Latest news with #FinanceBill2025-26
Business Recorder
12 hours ago
- Business
- Business Recorder
JUI-F chief criticises Pakistan govt's economic, foreign policies
ISLAMABAD: Jamiat Ulema-e-Islam-Fazl (JUI-F) Chief Maulana Fazlur Rehman on Thursday delivered a scathing critique of the country's current economic and political direction, warning that national policies are increasingly shaped by foreign influences, particularly the International Monetary Fund (IMF). Speaking during the ongoing debate on the Finance Bill 2025-26 in National Assembly, Rehman claimed that although the federal budget was presented by Finance Minister Muhammad Aurangzeb, it was effectively drafted under the IMF's guidance. He criticised the government for failing to meet GDP growth targets and questioned its claims of economic progress. 'There can be no economic stability without justice for the people,' he said, calling for an end to what he termed political victimisation. Turning to the role of the armed forces, Rehman acknowledged their 'unparalleled' professional and defence capabilities but criticised them for exceeding their constitutional mandate. 'Our military performed commendably in recent clashes with India, largely because the nation was united behind it,' he said. 'That unity was missing during the 1971 debacle – what followed needs no explanation. The military must adhere to its constitutional mandate.' He argued that these capabilities could be further strengthened if the military remained within its constitutional boundaries and refrained from interfering in politics. 'It is no secret to anyone how the military influences parliament,' he remarked. 'We've been engaged in the war against terrorism for four decades, yet we still struggle to establish lasting peace in our own country.' On Pakistan's international standing, the JUI-F leader lamented the country's diminished leadership role in the Islamic world. 'We are a nuclear power and ought to be leading the Islamic world. Instead, the Organisation of Islamic Cooperation (OIC) has become irrelevant, and the United Nations serves the interests of the United States.' He also criticised recent legislation that sets the minimum legal age for marriage at 18, claiming it was passed under pressure from the United Nations and non-governmental organisations (NGOs). 'Are we being stripped of our intellectual rights,' he asked. 'If this is the agenda being pushed by the powers that be, I will wage a war against it through the platform of parliament.' Commenting on global affairs, Rehman referenced a recent meeting between US President Donald Trump and Chief of Army Staff, Field Marshal Asim Munir. 'Trump may have said there should be no war between Pakistan and India, or between Iran and Israel. But did he say there should be no war against Palestine? No.' He urged Pakistan to adopt a clear stance in support of Iran and Palestine. 'Syria, Iraq, and Lebanon have already been devastated. Pakistan could be the next.' Taking part in the debate, Pakistan People's Party (PPP) lawmaker Aseefa Bhutto-Zardari urged the government to prioritise education and resolve prolonged power outages disproportionately affecting the country's poor. Lauding her brother, Bilawal Bhutto-Zardari, for his efforts in promoting Pakistan's image abroad in wake of recent Pakistan-India clashes, Aseefa said the country must unite in the face of adversity. 'If Pakistan faces another crisis, every woman, child, and youth will stand up for it,' she added. She also paid tribute to the armed forces, particularly for their role in recent skirmishes involving the country's nuclear-armed neighbour India. Calling education a national priority, she criticised the persistent under-funding of the sector. 'It is shameful that in 2025, many people are still deprived of electricity,' she said, pointing to load-shedding of up to 15 hours a day in different parts of the country and warning of the toll on working-class communities. She called for increased investment in human development, urgent action on energy shortages, and economic reforms to boost growth and reduce reliance on external lenders. Qamarul Islam voiced confidence that the Budget 2025-26 would lay the foundation for long-term economic growth. Amir Dogar advocated for an increase in the minimum wage to 50,000 rupees to alleviate pressure on low-income workers. Health Minister Mustafa Kamal called for a national policy to curb population growth, while Shagufta Jumani urged investment in water reservoirs to combat worsening shortages. Saad Waseem praised the government's economic team for presenting what he called a 'balanced budget,' citing improvements in key indicators. Muhammad Atif stressed that increased tax collection could only come from a stronger economy, not higher rates. On agriculture, Rana Muhammad Hayat proposed a 50 per cent reduction in input costs to boost exports. Amjad Ali Khan said industrial and agricultural development was essential for economic stability. Lawmakers also raised concerns about persistent power shortages. Naz Baloch specifically highlighted the issue of load-shedding in Karachi. Dawar Khan Kundi urged comprehensive reforms across agriculture, industry, services, and banking sectors to end Pakistan's dependency on the IMF. The debate revealed sharp divides along party lines. Opposition lawmakers criticised the budget as anti-poor, while members of the ruling coalition defended it. Some lawmakers from allied parties offered cautious support, raising concerns about implementation and inclusivity. Copyright Business Recorder, 2025
Business Recorder
14 hours ago
- Business
- Business Recorder
PPA opposes ‘draconian powers' to tax officials
ISLAMABAD: Pakistan Poultry Association (PPA) has expressed serious concern that tax authorities are being given dangerous and draconian powers which may be misused to harass the formal tax paying sector. According to a communication of PPA to top policy makers and budget makers on Thursday, Finance Bill 2025-26 proposed to grant to the Federal Board of Revenue (FBR) officers dangerous and excessive powers: (i) Section 11E enables tax assessment and recovery based on suspicion without proper investigation. (ii) Section 14AE allows arbitrary seizure of business premises and property without adequate safeguards. (iii) Section 32B empowers private auditors with quasi-legal authority over businesses. (iv) Section 33 introduces 10-year prison terms and Rs10 million fines for broadly defined 'tax fraud' that business errors are likely to be classified. (v) Section 37AA authorizes arrest without warrant based on mere suspicion of tax fraud- a power that invites abuse and harassment. (vi) Section 37B permits 14-day detention of businesspersons, extendable through magistrates. (vii) Overriding the principle of client/advisor relationship, Section 58C will grant the FBR access to the offices of tax advisers and firms where discrepancies in returns are suspected. Even criminals are given ample opportunity to be heard and no criminal is arrested without warrant. The Federation must not just make verbal criticism; they should call the formal sector, which contributes more than 60% to the GDP, to close down their offices until the proposed powers are undertaken/set aside/withdrawn, PPA added. Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business
- Business Recorder
JUI-F chief criticises govt's economic, foreign policies
ISLAMABAD: Jamiat Ulema-e-Islam-Fazl (JUI-F) Chief Maulana Fazlur Rehman on Thursday delivered a scathing critique of the country's current economic and political direction, warning that national policies are increasingly shaped by foreign influences, particularly the International Monetary Fund (IMF). Speaking during the ongoing debate on the Finance Bill 2025-26 in National Assembly, Rehman claimed that although the federal budget was presented by Finance Minister Muhammad Aurangzeb, it was effectively drafted under the IMF's guidance. He criticised the government for failing to meet GDP growth targets and questioned its claims of economic progress. 'There can be no economic stability without justice for the people,' he said, calling for an end to what he termed political victimisation. Turning to the role of the armed forces, Rehman acknowledged their 'unparalleled' professional and defence capabilities but criticised them for exceeding their constitutional mandate. 'Our military performed commendably in recent clashes with India, largely because the nation was united behind it,' he said. 'That unity was missing during the 1971 debacle – what followed needs no explanation. The military must adhere to its constitutional mandate.' He argued that these capabilities could be further strengthened if the military remained within its constitutional boundaries and refrained from interfering in politics. 'It is no secret to anyone how the military influences parliament,' he remarked. 'We've been engaged in the war against terrorism for four decades, yet we still struggle to establish lasting peace in our own country.' On Pakistan's international standing, the JUI-F leader lamented the country's diminished leadership role in the Islamic world. 'We are a nuclear power and ought to be leading the Islamic world. Instead, the Organisation of Islamic Cooperation (OIC) has become irrelevant, and the United Nations serves the interests of the United States.' He also criticised recent legislation that sets the minimum legal age for marriage at 18, claiming it was passed under pressure from the United Nations and non-governmental organisations (NGOs). 'Are we being stripped of our intellectual rights,' he asked. 'If this is the agenda being pushed by the powers that be, I will wage a war against it through the platform of parliament.' Commenting on global affairs, Rehman referenced a recent meeting between US President Donald Trump and Chief of Army Staff, Field Marshal Asim Munir. 'Trump may have said there should be no war between Pakistan and India, or between Iran and Israel. But did he say there should be no war against Palestine? No.' He urged Pakistan to adopt a clear stance in support of Iran and Palestine. 'Syria, Iraq, and Lebanon have already been devastated. Pakistan could be the next.' Taking part in the debate, Pakistan People's Party (PPP) lawmaker Aseefa Bhutto-Zardari urged the government to prioritise education and resolve prolonged power outages disproportionately affecting the country's poor. Lauding her brother, Bilawal Bhutto-Zardari, for his efforts in promoting Pakistan's image abroad in wake of recent Pakistan-India clashes, Aseefa said the country must unite in the face of adversity. 'If Pakistan faces another crisis, every woman, child, and youth will stand up for it,' she added. She also paid tribute to the armed forces, particularly for their role in recent skirmishes involving the country's nuclear-armed neighbour India. Calling education a national priority, she criticised the persistent under-funding of the sector. 'It is shameful that in 2025, many people are still deprived of electricity,' she said, pointing to load-shedding of up to 15 hours a day in different parts of the country and warning of the toll on working-class communities. She called for increased investment in human development, urgent action on energy shortages, and economic reforms to boost growth and reduce reliance on external lenders. Qamarul Islam voiced confidence that the Budget 2025-26 would lay the foundation for long-term economic growth. Amir Dogar advocated for an increase in the minimum wage to 50,000 rupees to alleviate pressure on low-income workers. Health Minister Mustafa Kamal called for a national policy to curb population growth, while Shagufta Jumani urged investment in water reservoirs to combat worsening shortages. Saad Waseem praised the government's economic team for presenting what he called a 'balanced budget,' citing improvements in key indicators. Muhammad Atif stressed that increased tax collection could only come from a stronger economy, not higher rates. On agriculture, Rana Muhammad Hayat proposed a 50 per cent reduction in input costs to boost exports. Amjad Ali Khan said industrial and agricultural development was essential for economic stability. Lawmakers also raised concerns about persistent power shortages. Naz Baloch specifically highlighted the issue of load-shedding in Karachi. Dawar Khan Kundi urged comprehensive reforms across agriculture, industry, services, and banking sectors to end Pakistan's dependency on the IMF. The debate revealed sharp divides along party lines. Opposition lawmakers criticised the budget as anti-poor, while members of the ruling coalition defended it. Some lawmakers from allied parties offered cautious support, raising concerns about implementation and inclusivity. Copyright Business Recorder, 2025
Express Tribune
17 hours ago
- Business
- Express Tribune
Salaried class slams 719% rise in tax burden
Listen to article Representatives of the Salaried Class Alliance Pakistan have raised serious concerns over the proposed Finance Bill 2025-26, calling it unfair to the country's most tax-compliant group. Speaking at a press conference at the Karachi Press Club on Thursday, alliance members Bilal Farooq Alvi, Rizwan Hussain, Adeel Khan, and Lesha Fazal said salaried individuals have seen their tax contributions rise from Rs76.44 billion in FY2018-19 to over Rs550 billion in FY2024 -25 — a jump of nearly 719%. They said this increase reflects inflation and policy changes, not real income growth. Key concerns include taxation on pension funds, increased taxes on bank and mutual fund profits, and the continued 10% surcharge on high-income earners, while undocumented sectors remain untaxed. They urged the government to raise the tax-free salary slab to Rs100,000 per month, restore earlier slab rates, reduce the top slab to 32.5% and the second-highest to 27.5%, and keep the lowest slab at 1% as per the budget speech. They also demanded the reinstatement of tax credits for insurance, education, and investments, removal of the 10% surcharge, and equal treatment of all taxpayers.
Business Recorder
2 days ago
- Business
- Business Recorder
FBR proposes tax on online academies, recreational clubs
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed to impose tax on the income of online academies and teachers, those using online marketplaces in e-commerce business, as well as to collect income tax from recreational clubs including Islamabad Club. The Senate Standing Committee on Finance and Revenue, chaired by Saleem Mandviwalla, held its sixth consecutive session on Wednesday, where 'Income Tax' provisions of the Finance Bill 2025-26 were discussed. The Committee was briefed on the tax reductions provided to salaried class under various slabs. The FBR chairman stated that the tax on the salaried class has been significantly reduced. The committee was informed that tax on salaried class coming under the tax slab (Rs600,000- 1200,000) annual income was reduced from five percent to 2.5 percent. He said that those with an annual income of Rs1.2 million will have to pay Rs12,500 in tax throughout the year, and the surcharge on income of more than Rs10 million has been reduced from 10 percent to nine percent. The committee recommended that the individuals earning monthly income of one lac should be exempted from the tax. The FBR officials, while giving a briefing, said that in the budget it has been decided to impose tax on the income of online academies and teachers. Teachers across the country are providing online digital education services. Tutor academies are earning Rs20 million to 30 million. A new clause 17C has been introduced in the Finance Bill 2025. Under the same measure, e-commerce businesses that operate via online marketplaces will also face new tax obligations, as authorities seek to broaden the tax base in the rapidly growing digital sector. The committee was further informed that it has been proposed to collect tax from entertainment clubs including Islamabad Club. In the Finance Bill 2025-26, income tax has been introduced on recreational clubs which were previously exempted from tax. State Minister for Finance and Revenue, Bilal Azhar Kayani, stated that the recreational clubs are liable to pay tax, where their income exceeds the expenditure, and such steps have been taken to broaden the tax net of the country. The Senate Standing Committee on Finance opposed the imposition of tax on the income of Islamabad Club and recommended tax exemption on annual income of Rs1.2 million, while the proposal of tax on small individuals doing online business was rejected. Discussing the newly introduced tax on e-commerce, the committee commented that the FBR should imposed tax on goods rather than services. Committee members recommended for removing Section 7E and equalise the tax rate for property seller and buyers. However, FBR told the committee that 7 E cannot be waived off as it has been agreed upon with the International Monetary Fund (IMF). The committee also expressed reservations over freezing bank accounts on notices by FBR. Federal Minister for Finance and Revenue also highlighted the newly introduced mortgage facility. He stated that mortgage will be available for houses up to 2,000 sq feet, and the individuals will also be eligible for tax credit not exceeding 30 per cent of total income. Commenting on the FBR's new move of disallowing 10 per cent in case of purchases from non-registered suppliers, the committee opined that such move will discourage competitive markets, as the number of registered suppliers is nominal across the country. The committee also expressed concerns over the newly-inserted clause, which restricts the 'Eligible Person' from making any purchase exceeding 130 per cent of wealth reflected in his/ her last year's statement. The committee recommended that such threshold should be exceeded to 400 per cent of previous year's statement. In attendance were Senators Syed Shibli Faraz, Mohsin Aziz, Fesal Vawda, Anusha Rahman Ahmad Khan, Muhammad Abdul Qadir, Ahmed Khan, Shahzaib Durrani, and Federal Minister for Finance and Revenue Muhammad Aurangzeb, State Minister for Finance and Revenue Bilal Azhar Kayani, FBR Chairman Rashid Mahmood Langrial and other senior officials of relevant departments. Copyright Business Recorder, 2025
