Latest news with #FederalBudget
Business Recorder
11 hours ago
- Business
- Business Recorder
NA Speaker, Fazl discuss federal budget
ISLAMABAD: National Assembly Speaker Sardar Ayaz Sadiq and Jamiat Ulema-e-Islam (JUI-F) Chief Maulan Fazlur Rehman discussed Federal Budget 2025-26 and agreed on the need to ensure budgetary allocations for the development of smaller provinces, economic stability, and public welfare projects. Speaker Sadiq met with JUI-F Chief Maulana Fazl in his chamber at the Parliament House on Thursday. During the meeting, a detailed discussion was held on the overall political situation of the country, the upcoming federal budget for the next fiscal year, and the emerging regional scenario in light of the Iran-Israel conflict. The meeting discussed Federal Budget 2025-26. Both leaders agreed on the need to ensure budgetary allocations for the development of smaller provinces, economic stability, and public welfare projects. The NA speaker noted that, for the first time in parliamentary history, parliamentary committees have been made more active in the budget proposal process so that constructive input from all stakeholders can be incorporated. Maulana Fazl expressed deep concern over the Iran-Israel war, stating that "in the current situation, the entire Muslim Ummah must demonstrate unity, solidarity, and foresight to ensure that efforts for peace in the region are not undermined." He emphasised that Pakistan should further intensify its diplomatic efforts to play a reconciliatory role within the Muslim world. On this occasion, Speaker Sadiq stated, "Pakistan has openly condemned Israeli aggression and reiterated its friendship and solidarity with Iran. We have effectively presented our stance regarding Palestine and Iran on all international forums, and the Parliament stands in complete support of this position." He stated that, all political parties must speak with one voice in the national interest to strengthen Pakistan's foreign policy on the global stage. Maulana Fazl congratulated Speaker Sadiq on performing Hajj and expressed best wishes for him. Governor of Balochistan Jaffar Khan Mandokhail was also present during the meeting. In conclusion, both leaders reaffirmed their commitment to promoting democratic traditions, strengthening national unity, and continuing joint efforts for sustainable peace in the region. Copyright Business Recorder, 2025
Business Recorder
12 hours ago
- Business
- Business Recorder
Tax officials' new powers: FPCCI mulling moving the court
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has unequivocally rejected the new powers granted to tax officials in the recently announced Federal Budget, branding them as 'excessive, overly-subjective, and harassment-prone.' During a press conference in Karachi, FPCCI leadership announced their intention to challenge these authorities in superior courts, specifically those enabling taxmen to withdraw funds from business accounts and conduct raids on business premises without prior notice. The FPCCI leadership urged the federal government to withdraw these stringent measures before the budget's final passage from parliament to restore confidence within the business community. FPCCI President Atif Ikram Sheikh emphasized that tax collection targets can only be met if industrialists and exporters are actively engaged through a comprehensive consultative process. He lamented that the budget largely overlooks the necessary steps to empower the business community to realize the Prime Minister's vision for export-led growth. Sheikh further elaborated on a globally established principle: increased intervention or interaction by tax collectors with taxpayers tends to undermine fairness, transparency, and impartiality, as heightened human-to-human interactions and subjective human judgments become a source of nuisance. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, demanded the restoration of the Fixed Tax Regime (FTR) for exporters in its original form and for a long-term duration. This, he argued, is crucial for bringing clarity, certainty, and consistency to taxation policies, thereby attracting both Foreign Direct Investment (FDI) and domestic investment by ensuring Pakistan remains competitive as a country. Magoon also highlighted the necessity of broadening the Export Facilitation Scheme (EFS) to include local manufacturers, warning that without such inclusion, Pakistani products would face supply line disruptions and a lack of competitiveness in regional and international markets. He further expressed resentment that the FPCCI's recommendations for special incentive packages for the high-growth Information Technology, mines & minerals, and fishing industries were disregarded in the Federal Budget. FPCCI Vice President Asif Sakhi urged tax authorities to cease accusing the business community of tax evasion or theft. Instead, he called for a transformation of the tax machinery into a facilitative body that engages with taxpayers through amicable and respectful behaviour. During the press conference, FPCCI Vice President Aman Paracha proposed the formation of a high-powered fact-finding committee to ascertain the root cause of the FBR's inability to achieve the tax collection target for fiscal year 2025. Vice President Nasir Khan highlighted a concerning trend, stating that many businessmen have already relocated to more lucrative and stable investment, trade, and industrial destinations, while those remaining are struggling to operate their factories without incurring losses. Another concern raised by the FPCCI was the restriction imposed on Special Economic Zones (SEZs) developers for a period of 10 years or until tax year 2035, whichever comes first. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Business
- Express Tribune
HCSTSI slams FBR arrest powers in budget
Listen to article Hyderabad Chamber of Small Traders & Small Industry (HCSTSI) Acting President Ahmed Idrees Chohan has strongly condemned the inclusion of a new Section 37AA in the Sales Tax Act under the Federal Budget 2025-26. He called the amendment draconian and unconstitutional, saying it allows Federal Board of Revenue (FBR) officers to arrest any businessman, industrialist, CEO, or director merely on suspicion, without a warrant. He termed it the most dangerous legal provision in Pakistan's history. Chohan said the section empowers FBR officers to arrest and detain individuals for up to 14 days without court approval or a judicial warrant. "This violates justice and assaults constitutional rights and damages business freedom. What kind of financial reform instills fear among investors by allowing tax officials to arrest people?" he asked. "Is being an industrialist now a crime in Pakistan?" He questioned whether the government wants to promote business or drive investors abroad to business-friendly countries like Bangladesh, Vietnam, Malaysia, or the United Arab Emirates (UAE), where no such arrest clauses exist. While the world promotes ease of doing business, Pakistan appears to treat entrepreneurs like criminals, he said. The HCSTSI leader said such arbitrary arrest powers don't exist in any developed or developing country. "If someone is evading taxes, a judicial system already exists. The FBR isn't a judicial body or law enforcement agency. It has no authority to arrest," he added. Chohan labelled Section 37AA as "economic terrorism" and a deliberate act of "capital destruction". He warned that if the clause remains, Pakistan's business community will feel unsafe and foreign investment will stay away.
Business Recorder
6 days ago
- Business
- Business Recorder
ABC lauds govt for presenting ‘forward-looking' budget
KARACHI: The American Business Council of Pakistan (ABC) appreciates the Government's efforts in presenting a forward-looking Federal Budget 2025-26, which includes encouraging steps to support industrial growth, streamline tariffs, promote digital enforcement, and foster an export-led economy. Measures such as the rationalization of customs duties, removal of certain regulatory barriers, and enhanced digitalization to curb tax evasion reflect the Government's commitment to facilitating business and improving economic efficiency. ABC is also grateful to the Government of Pakistan for accommodating some of our proposals in the Budget 2025-26, which we believe will contribute to further stability in the economy and reinforce investor confidence. While these initiatives are promising, ABC believes that certain aspects of the budget may merit further review to fully unlock Pakistan's investment potential. The increase in withholding taxes on services, the introduction of new levies on digital transactions, and the phased withdrawal of incentives for renewable energy could create unintended cost pressures for businesses, particularly in emerging and sustainability-focused sectors. Additionally, the proposed levy of Rs. 2.5 per litre on petrol and diesel will likely place an additional cost burden on both businesses and consumers, potentially fuelling inflation and increasing operational expenses. Furthermore, while we acknowledge the tax relief extended to the salaried class, we feel that this relief is still limited and should be further enhanced to genuinely ease the financial burden on the working population. We also respectfully suggest that the reduction in super tax should be more substantial and applied across the corporate sector, rather than being restricted to businesses within a specific turnover range. Broadening this relief would better support Pakistan's ambition to encourage investment and growth across industries. ABC remains committed to working alongside the Government of Pakistan to support policies that drive sustainable, inclusive economic development and foster a competitive business environment. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Business
- Business Recorder
Chemical-makers for structural reforms, forward-looking policy framework
LAHORE: The Pakistan Chemical Manufacturers Association (PCMA) has formally expressed its observations regarding the Federal Budget 2025–26, calling for comprehensive structural reforms and a forward-looking policy framework to strengthen Pakistan's $16 billion chemical sector — a critical enabler of all manufacturing sectors including textiles, leather, Plastics, pharmaceuticals, agriculture, and packaging. PCMA Chairman Haroon Ali Khan, in his official statement, acknowledged positive budgetary like intent to revive Large Scale Manufacturing, taking notice of misuse of tax incentives for FATA/PATA which is adversely hurting the legitimate manufacturing business and elimination of ACDs. However, he expressed deep concern over the lack of a coherent policy framework for the chemical industry, noting that high energy costs, prolonged GST refund delays, excessive tax burden on legitimate businesses, frequent changes in Policy and misuse of Export Facilitating Scheme are deeply hurting the domestic industries providing raw materials to export oriented sectors such as textile chemicals, leather chemicals & resins etc. These impediments continue to hinder growth. He further added that elimination of 5th Schedule by 2030 will have devastating effects on local industry, especially Chemicals. The Association also expressed alarm over the expanded discretionary powers granted to the Federal Board of Revenue (FBR). Haroon Ali Khan emphasized the need for digital reforms and taxpayer facilitation before enforcing coercive measures that could harm business confidence. PCMA also urges the government to officially designate the chemical industry as a 'strategic sector', ensuring preferential land and utility access, and to establish a one-window platform for environmental and licensing approvals, along with national R&D support programmes. Copyright Business Recorder, 2025
