CM mentioned he is treated like a thief in Delhi and is not even granted an appointment due to the fear that he might 'walk away with their shoes.' Sanjay Kumar described the Chief Minister's outbursts as inappropriate, suggesting they reveal his inability to fulfill the promises made to the people during the last Assembly elections. He stated that the Chief Minister's remarks indicate that pensions for the elderly, financial assistance for women, the Tola gold initiative for brides, unemployment allowances, and the Rs 5 lakh student assurance card are now off the table. He challenged Congress MP Rahul Gandhi, asking, 'What will he say now, after holding the Constitution and pledging commitments to the people of Telangana?' Congress ministers and MLAs are concerned following the Chief Minister's statements and Sanjay Kumar asserted that there is no question of sparing a Congress party that has broken its promises. 'We will confront Congress MLAs and ministers, along with the support of the people,' he added. Sanjay Kumar launched a scathing attack on the Chief Minister's statements, saying, 'Revanth Reddy, who should act like the head of the Telangana family, is behaving helplessly. It is shameful that he said the state is bankrupt. The people are already strongly opposed to Congress. 'After the Chief Minister's remarks yesterday, it's all over for them – 'Khel Khatam, Dukaan Bandh'. Even Congress MLAs are now concerned about their political futures,' he said. Sanjay Kumar criticized the CM's claims about not receiving appointments in Delhi as blatant lies. He pointed out that the Chief Minister has met the Prime Minister several times, including recent meetings in December 2023, July 2024, and February 2025. On Tuesday, he met with Union Minister for Road Transport and Highways, Nitin Gadkari. 'The public must decide. Before the elections, Revanth Reddy acknowledged that the state's finances were in bad shape, yet he promised to implement six guarantees within 100 days. He even provided a document committing to these promises. But after coming to power, he has washed his hands of everything – saying 'it's your fate' and leaving the people in the lurch,' he pointed out.
Business Recorder
04-05-2025
- Business
- Business Recorder
Tola underscores need for resolving narrow tax base issue
LAHORE: To address the issue of a narrow tax base, the government should implement several solutions, including digitalization, removing exemptions, offering Incentives, and strengthening enforcement. According to leading taxonomist Ashfaq Tola, implementing a modern e-tax system can make it easier for taxpayers to register and file taxes, reducing compliance costs and increasing efficiency. He said removing unwarranted exemptions and bringing untaxed sectors, such as agriculture and real estate, under the tax net can significantly broaden the tax base. Tola pointed out that offering incentives, such as tax holidays or modest tax rates, can encourage small businesses and farmers to formalize and pay taxes. He said better auditing and follow-up on non-filers can help identify and bring into tax net those who are currently evading taxes. Broadening tax base: PRAs and depts share data with FBR Tola said a broader tax base can have numerous benefits for Pakistan, including increased revenue, as a wider tax base can provide the government with more revenue to fund public services and infrastructure. A more progressive tax system can help reduce income inequality and promote economic growth, he added. He said a broader tax base can lead to a more stable economy, reducing the risk of economic shocks and crises. According to him, broadening Pakistan's direct tax base is crucial for promoting economic stability, reducing inequality, and increasing revenue. By implementing digital solutions, removing exemptions, offering incentives, and strengthening enforcement, the government can create a more equitable and sustainable tax system. Pakistan's tax system is facing a significant challenge due to its narrow direct tax base. The country collects only about 12-13% of GDP in tax revenue, one of the lowest in the world. A narrow tax base forces the government to rely heavily on indirect taxes, which disproportionately affect low-income households. A narrow tax base means that only a small fraction of the population pays direct taxes, such as income tax. This results in a significant burden on a few individuals and businesses, leading to tax evasion and avoidance. The government is then forced to borrow more, which is inefficient and unsustainable. Copyright Business Recorder, 2025
Telegraph
25-04-2025
- Sport
- Telegraph
Adidas and Puma threatening to leave Nike behind in ‘super shoe' battle
It is the lightest and most expensive marathon running shoe in history and, at its launch in the shadow of Trafalgar Square on Thursday night, there was also a collective certainty about its most important quality. 'We do believe it's the fastest,' said Charlotte Heidmann, the senior product manager at Adidas, of the new £450 and 138 gram Adizero Adios Pro Evo 2 'super shoe' that will make its London debut on Sunday. Its predecessor, the Pro Evo 1, made global headlines in 2023 when it helped Tigst Assefa slash almost two minutes off the women's world record before its athletes dominated last year's London Marathon. It promptly sold out from official outlets, with pairs of the shoe then appearing on resale sites for £2,500. The first athlete to trial the shoes had actually been Benson Kipruto, who was training at home in Kenya when Heidmann arrived after one session with a prototype pair in her backpack. 'They probably thought: 'Huh, another racing shoe.' But I said: 'Wait until you feel it',' recalled Heidmann. 'I handed over the shoe to Benson Kiputo and he was the first tester. He couldn't believe his eyes – he was, 'but is there something missing?' He did 25km the next day and then ran away with the shoe, hid it in his room, and didn't want to give it back.' Heidmann eventually retrieved the shoe with the promise that a fully developed version would soon be available and it was duly on Kipruto's feet last summer when he beat Great Britain's Emile Cairess to the bronze medal behind the winner Tamirat Tola at the Paris Olympic marathon. Cairess and Tola were also wearing the Pro Evo 1s. Adidas say they have now found a further five per cent increase in energy return with this latest development, largely due to adding foam and noticeable bulk (if not weight) around the midsole 'engine' of the shoe where most elite runners' feet strike the ground. It will be worn among others on Sunday by Assefa and Tola, as well as the defending men's champion Alex Mutiso. The shoe does not go on general sale until August 28 but has been selectively released and pairs were being passed around at Thursday's launch like some sort of rare jewel. A feel of one pair – marked number 1,211 of a batch of 2,037 – certainly confirmed its jaw-dropping feather-like feel. The claim of 'fastest', however, was also made earlier this month by Puma, who have just launched the new Fast-R Nitro Elite 3, and have backed up their assertion with research showing improvements in running economy on previous super shoes of more than three per cent. And then there is of course Nike, inventors of the first carbon-reinforced super shoes which swept the Rio Olympics in 2016, and whose Alphafly 3 model was worn by both Kelvin Kiptum and Ruth Chepngetich when they set the current men's and women's world marathon records, as well as Olympic women's champion Sifan Hassan, who is going for a second London win on Sunday. A new Alphafly 4 prototype of this design – with its Zoom-X foam and Air Zoom units – will be worn by Nike athletes on Sunday, including marathon legend Eliud Kipchoge and the Ugandan Jacob Kiplimo, who has just shattered the world half-marathon record and is making his eagerly awaited debut over 26.2 miles. Many believe that Kiplimo will become the first man to break two hours in an official race. With the various teams of scientists now reporting the biggest set of advances in super shoes since their game-changing emergence almost a decade ago, it all adds up to the most intriguing of sub-plots this weekend. And, while champions of yesteryear can rightly point out that it has become impossible to fairly compare their times with the generation that is now rewriting the record books, it is a revolution that has positively transformed distance running from top to bottom. With the shoe brands investing millions in highly secretive research and design – and sales booming – athletes are seeing the trickle-down in the value and scope of their shoe deals. Recovery also appears to be improved in super shoes, helping people to run more as well as faster. The London Marathon itself is now constantly finding that it must upgrade its 'good for entry' times for amateur runners in response to the general quickening of the entire field. 'You can't run away from the technology' Kipchoge, who has worked closely with Nike on technological advances, stressed ahead of Sunday's marathon that the various super shoes are there to maximise the energy that a runner has already produced rather than provide artificial boosts. 'If you are not fit enough, even with these shoes, you can't run fast,' he told Telegraph Sport. 'First it's the fitness. If you are physically fit and mentally fit, the technology can run with you. The world is changing and that includes technology. You can't run away from it. We need to move with the shoes and, above all, enjoy running.' Mahamed Mahamed, who is the leading Briton in the men's race and third on the domestic all-time list behind only Mo Farah and Emile Cairess, will be in the new Puma super shoe on Sunday 'It's lighter, more comfortable and the design itself is better,' he said. He will certainly also have drawn encouragement from the performance in them at the Boston Marathon earlier this week of Rory Linkletter, the Canadian who ran a 59-second personal best to finish sixth. It should be stressed that the recent comparison study of shoes was funded by Puma and included the Adidas Pro Evo 1 and Nike Alphafly 3s, rather than their latest versions which will be largely worn on Sunday. Even so, the results do underline the ongoing improvements across the various brands. Wouter Hoogkamer, who is the assistant professor of kinesiology at the University of Massachusetts, identified the much-advertised four per cent upgrade in the original Nike Vaporfly and was among tho co-authors of the new Puma study. 'These are substantial differences,' he said. 'You're talking about minutes off a marathon time – and I train years to shave a minute off of my marathon time.' Mutiso, the Kenyan who is aiming to defend his London title, says that he feels an even greater response in the Pro Evo 2. 'Last year I won with the Pro Evo 1 and it [the Pro Evo 2] is slightly different,' he says. 'I trained with both for some sessions and I liked it more.' Adidas have been open about the shoe's limitations with respect to longevity. Mutiso says that he would probably not run more than 70km in a pair before a race although it is stressed that this is all highly individual. They share the same carbon reinforced rods as the more affordable and seemingly durable Adidas Adizero Adios Pro 3 and 4 range (retailing at £220) – the Pro Evos have a different and much lighter foam which is made out of an undisclosed compound. 'We say they are optimised for race day – they are built to break world records… it's for the pinnacle of racing and for the pinnacle of athlete,' says Moritz Höllmüller, the Adidas design manager, of a shoe that 'combines art and science' and was a fusion of feedback and real-life testing at high altitude in the Kenyan town of Iten and the Adidas laboratories at their main headquarters in Herzogenaurach, Germany.
