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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
Express Tribune
21 hours ago
- Business
- Express Tribune
Ministry asked to get IMF nod for oil tax
Finance Minister Ishaq Dar said that the imposition of 17% general sales tax would increase the HOBC price by Rs45 per litre, therefore, he did not approve the proposal. photo: file Listen to article The Special Investment Facilitation Council (SIFC) has directed the Ministry of Finance to swiftly secure consent of the International Monetary Fund (IMF) for imposing sales tax on petroleum products as the matter has stalled investments of $6 billion in refinery upgrade projects. The government had earlier agreed to remove sales tax exemption on petroleum products to support struggling oil refineries and oil marketing companies. It committed to imposing 5% sales tax on petroleum, but did not include it in the Finance Bill 2025, sparking concerns in the oil industry. The Oil Companies Advisory Council (OCAC) – an industry lobby – had also raised the issue with the federal government for failing to meet the commitment and for continuing the tax exemption. The oil industry claims it has suffered Rs34 billion in losses during the ongoing financial year, which has prompted the government to allow loss recovery through the inland freight equalisation margin. "However, the main issue of GST removal from petroleum products remains in place," an industry official told The Express Tribune. Sources said that the issue landed in a recent meeting of the SIFC, which voiced concern over delay in resolving the matter. The finance ministry informed the SIFC that it had presented the proposal of levying GST on petroleum to the IMF and was awaiting its consent. The ministry expressed hope that the IMF's nod would be secured before the approval of budget by parliament. Industry officials pointed out that the government had additionally imposed carbon and petroleum levies on furnace oil, which would cause a halt to their furnace oil sales. Since the release of the Finance Bill 2024 in June last year, refineries have actively pursued the inclusion of high-speed diesel, motor spirit (petrol), kerosene oil and light diesel oil in the exemption regime under the Sales Tax Act, 1990 with the authorities concerned. Through consistent and collaborative efforts from June 2024 to May 2025, the government approved a mechanism for reimbursing the additional cost of sales tax inputs, resulting from the exemption status of petroleum products for fiscal year 2024-25. Regrettably, despite assurances and constructive engagement, the matter remains unresolved in the Finance Bill 2025. This undermines investor confidence, disrupts long-term planning and runs counter to objectives of Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023 that seeks to attract investments of $6 billion. In case the dispute drags on, it will not only derail plant upgrade plans but will also pose financial and liquidity challenges to existing operations as refineries run under a regulatory pricing regime and are unable to recover this additional burden from product pricing. Separately, a summary is circulating on social media, suggesting that the Ministry of Energy (Petroleum Division) has proposed the imposition of petroleum levy on high sulphur fuel oil (HSFO) at Rs82,077 per metric ton. This is in addition to a carbon levy of Rs2,665/MT on HSFO, as proposed in the Finance Bill 2025. It is feared that the application of petroleum and carbon levies will result in an 80% increase in the end-user price of HSFO. This may lead to a further reduction in industrial activity and domestic demand. With lower local consumption, government revenues with respect to sales tax collection will go down markedly and refineries will be forced to export HSFO at a significant financial loss. In addition, the refineries that consume HSFO as fuel in their own operations will be burdened with a sharp rise in operating costs due to the inclusion of petroleum and carbon levies.
Business Standard
02-06-2025
- Business
- Business Standard
USTU and byteXL Launches 4-Year B.Tech. Program in Generative AI & ML in collaboration with Microsoft
VMPL Mumbai (Maharashtra) [India], June 2: In a move set to redefine engineering education and career readiness in India, Universal SkillTech University (USTU), Mumbai, in collaboration with Microsoft, have launched a next-gen program in Artificial Intelligence and Machine Learning (AI & ML) designed to equip students with the skills and exposure needed to thrive in high-growth tech careers. Strategically located in North Mumbai, USTU has rapidly emerged as a hub for industry-aligned learning. This newly launched AI & ML program is a testament to its mission of blending academics, real-world experience, and deep industry networks - what USTU calls its "Learn + Work + Network = Placement" formula. What sets this program apart? Students won't just learn theories - they'll master Gen AI tools, build intelligent systems, and work on live projects powered by byteXL's experiential edtech platforms and Microsoft's industry resources. From cutting-edge algorithms to hands-on implementation, the curriculum has been built by academic experts and tech leaders to match the rapid evolution of the AI ecosystem. "At Universal SkillTech University, students are not just learning in classrooms, but also getting trained to be industry ready," said Dr. R. Kamatchi, Pro-Vice Chancellor, Universal SkillTech University. She added, "This partnership with byteXL and Microsoft reflects our commitment to building India's most employable tech talent. Through this program, our students gain the skills, exposure, and mindset to thrive in cutting-edge AI domains - from large language models to enterprise-ready intelligent systems - resulting in high-impact career opportunities." Mr. Sricharan Tadepalli, CSO & Co-founder of byteXL, echoed the vision, "This isn't just a degree - it's a launchpad for innovation. Together with USTU, we're empowering a generation ready to lead in deep tech careers across the globe, with opportunities reaching up to Rs45 LPA CTC." By combining academic excellence with real-world applicability, the USTU-byteXL-Microsoft partnership aims to transform India's higher education landscape and fuel the country's rise as a global AI powerhouse. To learn more about the USTU X byteXL Program, visit
The Star
26-05-2025
- The Star
Jailed but not failed: Inmates in Nepal turn prison into industrial unit
GULMI: As you enter the gate, a symphony of sounds greets your ears. Some are carving wood into shapes, others are giving form to construction materials. Everyone is engrossed in their tasks, leaving no one idle. Eighteen individuals are busy working intricate patterns in wood, forty are crafting furniture, thirty-eight are weaving stools, twelve are working on fabric looms, and seven are knitting caps and sweaters—their creative hands constantly in motion. This might seem like a well-run industrial operation, but in fact, this is a typical scene at the Gulmi District Prison. A glance inside reveals what looks like a hub of factory and creativity. A facility meant to incarcerate has transformed into something resembling an industrial village. The lead craftsman is a 52-year-old inmate from Makwanpur currently serving time in this prison. He has been designing 'Ankhi Jhyal', a carved wooden frame, for 26 years in Kathmandu and has spent the last two years in Gulmi prison. Here, he has also taken the initiative to teach his skills to other inmates. 'I used to do this work outside, and now I'm passing it on while continuing my craft,' he says. 'I'm earning Rs45,000 (US$509) a month.' He plans to continue in the same profession even after serving his sentence. He supports a family of four—his parents and two children—by sending money home directly from the prison. A 30-year-old inmate from Palpa, who has been doing time here for five years, initially only wove stools. Over the past two years, he has expanded his skill set to include wood carving. All these skills were acquired inside the prison. Nowadays, he supports a six-member family, including his parents, two sisters, a brother, and a son. 'With these new skills, I now earn Rs25,000 (US$283)a month,' he says. 'After my release, I plan to turn this into a business.' He is now skilled in stool weaving and wood carving, among other crafts. Another inmate, a 31-year-old man from Baglung, has continued his previous furniture-making profession while serving his sentence here. Imprisoned for the past seven years, he says he has learned additional skills in prison and now earns about Rs30,000 (US$339) a month. 'My craftsmanship has improved, and I've started earning as well,' he says. 'Once you learn a skill, it's useful anywhere.' Currently, the Gulmi prison houses 104 inmates. Except for one dependent and one disabled individuals, all other inmates are engaged in some form of work. The prison now produces a wide range of goods, including temple fittings, wooden windows, statues, door frames, stools, photo frames, sofas, tables, kitchen and office furniture, textiles, caps and sweaters. To support this production, the prison consumes about 700 cubic feet of sal (Shorea robusta) wood and another 3,000 cubic feet of various woods each month. Reshmi Raj Panthi, chief of Gulmi Prison, said products made in this prison are being exported to major cities across Nepal and many foreign countries. Hari Thapa, chief of the prison's internal administration, said that salwood-crafted windows and sofas are currently being exported to Dubai, Japan, Malaysia, India, Macau, Singapore, and Australia. 'At present, we're exporting to seven countries, and we've received inquiries from others as well,' he said. The prison has the capacity for 20 male and five female inmates. He believes prisons should be recognised as industrial zones or factories, especially when inmates are engaged in productive labour. After improving kitchen facilities and sleeping arrangements and introducing income-generating work for inmates, the overall prison environment has significantly improved. Two years ago, this prison only engaged inmates in stool weaving and textile work. But through a tripartite partnership involving the District Administration Office, the prison, and jail administration, it has now developed into a full-fledged industrial enterprise, said Panthi. 'In terms of work, this prison has already become an industry,' he explains. 'The state should officially recognise employment generation and economic benefit.' He believes that if the prison is officially registered as an industrial prison, earnings could increase even more. Janardan Gautam, chief district officer of Gulmi, sees this as a model for utilising skills at a prison for income generation. 'The central government needs to develop policies to turn prisons into industrial villages,' he said. 'We're also taking initiative.' He advocates for a prison management system that embraces policies for open prisons, rehabilitation homes and industrial villages. - The Kathmandu Post/ANN
Business Recorder
26-05-2025
- Business
- Business Recorder
FBR to levy 18% sales tax in erstwhile tribal areas
ISLAMABAD: The government has decided to impose 18 percent sales tax on goods manufactured in erstwhile tribal areas in the federal budget (2025-26). Sources told Business Recorder that the withdrawal of sales tax exemption would generate over Rs45 billion during 2025-26. The revenue impact will be higher in case income tax concessions are also withdrawn for the said areas. The Federal Board of Revenue (FBR) is drafting the necessary legal changes in light of court orders and relevant provisions of law. Ex-FATA/PATA: Rs45bn GST exemptions under scrutiny Through Finance Act, 2024 exemption available to ex-FATA/PATA (import/ supply of goods and supply of electricity) was retained till June 30, 2025. However, the exemption on import shall be available subject to presentation of pay order instead of post-dated cheque which would be released on furnishing (within six months) of the consumption/installation certificates issued by the concerned Commissioner. Copyright Business Recorder, 2025
