Tag: tax

  • Rubina Ashraf is better at saving money than we are

    Rubina Ashraf is better at saving money than we are

    Rubina Ashraf is not just one of the most talented actresses to have ever graced Pakistani silver screens but also one of the smartest.
    The veteran star has revealed her financial acumen in a recent interview and all we can say is, she is so much better at saving than we are.

    ‘Hasna Mana Hai’ host Tabish Hashmi asked Ashraf on a recent episode, “So those who earn money through acting, we often see that our actors are very wealthy during their prime, with big cars and large mansions, but then suddenly there’s a decline and they’re struggling to find money for medical treatment. So, do you manage your finances wisely? Do you invest the money you earn or spend it?”

    Rubina replied, “When I earn 100 rupees, I make sure to spend only 25 rupees, but due to inflation however, I save 50 percent of what I earn. I’ve been diligent about financial planning and believe in saving for the future. This has been my approach since the beginning of my career.”

    We wish we had that type of discipline.

    Currently Rubina Ashraf is starring in ‘Kia hai drama’ where she reviews Pakistani serials.

    Here is the link of the video:

  • Shazia Manzoor shares unique tip to reduce electricity bills

    Shazia Manzoor shares unique tip to reduce electricity bills

    In a move that’s leaving Pakistani citizens frustrated due to rising electricity rates, renowned singer Shazia Manzoor has revealed that her electricity bill has come out reasonable.
    Not only the general public but also prominent figures from the showbiz industry are protesting against the exorbitant electricity bills.

    Recently, veteran Rashid Mehmood received an electricity bill of Rs 45,000.
    A funny video of Shazia Manzoor is going viral on social media, in which she is responding to a question regarding her electricity bill.
    Shazia said, “I didn’t get a high bill. If you want, you can play my song for inspiration, light a lamp, turn off the lights, and there will be no other way.”

    Shazia Manzoor also sang her song ‘Batiyan Bujhai Rakhdi’.
    The new basic rate is set at Rs 48.84 per unit, which will rise to Rs 57.63 per unit after adding sales tax. With other adjustments and taxes, the highest electricity rate will exceed Rs 65 per unit. For consumers, this means a considerable jump in their monthly bills, with those using 401 to 500 units facing the highest cost at Rs 41.36 per unit.

  • Tax dou, phir baahir jao: no vacation abroad if you don’t pay your taxes

    Tax dou, phir baahir jao: no vacation abroad if you don’t pay your taxes

    Pakistan’s budget for 2024-25 was presented on Wednesday by Finance Minister Muhammad Aurangzeb.

    With a heavy bailout IMF bailout package weighing on the government, increased taxes have been imposed.

    The Federal Board of Revenue (FBR) has asserted strict actions against non-filers including disallowing foreign travel, No vacation abroad if you don’t pay your taxes.

    While these people are barred from travelling as per the proposal in the Finance Bill 2024-25, Haj and Umrah travellers, minors, students, overseas Pakistanis and such other classes of persons categorised as non-filers are exempted.

    The implementing agencies can face a penalty of Rs 100 million if they fail to block SIMs, utility connections or bar foreign travel of non-filers for first default and Rs200 million for each following default.

    These impositions are put forward for people failing to show necessary evidence or submitting incomplete information pertaining to tax returns or not filing returns.

    Traders and shopkeepers who did not register under Tajir Dost Scheme, will also be penalised while failure to register could result in imprisonment for six months or a fine, or both.

  • Lights, camera, action: Minister promises tax relief to stimulate entertainment sector

    Lights, camera, action: Minister promises tax relief to stimulate entertainment sector

    In a move set to ignite the entertainment industry, Punjab Finance Minister Mian Mujtaba Shujaur Rehman has pledged tax concessions to help filmmakers and cinema owners, during a meeting with a star-studded delegation of film producers and the Cinema Association, led by singer Waris Baig.

    The delegation included:
    • Zulfiqar Ahmed, Chairman of the Pakistan Film Producers Association
    • Producer and director Shehzad Rafiq
    • Safdar Malik, General Manager of Q Cinemas
    • Rabia Khan, General Manager of Cinepax Cinemas
    • Azhar Joya, General Manager of Universal Cinemas
    • Nadeem Mandviwala

    Shujaur Rehman emphasized the importance of the entertainment industry and encouraged filmmakers to revive traditional Punjabi cinema. He also urged provinces to become less dependent on federal funds by ensuring that industrialists pay their taxes.

    Additionally, he mentioned ongoing construction in the Nawaz Sharif IT City and plans to lower electricity and gas bills in the next budget.
    The film industry representatives highlighted the need for government support to revive the industry and proposed several initiatives. The minister assured them that he would consider their suggestions.

  • Dubai Loaded: names of politicians, army officials with property, money in Dubai leaked

    Dubai Loaded: names of politicians, army officials with property, money in Dubai leaked

    Thousands of Pakistani citizens including more than a dozen retired military officials and their families own properties in upscale Dubai areas, according to data revealed by the Organised Crime and Corruption Reporting Project (OCCRP) Dubai Unlocked project.

    The leaked data provides a detailed overview of hundreds of thousands of properties in Dubai and information about their ownership or usage, largely from 2020 and 2022.

    Pakistan, a country going through a severe economic crisis, came out prominent among the countries with massive properties in Dubai.

    Among the thousands of Pakistanis who own these properties are around a dozen retired military generals, two retired air vice-marshals of the Pakistan Air Force, a serving inspector general of police (IGP), a retired president of the National Bank of Pakistan (NBP), a former chairman of the Oil and Gas Development Company (OGDCL), and a serving chairman of the Pakistan Council for Science and Technology.

    Politicians

    President Asif Ali Zardari’s three children, Hussain Nawaz Sharif, Interior Minister Mohsin Naqvi’s wife, Sharjeel Memon and his family members, Senator Faisal Vawda, four MNAs and half a dozen MPAs from the Sindh and Balochistan assemblies. Former Prime Minister Shaukat Aziz also appears on the list.

    The Property Leaks have also revealed that Interior Minister Mohsin Naqvi’s wife owns a property in Dubai which he didn’t declare in the nomination papers he submitted in March this year for the Senate election.

    Per the Property Leaks data, Naqvi’s wife owns a five-bedroom villa in the Arabian Ranches. She received a rental income of AED600,000 (Rs45m) from this villa, which was purchased in August 2017 for AED4,347,888 (Rs329m) according to the record seen by The News. The villa remained in her ownership till April 2023 when it was sold for AED4,550,000 (Rs344m) as per the record.

    Military officials

    Late Gen (r) Pervez Musharraf and his wife’s name appear in the leaked data as owners of three properties in the areas of Dubai Marina, Burj Khalifa and Al Thanyah Fifth.

    Musharraf’s former military secretary Lt-Gen Shafaat Ullah Shah, who goes by the username @infantry28, is also included in the list. It should be noted his name appeared in Pandora Papers too.

    Former DG Counter Intelligence Maj Gen (r) Ehtasham Zameer, his son and other children are also on the list as owners of properties in the Al Warsan First, Marina Arcade Marsa areas.

    Also on the list is the son of Lt-Gen Afzal Muzaffar of the NLC scandal fame.

    Lt-Gen (r) Muhammad Akram owns a property in Elite Residences 4. In addition, Lt-Gen Alam Jan Mehsud and his spouse own a five-bedroom apartment in the Al Hamri Palm Jumeirah area.

    Maj Gen (r) Ghazanfar Ali Khan also owns a property in S15 Building Al Warsan First.

    Major Gen (r) Raja Muhammad Arif Nazir also appears in the leaked data for owning a property in Golf Promenade 2-A, Al Hebiah third area.

    Air Vice Marshal (r) Saleem Tariq also appears to own property. As does Air Vice Marshal (r) Khalid Masood Rajput.

    Also included in the list are Major Gen (r) Muhammad Farooq, Major Gen (r) Anis Bajwa’s spouse, and Maj Gen (r) Najam-ul-Hassan Shah.

    Businessmen

    Chief Financial Officer of Omni Group Aslam Masood along with his wife is also shown as a listed owner of several properties in the data. The News checked the value of one of them and found out that it was purchased at AED1,060,626 (Rs80m) in March 2013.

    Sohrab Dinshaw is also a property owner in Dubai. A villa he purchased in 2015 carried a purchase price of AED 1271888 (Rs 96m).

    Former president of the NBP Arif Usmani also features on the list as the owner of a penthouse.

    Bureaucrats

    IGP Azad Jammu and Kashmir Dr Sohail Habib Tajik is also on the list for owning property in Al Dafrah First Al Thanyah Third.

    The list and details will be updated.

  • Tax chor tyar hojaen; FBR, telecos agree to start blocking SIMs

    Tax chor tyar hojaen; FBR, telecos agree to start blocking SIMs

    The Federal Board of Revenue (FBR) and telecom operators have agreed on blocking SIMs of tax non-filers as part of the government’s strategy to punish tax evasion, The News reported on Saturday.

    In a statement, the FBR announced that telecom companies have agreed to start the manual blocking process of SIMs in small batches until their systems are fully equipped to automate it.

    The FBR said that the first batch comprising 5,000 non-filers has been communicated to telecom operators and further batches would be sent to telecom companies on a daily basis.

    Meanwhile, the operators have also commenced sending messages to non-filers regarding the blocking of their SIMs for intimation purposes.

    Earlier, a deadlock had been created when telecom operators refused to implement FBR’s decision to block 500,000 SIMs of tax evaders.

  • Punjab main koora tax?

    Punjab main koora tax?

    Express News has reported that the Punjab government has decided to hire local private companies instead of municipal services for waste management of 37 districts in the province.

    The government also intends to put a waste management tax on the public but it is unclear that what kind of tax it’ll be.

    The government plans to start waste management services in the next five to six months.

    Express News reported that there are no private waste management companies in some districts such as Sahiwal so the government has instructed authorities to facilitate private companies.

    In the past, the Punjab government in Lahore had given these contracts to foreign companies which became a burden on the national exchequer due to payments in dollars.

    That is why this time Punjab government intends to hire local companies.

    Rural areas will be provided with better waste management services as well.

  • IMF wants Pakistan to increase petrol prices

    IMF wants Pakistan to increase petrol prices

    The International Monetary Fund (IMF) conveyed to the Pakistani authorities that while the Petroleum Development Levy (PDL) has considerably increased in recent years, the taxation of petroleum products has declined since 2019. “The relatively low rate of taxation of petrol is also reflected in the sale price relative to other countries.” The IMF emphasized that there is a difference of gasoline prices when compared to selected neighboring countries and emerging economies.

    The average 2023 price of gasoline at the pump was $1.12 per litre against $0.97 per litre in Pakistan. The IMF report said that taking off the exemption of petroleum products under the Sales Tax would increase prices by 18% with the standard rate of General Sales Tax.
    Moreover, the IMF has also recommended in its Technical Assistance Report with the Pakistani authorities to raise taxes on domestically manufactured automobiles and on luxury goods such as yachts. It also said to increase border control to stop smuggling of oil derivatives.

    Pakistan faces a problem of smuggling especially on it Western borders with both Iran and Afghanistan. A 2023 Civil Intelligence Agency report exposed that Pakistan faced loss of more than Rs. 60 billion annually due to smuggling of more than 2.81 billion litres of oil from Iran to Pakistan, as per the report of Business Recorder.

    The Fund also recommended the Federal Board of Revenue (FBR) to tax e-cigarettes equal to tobacco in the country.

  • World Bank proposes tax reforms with 3% GDP growth projection for Pakistan

    World Bank proposes tax reforms with 3% GDP growth projection for Pakistan

    The World Bank has advised Pakistan to implement taxes on the agricultural and real estate sectors and merge the income thresholds for salaried and non-salaried individuals to create a progressive Personal Income Tax (PIT) system.

    If agriculture income and property taxes are effectively enforced, they could contribute 3 per cent of the GDP annually, totaling over Rs3 trillion. The World Bank is awaiting approval for a $350 million allocation for Pakistan under RISE-II, with the meeting date yet to be confirmed.

    Currently, the annual income threshold for salaried individuals is Rs600,000, and for non-salaried income, it stands at Rs400,000, both exempt from taxes.

    The World Bank emphasises the urgency of Pakistan’s fiscal situation and the need to generate revenue and reduce expenditures, recommending taxing the wealthy while protecting the poor.

    The World Bank proposes simplifying the income tax structure by aligning it for both salaried and non-salaried individuals, ensuring progressivity without suggesting a reduction in the current nominal threshold.

    They acknowledge the importance of considering inflation and labour market changes in recent data when reforming the income tax structure.

    The focus of the recommended tax reforms should fall on higher income brackets and include a comprehensive tax package and expenditure reforms to address unsustainable fiscal deficits.

    These reforms involve cutting down on subsidy expenditures, eliminating regressive tax exemptions, and increasing the taxation of high-income earners, particularly in agriculture, property, and retail sectors, to enhance the progressivity of the tax system.

    Regarding a question about lowering the current exemption threshold for salaried workers earning below Rs50,000 monthly, the World Bank’s lead economist clarified that the bank does not recommend a reduction in the current nominal threshold.

    Instead, the emphasis is on streamlining the income tax structure for both salaried and non-salaried individuals to ensure progressivity while protecting the poor during the reform process.

  • New tax to be imposed on citizens soon

    New tax to be imposed on citizens soon

    The local government has unveiled a new tax that has drawn mixed reactions from citizens. 

    This latest tax, to be imposed in lieu of garbage collection, will be collected from households, shops, petrol pumps, and industrial units on a monthly basis.

    Starting from October, Multan and its neighboring areas will see this sanitation tax in effect. The tax rates are set at Rs50 for houses, Rs200 for shops, Rs1,000 for petrol pumps, and Rs2,000 for industrial unit owners on a monthly basis. 

    The government anticipates an annual revenue boost of approximately Rs4.28 billion through this tax initiative. However, the move has not been met with unanimous approval among citizens, many of whom have criticised it. 

    Meanwhile, amid ongoing discussions concerning the surging costs of electricity production in Pakistan, the Kot Addu Power Company has submitted an application to the National Electric Power Regulatory Authority (Nepra), seeking approval for what could potentially become the country’s most expensive electricity generation tariff.

    The proposal suggests an electricity tariff of Rs77.31 per unit, a significant increase from the current rate of twenty-eight rupees per unit. The power company attributes this substantial hike to rising production costs.

    Notably, the Kot Addu Power Company recently secured a sixteen-month extension during the Pakistan Tehreek-e-Insaf (PTI) administration. However, this extension has not escaped controversy, as the Senate Power Committee has declared it illegal, further fueling the debate over electricity tariffs in the country.