Govt | Pakistan

Govt opts for self-reliance in flood recovery

• Rs1m fines proposed for unregistered online vendors in new Finance Bill • Banks, couriers to deduct withholding tax under new plan • Fine for failing to submit withholding tax statements raised by 10 times • Govt to take over property valuation powers from FBR ISLAMABAD: The federal government has proposed sweeping reforms to tighten tax compliance, including significantly higher penalties for non-compliance and stronger enforcement measures to target under-taxed and digitally active sectors. The changes, proposed in the Finance Bill 2025, aim to deter non-compliance, discourage cash-based transactions and enh­ance documentation of the economy. Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial said enforcement was the only viable option to boost revenue collection, rather than relying on new taxes. One of the key amendments is a tenfold increase in the penalty for failure to submit withholding tax statements — from Rs5,000 to Rs50,000. Authorities believe this will compel withholding agents to...

The federal government has officially invited expressions of interest (EOIs) from potential investors for the privatisation of Pakistan International Airlines (PIA), marking a major development in its bid to offload a controlling stake in the national flag carrier. According to the Privatisation Commission, the decision has been made to sell between 51% and 100% of PIA shares, along with management control, to the prospective buyer. Interested parties have until June 3, 2025 to submit their EOIs. As part of the process, the government has announced a number of incentives for investors. These include relief from 18% general sales tax (GST) on the purchase or lease of new aircraft. Additionally, protection and coverage will be provided in certain tax and legal cases, the commission stated. The move also involves the transfer of specific liabilities listed on PIA’s balance sheet, aimed at making the offer more attractive to potential buyers. This privatisation effort is a central component of the government’s br...