Latest news with #Rs2.5
Business Recorder
19 hours ago
- Business
- Business Recorder
Petroleum products: Senate body rejects Rs2.50/litre carbon levy
ISLAMABAD: The Senate Standing Committee on Finance and Revenue with majority vote rejected the carbon levy of Rs2.5 per litre on petroleum products proposed in the Finance Bill 2025-26, from which the government has projected to generate a revenue of Rs45 billion. Under the ongoing International Monetary Fund (IMF) programme for Resilience and Sustainability Financing (RSF), the government has agreed for the imposition of the carbon levy on petrol, diesel and furnace oil of Rs5 per litre, which will be phased in over two years. The Federal Board of Revenue (FBR) chairman said that revenue from carbon levy would be increased to Rs90 billion in 2026-27. The levy is a condition of the IMF's RSF programme of $ 1.4 billion. This levy will be imposed on petrol, diesel and furnace oil. Aurangzeb tells Senate body: Govt eyes $2bn loan to boost reserves The parliamentary panel chaired by Senator Saleem Mandviwalla, observed that carbon levy could not implemented through finance bill. The committee observed that the way carbon levy is going to be impose was not correct and rather it should come as carbon tax. The committee also underlined that Petroleum Division has proposed Rs2.5 carbon levy without providing sustainable 'Emission Reduction' plan for the environment. Senator Sherry Rehman opposing the levy said that there is difference between the carbon levy and carbon tax. 'There is no place in the world where carbon levy been imposed but carbon tax used to be enforced'. Sherry Rehman said that carbon taxes been enforced over specific industries with an aim. 'You are imposing all types of levies and that also directly over the public users,' she added. 'It requires an act of law and not enforced with the finance bill,' she added. Senator Mohsin Aziz said that the Supreme Court has restrained imposition of carbon levy in Zafar Iqbal Jhagra case. 'It will be contempt of the court if carbon levy is imposed', he added. After debate the carbon levy was rejected by the government with majority vote. The FBR chairman said that tax on hybrid vehicles is not being increased. The committee also raised questions on the proposed amendment in regulation of Generation, Transmission and Distribution of Electric Power Act 1997 agreed with IMF. According to the proposed amendment, the Debt Service Surcharge (DSS) is currently set at 10 percent of the NEPRA-determined revenue requirement, adjusted each year at the time of annual rebasing, per current practice. In the event that DSS revenues fall short of the annual payment requirement, the DSS will be increased to make up for the shortfall and calibrated per any anticipated future shortfalls in the succeeding year. To facilitate this, NEPRA has proposed to adopt legislation to remove the 10 percent. Discussing the power sector initiative for payment of circular debt through refinancing, NEPRA officials stated that, as of now, Rs3.23 per unit is being charged to consumers. However, NEPRA proposed removal of 10 percent cap limit, as it would help in obtaining necessary refinancing needed for the payment of power sector's circular debt. However, the committee objected while saying that authorities concerned wanted blanket power to increase DSS, which would result in power tariff increase for consumers. The committee decided to call minister and secretary for power to brief the committee. Chairman committee said that they need a briefing on the circular debt repayment plan. If permission is given, you will increase this rate with proposed blanket power and if there is no need to increase it, then why is permission being sought, he asked. The joint secretary took the stand that this will not happen and consumers will continue to be charged Rs3.23 per unit. Senator Sherry Rehman opposed it and said that this cannot be allowed. The joint secretary said that there is a 10 percent service surcharge limit and IMF has demanded that the limit on debt service surcharge be removed. The government will use the surcharge to pay off a debt of Rs1,275 billion. The surcharge is used to pay interest on the circular debt. Currently, a debt service surcharge of Rs3.23 per unit is being charged from consumers, he added. Senator Shibli Faraz said that if the levy money is being spent on roads, what would happen to combating climate change. The prime minister says that the funds will be spent on the roads of Balochistan. The government should first determine its priorities, he added. The committee took exception to certain clauses of 'Public Finance Management Act' allowing autonomous bodies to retain money and submit surplus profit into Public account. The committee called for rationalisation of these clauses, as it would only result in financial irregularities. The committee was briefed on the exemptions provided to businesses located in Khyber Pakhtunkhwa and newly-merged districts. It was informed that the exemptions for cinema operators have been limited to 2030, granting five years exemptions from the date of operations. However, the FBR has extended the withholding exemption for businesses existing in erstwhile FATA till 2026. Highlighting the significance of newly introduced 'Digital Presence Proceeds Act', the FBR chairman stated that the tax has been imposed on digital platforms providing services within the country without retaining physical footprint. The FBR chairman said that a sunset clauses for SEZs and STZs are included in the finance bill. He said that IMF was stressing to limit this tax exemptions for SEZs and STZs to 2027, however after hectic efforts the deadline was extended to 2035. The committee recommended the proposal. The committee also gave its nod to the budgetary proposals of tax on pension income exceeding Rs10 million for individuals under the age of 70. The committee recommended a proposal of the Federation of All Pakistan Universities Academic Staff Associations (FAPUASA) for continuation of 25 percent tax rebate. FAPUASA representatives strongly asserted that this rebate is an essential incentive to retain top academic talent, attract young scholars to the profession, and prevent brain drain from Pakistan's universities. Removing this rebate, they argued, would undermine academic motivation and weaken the research capacity of the country. Copyright Business Recorder, 2025
Time of India
2 days ago
- Time of India
Nashik: Police detain man for running illegal gas refilling centre
Nashik: The Nashik city police have detained a person operating an illegal gas refill centre on the Wadala-DGP Road. Authorities also seized property worth over Rs1 lakh, including 4 domestic Liquified Petroleum Gas (LPG) cylinders, an electronic gas refilling machine, a gas regulator, and a weighing machine. The central crime branch, led by inspector Anchal Mudgal, busted the operation. The crackdown followed instructions from police commissioner Sandeep Karnik to investigate illegal businesses within the city. On Tuesday, while patrolling the Mumbai Naka, Indiranagar, and Upnagar areas, assistant police inspector Pravin Mali received a tip-off about the illicit refilling station. Police immediately raided the tin shed facility, finding two individuals refilling LPG from a domestic cylinder into an autorickshaw. Last month, the crime branch unit 2 had raided an illegal gas refill centre in the Nashik Road area and seized 63 domestic gas cylinders. Three people were detained, besides seizure of gas cylinders and machinery worth over Rs2.5 lakh. In April, the city police had detained two people and recovered 13 gas cylinders, three motors, and three weighing machines, all worth Rs1.2 lakh. The illegal gas refill centre was in Shramik Nagar area of Satpur.
Express Tribune
4 days ago
- Business
- Express Tribune
PPP threatens budget session boycott, again
In a familiar turn of events, the Pakistan Peoples Party Parliamentarians (PPPP) - a key ally of the ruling Pakistan Muslim League-Nawaz (PML-N) - strongly objected to the federal budget on Monday, accusing the government of discriminating against Sindh and threatening a potential boycott of the budget approval process. The criticism has come during the budget season when internal tensions between the coalition partners annually surface before they are settled, at least till now. Last year, a similar standoff between PPPP and PMLN had emerged, which the main opposition party had dubbed a "fixed fight" aimed at deflecting attention from public scrutiny. Seeing both PPPP and PMLN at odds once again, sources said that the Pakistan Tehreek-e-Insaf (PTI) has offered PPPP its support in blocking the budget if it was serious. Sources said that PTI's senior leader Asad Qaiser met PPPP leader Raja Pervez Ashraf at Parliament House and proposed that if PPPP was serious about boycotting the vote, the opposition party was ready to coordinate efforts. Hoping to create a schism between the ruling party and its key ally, Qaiser reportedly said that a joint stance could increase pressure on the government. However, Ashraf reportedly assured Qaiser that the offer would be conveyed to PPP Chairman Bilawal Bhutto-Zardari, who is expected to join parliamentary proceedings soon. Addressing journalists earlier, PPPP central spokesperson Shazia Atta Marri described the 2025-26 federal budget as a "dangerous game" being played with Sindh. She alleged that federal projects under the Public Works Department (PWD) meant for Sindh have been transferred to the federal housing ministry rather than being handed over to the provincial government, unlike similar projects in Punjab, Khyber Pakhtunkhwa and Balochistan. Marri alleged that transferring PWD's urban development projects to the federal ministry was a violation of provincial autonomy. "It seems they believe Sindh is not capable of managing its own schemes, while other provinces are considered competent," she said. Emphasizing if Sindh's development projects are not handed over to the province, she said, PPP will not hesitate to take extreme measures – possibly withdrawing support to the federal government. She revealed that PPP initially refrained from giving a strong reaction as talks with the ruling party were ongoing and there was hope that Sindh's PSDP allocations and federal commitments would be honored. However, she said, it was now clear that not only Sindh but also Punjab, particularly central Punjab and the Seraiki belt, have been neglected in the budget. She also criticized reduced funding for Sindh's universities, calling the allocation of Rs2.5 billion instead of the expected Rs4.8 billion unacceptable. On energy, Marri pointed out a contradiction in government policy, questioning the rationale of imposing an 18% tax on solar panels while terming solar energy a national priority. Citing further discrepancies, Marri noted that just Rs15 billion funds have been allocated for the Sukkur Motorway in the budget, when its total cost of the project is Rs400 billion. She also claimed that PPPP lawmakers in Punjab were sidelined in PSDP allocations and that the Seraiki belt was largely ignored. She concluded by saying the party's final decision, including any potential boycott, would be made in consultation with PPP chairman and that objections will be raised across all relevant forums before the PMLN government. "We are pursuing a firm strategy. If the government fails to listen, our response will be equally firm," she warned. Last year, PMLN and PPPP also had face-off as main ally of PML-N government had only a token participation in the National Assembly's budget session after the ruling party didn't bother to address PPPP's reservations about budget. "The PML-N has violated the agreement that it reached with PPPP before forming the government in the Center as it has not taken any input from its key ally in the PSDP budget," Marri had shared with The Express Tribune last year, "the government is taking us for granted." Subsequently, PPP had linked its support for the budget and other issues to receiving more share of power in Punjab after a meeting between Prime Minister Shehbaz Sharif and Bilawal. In addition to receiving "more space" in Punjab and its set-up, it had emerged that the PPP sought additional development budget for its lawmakers in the province.
Hans India
5 days ago
- Business
- Hans India
People underestimate longevity, inflation in retirement plans
Yesterday, I was with one of my school friends and the topic eventually moved to how I achieved financial independence. I told him that I knew what's 'enough' for me. For which he replied, he would need about $50mn. I quizzed him that had I asked him the same question during my last visit (about three years back), it would've been about $10mn and he nodded in affirmative. Knowing the enough level in any aspect of life is important, it's critical in personal finance. Unfortunately, the pursuit of 'more' or maximising is often construed as default goal. I've seen some unrealistic and ambitious numbers thrown, particularly, when discussing about retirement. It's also partly due to misunderstanding of what retirement is. But one of the most underrated skills in financial planning is knowing what 'enough' looks like. Without this clarity, people struggle to set meaningful goals, leading to anxiety, poor decisions, and even financial burnout. Many, thus grapple with questions like how much risk should I take, what's a reasonable return to expect, how much wealth truly do I need and what should be my retirement corpus be, etc. Without clear answers, they either set arbitrary targets (often influenced by social comparisons) or keep chasing an ever-moving finish line. This uncertainty manifests in: Over-saving at the cost of present well-being: Sacrificing too much today for an unknown future that may not require such extremes. Underestimating retirement needs: Assuming minimal expenses, only to face shortfalls later. Disproportionate (excessive or insufficient) risk: Either chasing high returns recklessly or staying too conservative, missing growth. So, how should one define 'enough' in personal finance? While this is personal it could be systematically approached. Instead of vague aspirations, quantify what financial independence means for you. Ask questions like how much would sustain a desired lifestyle and thus what's a realistic corpus be? Also, what are the discretionary vs non-discretionary spending be and what's a realistic additional buffer to all this? For instance, if one requires Rs10 lakh/year in retirement, a 4 per cent withdrawal rate suggests a corpus of Rs2.5 crore. Adjust this number for inflation and personal circumstances. Another critical factor is to consider the risk tolerance i.e. how much volatility can one digest? Many confuse risk tolerance to risk appetite. Tolerance is the phycological threshold while the appetite is the technical threshold i.e., capacity to take risk. So, 'Enough' risk isn't about maximising returns but balancing growth with peace of mind. Aggressive investors may chase high returns but risk panic-selling in downturns. Overly conservative investors may fall short of long-term goals. Knowing one's sleeping point in investing is important. If market swings keeps one awake, then dial back risk. Lifestyle creep is another dynamic to be considered when arriving at 'enough'. This is a phenomenon where the standard of living rises alongside the discretionary income where soon the former luxuries become necessities, without us realising. The best way to counter is to regularly assess needs vs wants and recognize that beyond a point, more wealth has diminishing happiness returns. Also avoid the psychological trap of comparison. Many underestimate longevity, inflation and healthcare costs while overestimate costs towards travel, luxury, etc. during retirement. A retirement spending realism helps a lot. While the hardest question in finance isn't 'How do I get rich?' but 'How much is enough for me?' Defining 'enough' isn't about limiting ambition, it's about freeing yourself from endless striving. Knowing it helps one to stop overworking beyond what's necessary, enjoy presence without guilt or scarcity mindset and make smarter trade-offs. Would you rather chase an infinite goal or define your 'enough' and live freely? The choice is yours. (The author is a partner with 'Wealocity Analytics', a SEBI registered Research Analyst and could be reached at [email protected])
Business Recorder
7 days ago
- Business
- Business Recorder
KP presents Rs192.7bn supplementary budget
PESHAWAR: The Khyber Pakhtunkhwa government here Friday presented a supplementary budget of over Rs192.74billion for the current fiscal year. According to the budget documents, the largest expenditure, Rs150 billion, was made under government investment. Similarly, the documents said a sum of Rs10.86 billion was allocated to the Department of Social Welfare and Special Education, a huge chunk of Rs2.5 billion was paid to the federal government for repayment of foreign loan principals, and Rs. 3.10 billion for advance loan payments. Provincial Finance and Law Minister Aftab Alam presented the supplementary budget in the provincial assembly. He said the Department of Administration received a total of Rs. 545.5 million in additional funds for employee salaries, utility allowance, executive allowance, house rent, POL (petroleum, oil and lubricants), electricity bills, and vehicle purchases. The Department of Planning and Development received Rs. 61 million, Home Department got Rs. 260 million, and Prison Department was allocated Rs. 1.58 billion for prisoner food expenses. According to the budget documents, the Judiciary received a total of Rs. 2.73 billion, Higher Education Department got Rs. 1.93 billion, Communications Department Rs. 1.60 billion, Public Health Rs. 1.09 billion and the Local Government Department was given Rs. 2.87 billion in additional funds. Furthermore, an extra Rs. 590 million was paid as subsidy for inter-provincial wheat transportation. During the current fiscal year, the provincial government has released Rs. 2.5 billion to the federal government for foreign loan principal repayments and Rs3 billion for loan and advance payments, the Minister added. Copyright Business Recorder, 2025
