Business

Dar directs FBR to boost efforts for achieving ‘true tax potential’

Published

1 year ago

Farwa

Finance Minister Ishaq Dar on Tuesday directed the Federal Board of Revenue (FBR) to accelerate its efforts to achieve the true tax potential of the country.

The financial czar made the remarks while presiding over a meeting in Islamabad to review the performance of the FBR.

Dar extended his full support to the FBR in the performance of its duties for revenue collection.

During the meeting, FBR Chairman Asim Ahmad gave a detailed presentation on revenue targets and the performance of the FBR during the first nine months of the current fiscal year. It was stated that the FBR would make all-out efforts to meet its revenue target in the remaining months of the current financial year.

On February 1, the FBR claimed that it had collected Rs3,965 billion in tax collection in seven months (July-Jan) period and will have to collect Rs3,505 billion more in the remaining five months (Feb-June) of the current fiscal to meet the Rs7,470 billion target.

According to an FBR announcement, the tax machinery had surpassed the tax collection target envisaged for January 2023 with a margin of just Rs4 billion; its collection stood at Rs537 billion against the fixed target of Rs533 billion. However, FBR faced a revenue shortfall of Rs225 billion in December 2022 target.

It is argued by the FBR authorities that December 2022 was wrongly fixed on the higher side and they would be able to collect the fixed target for Income Tax, Sales Tax and Federal Excise Duty (FED). However, it might face a shortfall of Rs170 billion on account of Customs Duty collection.

The latest estimates suggest that the devaluation of the exchange rate will help the FBR overcome its expected shortfall in the current fiscal year.

According to the official statement issued by the FBR, the revenue collector had demonstrated performance during January 2023 and had not only achieved the monthly budgetary target of Rs533 billion but also surpassed it by Rs4 billion.

According to provisional figures, the FBR collected Rs537 billion in the month of January, showing a growth of 23% compared to the same month last year.

Cumulatively, the FBR had collected Rs3,965 billion in the first seven months of the current financial year against Rs3,367 billion collected in the corresponding period of the last year, depicting a growth of 18%.

The third quarter of the current fiscal year started with an impressive performance and the FBR was committed to meet the annual budgetary target of Rs7,470 billion for the current financial year despite economic challenges, said the statement.

According to the tax regulator, direct taxes collection had shown growth of 48% during the first seven months of the current financial year.

The growth in domestic taxes was 40% during the same period. The contribution of domestic taxes has also increased from 50% last year to 59% during the current year.

Business

Pakistan’s lunar mission ‘ICUBE-Q’ reaches the moon orbit.

Published

9 hours ago

Farwa

Pakistan’s lunar mission (ICUBE-Q) entered orbit around the moon on Wednesday.

Pakistan’s historic lunar mission (ICUBE-Q) launched from Hainan, China, on Friday aboard China’s Chang’E6 spacecraft.

According to the IST, the satellite ICUBE-Q was planned and developed in partnership with China’s Shanghai University SJTU and Pakistan’s national space agency SUPARCO.

The ICUBE-Q orbiter is equipped with two optical cameras to image the lunar surface. ICUBE-Q has now been integrated into the Chang’e6 mission after successfully qualifying and testing it.

Chang’e6 is the sixth lunar exploration mission launched by China.

The launch event was streamed live on the IST website and social media platforms. Chang’6, China’s Lunar Mission, will land on the Moon’s far side to collect surface samples before returning to Earth for further research.

Business

The FIA and KE have launched 13 successful operations against power theft.

Published

9 hours ago

Farwa

In March 2024, operations were performed in collaboration with the FIA, targeting locations such as Marora Goth, Peer Abad, Ellahi Colony Metroville, Merchant Navy Housing Society, Johar Colony, Willayatabad, and Architects Society, among others. As a result of these collaborative efforts, six FIRs regarding power theft have been filed. Furthermore, four people were caught, with three being remanded to jail and one being released after paying the fines. To enforce governance and maintain accountability, a total fine of PKR 44.33 million was issued. Additionally, in partnership with FIA Balochistan, KE has conducted anti-theft operations in Hub, where teams from KE and FIA thoroughly investigated places including as markets, retail plazas, residential and commercial properties.

Regular actions against illicit power use are part of KE’s everyday activities to prevent line losses and protect the safety and security of the electrical infrastructure. Since the start of the fiscal year (FY 2023-24), over 24,000 kunda removal drives have been performed, resulting in the elimination of over 190,000 unlawful connections and the recovery of over 260,000 kgs of illegal kunda wires.
Ongoing raids involving law enforcement personnel and other agencies have resulted in the registration of around 994 FIRs against various individuals throughout Karachi. Since the launch of the nationwide power theft campaign in September 2023, more over 100,000 incidences of theft of 180 million units of electrical power have been identified in KE’s service zone.

In response to KE’s anti-theft initiatives, a KE spokesperson stated that “71% of KE’s feeder network is loadshed-free. However, 29% of the KE network remains difficult, with electricity theft and nonpayment of bills still key issues. Serious theft cases have been found in Baldia, Surjani, Korangi, Orangi, Liaqatabad, Landhi, and Lyari, among other places. Highlighting the repercussions of electricity theft, which may jeopardize the safety standards of the power network, the KE Spokesperson noted that PKR 117 million has been recovered.

Recognizing the challenges faced by current macroeconomic conditions, especially high inflation, KE is taking proactive steps to assist customers by establishing facilitation camps throughout the city. Since July 2023, approximately 240 recovery camps have been hosted around KE’s operational zone to help customers resolve billing concerns, including supporting payment plans with manageable installments.

Business

Budget 2024–25: The government intends to abolish tax exemptions.

Published

9 hours ago

Farwa

According to the specifics, the federal government plans to phase out existing tax breaks for the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) regions in the upcoming fiscal year.

The decision to eliminate tax breaks in the FATA/PATA region is estimated to produce Rs 100 billion in annual revenue for the national government.

According to sources close to the issue, the Federal Bureau of Revenue (FBR) has already created a preliminary proposal for the next fiscal year’s budget, and the FBR head has also informed the finance minister on it.

Currently, the federal government provides tax breaks of Rs 1,200 billion to various industries; however, the IMF has instructed Pakistan to phase out these tax breaks in the next budget.

Pakistan’s president, Asif Ali Zardari, passed the Tax Laws (Amendment) Bill 2024 last week in accordance with Article 75 of the constitution.

According to a President House News release, the bill proposes amending legislation governing taxes and duties.

The bill’s revisions include changes to sections 30DDD, 43, 45B, 46, and 47 of the Sales Tax Act of 1990.

Similarly, the amendment bill amended sections 29, 33, 34, and 38 of the Federal Excise Act 2005, as well as sections 122A, 124, 126A, 130, 131, 132, 133, and 134A of the Income Tax Ordinance 2001.