Latest news with #SaleemMandviwala
Express Tribune
4 days ago
- Business
- Express Tribune
Senate panel rejects tax on online businesses
The Senate Standing Committee on Finance reviewed the Finance Bill 2025 on Wednesday and recommended a zero-rated tax on the income of up to Rs1.2 million and rejected a proposal to impose tax on individuals doing small online businesses. During a meeting, chaired by its chairman Saleem Mandviwala, the committee approved the proposal to impose tax on the income of online academies and teachers but opposed the levy of tax on the income of the Islamabad Club. Federal Board of Revenue (FBR) officials informed the meeting that teachers were providing online digital education services, earning Rs20-30 million. They added that a new clause had been introduced in the Finance Bill to impose tax on those doing e-commerce business, using online marketplaces. All individuals providing services via the internet and electronic networks will be affected, FBR officials said. They added that the tax will also apply to music, audio and video streaming platforms, cloud services, online software application providers, telemedicine and e-learning services. The tax would also be imposed on online banking services, architectural design services, research and consultancy reports, accounting services and other online facilities in the form of digital files, the FBR officials stated. The committee rejected a proposal to tax individuals doing small online businesses. The FBR chairman said that those with an annual income of 1.2 million will have to pay Rs12,500 in taxes. Committee member Senator Shibli Faraz said that there should be no tax on the income of Rs600,000 to Rs1.2 million. FBR Chairman Rashid Langrial told the committee that it had been decided to collect tax from entertainment clubs, including the Islamabad Club. However, the committee chair opposed the move. Langrial said that the common man did not benefit from this club, as it was the luxury of 300 people. The FBR officials said that there was a proposal to impose restrictions on the purchase of property and vehicles by non-filers. They added that a limit of 130% of the income had been set for the purchase of property by the non-filers. Senator Mohsin Aziz said that the limit of 130% for the purchase of property by non-filers should be increased. The committee recommended increasing the limit to 500%. Finance Minister Muhammad Aurangzeb said that steps were being taken to bring non-filers into the tax net.
Express Tribune
4 days ago
- Business
- Express Tribune
Senate panel proposes tax exemption for annual income up to Rs1.2m
Senate's Standing Committee meeting underway under the chairmanship of Senator Saleem Mandviwala on Wednesday. Photo: Screen grab from video of Listen to article Senate's Standing Committee on Finance has recommended exempting income tax for individuals earning up to Rs1.2 million per year. In addition, it approved a proposal to increase the limit for property purchases by non-filers from 130 per cent to 500 per cent of their declared assets. The committee met under the chairmanship of Senator Saleem Mandviwala on Wednesday and conducted a section-wise review of the Finance Bill 2025. During the meeting, FBR officials informed the committee that a new section has been introduced in the Finance Bill to bring e-commerce businesses and recreational clubs into the tax net. FBR officials stated that under the new budget, a tax will be levied on the income of online academies and teachers, some of whom are earning up to Rs30 million annually. The Senate Standing Committee on Finance and Revenue,Chaired by Senator Saleem Mandviwalla, has entered its sixth consecutive session to review and deliberate on the Income Tax provisions of National Budget for FY 2025–26.@Financegovpk — ꜱᴇɴᴀᴛᴇ ᴏꜰ ᴘᴀᴋɪꜱᴛᴀɴ 🇵🇰 (@SenatePakistan) June 18, 2025 FBR Chairman Rashid Langrial informed the committee that individuals with an annual income of Rs1.2 million would be liable to pay Rs12,500 in annual taxes. He also said the surcharge on income above Rs10 million has been reduced from 10 to 9 per cent. Langrial further stated that recreational clubs, including the Islamabad Club, would be taxed under the proposed bill. This proposal was opposed by Committee Chairman Mandviwala, who argued against taxing clubs. However, the FBR chairman contended that these clubs are exclusive to a privileged few and do not serve the general public. FBR officials also proposed restrictions on non-filers, including limits on property and vehicle purchases. Initially, a 130 per cent limit on property purchases was proposed, but Senator Mohsin Aziz suggested increasing it, arguing that a non-filer with Rs10 million in declared assets should be allowed to buy property worth Rs50 million. After deliberation, the committee approved raising the property purchase limit for non-filers from 130 per cent to 500 per cent. Senator Shibli Faraz maintained that no tax should be imposed on salaries up to Rs1.2 million, arguing that a Rs100,000 monthly income equates to just Rs42,000 in today's economic conditions. The committee rejected the imposition of tax on individuals earning up to Rs1.2 million annually and on small online businesses. Minister of State for Finance Bilal Azhar Kiyani said taxes would apply when income exceeds expenses and emphasised that this measure targets the privileged class. Finance Minister Muhammad Aurangzeb added that penalties for non-filers were increased last year and that efforts are ongoing to bring non-filers into the tax net. A new section, 17C, has been added to the Finance Bill 2025, under which online marketplaces engaged in e-commerce will be taxed. Individuals providing services through the internet and electronic networks—such as music, audio and video streaming platforms, cloud services, online software, telemedicine, and e-learning—will also be subject to taxation. Additionally, online banking, architectural design, research and consultancy, digital accounting, and other digital services will be taxed. However, the committee rejected a proposal to tax small online businesses.
Express Tribune
21-05-2025
- Business
- Express Tribune
Govt to raise tax evasion fines to Rs5 million
The federal government has decided to increase fines in the upcoming budget in order to curb tax evasion among shopkeepers and businesses, Express News reported. During a meeting of the Senate Standing Committee on Finance on Wednesday, Federal Board of Revenue (FBR) officials briefed members that fines for shopkeepers who use to evade taxes, will be raised from Rs0.5 million to Rs5 million while also proposing a reward scheme for those who report fake receipts used to avoid taxes. According to the FBR, the upcoming budget will impose heavier penalties on retailers involved in tax evasion as the government aims to expand the number of retailers registered at points of sale, targeting seven million retailers. The FBR also proposed a reward scheme to incentivise reporting of fake receipts used to avoid tax payments, with informants eligible for cash prizes up to Rs10,000. Read more: IMF official visits amid budget talks Officials said monitoring will be strengthened by deploying cameras and additional staff at retail points. The upcoming budget will also focus on sectors such as poultry, tobacco, beverages, and sugar mills, where enhanced oversight has already led to increased tax collection. Meanwhile, Senate Finance Committee Chairman Saleem Mandviwala expressed concern over long delays in sales tax refunds, which exporters claim can take months instead of days. FBR officials said they are prioritising refunds for key export sectors including textiles, sports goods, carpets, leather, and surgical products, promising faster processing. To combat tax evasion, authorities said daily business closures and fines are being enforced in major cities including Lahore, Karachi, and Islamabad, with plans to raise fines and extend measures nationwide. Read more: Businessmen oppose tariff rationalisation A media campaign against fake receipts and tax evasion will be launched soon, with plans to involve university students to help monitor thousands of shops across the country, they added. The committee was informed that new higher fines could come into effect from July 2025. Officials said the current lower penalties have weakened enforcement efforts and the government will seek parliamentary approval for the increases.
Express Tribune
30-04-2025
- Business
- Express Tribune
PAC unearths Rs3.4b graft by 195 cotton mills
The Public Accounts Committee (PAC) on Wednesday revealed that Rs3.4 billion in taxes had not been recovered from 195 cotton mills across Punjab, Sindh, Khyber-Pakhtunkhwa and Balochistan from 2012 to 2023. The revelation came during a PAC meeting chaired by Junaid Akbar. The Ministry of National Food Security and Research came under sharp scrutiny for failing to collect the cotton tax for over a decade. The secretary for food security informed the committee that the mills had taken the matter to court, but settlements were now in the works. "We hope the entire amount will be recovered in the coming months," he added. However, committee members expressed frustration over why the matter had reached this point. Senator Saleem Mandviwala questioned, "Why did it even come to this. Why wasn't the tax collected in the first place?" The secretary responded that the ministry lacked a clear mechanism for upfront tax recovery. Chairman Junaid Akbar instructed the ministry to ensure full recovery by June. PAC member Aamir Dogar lamented the deteriorating state of cotton production, asking, "Cotton is disappearing from this country... what is being done about it?" In response, the secretary said the Central Cotton Committee (CCC) was being merged into the Pakistan Agricultural Research Council (PARC), and that efforts were underway to revive the cotton sector. The committee also raised serious concerns about the frequent reshuffling of top bureaucrats in the ministry. PAC member Hussain Tariq pointed out that four secretaries had been changed within the past eight months. The current secretary, he noted, was previously serving in the Ministry of Kashmir Affairs and Gilgit-Baltistan. "It takes six months to even understand the workings of the ministry, and by that time the secretary is changed," Tariq said, urging PAC to issue guidelines discouraging such premature transfers. Shazia Marri endorsed the proposal, urging PAC to formally advise the government against frequent administrative transfers. The committee agreed to write a letter to the prime minister on the issue. Moreover, PAC members also expressed alarm over the declining cotton yield. The food security secretary assured the committee that improvement efforts were underway and that a special committee had been formed by the prime minister to address the issue. However, the committee was informed of a Rs52.3 million loss due to the CCC's failure to invest Rs90 million. "This amount has now been invested," said the secretary, but the PAC directed the ministry to submit investment verification within 15 days. Even more concerning was the revelation that the CCC hired 155 employees without Ministry of Finance approval, leading to a loss of Rs21.6 million, according to audit officials. "These 155 employees have now been terminated," the secretary claimed. When Aminul Haque asked why the staff were fired after eleven years, the secretary clarified, "These workers were not continuously employedthey were recruited for 89-day terms during each cotton season."
Express Tribune
26-02-2025
- Business
- Express Tribune
Foreign advice on Pakistan 'shameful': Vawda
Senator Faisal Vawda has said that it is extremely shameful for Pakistan to receive advice from outsiders on how to fix its problems. The statement came during a meeting of the Senate's Standing Committee on Finance chaired by Saleem Mandviwala. Senator Faisal Vawda said the Iranian diplomats have disclosed everything. "It is embarrassing for us that outsiders are telling us how to put our house in order," said Vawda, adding Pakistan is bearing a loss of $2.2 million per day. He demanded an end to what he termed as the committee's theatrics and called for those responsible for the situation to be summoned.
