Business
20pc penalty slapped on wrong input tax credit claims
Taxpayers making incorrect or mismatched input tax credit claims will face a 20 per cent penalty in addition to repayment of the tax amount and default surcharge under the Finance Act 2026-27.
The new provision also imposes a 20pc penalty if tax credit claimed against fake invoices is not repaid within 60 days.
According to the Finance Act, the Federal Board of Revenue’s (FBR) computerised system will identify cases where input tax credit claimed by a registered taxpayer for a particular tax period does not correspond with the output tax declared by the relevant supplier during the same or a nearby tax period.
If the discrepancy remains unresolved after the taxpayer is served a notice, given an opportunity to explain the matter and provided a hearing, the taxpayer will be required to reverse the inadmissible input tax credit.
In addition to repaying the disputed input tax amount, the taxpayer will have to pay a penalty equal to 20pc of the mismatched input tax amount.
The taxpayer will also be liable to pay default surcharge under Section 34 of the Income Tax Act, according to the provisions outlined in the Finance Act.
The measures are aimed at tightening monitoring of input tax claims and preventing the misuse of the tax credit mechanism through incorrect claims and fake invoices.
The world’s biggest cryptocurrency exchange, Binance, said it would restart withdrawals in phases, after it recovered 95% of the $6.3 billion in tokens taken from the site in the world’s greatest digital crime, which the FBI has linked to North Korea.
Binance said the phase will begin between 0600 and 0900 GMT on Sunday and will include bitcoin, ether, BNB, Solana, XRP, dogecoin and other tokens.
Binance tweeted on X late on Saturday that the other 5% of the stolen tokens are less liquid and may take longer to source in the proportions needed.
On Saturday, the FBI blamed the attack on a North Korea state-sponsored squad known as TraderTraitor.
Pyongyang has always denied deploying state-linked cyber teams for espionage, financial theft and profiteering. It did not respond to demands for comment from its Geneva mission and its embassy in China.
Law enforcement saw members of the unit turning stolen assets into the cryptocurrency ethereum, the FBI said in a statement, adding it anticipated “further laundering” of the assets using related technology.
OGRA has announced Rs14.73 rise per kilogram in the price of liquefied petroleum gas (LPG) and the new price would be Rs294.73 per kilogram.
The hike has made an 11.8kg residential cylinder dearer by Rs173.86, from Rs3,296 to Rs3,470.
As to the announcement, the new LPG pricing would be effective from November 1, 2026.
The hike was due to a 6.47 per cent increase in the contract price of Saudi Aramco, Ogra said. The authorities has published a notification announcing the revised charges.
Gold prices in Pakistan witnessed a steep drop, with 24-karat gold losing Rs10,800 per tola to Rs409,736.
The price of 10 grams of gold dropped to Rs351,282, down Rs9,259.
Gold dropped $108 per ounce to $3,872 on international markets.
The price of 24-karat silver also fell by Rs142 to Rs5,388 per tola.
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