Category: 1. Pakistan

ISLAMABAD:

The Federal Board of Revenue (FBR) has served ‘nudging’ notices to nearly 11,000 companies and individuals, advising them to fix anomalies in their last sales tax returns or be ready for consequences such as penalties, freezing of bank accounts, and sealing of businesses.

The notices were issued last month in the middle of negotiations between the business community and the government, underscoring the authorities’ resolve to recover due sales and income taxes from individuals and companies.

FBR Chairman Rashid Langrial believes that existing taxpayers are paying far less than their due taxes. He has begun applying a risk management system to identify loopholes in the tax returns filed by these entities and individuals over the past five years. Sources said that in the first phase, about 11,000 nudging notices were served by corporate tax offices in Karachi, Lahore, and Islamabad. Traders in Karachi and Lahore also observed a strike last month against the government’s decision to give arrest powers to the FBR and add back half of over Rs200,000 in cash expenses in income tax calculations.

When contacted, the FBR said these “non-intrusive and legally non-binding nudging notices” were served to encourage behavioural and social changes among taxpayers.

“Please correct anomalies in your sales tax return. Your failure to act will be viewed as a choice not to comply,” cautioned the FBR in its notices to companies and individuals in Lahore. The FBR warned that failure to address anomalies and file accurate returns in the future could lead to financial penalties, placement of FBR staff within businesses for monitoring, and best judgment assessments by tax commissioners, which can result in heavy fines.

It also advised thousands of people that their bank accounts could be frozen and business premises sealed for non-compliance. Taxpayers were informed that the FBR used advanced data analytics to examine returns and benchmark them against peer businesses and jurisdictions. The analysis was fully automated without human involvement. The FBR said that for the tax years 2019 to 2024, its system identified anomalies in 2024 returns. These included unusually high sales claimed as exempt or under reduced-rate categories and low value addition based on the comparison of sales to purchases.

“To avoid enforcement actions, ensure that these anomalies do not reoccur in subsequent returns and file correct sales tax returns for the upcoming due periods,” the FBR cautioned. Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), criticised the FBR’s decision to serve notices during ongoing talks. He said many KCCI members received notices without any prior awareness campaign.

Bilwani also criticised the FBR’s method of comparing one shop’s sales patterns with competitors’, arguing that sales and value addition depend on brand and quality and are not uniform. “A customer may buy a shoe for Rs100 or Rs1,000. The FBR has no right to treat both values the same,” he said.

The FBR, however, claimed that nudging notices helped increase the number of returns filed in July. A final analysis will be made after the extended filing deadline ends on August 4. In another type of nudging notice, the FBR warned that reduced-rate sales were unusually high relative to domestic sales, with many sales claimed as exempt or under reduced-rate categories instead of taxable.

“Your reported output tax is significantly lower than expected for businesses in your sector and location,” the notice stated.

However, the business community argued it is unjustified to compare similar businesses without accounting for differences in efficiency, cost structures, and management. The FBR also flagged excessive refund requests stemming from high input tax claims and an unusually high number of credit and debit notes. “Please correct anomalies in your sales tax return to avoid strict enforcement actions,” stated another notice. The FBR added that enforcement actions, such as posting inspectors at business sites, particularly in cement factories, have significantly improved collections despite low sales.

The FBR chairman has also transferred over 250 tax officers from grades 17 to 22 as part of a strategy to place only A and B category officers, as classified by various agencies, in key field positions.

ISLAMABAD: The government has finalised a deal to import 200,000 tons of sugar to curb soaring prices, brushing aside the International Monetary Fund (IMF) warnings over subsidies and refusing to disclose who won the tender when it was issued, or at what cost taxpayers will foot the bill.

The first shipment is due to arrive in early September, a Ministry of National Food Security spokesperson said in a statement here Saturday. However, it did not disclose the details of landing costs and subsidy amount.

An official said the imports were ordered by a high-powered committee headed by Deputy Prime Minister Ishaq Dar. The food ministry distanced itself from the decision, while the Prime Minister’s Office claimed the import will “balance prices and provide relief to the public” — but offered no details on tender terms or the size of an IMF-opposed subsidy, while an official told The News it could be over 30 rupees a kilogram subsidy. The hush-hush handling has raised transparency alarms in an economy under strict IMF oversight, where subsidies have long been criticized for draining public finances. The IMF rejected Islamabad’s justification of a “food emergency” to push the deal through, warning that additional subsidies could derail Pakistan’s $7 billion loan program. Notably, on Thursday, the government took control of 1.9 million metric tons of sugar from private mills and placed 18 mill owners on the Exit Control List for alleged hoarding. The Pakistan Sugar Mills Association denied any seizure, blaming “divergent administrative measures” for supply glitches, while Food Security Minister Rana Tanveer Hussain accused hoarders of driving prices to Rs190/kg and vowed tough action. Pakistan exported 757,597 metric tons of sugar worth $406.9 million between August 2024 and January 2025. The food ministry said that the decision was made on the back of surplus stocks. At the same time, it said that climate-driven crop losses cut output to 5.8 million tons against 6.3 million tons demand, forcing an abrupt export halt in January. The millers of Sindh and Punjab had in their internal meeting boycotted price pacts with the government.

LAHORE: Punjab Chief Minister Maryam Nawaz has directed that the 79th Independence Day be celebrated with dignity and enthusiasm across the province.

Chief Minister Maryam Nawaz stated, “This year, Independence Day celebrations will feature special participation of youth and children. The importance of the struggle for truth, traditional attire and national pride will be highlighted. Messages from children, celebrities, national heroes, sports figures, and prominent personalities from various fields should be aired on Independence Day. The struggle for truth has further elevated the value of freedom and its celebration.” The chief minister said, This year, Independence Day is being marked with the spirit of Pakistan s victory in the Battle of Truth , Operation Bunyan-um-Marsoos. The theme of this year s celebrations is: From the Acquisition of Independence to the Protection of Independence.

She said special Independence Day activities have already commenced in every district, adding, Events scheduled from August 1 to 14 have been finalised.

The main Independence Day ceremony will be held at Hazuri Bagh on August 14, where I will hoist the national flag. I will also inaugurate the Battle of Truth Park, Battle of Truth Museum, and Memorial of the Battle of Truth at Expo Centre Lahore on August 14.

She emphasised, Public celebrations will involve the full participation of all segments of society. Houses, shops and markets will be decorated with national flags and banners. A province-wide campaign to hoist the national flag on houses has been launched. Government and private buildings across Punjab are being illuminated with special Independence Day lighting. Special roadshows and cultural floats will be organised to showcase the country s diverse cultures.

Maryam said, Fireworks and laser shows will be held at Minar-e-Pakistan on August 9, and similar shows will also take place at the tehsil and division levels. Flag-hoisting ceremonies will be held at the Chief Minister s Office and other government offices on August 10, while motorbike rallies will be held on August 13.

The chief minister said, Under the leadership of Field Marshal Syed Asim Munir, our brave armed forces have added a golden chapter to the history of defending freedom. Together, the nation and its armed forces have demonstrated that we are capable of safeguarding our independence. In a congratulatory message on the social media platform X , the chief minister lauded the brave 53 women from South Punjab who have created history by joining the Border Military Police of DG Khan and Rajanpur. Where once it was unthinkable even to mention the names of women, today courageous women have stepped forward with pride and dignity. It is heartening to see our proud daughters in uniform taking on the role of protectors. I salute these daughters who are breaking the chains of outdated traditions and forging ahead with strength and resolve.

ISLAMABAD:

Last year, sugar mills had submitted sugar stock figures to the federal government and Prime Minister Shehbaz Sharif had been very happy with these stock figures.

Based on the stock figures, the government had allowed the export of sugar which was linked with Rs2 per kg increase in retail price. It was agreed that sugar export would be halted if the retail prices went up from the benchmark price. But that price increased from the ex-mill price of Rs141 per kg to Rs200 per kg.

Now, a game of imports has started with the Ministry of National Food Security and Research announcing on Saturday that the government is going to import 0.2 million tons of sugar to intervene to overcome sugar prices hike.

The traders and sugar mill owners are both beneficiaries in the dirty game of price hike. First, the government allowed the sugar mills to pocket millions of dollars by exporting sugar and even raised prices in the domestic market.

Now, the government is betting on the sugar import rather than taking strict action against the mills which had given an understanding that they would not increase the prices of the sweetener.

The Ministry of National Food Security and Research in a statement announced the government’s decision to import 200,000 tons of sugar.

A spokesperson said the final order for sugar import has been placed and the import of sugar has entered the final stage after the opening of the tender. He said sugar is being imported from China.

“The first shipment of imported sugar will reach Pakistan in early September 2025,” the spokesperson said, adding that the aim of the import is to ensure the availability of sugar in the market and maintain price balance.

He added that the relevant committee formed by the government also successfully obtained a discount at the time of purchase in the international market. The arrival of imported sugar, he said, will maintain price balance in the local market and directly benefit consumers.

Federal Minister for Food Security Rana Tanveer Hussain recently claimed during a press conference that sugar is available in abundant quantities and its price is within the reach of the common man.

He ruled out the claims that sugar was first exported and is now being imported to allow a mafia to mint money. “Except for one or two years, sugar has historically been exported in large quantities and then imported to meet demands. The sugar issue emerges seasonally like monsoon frogs,” he remarked.

He said the Sugar Advisory Board includes federal ministers, representatives from all four provinces, and relevant stakeholders.

The government allowed sugar export in a phased manner. At the time when the export request was made, the global market price of sugar was $750 per ton.

Hussain also claimed that there is a difference of Rs8 to Rs10 per kg between ex-mill and retail prices. After the export, he said, the local price of sugar dropped to Rs119 per kg. He said the government has maintained a buffer stock of 500,000 tons.

Despite an increase in the cultivated area, sugar production fell. “As soon as we learned about the shortfall, the prime minister halted the remaining sugar export and 40,000 tons of sugar was not exported,” he added.

LAHORE:

Punjab Chief Minister Maryam Nawaz Sharif has announced that the Independence Day celebrations this year will be organised with special participation of youth and children.

The importance of the struggle for truth, traditional dress and national pride will be highlighted on the occasion, she said.

“Messages from children, celebrities, national heroes, sportsmen and eminent personalities from various fields should be played on Independence Day,” she highlighted,

She said the struggle for truth had increased the importance of freedom and its celebration.

The chief minister underscored,”This year, Independence Day is being celebrated with a spirit of Pakistan’s victory in the ‘Battle of Truth, Operation ‘Bunyan-um-Marsoos.’”

She said,”Independence Day celebrations have been titled ‘From the acquisition of independence to the protection of independence”.

She directed the authorities concerned to organise Independence Day celebrations across Punjab.

Special Independence Day activities have begun in every district and activities from August 1 to 14 have been finalised. Chief Minister Maryam Nawaz said,”The main Independence Day ceremony will be held at Huzuri Bagh on August 14, where I will hoist national flag.”

She added, “I will unveil a Battle of Truth Park, Museum and Memorial of Battle at Expo Centre Lahore on August 14.”

She underscored, “Public celebrations will be held with full participation of all sections of society,. Houses, shops and markets will be decorated with national flags and banners.”

The chief minister said,”A campaign to hoist Pakistani flag on houses has been launched across Punjab.”

She added,”Government and private buildings across Punjab have started lighting up for Independence Day.”