logo
Agriculture tax bill sails through assembly

Agriculture tax bill sails through assembly

Express Tribune27-01-2025

PESHAWAR:
The Khyber-Pakhtunkhwa Assembly approved crucial bills during Monday's session, including one to implement agriculture tax across the province, and another to dismiss government employees hired during the last caretaker regime.
The assembly also approved a bill to establish a new regulatory force similar to the police, sending it to the Select Committee. The committee will be headed by Chief Minister Sardar Ali Amin Gandapur and will include members like Mushtaq Ghani, Munir Hussain, Asif Khan, Ahmad Kundi, Arbab Usman, Idrees Khan, Sheer Ali, and Adnan Khan. The committee was instructed to review the bill and submit a report within four days.
The session on Monday was chaired by K-P Assembly Speaker Babar Azam Swati.
Agriculture tax
The Khyber-Pakhtunkhwa Assembly passed the bill to impose agricultural income tax. The Khyber-Pakhtunkhwa Agricultural Income Tax Bill 2025 stipulates that a 15% tax will apply on annual agricultural income between Rs0.6 million and Rs1.2 million, 20% tax on income between Rs1.2 million and Rs1.6 million, and 30% on income between Rs1.6million and 3.2million. Agricultural income above Rs5.6 million will be taxed at 45%. A super tax will apply to individuals earning more than Rs150 million, annually , from agriculture. Those who own more than one land will be required to submit location details. A tax will also apply to those with 50 acres or more of cultivated land, or 100 acres or more of uncultivated land.
Dismissing govt employees
As for the bill to dismiss employees hired during the caretaker government, relevant departments will issue notifications for the dismissal of employees, and a technical committee, headed by the establishment secretary, will be formed to resolve any legal issues or complications.
The Khyber-Pakhtunkhwa Employees (Dismissal from Service) Bill 2025 will apply to appointments made between January 22, 2023, and February 29, 2024. However, employees hired under the Public Service Commission, minority and special quotas, or those appointed based on judicial orders and through proper tests and interviews, will be exempted.
During the session, Law Minister Aftab Alam presented a motion for the dismissal of employees hired during the caretaker period, citing that the Election Act of 2017 clearly specifies the role of the caretaker government, and the mandate for hiring lies with the elected government.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

JI demands fair share for Karachi in provincial budget
JI demands fair share for Karachi in provincial budget

Business Recorder

time3 hours ago

  • Business Recorder

JI demands fair share for Karachi in provincial budget

KARACHI: Jamaat-e-Islami (JI) Karachi staged a large protest march on Saturday, demanding a fair share for Karachi in the provincial budget, early completion of the K-4 water supply project, and an end to what it called chronic injustices against the city. The rally, which began from Khizra Masjid and ended at the Sindh Assembly building, saw participation from people across the city. Protesters carried banners and chanted slogans criticizing the Sindh government and its allies for ignoring Karachi's basic needs. Addressing the crowd, JI Karachi Chief Munem Zafar Khan accused the ruling PPP and MQM of presenting an 'anti-Karachi' budget and sidelining the city in development planning. He said Karachi suffers from a worsening water crisis, crumbling infrastructure, lack of public transport, and power outages. 'Karachi contributes the most to the national and provincial economy but gets nothing in return,' Munem Zafar said, demanding at least Rs500 billion to address the city's pressing issues. He stressed the need for 10,000 buses and the revival of the Karachi Circular Railway to ease public transport problems. He criticized the under funding of the K-4 water project, saying only Rs3.2 billion was allocated against a Wapda requirement of Rs40 billion. 'Karachi paid Rs3,000 billion in taxes, but the government can't spare Rs40 billion for water?' he questioned. Munem Zafar also condemned what he called 'rigged' elections and political manipulation in the mayoral race, blaming both PPP and MQM as 'products of Form 47' — a reference to election results he claimed was tampered with. Highlighting stalled infrastructure projects, he pointed to delays and rising costs in the Red Line BRT and KDA underpass schemes, saying they had caused both human and financial losses. He also slammed recent traffic and transport policies, including the ban on four-seater rickshaws and higher penalties for motorbike riders, calling them 'illogical and unfair.' Copyright Business Recorder, 2025

Budget FY26: Aurangzeb announces major tax relief for salaried class, solar sector
Budget FY26: Aurangzeb announces major tax relief for salaried class, solar sector

Business Recorder

time16 hours ago

  • Business Recorder

Budget FY26: Aurangzeb announces major tax relief for salaried class, solar sector

Finance Minister Muhammad Aurangzeb, in his address to the Senate, on Saturday, announced key relief measures in the federal budget for FY2025-26, including a significant income tax cut for the salaried class and a reduction in General Sales Tax (GST) on imported solar panels. He emphasised that individuals earning between Rs600,000 and Rs1.2 million annually will now be taxed at just 1%, down from 2.5% proposed in the budget for FY2025-26. It is pertinent to mention that, according to the budget proposals for FY26, the tax rate for those earning between Rs600,001 and Rs1.2 million was reduced to 2.5% from 5%. Pakistan salaried class rejects govt's claim of giving relief in income tax Addressing the Senate on Saturday, the finance minister said that low- and middle-income individuals play a vital role in our economy. 'This is the segment that endures inflation and pays taxes,' he acknowledged. The Senator said that the proposal to reduce income tax on this salaried class was already part of the budget suggestions. 'In this regard, the government, amid directives from the prime minister, has reduced the income tax rate for those earning between Rs600,000 and Rs1.2 million annually — from 2.5% to just 1%,' he told the house. The minister was of the view that the implementation of a 1% income tax rate is both 'a practical and symbolic recognition' by the government that it does not want to burden this class. 'We hope this step will not only increase compliance but also restore their confidence in the tax system,' he said. Meanwhile, Aurangzeb stated that the salaries and pensions of government employees have been increased by 10% and 7%, respectively. The finance minister reiterated that the government did not introduce a mini-budget during the outgoing fiscal year and maintained fiscal discipline. He informed the upper house that the federal government expenditure for FY26 has increased marginally by 1.9%, far lower than in previous years. GST on solar panels lowered to 10% Additionally, Aurangzeb told the Senate that the proposed 18% GST on solar panel imports has been lowered to 10% following consultations with lawmakers. 'The government in its budget proposed to impose an 18% GST on imported solar panels. This was done to protect local industries and provide a level playing field, and promote the development and investment in solar technology in Pakistan,' he said. However, in light of detailed deliberations on the budget in both houses, the government has decided to reduce the proposed tax to 10%. Moreover, this tax will apply only to 46% of imported components, said Aurangzeb. 'With this measure, the price of solar panels will increase by 4.6%,' he said, adding that the government remains committed to promoting renewable energy. Aurangzeb informed the house that the government has received reports of profiteering and hoarding of solar panels by certain elements. 'It is condemnable that these opportunistic actors have artificially increased prices even before the proposed measure has come into effect. I strongly warn such elements that the government will take every possible step in the public interest,' he said, adding that legal action will be taken against those involved.

Stocks fall as Mideast conflict sparks selling
Stocks fall as Mideast conflict sparks selling

Express Tribune

time2 days ago

  • Express Tribune

Stocks fall as Mideast conflict sparks selling

Listen to article Pakistan Stock Exchange (PSX) ended lower by over 450 points on Thursday following a volatile session as early gains, driven by policy optimism, were wiped out by selling pressure amid escalating Middle East tensions. Earlier, trading opened on a robust note in the wake of federal cabinet's approval of a large-scale circular debt resolution plan worth Rs1.2 trillion, which fuelled broad-based buying in energy sectors. However, news of Iran's missile strikes on Israel rattled investors, leading to a sharp reversal. The heightened tensions spurred profit-taking, particularly in fertiliser and cement sectors. Banks emerged as a safe-haven, providing some support. Arif Habib Corp MD Ahsan Mehanti commented that stocks closed lower on fears of escalation in Middle East tensions. "Weak rupee and a slump in global equities were factors behind panic selling," he said. At the end of trading, the benchmark KSE-100 index registered a drop of 463.34 points, or 0.38%, and settled at 120,002.59. Arif Habib Limited Deputy Head of Trading Ali Najib noted that geopolitical ripples drove bulls to sidelines as the KSE-100 index extended losses by closing at 120,003, just above the key psychological level of 120k. The index reflected a day-on-day decline of 463 points. The trading session opened with a strong bullish momentum following the cabinet's approval of over Rs1.2 trillion for circular debt resolution. This development was well-received by investors, prompting heavy buying in key energy stocks, including OGDC, Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO) and Hub Power, he said. However, news of Iran's attack on the Israeli capital weighed on bullish sentiment, triggering profit-taking. As a result, the index lost its upward momentum and briefly fell below the 120,000 mark, hitting the intra-day low of 119,770, down 696 points, Najib added. KTrade Securities, in its report, stated that stocks extended their downward trend as escalating Israel-Iran tensions weighed on investor sentiment. The KSE-100 index shed 463 points to close at 120,003, retreating from the intra-day high of 121,745. Market activity remained muted, with total volumes at 598 million shares. Sector performance was broadly negative, where power, cement and oil and gas sectors faced steep losses, it said. Key index laggards were Pakgen Power, Engro Fertilisers, Engro Holdings, Lucky Cement and Mari Petroleum. The banking sector was the sole bright spot, largely supported by UBL, KTrade added. Topline Securities reported that the bourse kicked off trading on a strong footing, buoyed by news that the federal cabinet had green-lighted a financial restructuring plan aimed at slashing Rs1.275 trillion in circular debt within the power sector over the next six years. Riding on that optimism, the index surged to the intra-day high of 1,279 points. However, the bullish momentum was short-lived as profit-taking set in later in the day in line with global market trends, it said. Rising geopolitical tensions, particularly the intensifying stand-off between Israel and Iran, dampened investor sentiment and led to a broad-based pullback, overshadowing the earlier euphoria and highlighting the fragility of market confidence. On the upside, index heavyweights from the banking sector provided some support, contributing 203 points. However, the gains were offset by power and cement sectors that pulled the index down by 270 points, Topline added. Overall trading volumes decreased to 604.5 million shares compared with Wednesday's tally of 707.3 million. Shares of 459 companies were traded. Of these, 155 stocks closed higher, 269 fell and 35 remained unchanged. WorldCall Telecom was the volume leader with trading in 64.6 million shares, down Rs0.01 to close at Rs1.49. It was followed by Sui Southern Gas Company with 35.6 million shares, falling Rs0.96 to close at Rs43.28 and First Prudential Modaraba with 30.3 million shares, losing Rs0.3 to close at Rs4.31. Foreign investors sold shares worth Rs7.6 million, the National Clearing Company reported.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store