Latest news with #PDL
Express Tribune
2 days ago
- Business
- Express Tribune
NA panel reviews FBR powers
The National Assembly Standing Committee on Finance on Thursday directed the Federal Board of Revenue (FBR) to incorporate safeguards before closing bank accounts of unregistered businesses, amid widespread tax evasion and underreporting by businesspeople. The committee, which met here with its chairman Syed Naveed Qamar in the chair, reviewed the FBR's proposed measures to enforce sales tax compliance, including the disconnection of utilities and temporary freezing of bank accounts for non-filers. During the meeting, FBR Chairman Rashid Mahmood Langrial gave a briefing to the committee. He said that unregistered businessmen would not be able to operate a bank account under sales tax laws, adding that such a person would be served a notice prior to the closure of the bank account. "The bank account of an unregistered person will be reactivated within two days after registration," he said. He revealed that out of 300,000 industrial units in Pakistan, only 30,000 to 35,000 were registered with the authorities. Explaining reasons, he acknowledged that the tax rate in Pakistan was high. "One-third of manufacturers are not registered in sales tax. People who even come under the tax net do not file returns," Langrial said. "Those who pay taxes underreport their incomes," he told the committee. "Electricity theft alone costs Rs500 to 600 billion every year." When asked how the FBR would identify businesses not paying sales tax, the FBR chairman explained that the income declared for income tax purposes would be used to estimate the volume of sales, supplies and overall business activity. Action would then be taken against individuals who fail to register, he added. Committee member Javed Hanif supported the FBR's proposals but the committee chair cautioned against enacting a law aimed at catching tax evaders if it also adversely affects compliant businesses. Another Committee member, Sharmila Farooqi, suggested that instead of making the penalties more stringent, the taxpayers should be given incentives. "Reduce the tax rate. It will broaden the tax net and encourage the people to get them registered. Finance Minister Muhammad Aurangzeb replied that the tax threshold and process would be improved. however, he made it clear that tax exemptions and amnesties would not be given anymore. "The time for tax exemptions and amnesties has passed. People have to be brought into the tax net." Langrial urged the committee to allow the FBR to temporarily deactivate the bank account of unregistered businessmen. The committee, however, directed for including safeguards in the process. Petroleum levy Meanwhile, the committee approved a proposal to increase the rate of petroleum development levy (PDL) to Rs90 and impose carbon levy on petrol, diesel and furnace oil. Finance Ministry officials told the committee that there was a proposal to impose the PDL on furnace oil as well. The officials said Rs100 billion in revenue was expected from the PDL on furnace oil. They added that 1.2 million tons of furnace oil was imported for 1,000MW Independent Power Producers (IPPs). The Power Ministry secretary said that the target of PDL recovery in fiscal 2025-26 was set at Rs1,468 billion. The Finance Ministry officials said that the government expected Rs45 billion in revenue through the carbon levy. The committee chair asked how much amount the Centre would get if the levy was turned into a carbon tax. On that the officials said that the amount in that case would be Rs18 billion. The committee was informed that the entire amount of a levy went to the federal government, but in taxes, provinces also get share. The chair stressed that the committee was not taking any decision regarding a levy or a tax on petroleum products. The industries secretary told the committee that Rs10 billion from carbon levy would be spent of the promotion of electric vehicles. He added that 30% of the vehicles would be shifted to electric vehicles by 2030. The production of all types of vehicles in the country is around 150,000, the officials said, adding that there were 76,000 electric vehicles in the country at present. "In the next five years, the production of electric vehicles will be increased to 2.2 million," the secretary said.
Business Recorder
2 days ago
- Business
- Business Recorder
Pak Datacom signs MoU with intl broadband satellite service provider
Pak Datacom Limited (PDL) announced on Thursday the signing of a Memorandum of Understanding (MoU) with an international-based broadband satellite services operator. The agreement was signed after a successful limited test and trial-based arrangement with them, the PDL said in a notice to the Pakistan Stock Exchange (PSX). PDL, which did not disclose the name of its international collaborator, added that the international operator was an established next-generation satellite broadband operator based in the Asia-Pacific region. 'The collaboration is aligned with PDL's long-term vision of supporting digital connectivity footprint in the broadband satellite services market,' read the notice to the bourse. Pak Datacom Limited (PSX: PAKD) was incorporated in Pakistan as a private limited company in 1992 and was converted into a public limited company in 1994. The principal activity of the company is setting up, operating, and maintaining a network of data communication and serving the needs of the customers.
The Star
4 days ago
- Politics
- The Star
Detained ex-Philippine rep Arnolfo Teves in hospital with stomach pain
Former lawmaker Arnolfo Teves Jr.'s mugshot taken during processing at the National Bureau of Investigation headquarters in Pasay City on May 30, 2025. — NBI MANILA: Detained former Negros Oriental 3rd District Rep Arnolfo Teves was hospitalised on (June 17) morning after experiencing stomach pains, his lawyer Ferdinand Topacio confirmed to 'Yes, confirmed,' Topacio said in a Viber message. When asked about Teves' condition, Topacio described the expelled lawmaker as looking 'like crap right now, with severe stomach pains.' In another message to reporters, Topacio said that no medical intervention worked for Teves as he started showing symptoms of stomach pain. 'Our client was buckling over due to pain, and according to him, he was practically on his knees, requesting to be brought to a hospital for treatment, but BJMP (Bureau of Jail Management and Penology) personnel could not grant said request due to protocol,' he added. In a separate statement, the BJMP stated that Teves was brought to a public hospital around 6am at the advice of the BJMP's roving physician. The BJMP also said that Teves' symptoms started on Monday at 7pm, and he was given the necessary medications and treatment. 'Symptoms worsened until early the morning the following day, and the BJMP Physician advised the Warden of Metro Manila District Jail-Annex 2 to bring the said PDL [person deprived of liberty] to the nearest government hospital,' the BJMP said. Teves returned to the Philippines on May 29 after being deported from Timor-Leste. He had been hiding for two years after being tagged as the alleged mastermind behind the Pamplona massacre. He is currently detained at Camp Bagong Diwa in Taguig City. - Philippine Daily Inquirer/ANN
Business Recorder
5 days ago
- Business
- Business Recorder
No increase in PDL: Consumers to bear brunt of global oil price hike
ISLAMABAD: The government will not increase the petroleum development levy (PDL), but pass on the impact of increase in oil prices, as a result of the ongoing conflict in the region directly to consumers. This was stated by Secretary Finance while briefing the National Assembly Standing Committee on Finance and Revenue which met with Naveed Qamar in the chair here on Monday. The government has targeted to collect Rs1.486 trillion from PDL in fiscal year 2025-26. Finance Minister Aurangzeb also endorsed secretary finance's statement while saying that they are very decisive in this regard and not going to wait for the decision to be made. We did this yesterday, he added. Hike in petrol, diesel prices announced Amid geopolitical tension in the Middle East, former energy minister Omar Ayub Khan warned that the ongoing Iran-Israel conflict could disrupt global oil supply routes, particularly through the Strait of Hormuz, driving up international prices and inflating Pakistan's current account and fiscal deficits. 'Iran is the world's sixth-largest oil producer—any disruption will hit us hard,' he cautioned. Aurangzeb confirmed that the prime minister has formed a high-level committee to assess the situation. The committee chaired by finance minister reviewed the country's petroleum reserves and pricing in light of escalating tensions in the Middle East following the recent Israeli strikes on Iran. The meeting, held in Islamabad, examined the impact of fluctuating global oil prices driven by the geopolitical developments in the region. Officials from the Ministry of Finance and Petroleum Division were in attendance. According to a statement issued by the Ministry of Finance, the committee expressed satisfaction over the current availability of petroleum products, stating that the country holds sufficient reserves and faces no immediate threat of a supply crisis. However, the committee stressed the need for vigilant monitoring of international developments and their potential economic repercussions. In view of the evolving situation, a working group has been formed to assess market conditions on a daily basis. 'The committee will convene on a weekly basis and present its recommendations to the prime minister,' the statement said, adding that the Petroleum Division has been assigned the role of secretariat to facilitate timely coordination and reporting. The secretary finance told the committee that government borrowing has decreased to Rs1.32 trillion compared to Rs4.22 trillion during the same period last fiscal year showing a decline of Rs2.9 trillion. Replying to another question regarding pay and pension of armed forces, the secretary finance told the committee that for fiscal year 2026, pay is Rs846 billion, of which, Rs363.78 billion is basic while Rs482.22 billion are allowances. Pension expenditure for fiscal year 2026 is Rs742 billion. The secretary finance told the committee that significant change in government debt securities yield curve between July 2024 and June 2025 reflects a positive market sentiment, driven by effective policy measures and improved macroeconomic fundamentals. Sharp declines in short-term yields — such as a 9.44 percentage point drop in the 1-month tenor and 9.05 points in the 3-month, 7.79 percent in one year, 3.53 percent in five year and 1.92 percent in 10 year, signal successful inflation management, achieved through coordinated fiscal consolidation resulting in declining interest rate. Copyright Business Recorder, 2025
Business Recorder
14-06-2025
- Business
- Business Recorder
Rs77 per litre PL on furnace oil likely
ISLAMABAD: The government is set to impose Petroleum Levy (PL) of Rs 77 per litre (Rs 82,077 per metric ton) on furnace oil starting July 1, 2025, following the enactment of amendments to the Petroleum Levy Ordinance, 1961 through the Finance Act 2025-26. According to the Petroleum Division, this move is part of Pakistan's ongoing commitments under the IMF's Resilience and Sustainability Facility (RSF) programme. The government has agreed to introduce a Carbon Levy on petrol, diesel, and furnace oil, along with a Petroleum Levy specifically on furnace oil, as part of broader fiscal and environmental reforms. A relevant extract from the agreement states: 'RM 3 (end-June 2025) Carbon Levy: This will include a supplementary carbon levy imposed through the PDL (Petroleum Development Levy) on gasoline and diesel at PRs 5 per litre, phased in over two years. As part of this reform, fuel oil will be added to the PDL, with both base and supplementary rates applicable. Petrol, HSD and furnace oil: Rs2.5/litre carbon levy imposed The scope, phasing, and level of the supplementary carbon levy will be legislated through the FY26 Finance Act. Future Finance Acts may increase the carbon levy beyond this initial rate as needed.' As per the proposed amendments (Annex-I) included in the draft Finance Bill 2025-26: A Carbon Levy of Rs 2.5 per litre will be imposed on motor spirit (petrol) and high-speed diesel for FY 2025-26, which will be increased to Rs 5 per litre in FY 2026-27. On furnace oil, a Carbon Levy of Rs 2.5 per litre (Rs 2,665/MT) will apply in FY 2025-26, rising to Rs 5 per litre in FY 2026-27, in addition to the Petroleum Levy of Rs 77 per litre (as agreed with the IMF). The Petroleum Division has confirmed that these rates were agreed during discussions with the IMF and will take effect once the Finance Act is enacted. Under the amended Petroleum Levy Ordinance, 1961, the federal government is authorized to determine and notify applicable PL rates. The proposals for both the Carbon Levy and the Petroleum Levy—as outlined in paragraphs 2 and 3 of the summary—are being submitted to the Federal Cabinet for formal consideration and approval. It was also noted that the Finance Division and Petroleum Division jointly finalized the principles and rates of the levies with the IMF, and thus, the summary has not been circulated for formal comments from the Finance Division. Copyright Business Recorder, 2025
