Pakistan

FBR says Rs30m bank account recovery carried out under tax law

Published

4 hours ago

June 26, 2026

ISLAMABAD – The Federal Board of Revenue (FBR) has defended its recovery of Rs30 million from a taxpayer’s bank account, saying the action was taken in accordance with the Income Tax Ordinance, 2001, after the individual failed to clear outstanding tax liabilities.

In a statement, the FBR alleged that the taxpayer attempted to stop the recovery by submitting forged appellate orders to his bank. It said the documents were not issued by the department, carried no official barcode, did not exist in its Inland Revenue System (IRS), and were therefore fake.

According to the FBR, the individual had publicly described himself as a non-resident Pakistani but declared himself a resident in income tax returns filed for the tax years 2017 and 2018. Under Pakistan’s tax laws, resident individuals are generally liable to pay tax on their worldwide income.

The tax authority said the individual declared foreign income of Rs23.52 million as exempt in each of the two tax years, exceeding the applicable exemption threshold of Rs5 million.

It added that notices were issued under Section 122(9) of the Income Tax Ordinance, providing the taxpayer with opportunities to submit documentary evidence in support of the claimed exemption. However, the FBR alleged that no supporting evidence was provided.

Following the amendment of the tax assessment, the FBR raised a demand of Rs30 million. It said recovery proceedings were initiated only after the amount remained unpaid, with the funds recovered directly from the taxpayer’s bank account under the relevant provisions of the law.

Tax expert Amer Sharif said the Income Tax Ordinance allows the FBR to recover outstanding tax directly from a taxpayer’s bank account, but only after completing the prescribed legal process.

He explained that Section 122(9) empowers the tax authority to amend an assessment after issuing notice and providing the taxpayer an opportunity to respond. Once the amended assessment is finalised, Sections 137 and 138 govern the payment of tax and issuance of a recovery notice.

According to Sharif, Section 140 authorises the FBR to direct a bank to transfer funds from a taxpayer’s account to recover unpaid taxes, provided the assessment and recovery procedures have already been completed.

He added that while Section 111 of the Income Tax Ordinance deals with unexplained income or assets, the FBR’s statement does not indicate that the provision was invoked in this case. Instead, the dispute relates to the taxpayer’s claim for exemption on foreign income and the alleged failure to provide documentary evidence supporting that claim.

Pakistan

Another fuel price cut likely as global oil prices slide

Published

1 day ago

June 25, 2026

Staff Reporter

LAHORE – The government is reviewing petroleum prices amid a decline in international crude oil rates, raising expectations of further relief for consumers in the coming days.

Prime Minister’s Adviser on Political and Public Affairs Rana Sanaullah said a committee had been tasked with assessing the impact of falling global oil prices and determining whether another reduction in domestic fuel prices was warranted.

He said international crude prices had retreated after easing tensions in the Middle East reduced concerns over potential disruptions to energy supplies through the Strait of Hormuz, a key global oil transit route.

According to Sanaullah, the government adopted a weekly petroleum pricing mechanism during the recent regional crisis to respond more effectively to volatility in international markets.

He said oil marketing companies had imported fuel at elevated prices to ensure uninterrupted supplies across the country during the period of uncertainty.

Responding to criticism regarding profits earned by oil companies during the price surge, Sanaullah said fluctuations in international markets affected both gains and losses for businesses operating in the sector.

“There are times when companies benefit and there are times when they face losses,” he said, adding that market realities should be taken into account when assessing the performance of oil marketing firms.

The adviser stressed that Pakistan’s petroleum pricing system operated under an established framework and cautioned against unnecessary intervention that could disrupt market operations.

At the same time, he said the government would monitor the financial position of oil companies and consider appropriate measures if firms faced undue pressure as prices declined.

Sanaullah also warned that strict action would be taken against any company found attempting to create artificial shortages or disrupt fuel supplies.

With international crude prices continuing to soften, market observers expect the government to announce a further reduction in petrol and diesel prices in its upcoming review, potentially providing additional relief to consumers.

Pakistan

Pakistan’s gold imports down 47.79pc during July-May FY26

Published

1 day ago

June 25, 2026

Haris Sarfraz Ali

LAHORE – Pakistan’s gold imports declined by 47.79 per cent during the first 11 months of fiscal year 2025-26 compared to the corresponding period last year, according to data released by the Pakistan Bureau of Statistics (PBS).

Gold imports stood at $16.09 million during July-May FY26, down from $30.82m recorded in the same period of FY25.

In volume terms, the country imported 306 kilogrammes of gold during the period under review, compared to 391kg a year earlier, representing a decline of 21.65pc.

Despite the overall contraction, gold imports posted strong growth in May on both a yearly and monthly basis.

On a year-on-year basis, imports rose by 228.38pc to $3.04m in May 2026 from $927,000 in the same month last year.

Similarly, import volumes increased by 125.93pc, rising to 20kg from 9kg in May 2025.

Compared to April 2026, gold imports increased by 28.33pc in value terms from $2.37m to $3.04m in May.

Import volumes also registered month-on-month growth, climbing 35.56pc to 20kg in May from 15kg in April, indicating a recovery in gold purchases despite the broader decline recorded during the fiscal year.

Pakistan

NA allows PTA taxes on imported phones to be paid in instalments

Published

3 days ago

June 23, 2026

Haris Sarfraz Ali

LAHORE – The National Assembly has approved a provision in the Finance Bill 2026-27 allowing individuals to pay taxes on imported mobile phones in instalments, a move aimed at reducing the upfront cost of device registration.

Under the new measure, consumers registering imported smartphones through the Pakistan Telecommunication Authority’s (PTA) Device Identification, Registration and Blocking System (DIRBS) will be permitted to clear applicable taxes through a government-prescribed instalment plan.

The legislation stipulates that all instalments must be paid within the same financial year in which the device is imported.

The facility will be available for both new and used imported mobile phones and is set to take effect from July 1, 2026, following the enforcement of the Finance Act 2026-27.

The government is expected to issue separate notifications outlining the payment procedure, eligibility requirements and other operational details.