Tag: revenue

  • Direct taxes target predicted at Rs2,560 billion for FY 22-23

    In an attempt to meet the Federal Board of Revenue’s (FBR) revenue collection target of Rs7,255 billion for the upcoming fiscal year, the direct taxes target has been predicted at Rs2,560 billion, up from Rs2,182 billion in 2021-22.

    According to Brecorder, the indirect taxes (net) estimates were predicted at Rs4,695 billion in the macroeconomic framework for 2022-23. Direct taxes forecasts included income tax and withholding taxes, whereas indirect taxes projections included sales tax, customs duty, and Federal Excise Duty (FED).

    The indirect tax goal for 2022-23 has been set at Rs4,695 billion, up from Rs3,647 billion in 2021-22, representing a Rs1,048 billion rise. The indirect tax revenue for the fiscal year 2021-22 was Rs3,440 billion.

    The entire collection of indirect taxes in 2020-21 was Rs3,008.2 billion. Direct taxes are expected to reach Rs2,560 billion in the next fiscal year, up from Rs2,182 billion in 2021-22, a Rs378 billion increase.

    Read more: PM Shehbaz directs to eliminate taxes on raw materials used by export industries

    During the first 11 months of the current fiscal, the FBR collected roughly Rs1.9 trillion in direct taxes. In the fiscal year 2020-21, direct tax collections totalled Rs1,726.0 billion. Withholding taxes account for 72 per cent of the total direct tax collection.

  • Additional tax to be levied on high-earning businesses

    Additional tax to be levied on high-earning businesses

    In the budget (2022-23), the government intends to impose a time-limited levy or additional income tax on the yearly income earned by the steel industry, pharmaceutical business, and other profit-generating segments, as well as increase the minimum tax from two to six percent on the import of edible oil

    According to reliable sources, the government has made the decision to increase the rate of least tax on the import of edible oil from two to six percent in the next fiscal budget to boost the occurrence of levy on this large profit-earning sector. The steel sector’s minimum tax rate will be raised in the new budget.

    It is worth noting that the fresh charge will only be levied on industries and sectors that make massive profits, and it would only be in place for a limited time.

    According to Brecorder, the steel sector’s profits have increased by 20-30 per cent, but they are not paying the requisite tax bills. As a consequence, an extra income tax or levy on the yearly earned income by the steel industry, pharmaceutical sector, and other sectors earning windfall profits has been proposed for 1-2 years.

    Added income taxor levy will be paid in conjunction with the filing of tax records. The levy would be time-limited and could be imposed for one or two years.

    The Federal Board of Revenue (FBR) levies a two per cent least tax on edible oil imports, which is decided to ascend to six per cent beginning with the next fiscal year. Earnings in the edible oil industry are very high, with massive profits, but tax payments are consistent or on the low side.

    The Federal Board of Revenue (FBR) is updating a list of high-profit industries based on tax financial records, annual financial statements, and third-party data.

    A new section in the Income Tax Ordinance 2001 would be introduced through the new Finance Bill 2022 for the imposition of the said levy on high profit earning sectors.

  • Pakistan faces Rs615 billion annual deficit due to tobacco consumption

    Pakistan faces Rs615 billion annual deficit due to tobacco consumption

    Pakistan has a substantial Rs615 billion annual deficit owing to diseases caused by smoking and overall tobacco usage, with only Rs120 billion earning in tax revenue from the product.

    The government is expected to improve revenue by raising the tax on cigarettes by 30 per cent according to The Nation.

    This was voiced by speakers at a major symposium held in Islamabad on May 18. The Pakistan National Heart Association (PANAH) held a seminar on the theme ‘Harms of Tobacco Products and the Importance of Tax Policy,’ which was presided over by Patron General (R) Ashraf Khan and hosted by General Secretary Sana Ullah Ghumman.

    As per the speakers at the event, tobacco usage is a major cause of serious heart, lung, and cancer diseases in the country. A fact sheet on the health and economic costs of cigarette usage was released by the Social Policy and Development Centre (SPDC).

    According to the survey, tobacco is used by 31 million persons over the age of 15. More than 260,000 people are predicted to start smoking in the country if tobacco taxes are not raised in the budget for 2022-23.

    Engineer Iqbal Zafar Jhagra, the former governor of KP and a senior PML-N leader, was the special guest at the event. Nisar Cheema, a member of the National Assembly, was also present.

    Read more: Tobacco companies in Pakistan may bump cigarette prices

    PANAH Patron General (R) Ashraf Khan congratulated the attendees and informed them of the organization’s goals and objectives.

    Smoking was declared the primary cause of deaths from non-communicable diseases (NCDs) such as heart, cancer, respiratory, and chronic diseases, according to participants, with an estimated 163,360 persons dying in 2017.

  • Pakistani rupee records impressive gains against US Dollar, highest single-day gain

    Pakistani rupee records impressive gains against US Dollar, highest single-day gain

    In the intra-day trade on Friday, the Pakistani rupee (PKR) gained an impressive Rs3.5 against the US dollar, the highest single-day gain in two years after the Supreme Court (SC) pronounced the National Assembly (NA) deputy speaker order unconstitutional and restored the NA.

    The US dollar is currently trading at Rs185, as per foreign currency dealers, after weakening Rs3.5 versus the local currency in early trade. The USD is currently trading for above Rs186 on the open market.

    On Thursday, the rupee concluded at Rs188.18 against the USD in the interbank market.

    Consequently, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index, reversed its downtrend shortly after starting on Friday and surpassed the 44,000 mark, a day after the Supreme Court of Pakistan annulled the deputy speaker’s decision against a no-confidence motion.

    Considering the trading which continued at 44, 198 on the Pakistan Stock Exchange, the KSE-100 benchmark index gained 411 points.

    The stock market has been under pressure since April 4, when it crumbled, losing over 900 points amid Pakistan’s ongoing political crisis, which arose after the National Assembly deputy speaker declared Prime Minister Imran Khan’s no-confidence resolution unconstitutional.

    SBP’s rate increase of 250 basis points and establishment of cash margins on 177 commodities is a marker that the economic system is in a slump and that prior initiatives were inadequate. This protective approach will aid in limiting the import of certain products, consequently bolstering the balance of payments.

  • FBR records 29.1% growth during July 2021 to March 2022, despite providing ‘massive tax relief’

    The provisional revenue collection data for the months of July 2021 to March 2022 of the current financial year 2021-22 have been announced by the Federal Board of Revenue (FBR).

    The net collection was Rs575 billion for the month of March 2022, up 20.5 per cent from Rs477 billion in March 2021.

    Conversely, the gross revenues, rose by 28.9 per cent in the current financial year, from Rs3,577 billion in July 2020 to March 2021 to Rs4,611 billion in July 2021 to March 2022. Furthermore, the amount of reimbursements granted in March 2022 was Rs31.9 billion, compared to Rs26.3 billion in March 2021, showing a 21.3 per cent upsurge.

    Then again, refunds of Rs229 billion were paid from July 2021 to March 2022, a 25 per cent increase over the Rs183 billion paid the previous year.

    Read more: Petrol, Diesel prices to remain unchanged till April 15

    It is worth noting that the continuous remarkable growth in revenue collection has been achieved despite the government providing ‘massive tax relief’ to the general public on a variety of vital commodities.

    For the first time in Pakistan’s history, the sales tax on all petroleum products was abolished, costing the FBR Rs45 billion in the past month.

  • Airlift raises $85 million in Pakistan for online delivery service

    Airlift raises $85 million in Pakistan for online delivery service

    As Pakistan joins a regional startup financing boom, Airlift Technologies Pvt. has raised the biggest single private investment round in the country’s history, ahead of plans to enter international markets.

    As per details, with involvement from former Y Combinator president Sam Altman, the Lahore-based online retail delivery company received $85 million in Series B funding headed by Harry Stebbings of 20VC and Josh Buckley of Buckley Ventures Ltd. According to a data tracker from venture capitalist firm Invest2Innovate, it would be the largest-ever investment for a Pakistani company.

    Pakistan is “in the very early stages, but the transformation is happening very, very quickly and we are seeing a shift in behavior,” Airlift co-founder Usman Gul said in an interview. “We have a lot of people who previously didn’t shop online.”

    The investment in Pakistan, a country with a population of more than 200 million people and a nascent digital sector, parallels a surge of investment over the border in India.

    According to Invest2Innovate statistics, Pakistani entrepreneurs, most of which are focused on e-commerce, raised a record $101 million in the first half of this year, compared to $66 million in all of 2020. That still pales in comparison to its neighbor, where technology companies made a record $6.3 billion in the second quarter.

    The investment comes after Airlift switched to e-commerce with 30-minute shipping in September after the epidemic forced them to abandon their primary business of providing air-conditioned bus trips. It joins a very competitive market across the globe, where supermarkets and e-commerce companies like Dunzo, Gorillas, Getir, and GoPuff compete for fast deliveries in congested areas ranging from Delhi to New York and London.

    The total money raised by Pakistani startups in the first half of the year is equal to the amount raised by Airlift. According to statistics collected by Bloomberg, it also surpasses the biggest initial public offering by the private sector in the United States.

    It now intends to expand to 15 Pakistani cities by the end of the year, up from the existing eight. It’s also on a recruiting frenzy, with ambitions to increase its core staff to 400 people by the end of next year, according to Gul. In approximately three months, the firm plans to join a growing market abroad.

    “Very quickly we realised that the distribution of consumer goods was quite broken,” he said. “I ordered groceries and had to wait six hours to get that delivery. So we wanted to change that.”

  • Pakistan’s soft image can only be portrayed through tourism: PM Imran Khan

    Presiding over a meeting of the National Coordination Committee (NCC) on tourism in Islamabad, Prime Minister (PM) Imran Khan said that Pakistan is blessed with different climatic zones and numerous untapped tourist points. He said that the government is focused on eco-tourism to ensure environmental conservation while managing and looking after tourist spots.

    According to details, PM Khan said that the government would provide all possible facilities for the development as well as the promotion of the tourism sector in the country. This initiative would not only generate revenue but also provide employment opportunities for the people of Pakistan.

    Previously in his first televised address to the nation, soon after taking oath, PM Imran had said: “Pakistan has huge tourism potential. We will promote tourism to strengthen the economy.”

    Special Assistant to the Prime Minister (SAPM) for Overseas Pakistanis Sayed Zulfiqar Bukhari briefed the committee about the progress of the development of the tourism sector. He also informed that substantial work has been undertaken for the development of religious tourism.

    It is pertinent to mention here that the World Tourism Forum 2021 will be held in Pakistan. According to Zulfi Bukhari, the forum will be a five-day event with over 1,000 foreign visitors expected to attend.

    “The World Tourism Forum will have three days for conference and two days for tourism”, the SAPM had said.

    Meanwhile, American business magazine Forbes has also listed Pakistan as one of the ten must-visit destinations for those who’re looking for something offbeat.

  • ‘ePay Punjab collects record Rs1.8 billion revenue in July 2020’

    ‘ePay Punjab collects record Rs1.8 billion revenue in July 2020’

    Punjab Information Technology Board (PITB) has said that ePay smartphone application launched by the Punjab government has processed 525,339 transactions, worth record Rs1.82 billion in the form of taxes during the month of July of the current fiscal year (FY) 20-21.

    The system was launched last year in October after the collaborative efforts between PITB and the provincial Finance Department. The ePay initiative has provided a hassle-free method of paying taxes and making other payments.

    The government of Punjab has been focusing on IT-enabled solutions where citizens can avail facilities using the online platforms for payments. eBay Punjab is one such platform.

    ePay Punjab is the first digital platform for Public to Government (P2G) and Business to Government (B2G) transactions in Pakistan.

    Using the app, dues can be paid through the following payment channels: mobile banking, internet banking, ATM, and OTC (Over the Counter) banking transaction.

    • The following tax can be paid through the smartphone application
    • Excise and Taxation
    • Token Tax for Vehicle
    • Motor Vehicle Registration
    • Vehicle Transfer
    • Property Tax
    • Professional Tax
    • Cotton fee
    • Board of Revenue (BOR)
    • e-Stamping
    • Mutation fee
    • Fard fee
    • Punjab Revenue Authority (PRA)
    • Sales Tax on Services
    • Punjab Infrastructural Development Cess
    • Industries, Business Registration fee
    • Transport Department of Punjab Route Permit
    • Punjab Police and Traffic Challan.

    It is also offering a 25 per cent cut on token tax this year if paid through the app.

  • Govt collects total revenue of Rs4.9 trillion in FY2018-19

    Govt collects total revenue of Rs4.9 trillion in FY2018-19

    The Pakistan Tehreek-e-Insaf (PTI) government has collected a revenue of Rs4.9 trillion in the fiscal year 2018-19, out of which Rs4.5 trillion were collected as tax by the federal and provincial governments, Associated Press of Pakistan (APP) reported.

    According to the details, the total expenditure, however, exceeded the revenue by Rs3.44 trillion as it was recorded at Rs8.35 trillion. Out of this sum, the current expenditure accounts for Rs7.1 trillion, while development expenditure was recorded at Rs1.2 trillion.

    The highest-in-almost-three-decades budget deficit — the financial loss for a period when expenses exceed revenues — worth Rs3.44 trillion was mainly financed by local banks who lent around Rs2.3 trillion to the government. Other local institutions lent around Rs765 billion.

    External financing for the year has been recorded at Rs4.17 billion.