Latest news with #SenateStandingCommitteeonFinance
Business Recorder
5 hours ago
- Automotive
- Business Recorder
Import of up to 5-year-old used vehicles allowed with 40% extra tariff
ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025
Business Recorder
7 hours ago
- Automotive
- Business Recorder
Import of up to 5-year-old used vehicles allowed with 40pc extra tariff
ISLAMABAD: The government has allowed import of up to five-year-old/used vehicles imported in commercial quantities along with 40 percent additional import tariff in budget (2025-26). During review of Finance Bill (2025-26) on Friday, Ministry of Commerce Secretary Jawad Paul informed Senate Standing Committee on Finance that the time period for the import of old/used vehicles under the baggage scheme has not been changed and overseas Pakistanis would continue to import three-year-old vehicles under baggage scheme. The facility of five years has only been extended on the commercial import of old and used vehicles. From September 1, 2025, the commercial import of five years old vehicles would be allowed. Tariff rationalisation: Rs500bn revenue loss estimated However, there would be an additional tariff protection of 40 percent on such vehicles in 2025-26. In the next four years, the 40 percent additional import tariff would be zero on the import of used and old vehicles. The 40 percent additional import duties during 2025-26 would be reduced to 30 percent in subsequent fiscal year and finally zero-percent duty in coming years. In future, the import of 6-7 years old vehicles would also be allowed. The quantity and standards would be maintained to ensure that old and used vehicles should not create environment related problems in the country. Chairman of the Senate Standing Committee on Finance Saleem Mandviwalla stated that the same time period of five years should apply on the import of vehicles under the baggage scheme as well as commercial import of vehicles. The government should give same treatment on the import of vehicles by overseas Pakistanis and commercial importers. However, the government must ensure that 40 percent additional tariff should not be applicable on the import of five years old vehicles under the baggage scheme. There should be no distinction between the vehicles imported under the baggage scheme and commercial imports, Mandviwalla maintained. The commerce secretary stated that the gift scheme is being misused on the import of old and used vehicles. The tariff reductions would be applicable on new auto sector policy after June 30, 2026, he said. Finance Minister Muhammad Aurangzeb said that we have given enough tariff protection to domestic sectors/industries. The FBR Member Customs Policy stated that the government has not touched auto sector during tariff rationalisation during 2025-26. The government has reportedly received No Objection from International Monetary Fund (IMF) for import of five-year old used cars in the country, sources in Commerce Ministry told Business Recorder. The import of used cars will commence from September 2025 on commercial basis as current regime of import of three-year old used cars by overseas Pakistan will be discontinued. The decision has been taken in light of proposals prepared by the Federal Board of Revenue (FBR) which was making hectic efforts to allow import of five-year used cars aimed at increasing its revenue through imports. However, the issue of arrangement of foreign exchange will be a gigantic task as State Bank of Pakistan (SBP) will not remit forex for import of five-year used cars due to difficulties. Local auto industry, mainly dominated by the Japanese companies had opposed the proposal at every level but FBR did not agree citing different reasons. The government will gradually phase out regulatory duties and slash tariffs on Completely Built-Up (CBU) vehicles to below 10 percent, with a broader goal of bringing auto-sector tariffs down to single digits within five years. The personnel baggage scheme, transfer of residence and gift scheme were reportedly misused on the import of old and used vehicles. Under the law, overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022. The Customs department will not charge 18 percent sales tax on auction of serviceable old and used vehicles in case sales tax was paid at the time of local or import stage. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
FAPUASA for 25pc tax rebate for university teachers & researchers
LAHORE: A delegation from the Federation of All Pakistan Universities Academic Staff Associations (FAPUASA), led by President Prof Dr Mazhar Iqbal, former President Prof Amjad Abbas Magsi, and Central Information Secretary Dr Muhammad Jadoon Khan, participated in a meeting of the Senate Standing Committee on Finance. The session, chaired by Senator Saleem Mandviwalla, was attended by Federal Minister for Finance Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiyani, Chairman of the Federal Board of Revenue (FBR) Rashid Mehmood Langrial, and other distinguished committee members. The FAPUASA delegation was invited to present its stance on the federal higher education budget and the continuation of the 25% tax rebate for university teachers and researchers. The representatives argued that this rebate serves as a crucial incentive to retain top academic talent, attract young scholars, and prevent brain drain from Pakistan's universities. They warned that removing this benefit would demotivate academics and weaken the country's research capacity. Additionally, the delegation stressed the need to increase the Higher Education Commission's recurring grant to at least PKR 86 billion, as currently requested by the HEC, and gradually raise it to PKR 200 billion to ensure sustainable funding for higher education. The Senate Standing Committee on Finance acknowledged FAPUASA's concerns and unanimously recommended the approval of their demands. The delegation expressed gratitude to the committee for providing a platform to address academic issues at the parliamentary level. Continuing their advocacy efforts, the FAPUASA delegation held further meetings with key policymakers on the following day. They met with Pakistan Peoples Party Parliamentarian (PPPP) MNA Mir Amir Ali Khan Magsi, presenting their case and seeking his support. Magsi assured the delegation of his full backing and committed to raising their concerns in Parliament. Meanwhile, FAPUASA delegation, comprising Central President Prof Dr Mazhar Iqbal, former President Prof Dr Amjad Abbas Magsi, Islamabad Chapter President Dr Muhammad Iqbal Jatoi, and Central Information Secretary Dr Muhammad Jadoon Khan, engaged in discussions with senior government officials and political leaders. They met with Federal Minister for Education Khalid Maqbool Siddiqui and Federal Minister for Science and Technology Nawabzada Khalid Hussain Magsi. The delegation also held talks with prominent Pakistan Peoples Party leaders, including Syed Naveed Qamar, Mir Ijaz Khan Jakhrani (Chief Whip, National Assembly), Dr Nafisa Shah, Syed Agha Rafi Ullah, Syed Abrar Hussain Shah, and Pullain Baloch of the National Party, Balochistan. Additionally, they met with MQM representatives Farooq Sattar, Amin-ul-Haq, and Javed Hanif. During these meetings, FAPUASA highlighted the declining state of higher education in Pakistan and called for urgent measures to protect the sector. The delegation reiterated the necessity of maintaining the 25% tax exemption for university faculty and researchers, warning that its abolition would have severe repercussions. They also emphasized the need for increased financial support for higher education institutions to ensure accessibility for students from disadvantaged backgrounds. The delegation urged the federal government to raise the recurring budget for higher education to at least PKR 200 billion and commended the Sindh government for its consistent funding of the sector. The parliamentarians endorsed FAPUASA's demands, particularly regarding the tax rebate, and assured the delegation that they would advocate for these issues in Parliament and other relevant forums. The meetings concluded with the FAPUASA delegation thanking the lawmakers for their support in safeguarding Pakistan's higher education system. Copyright Business Recorder, 2025
Express Tribune
2 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.
Business Recorder
3 days ago
- Business
- Business Recorder
Presentations to NA, Senate panels: Juice industry urges govt to lower FED to 15pc
ISLAMABAD: The Fruit Juice Council (formally juice industry) Tuesday urged upon two parliamentary panels to reduce 20 percent Federal Excise Duty (FED) to 15 percent on the juice industry to generate higher revenues during 2025-26. According to two different presentations given to National Assembly Standing Committee on Finance and Senate Standing Committee on Finance here on Tuesday at Parliament House, the budget proposes that the reduction in price on account of chilling charges be lowered from 10% to no more than 5% of the price. This will increase the burden on the manufacturers even more. Instead of reducing the FED on fruit juices, the fruit juice and beverage industry has been burdened further. The FJC strongly urges the government to reverse this budget proposal. The Fruit Juice Council, a body representing the formal juice industry, believes that the government should reduce the FED rate of 20% imposed on the juice industry to 15%, if it wants a higher revenue than the outgoing financial year. The current 20% FED (on top of existing 18% GST) has stalled the juice industry's growth and in FY2024-25 the government's revenue projections fell short of its own expectations. This indicates that the juice industry has hit the Laffer Curve (where the taxation is so high that it results in sharp decline of sales, ultimately affecting government revenue). In line with local regulations, fruit drinks have minimum 5% fruit content, nectars have 25%-50% fruit content and pure juices have 100% fruit content. Fruit-based juices are a healthier option since they contain the goodness of fruits. Punjab and Sindh Food Authorities allow the sale of fruit-based juices in educational institutions while restricting sales of any other beverages. Copyright Business Recorder, 2025
